The step of organising function which is responsible for creating a hierarchical structure and helps in coordination among various departments is known as _____________.

Establishing reporting relationships

The correct answer is option (4) : Establishing reporting relationships

1. Identification and Division of work: This is the first step in the organizing process. Here the total work of the organization is divided into a number of small units and assigned to achieve the predetermined goals.

2. Departmentalization: It refers to the process of grouping the activities of similar nature under the same department. The department can be done on the basis of function, on the basis of type of product and on the basis of territory.

3. Assignment of duties: Here the jobs are assigned to the employees based on their skill and caliber to ensure effective performance. It is more important to balance the nature of job and the capabilities of the employee before assigning the duties.

4. Establishment of reporting relationships : After assignment of duties, it is necessary to establish an authority between superior and subordinates. The individuals should know from whom they can take the order and to whom they are accountable