Thursday, April 15, 2010

PRINCIPLES OF ORGANIZING

Organizing is one of the major functions of management. The success or failure of the organization depends upon sound and efficient organizational structure. Hence, there is a need to follow certain principles of organizing to formulate and develop sound and efficient organization. These principles are as follows.

(1) Unity of Objectives
The goals of the organization influence the organization structure. Hence, the goals and objectives must be clearly defined for the entire organization, for each department and even for each position in the organization structure. If there is contradiction among the various levels of objectives, then entire goals of the organization cannot be achieved. There must be unity of objectives so that all efforts can be concerned on the set goals.

(2)Specialization
The total task in an organization should be divided in such a manner that every person is confined to a single job. This leads to specialization. An employee repeatedly performing a specific single job becomes an expert in that job. The work assigned should be according to his abilities and aptitude. Then he can work with greater economy and efficiency.

(3) Span of Control
Span of control represents a numerical limit of subordinates to be supervised or controlled by a manager. As there is a limit to the number of subordinates that can be supervised effectively. However, the exact number of subordinates will vary depending upon the nature of job, competence of the manger, quality of subordinates etc.

(4) Exception
Each manager should make all decisions within the limitation of delegated authority. However, only exceptionally complex matters should be referred to the higher levels for their decision. This will enable the executives at higher levels to devote time to more important and crucial issue.

(5)Scalar Principle
This principle sometimes known as the ''chain of command''. It is unbroken line of authority from the top level to the bottom of an organization. It makes clear about who will work under whom. The chain of command (scalar chain) should be short and clear which makes decision making and communication more effective.

(6) Unity of Command
The principle of command suggests that an employee should have one and only one boss. Each subordinate should have only one superior whose command he has to be obey. Directions from several superiors may result in confusion, chaos, conflict.

(7) Delegation of Authority
Proper authority should be delegated at all levels of management. The authority delegated should be equal to responsibility so as to enable each manager to accomplish the task assigned to him.

(8) Responsibility
According to this principle, the responsibility of all employees should be made clear. The superior should not be allowed to avoid responsibility by delegating authority to his subordinates.

(9) Authority
Authority is the tool by which a manager is able to accomplish the desired goals. Hence, the authority of each manager should be clearly defined and it should be equal to responsibility. In the absence of adequate authority, responsibility leads to frustration and ineffective performance.

(10)Efficiency
The efficiency of an organization is measured through the ability of achieving the predetermined goals at minimum coat. The organization structure should enable accomplishment of organizational goals. Hence, it should ensure optimum utilization of all resources.

(11) Simplicity
The organizational structure should be simple with minimum numbers of levels so that each member can understand his duties and authority relationships. An organization with few levels in organization means difficulty of communication and coordination.

(12) Flexibility
The organization structure should be adaptable to changing environment and needs of the organization. For this organization structure should be flexible. It should permit replacement without dislocation and disruption of the basic design.

(13) Balance
The principle of balance should be followed while organizing structure. There should be a reasonable balance in the size of various departments and between centralization and decentralization.

(14) Unity of Direction
There should be one objectives and one plan for a group of activities having the same objectives. There should be one official for each group of the same activity. By this there will be unity of direction. This facilities verification and coordination of activities.

3 comments:

  1. Thank you so much... Very helpfull

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