Why is a sound management required in an organisation?
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1. It facilitates administration:
The function of organising makes possible the performance of other functions of management like planning, staffing, directing and controlling. Inadequate and unscientific organisation may result in duplication of work and efforts and some of the important operations may be left out.
Sound organisation, facilitates the performance of various managerial functions by division of labour, consistent delegation of job, definition and clarity of authority and responsibility relationship.
2. It promotes growth and diversification:
Only sound organisation designed on scientific principles can create conditions conducive to planned expansion and diversification of the activities of the enterprise. Sound organisation helps in keeping the various activities under control and increase the capacity of the enterprise to undertake more activities.
3. It fosters co-ordination:
It is an important means of bringing co-ordination among the various departments of the enterprise. It creates clear cut relationship between the departments and helps in laying down balanced emphasis on various activities. It also provides for the channels of communication for the coordination of the activities of different departments.
4. It provides for the optimum use of technological innovations:
A sound and ideal organisational structure is not rigid but it is flexible to give adequate scope for the improvements in technology. It facilitates in introducing changes in the enterprise by modifying the authority and responsibility relationship in the wake of new developments.
5. It enhances the productivity through:
Avoidance of duplication of activities and the consequential confusion as well as wastage of efforts; it enhances the productivity of the firm.
6. It ensures an optimum use of human resources:
Sound organisation matches the jobs with the individuals and vice-versa. It ensures that every individual is placed on the job for which he is best suited. This helps in the better use of individuals working in the enterprise.
7. It stimulates independent, creative thinking and a spirit of initiative through well-defined areas of work:
An ideal organisational structure based on clear-cut demarcation of authority, higher range of responsibility, discretionary freedom granted to personnel, incentives offered for specialised work etc. will certainly foster the spirit of constructive and creative approach in management such an atmosphere will give an opportunity to the staff to display their hidden creative talent which, in turn, will lift the enterprise to higher goals of business and profits.
8. It provides ample scope for training and development:
An effective organisation facilitates delegation of authority which is an important device for training and developing the personnel. Delegation of authority is also an important means of directing the subordinates. It prepares them to take more responsibilities whenever need arises.
9. It prevents the growth of laggards, wirepullers, intriguers (a slow and a lazy person) and other forms of corrupters:
As a matter of fact, experience shows that corruption can only thrive in those enterprises which have failed to set up a sound organisation structure. Unsound organisation becomes the breeding ground of dishonesty, whether in matters of effort or of money.
With the passage of time, however, even a good organisation may be transformed into a bad one unless continual adjustments are made with the varying circumstances. Effective management implies managerial adaptability to changing situations within the dynamic framework of an organisation structure.
In short, properly conceived ideal organisational structure is sure to demand creative result from creative people and will drain routine and repetitive work to supporting positions and will at the same time, by establishing clear cut accountability, provide recognition for the professional and the specialist in terms of their achievement. It is in this sense that it is claimed that there is no substitute for good organisation.
The function of organising makes possible the performance of other functions of management like planning, staffing, directing and controlling. Inadequate and unscientific organisation may result in duplication of work and efforts and some of the important operations may be left out.
Sound organisation, facilitates the performance of various managerial functions by division of labour, consistent delegation of job, definition and clarity of authority and responsibility relationship.
2. It promotes growth and diversification:
Only sound organisation designed on scientific principles can create conditions conducive to planned expansion and diversification of the activities of the enterprise. Sound organisation helps in keeping the various activities under control and increase the capacity of the enterprise to undertake more activities.
3. It fosters co-ordination:
It is an important means of bringing co-ordination among the various departments of the enterprise. It creates clear cut relationship between the departments and helps in laying down balanced emphasis on various activities. It also provides for the channels of communication for the coordination of the activities of different departments.
4. It provides for the optimum use of technological innovations:
A sound and ideal organisational structure is not rigid but it is flexible to give adequate scope for the improvements in technology. It facilitates in introducing changes in the enterprise by modifying the authority and responsibility relationship in the wake of new developments.
5. It enhances the productivity through:
Avoidance of duplication of activities and the consequential confusion as well as wastage of efforts; it enhances the productivity of the firm.
6. It ensures an optimum use of human resources:
Sound organisation matches the jobs with the individuals and vice-versa. It ensures that every individual is placed on the job for which he is best suited. This helps in the better use of individuals working in the enterprise.
7. It stimulates independent, creative thinking and a spirit of initiative through well-defined areas of work:
An ideal organisational structure based on clear-cut demarcation of authority, higher range of responsibility, discretionary freedom granted to personnel, incentives offered for specialised work etc. will certainly foster the spirit of constructive and creative approach in management such an atmosphere will give an opportunity to the staff to display their hidden creative talent which, in turn, will lift the enterprise to higher goals of business and profits.
8. It provides ample scope for training and development:
An effective organisation facilitates delegation of authority which is an important device for training and developing the personnel. Delegation of authority is also an important means of directing the subordinates. It prepares them to take more responsibilities whenever need arises.
9. It prevents the growth of laggards, wirepullers, intriguers (a slow and a lazy person) and other forms of corrupters:
As a matter of fact, experience shows that corruption can only thrive in those enterprises which have failed to set up a sound organisation structure. Unsound organisation becomes the breeding ground of dishonesty, whether in matters of effort or of money.
With the passage of time, however, even a good organisation may be transformed into a bad one unless continual adjustments are made with the varying circumstances. Effective management implies managerial adaptability to changing situations within the dynamic framework of an organisation structure.
In short, properly conceived ideal organisational structure is sure to demand creative result from creative people and will drain routine and repetitive work to supporting positions and will at the same time, by establishing clear cut accountability, provide recognition for the professional and the specialist in terms of their achievement. It is in this sense that it is claimed that there is no substitute for good organisation.
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