Importance of business organisations

Importance/significance of Business Organizations are as follows:

1. Benefits in specialization:

In organization every individual is assigned a part of total work and not the whole task. In other words the goal is divided into various activities and assigned to the person who is specialized in performing that task/activity, that provide the benefit of specialisation.

2. Role Clarity:

In the organisation the employees are assigned different jobs and the managers clearly define the jobs. The jobs are defined on the written document called job description which clearly spells out what exactly has to be done in every job. This description of job brings clarity in the minds of employees.

3. Clarity in working relationship:

it is clearly defined that what all and how much power and authority is enjoyed by different individuals or managers. Each manager knows very clearly to whom he can give order and from whom he has to receive the order. The superior-subordinate relation is clearly defined in organising.

4. Optimum utilization of resources:

there are very few chances of duplication of work or over-lapping of work because the jobs are assigned to different individuals by clearly defining the job in job description document. So, there are no chances that the same work is performed by two or more individuals.

5. Co-ordination and effective administration:

the similar and related jobs are grouped under one department which leads to unification of efforts and harmony in work. The organizing function establishes relation between different departments keeping in mind the co-ordination among different departments. By bringing clarity in working relationship administrative efficiency improver.

6. Adoption to change:

Whenever the changes take place in the business environment then with the help of organising function these changes can be adopted systematically because organising function creates different departments and group related activities under each department.

With this, changes can be adopted only in that area which may be affected by these changes and changes can be easily communicated to whole organisation through departments. Organisational structures can be suitably modified according to changes.

7. Expansion and Growth:

With optimum utilization of resources and proper division of work and departmentation, companies can easily meet the challenges and can expand their activities in a planned manner.

8. Development of personnel:

Delegation of authority is an important part of organizing. By delegating the routine the managers can concentrate to develop new methods and ways of performing job. It gives them time to innovate new technologies and areas for growth of the companies. Delegation not only reduces the work load of managers but it also helps them to use and realise their full potential for more creative work.

9. Others

1. Production of Goods :-
Business organization is very useful for the production process of goods and services. It increases the efficiency of various sections.

2. Reduces the Cost :-
Business organization principles are used to minimize the cost of production. So the profit of the business increases.

3. Distribution :-
Marketing and distribution problem is also being solved by the business organization.

4. Common Link :-
It provides a common link between various of the business activities. So effective cooperation among the various factors increases the profit of the enterprise.

5. Saves the Time :-
Due to business organization we can save our time which is more precious in the present age.

6. Minimum Wastage :-
Business organization reduces the wastage of material and other expenditure. So rate of profit increases.

7. Secretariat Function :-
Business organization teaches us the principles of office organization. It tells us the best way of performing the secretarial functions.

8. Finance Management :-
Business organization also guides the businessman that how he should meet his financial needs and expand the business.

9. Transportation Use :-
It guides the businessman that which type of transport he should utilize to increase the sale and profit of his product.

10. Makes the Businessman Efficient :- 
Business organization has enabled the businessman to conduct the business affairs efficiently. It also provides the solution of many problems.

11. Fixes Responsibility :-
It fixes the responsibility of ever individual in a different manner. It also introduces the scheme or internal check with works automatically.

12. Solve the Market Problems :-
Business organization solves the problems of buying, selling storage and grading.

13. Technical Development :-
It also very helpful for improving the technology in the country. Newmethods and innovations are used in the production process.

14. Decision Making :-
Decision making is very important factor for the success of business. The business organization is very useful in making the decisions in time.

15. Provides Skill :-
Business organization provides the skilled people like salesman to satisfy the customers.

16. Supply according the Demand :-
It guides the producer that he should produce the goods according the demand of the market. Facts about market are collected and demand is produced accordingly.

Conclusion

the business organisation bring the improvement and efficiency in performing activity/task and ultimately it helps to achieve the goal of the organisation and bring smooth running of the business.