PRINCIPLES OF ORGANISATION
Effective and efficient working of any organization depends on how the
managerial function of organization is being performed. The function of
organization can be carried effectively with the help of under mentioned
principles:
(i) Division of work: While structuring organization, division of work,
at the very outset, should be considered as the basis of efficiency. It
is an established fact that group of individuals can secure better
results by having division of work. Therefore, while designing the
organization we should aim at making suitable grouping of
activities. This is also called the principle of specialization.
(ii) Attention to objectives: An organization is a mechanism to
accomplish certain goals or objectives. The objectives of an
organization play an important role in determining the type of
structure which should be developed. Clearly defined objectives
facilitate grouping of activities, delegation of authority and
consequently effective coordination.
(iii) Span of management: Span of management also refers to span of
control signifying the number of subordinates reporting directly to
any executive. It is an established fact that larger the number of
subordinates reporting directly to the executive, the more difficult it
tends to be for him to supervise and coordinate them effectively.
This important principle of management should also be kept in mind.
(iv) Unity of command: Organization structure should also be designed
in such a way that there exists unity of command in the sense that a
single leader is the ultimate source of authority. This facilitates
consistency in directing, coordinating and controlling to achieve the
end objectives.
(v) Flexibility: While designing the organization it should be kept in
mind that organizational structure should not be regarded as static.
Every organization is a living entity in a living environment which is
fast changing. As such there must be sufficient room for changing
and modifying the structure in the light of environmental changes so
that the ultimate objective of the organization is achieved.
(vi) Proper balance: It is important to keep various segment or
departments of an organization in balance. The problem of balance
basically arises when an activity or a department is further divided
and subdivided into smaller segments. The problems of balancing
also crops up with the growing of any organization in its size and
functioning.
(vii) Management by exception: It is a fundamental principle that makes
any organization effective in its true sense. This principle signifies
that problems of unusual nature only should be referred upward and
decided by higher level executives in the managerial hierarchy,
whereas the routine problems should be passed on to lower levels
and resolved there. Application of this principle as such, certainly
requires adhering to the principle of delegation of authority. The
principle of exception is thus of significant practical utility and
applies to all levels in the organization structure.
(viii) Decentralization: this principle is of great significance to big
organizations. Decentralization implies selective dispersal of
authority to help departments and units to run effectively and
efficiently without frequent interruptions from the top of the
enterprise. It requires very careful selection of what decisions to
push down into the organization, of what to hold at or near the top
specific policy making to guide the decision-making, selection and
training of people and adequate control. Decentralization, as such,
embraces all areas of management and evidently is of overwhelming
significance in organization structure.
(ix) Departmentation: Departmentation is the process of grouping
activities into units for purposes of administration. In other words, it
denotes grouping of related jobs and activities without violating the
principle of homogeneity over which an executive has authority to
exercise and assert. The main advantages of departmentation are that
it enables individual executive to mange his subordinates effectively
since a manageable number of persons are brought under the direct
supervision of individual executive.
(x) Efficiency: The organization should be able to attain the
predetermined objectives at the minimum cost. It is done so; it will
satisfy the test of efficiency. From the point of view of an individual,
a good organization should provide the maximum work satisfaction.
Similarly, from the social point of view, an organization will be
efficient when it contributes the maximum towards the welfare of
the society.
(xi) Scalar principle: Scalar chain refers to the vertical placement of
superiors starting from the chief executive at the top through the
middle level to the supervisory level at the bottom. Proper scalar
chain or line of command is prerequisite for effective organization.
(xii) Unity of direction: This means that each group of activities having
the same objectives should have one plan and one head. There
should be one plan or programme for each segment of work which is
to be carried under the control and supervision of one head or
superior. If different plans or policies are followed in one department
by the subordinates, confusion is bound to occur.
(xiii) Continuity: The form of organization structure should be such
which is able to serve the enterprise to attain its objectives for a long
period of time.
(xiv) Coordination: The principal of coordination underlines that there
should be proper liaison and cooperation between different
departments and units of work. Unity of efforts for the
accomplishment of desired objectives is the main aim of
organization. This can be achieved through the principle of
coordination.
(xv) Authority and responsibility: Authority should commensurate with
responsibility. While assigning the responsibility, authority should
also be assigned. If authority is not granted, the subordinates cannot
discharge their responsibility properly