Arrange the following steps of developing an organizational structure in sequence.

A. Enumerate and group the activities of the enterprise consistent with the determined objectives.
    B. Assign the grouped activities to personnel.
    C. Clearly define the objectives of the organization.
    D. Determine the span of supervision and authority structure.
    E. Assess the capacities and abilities of human and other resources.

Choose the correct answer:

Correct option is A

The correct sequence of developing an organizational structure is rooted in logical planning and alignment with organizational goals. 

• C. Clearly define the objectives of the organization:
  Every structural design process starts with identifying the purpose and direction of the organization. Without objectives, structure would lack purpose.

• A. Enumerate and group the activities of the enterprise consistent with the determined objectives:
  Once objectives are set, relevant activities are listed and grouped to achieve those objectives—this forms the basis for departmentalization.

• B. Assign the grouped activities to personnel:
  The next logical step is allocating responsibilities to individuals or teams, ensuring each group of activities has accountable personnel.

• D. Determine the span of supervision and authority structure:
  After roles are assigned, a supervisory framework must be built. This includes the hierarchy, reporting relationships, and span of control.

• E. Assess the capacities and abilities of human and other resources:
  Finally, reviewing the organization’s capabilities ensures that the structure can be supported with the available resources (people, tools, finance, etc.).

This order ensures that the structure is built strategically, not just administratively. Any change in this sequence may lead to inefficiencies, duplication, or misalignment.

Information Booster:

• Organizational Objectives act as the foundation; structure follows strategy.

• Activity Grouping leads to formal departmentalization (e.g., by function, product, geography).

• Assignment of Responsibilities ensures accountability and clear role distribution.

• Span of Supervision affects managerial load and communication efficiency.

• Authority Structure defines who has decision-making power and establishes hierarchy.

• Assessment of Resources ensures the designed structure is practical and sustainable.

• A good structure balances flexibility with control, adapting to both internal goals and external environments.