Explain all the principles of organization.
Principles of Organization:
Organization is a structure or mechanism which enables living things to work efficiently together. This is defined as the process of grouping the work to be performed, defining and delegating authority and responsibility, establishing relationships for the reason of enabling people to work most efficiently together in accomplishing objectives. Organizing being a universal difficulty of all business concerns, several principles have been designed as guidelines for successful organizational relationships. Some common principles are:
(i) Consideration of objectives - Because the objectives have a significant bearing on the organization structure, only such objectives must be taken up and accomplished for which there is real require in the organization.
(ii) Relationship of the fundamental components of the organization - Objectives as determined in step I above find out the work to be performed and the kinds of work dictates the selection of physical and personnel facilities.
(iii) Responsibility and Authority -Meaning of responsibility is accountability. This is the obligation of the subordinates to the boss to perform a work specified to them. Meaning of authority is right to command and power to act. Because the top man in the organization cannot do each and everything he alone, a definite chain of authority and responsibility is given from the top executive to each employee through some layers or levels among them.
(iv) Span of control - Span of control implies the number subordinates which report to an executive or the number of subordinates as an executive can supervise directly. Based on the conditions of the business enterprise, the span of control can change from 2 to 20.
(v) Dividing and grouping work - Divisionalisation gives a broader perspective, a greater sense of responsibility on the part of the personnel and extra clear-cut control over profits. Grouping or departmentation is the process for specialization of grouping of activities. It also helps in coordination that means weaving together the segments of an organization in a coherent whole in this way that all parts operate at the most optimum level and create maximum profits.
(vi) Effective Delegation - It is said to exist when an executive in place of doing all the thinking for the unit himself, passes down to his subordinates any task on that they can take decisions themselves and perform this efficiently and effectively.
(vii)Communication - Communication function as a linking process by that parts of an organization are tied together. Good communication is necessary and this has to be a two- way communication.
(viii)Line and Staff functions - All activities of an organization can be categorized into Primary and Supporting activities. Line or Primary activities are those which contribute directly and visibly to the objectives of an organization. Staff functions or Supporting activities are those which aid the line or are auxiliary to the line functions.
(ix) Balance, Stability and Flexibility - All units of an organization should be balanced to achieve the goals of the organization more efficiently. Organizational stability refers to the ability to withstand the losses of the key personnel when they leave the organization. Organizational flexibility gives the capacity to adjust work assignments, personnel and services to temporary changes that take place in the volume of work.