Saturday, 24 April 2021

Importance of Organisation (MIS 24.04.2021)

Importance of Organisation:

Organisation is one of the basic functions of management. Organising includes establishing an appropriate structure of relationships among the various positions and individuals in the organisation. A sound organisation structure can contribute to the success of an enterprise in more than one way. It is as a matter of fact the backbone of management.

 

The significance of sound organisation will be clear by studying the following factors:

 

1. It facilitates co-ordination

2. It facilitates management

3. It facilitates growth and diversification

4. It provides scope for training and development

5. It provides for optimum use of technological innovations

6. It ensures an optimum use of human resources.

 

1. It facilitates co-ordination:

Organisation is an important means of bringing co-ordination among the various departments of the enterprise. It creates clear-cut relationship between the departments and helps in laying down balanced emphasis on various activities. It also provides for the channels of communication for the co-ordination of the activities of different departments.

 

2. It facilitates management:

The function of organising is very much necessary for the performance of the other functions of management like planning, staffing, directing and controlling. Poor organisation may result in duplication of work and efforts and some of the important operations may be left out. Good organisation facilitates the performance of various managerial functions by division of labour, consistent delegation or job definition and clarity of authority and responsibility relationship.

 

3. It facilitates growth and diversification:

Sound organisation helps in the growth and expansion of the enterprise by facilitating its efficient management. Sound organisation helps in keeping the various activities under control and increase the capacity of the enterprise to undertake more activities.

 

4. It provides scope for training and development:

An effective organisation facilitates delegation of authority which is an important device for training and developing the personnel. Delegation of authority is also an important means of directing the subordinates. It prepares them to take more responsibility whenever need arises.

 

5. It provides for optimum use of technological innovations:

Sound organisation structure is not rigid but it is flexible to give adequate scope for improvements in technology. It helps in introducing changes in the enterprise by modifying the authority and responsibility relationships in the wake of new development.

 

6. It ensures an optimum use of human resources:

Sound organisation matches the jobs with the individuals and vice versa. It ensures that every individual is placed on the job for which he is best suited. This helps in the better use of individuals working in the enterprise.

 

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