Organizing Plan

          The final product of the organizing is called an organization plan. It should accomplish four things:

1.   Divide the entire firm into manageable departments.
2.   Establish authority for each task assigned.
3.   Properly decentralize the management work.
4.   Provide an overall structure for the entire organization.

          The final organization plan may divide the firm into subunits according to functions, processes, geographical areas, products, or customers. Most important, it must make the authority and responsibility clear to those who perform the assigned tasks. We should note that it's easier to describe the organizing process, as we have just done, than it is to organize a specific firm in actual practice. The process of organizing a business firm is not easy or simple. Best result are achieved through a knowledge of sound and accepted principles of business management. Let's look at some of those principles now.