5. Organization
Approved structure of roles that assigned to people In order to achieve the objectives efficiently and economically
1. Responsibilities should be divided, no one controls all transactions
2. Manager should have the authority to take the action necessary
3. Individual responsibilities should be clearly defined (not sidestepped)
4. Official follows up the assigned tasks of subordinates
5. Delegated persons should exercise their authority without close supervision but they should check with the superior in case of exception
6. People should be accounted for their superior
7. Flexible to change in org. structure when plans, policies, and objectives are change
8. Organization structure should be simple as much as possible
9. Organization charts and manuals should be prepared and provide better understanding