7 important functions of an Organisation:

1. To define the role of the individual:

An individual employed in an enterprise must know his role, position and relationship with other personnel in his department and with others. Organisation becomes necessary so that the persons involved in the enterprise can identify themselves in the enterprise. It is through the organisation that one can know his position and role in the unit. He can relate his position with other members of the enterprise.

2. Determination of authority:


The assignment of a certain role proposes the granting of certain authority so that performance can be possible. Organisation is necessary to define the authority i.e., the rights and powers of men in different positions which would help them to discharge their assigned roles.

3. Fixation of responsibility:

Each individual is assigned a certain duty organisational structure defines what performance is expected of a member of the unit of the department of the enterprise. Absence or faulty determination of responsibility will lead to irresponsible functions, behaviour and attitudes.

4. Specialisation:


Modern production and management techniques are based on the idea of specialization which means the performance of different parts of a job by persons specifically suited for them.

Organisation is basically required to promote specialization. Efficient and smooth functioning is possible when different elements of a job are performed by experts and their efforts are pooled to attain the desired and product.

5. Coordination:

Since the pattern of managerial operations is to be based on die division’ of labour, there arises the need of coordinating the activities of various individuals or that of different departments. They perform diverse, activities and these have to be woven into the main fabric.


6. Proper utilisation of human resources:

The most important thing for enterprises is to make the best possible use of its human resources. There must not be wastage or misapplication of human efforts. This is of great importance for economy as well as for the achievement of objectives.

It can be possible only by suitable organisation, which avoid all bottlenecks-chances of work being held up and allow smooth flow of performances.

7. Efficient functioning:


Efficiency is to be the watchword of an enterprise, all the factors mentioned above will have a great impact on the efficient functioning of the enterprise, and Organisation avoids all duplication in jobs, overlapping and wastage. It promotes speedy, smooth and efficient functioning of the enterprise.