Meaning
of organisation
Principles of organization
1. Principle of unity of objectives: Organizational
goals, departmental goals, and individual goals must be clearly defined. All
goals and objectives must have uniformity. When there is contradiction among
different level of goals desired goals can’t be achieved. Therefore, unity of
objectives is necessary
2. Principle of specialization: Sound and effective organization believes on
organization. The term specialization is related to work and employees. When an
employee takes special type of knowledge and skill in any area, it is known as
specialization. Modern business organization needs the specialization, skill
and knowledge by this desired sector of economy and thus, efficiency would be
established.
3. Principle of coordination: In an organization
many equipment, tools are used. Coordination can be obtained by group effort
that emphasize on unity of action. Therefore, coordination facilitates in
several management concepts
4. Principle of authority: Authority is the kind of
right and power through which it guides and directs the actions of others so
that the organizational goals can be achieved. It is also related with decision
making. It is vested in particular position, not to the person because
authority is given by an institution and therefore it is legal. It generally
flows from higher level to lowest level of management. There should be unbroken
line of authority.
5. Principle of responsibility: Authentic body of an
organization is top level management, top level management direct the
subordinates. Departmental managers and other personnel take the direction from
top level management to perform the task. Authority is necessary to perform the
work .only authority is not provided to the people but obligation is also
provided. So the obligation to perform the duties and task is known as responsibility.
Responsibility can’t be delegated. It can’t be avoided.
6. Principle of delegation: Process of transferring
authority and creation of responsibility between superior and subordinates to
accomplish a certain task is called delegation of authority. Authority is only
delegated, not responsibilities in all levels of management. The authority
delegated should be equal to responsibility
7. Principle of efficiency: In enterprise different
resources are used. Therese resources must be used in effective manner. When
the organization fulfill the objectives with minimum cost, it is effective.
Organization must always concentrate on efficiency.
8. Principle of unity of command: subordinates should receive orders from
single superior at a time and all subordinates should be accountable to that
superior. More superior leads to confusion, delay and so on.
9. Principle of span of control: unlimited
subordinates cant be supervised by manager, this principle thus helps to
determine numerical limit if subordinates to be supervised by a manager. This
improves efficiency.
10. Principle of balance: the functional activities
their establishment and other performances should be balanced properly.
Authority, centralization, decentralization must be balance equally. This is
very challenging job but efficient management must keep it.
11. Principle of communication: Communication is the process of
transformation of information from one person to another of different levels.
It involves the systematic and continuous process of telling, listening and
understanding opinions ideas, feelings, information, views etc, in flow of
information. Effective communication is important
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