Class 12 Business Administration Notes · GSEB

Process and Steps of Organising

Process and Steps of Organising — the scientific sequence that turns goals into departments, positions, delegated authority, and a published organisation chart. GSEB Class 12 Commerce notes covering all seven steps in exam order.

Last updated: 27 Oct 2026

Notes

Why the Process Matters

Notes — the key lines

Organising is a process, not a one-time act: a series of steps that builds the structure. Each step removes a decision — what work, who does it, who reports to whom. The process ends with a visible organisation chart.

An organisation built without a proper process does not collapse in one day — it is slowly destroyed. The sequence of steps is the safeguard.

The process in one line

  1. 1 · Objectives
  2. 2 · Functions
  3. 3 · Departments
  4. 4 · Positions
  5. 5 · Delegation
  6. 6 · Relations
  7. 7 · Chart
  • The formation of organising is a scientific process, not an improvised arrangement.
  • Peter F. Drucker: “The lack of proper formation of organization can not sustain for longtime. Hence, the unit is slowly destroyed.”
  • It is by ensuring the proper steps of forming the organisation that functional relations are established properly.

Trap — The steps are not the five management functions — this is one function broken into seven steps.

The Seven Steps of Organising

Notes — the key lines

Seven steps: clarify objectives → list functions → departmentation → positions and abilities → delegation → inter-relationships → organisation chart. The order matters: work is listed before it is grouped, and grouped before people are placed. The chart is the output of the process, displayed so everyone sees the structure.

Step 1 — Clarification of Objectives

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Before the organisational structure is formed, the goals must be clearly defined and properly understood. The main goals and the sub-goals should be interpreted properly, and the organisation is formed on that basis.Establishing proper goals with proper clarity is the first step towards proper organising.

Trap — Departmentation is step 3, not step 1 — objectives and the function list come first.

Exam Questions

Exam Questions

Attempt first; then open the answer.

1 question
1
Explain steps for the process of organisation.
5 marks