Wednesday, July 29, 2009

Importance of Sound Organization

As we are of management field, sound organizations the backbone of management. It is establishing authority-responsibility relationship among various positions. It is cycle through which management directs, coordinates and controls business. World famous industrialist of USA Mr. Andrew Carnegie “Take away all our money, our mines, and cook ovens, but leave us our organization and a few years, I shall have re-established myself”. It means there is no alternate or substitute for a good organization. If we have our organization we can again re-establish it and can take the organization in higher position than it was.

1) Specialization:
It promotes the specialization, speedy performance of tasks and efficiency. The activities are divided and subdivided into compact and convenient jobs and are also grouped on the basis of similarity.

2) Avoids omissions and duplications of works :
In organization process specific jobs are assigned to individuals and work-groups so that to avoid omission and duplication of works or overlapping of works.

3) Clear-cut authority and responsibility relationship:
A sound organization structure clearly separate or defines the authority and responsibilities of various position and this helps employees to know their role in jobs and how is he/she related to others and when will direct to whom.

4) Facilitates coordination and communication :
A sound organization facilitates coordination and communication among the various departments within the organization. Smooth coordination is one of the process which leads to smooth organizational activities.

5) Facilitates growth and diversification :
A sound organization is flexible in nature so it facilitates the scope for growth of the organization through creating more departments, enlarging existing department, widening span of control, etc.

6) Scope for technological innovations :
Sound organization is not rigid. It is flexible and provides some space for adoption of new technology. It helps in introducing charge in the enterprise by modifying the authority and responsibility relationships in the wake of new development.

7) Better industrial relations :
An effective organization coordinates the group effort. If the organization have group effort than the team spirit will be developed and make the confidence level high. Moreover systematic fixation of authority, responsibility and adequate training and development leads to better industrial relations.

8) Facilitates staffing :
The total requirement of employees at various departments and section such as need of manager, employees and workers facilitates staffing

9) Facilitates ‘management by exception’ :
This principle suggests that the higher level manager should attend to exceptional matters only and rest matters should be taken at lower levels. So, they can concentrate themselves on that matter.