"It can be told to the employees who are involved in production, purchase and stores will take orders from and be accountable to production manager".

Identify the step in the process of organizing from the above lines.

Establishing reporting relationship

The correct answer is option 4- Establishing reporting relationship.

The statement indicates that employees involved in production, purchase, and stores will take orders from and be accountable to the production manager. This establishes a reporting relationship, defining who is accountable to whom within the organizational structure.

Establishing reporting relationship- Merely allocating work is not enough. Each individual should also know who he has to take orders from and to whom he is accountable. The establishment of such clear relationships helps to create a hierarchal structure and helps in coordination amongst various departments.