10 important factors contributing towards co-ordination are given below:

(1) The Foundation of Authority:

There must be one central and supreme coordinating authority in the organisation. The implication is that there should be one point in the structure which is the focus of authority, and to which the whole organisation can turn its eye when there are disruptive and unbalancing tendencies. This point and source of authority must be clearly demarcated.

(2) Existence of a Community of Interest:


Each and every part and member of the organisation should have a common understanding of the main objectives of the organisation. A spirit of identification with the company aims and interests should saturate the whole organisation. It is only such an atmosphere of understanding that can lay the basis for synchronised activity in the business.

(3) Formulation of Common Procedures:

There are procedure requirements for every activity within the business. Even if there is a community of interests and understanding of objectives throughout the organisation, it does not imply that detailed implementation will proceed harmoniously.

Each department of every person within each department may have its/his way of handling things. While such differences have to be acknowledged and accepted, it must at the same time be ensured that such differences are explained and understood throughout the organisation. Such an understanding of procedural matters, and differences therein, must be initiated by top management.


(4) Arrangement of Standing Mutual Communication Channels:

Mutual communication between all sectors of the enterprise is a key to achieving co-ordination. A system of departmental reports or news bulletins at regular intervals or, even daily, may be instituted.

This will ensure the dissemination of current information about all parts of the business amongst themselves. Such communication channels should be lateral as well as vertical and diagonal, if necessary.

(5) Provision of Coordinative Staff or Department:


If the enterprise is of a very large size, it may warrant setting up a separate section entrusted with the task of arranging and reviewing co-ordination methods or techniques.

The duty of such staff should be the collection of relevant data and information from different sectors of the business, balancing them mutually, observing discrepancies, and reporting these to the departments out of balance and to top-management.

(6) Establishment of Integrated Control System:

Building up an integrated control system automatically enforces co-ordination. The main point in such integrated control system is that the whole system is built around the key-factor of the business.


The ‘budgetary control’ system is the best example in point. If sales be the key-factor, the sales budget is prepared first. Production budget, materials and labour cost budget, capital expenditure budget are, then all integrated to the sales budget. It is thus ensured that all the business activities operate in union.

(7) Arrangement of Departmental Meetings:

Regular meetings between people concerned with different functions of the business are an effective way of co-ordination their efforts.

Any wayward move by a section of the business will inevitably come up during such meetings, such aberrations can then be adjusted to conform to the regular business pattern and be co-ordinated with other activities.


(8) Sound Organisation Structure:

An organisation structure built on the foundations of sound principles is the fundamental prerequisite to co-ordination. It is the structure that links the various parts of the business into a systematic whole, established the pattern of relationships, outlines the responsibilities and authorities, indicates the span of control, and provides the basis for communication channels.

It is no exaggeration to state the building up a sound organisation structure leads by itself to a well – coordinated business – system. The ‘linking pin’ concept is highly relevant in this context.

(9) Personal and Direct Supervision:


The role of supervisors in achieving co-ordination is to achieve co-ordination at the lowest level of the organisational pyramid. They have to come into direct contact with the workers; have to intended tracks, and that they contribute collectively to the promotion and achievement of company goals.

(10) Organisation Journals:

This is a formal device employed by many large organisations. These house organs, as they are often called set the broad objectives and policies of the organisation which are subsequently broken down into section policies.

The general philosophy of the organisations and its function are therein outlined clearly. The departmental structures, the personnel meaning them, their mutual rights, powers, authorities and responsibilities, etc, are incorporated in the manuals.

Consequently, they serve as a comprehensive general guide to the understanding of the business and the appreciation of the role and significance of each part and member thereof in the context of the ordination is positively strengthened thereby.