Ans. Importance of Organisation
Sound organisation contributes greatly to the continuity and success of the enterprise. Its importance can be discussed below :
Facilitates Administration : Sound organisation facilitates management to relate resource flows continually to overall objectives. It provides an appropriate platform from where management can perform the functions of planning, direction coordination, motivation and control.
Facilitates Growth and Diversification : It helps in organisational elaboration. Growth and diversification of activities is facilitated by clear division of work, proper delegation of authority etc. As the organisation expands to a reasonable proportion, the functional types can be replaced by a more flexible decentralised organisation.
Permits Optimum use of Resources : Sound organisation permits optimum use of technical and human resources. The organisation can incorporate the latest technological improvements like computers, electronic data processing machines etc. It permits optimum use of human efforts through specialisation. It also develops people by creating appropriate training and promotion opportunities. Thus, organisation gives a company the greatest possible strength for meeting predicted needs-changing conditions.
Stimulate Creativity : Specialisation provides individuals with well-defined duties, clear lines of authority and responsibility. Sound organisation structure enables managers to turn over routine and repetitive jobs to supporting positions and concentrate on important issues where they can exploit their potential better. Thus, it encourages the creativity of the people.
Encourages Humanistic Approach : People can work in team and not like robots or machines. Organisation provides job rotation, job enlargement and enrichment. Jobs are designed to suit human needs and are made meaningful and interesting. Organisation adopts efficient methods of selection, training, remuneration and promotion of employees. Proper delegation and decentralisation, conducive working environment and democratic and participative leadership provide higher job satisfaction to the employees. It enhances the interaction among different levels of the management.
Although we have discussed the importance of the organisation, a sound organisation structure by itself does not guarantee success. According to Drucker good organisation structure does not by itself produce good performance-just as a good constitution does not guarantee great presidents, or good laws or a moral society. But a poor organisation structure makes good performance impossible no matter how good the individuals may be.
Steps in the Organisation Process
Organising involves the following interrelated steps:
Determination of Objectives : Organisation is always related to certain objectives. Therefore, it is essential for the management to identify the objectives before starting any activity. It will help the management in the choice of men and materials with the help of which it can achieve its objectives. Objectives also serve as the guidelines for the management and the workers. They will bring unity of direction in the organisation.
Identification and Grouping of Activities : If the members of the groups are to pool their efforts effectively there must be proper division of the major activities. Each job should be properly classified and grouped. This will enable the people to know what is expected from them as members of the group and will help in avoiding duplication of efforts. For instance, the total activities of an individual industrial organisation may be divided into major functions like production, purchasing, marketing, and financing, and each such function is further subdivided into various jobs. The jobs then may be classified and grouped to ensure the effective implementation of the other steps.
Allotment of Duties : After classifying and grouping the activities into various jobs, they should be allowed to the individuals so that they could perform them effectively. Each individual should be given a specific job to do according to his ability and made responsible for that. He should also be given the adequate authority to do the job assigned to him.
Developing Relationships : Since so many individuals work in the same organisation it is the responsibility of management to lay down structure of relationships in the organisation. Everybody should clearly know to whom he is accountable. This will help in the smooth working of the enterprise by facilitating delegation of responsibility and authority.
Integration of these Groups of Activities : Integration can be achieved in all activities in following ways : (a) through authority relationships – horizontally, vertically, and laterally and (b) through organised information or communication systems, i.e., with the help of effective coordination and communication. We can achieve unity of objectives, team work and team spirit by the integration of different activities.
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