Importance of a sound Organisation

1. Organisation increases managerial efficiency in a number of ways:

It avoids delay, duplication or confusion in performance and removes friction or rivalry among personnel. By analyzing the enterprises objectives, all pertinent activities are spelled out in order of their importance.

These activities in turn are allocated to definite individual as fixed duties. The assignment of fixed duties helps to add certainty and promptness in the doing of work without any shirking of responsibilities by subordinates.

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2. Organization ensures an optimum use of human efforts through specialisation:

Because of the detailed job specification right persons are placed in the right positions on the basis of their knowledge, skill and experience.

Men with outstanding abilities are not allowed to waste their time and energy over a minor job. By matching jobs with individuals and vice versa, organisation enlists the benefits of both functional and occupational specialisation.

3. Organisation places a proportionate and balanced emphasis on various activities:

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By dividing activities into departments, sections and jobs, a greater attention can be focused on more important activities. Money and effort can be spent proportionately with the importance of activities.

Minor problems are incorporated in routine jobs so as to facilitate their handling at a lower-level. Important and serious problems are reversed for top jobs which are filled by senior executives for enabling them to concentrate on major issues and challenging situations.

4. It facilitates co-ordination in the enterprise:

Different departments and sections, positions and jobs, functions and activities are welded together by structural relationships of the organisation.

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Empire building in any segment of the enterprise is made difficult by sound organising. Common interests and enterprise objectives are kept at the forefront of each segment or area of the business.

5. It provides scope for training and developing managers:

Management personnel are trained to acquire a wide and varied experience in diverse activities by their placement in different jobs through job rotation and thus they are prepared for top jobs which require generalists rather than specialists in a narrow sphere.

6. It helps to consolidate growth and expansion of the enterprise:

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It is the organising practice that has encouraged the business enterprises to expand their sizes to an ever- increasing level.

With hundreds of employees and extensive ramifications of operations, giant enterprises are the direct outcome of the organising function of management. No economic theory, no cult of the colossal could have dared to prescribe such mammoth sizes but for the development organisation practices.

7. Organisation prevents the growth of laggards, wire pullers intriguers or other forms of corrupters:

Corruption can only thrive in those enterprises which have failed to set up a sound organisation structure. Unsound organisation becomes the breeding ground of dishonesty, whether in matter of effort or of money.

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With the passage of time, however, even a good organisation may be transformed into a bad one unless continual adjustments are made with varying circumstances.

8. It guarantees best use of human and physical resources:

Because every individual is allotted work according to his skill and ability. This makes sure of coordinated working, which avoids confusion, friction of conflict; it allows greater understanding among individuals.

9. It provides clarify of function:

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Each individual is signed a specific job and clarifies the activities to be performed by him. This enables him to perform his job efficiently to fulfill his predetermined goals:

10. It makes communication effective:

It is through organising thai .ommunication is reordered easier. Confusions and mis-understandings are avoided.

11. It provides basis for appraisal and rating:

Individual performance and capabilities can be appraised and rated by organising function.

12. It helps salary and wage administration:

As organising provides all information of workforce, salary and wage administrations made easier.

13. It helps promotion:

Promotion of employees is made easier by organising. It evaluates the merit of each individual and helps him to fit in suitable promotional avenues.