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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