16 Benefits of Organizations

Benefits of Organizations
Benefits of Organizations

Benefits of Organizations

The following are the benefits of organizations which very important in business enterprises:

  1. Optimum Utilization of Technological Innovation
  2. Smooth Management
  3. Facilitates Growth and Diversification
  4. Training and Development
  5. Stimulates Creativity
  6. Ensures Optimum Use of Resources
  7. Foster Coordination
  8. Facilitates Continuity
  9. Improves Efficiency and Quality of work
  10. Effective Control
  11. Better Human Relations
  12. Benefits of Specialization
  13. Adaptation to Change
  14. Effective Administration
  15. Development of Personnel
  16. Expansion and Growth
Benefits of Organizations
16 Benefits of Organizations

Optimum Utilization of Technological Innovation

A good organization succeeds in adjusting to new and changing situations. Technological improvements occur every time the management requires making use of them to exist in a competitive world. Power should be delegated to make the best utilization of technological changes.

Smooth Management

A balanced organization facilitates both management and operation of the business. It is the mechanism through which management coordinates and controls the business. It serves as an effective instrument for realizing the objectives of the business.

It is through the framework of the organization that plans are put into practice and other managerial functions are carried out. It helps to focus the attention and action of management on the accomplishment of objectives.

Facilitates Growth and Diversification

A well-designed organization provides for the systematic division of work and permits necessary change. It is a framework within which the organization /company grows.

Therefore, it enables the enterprise to enter new lines of business. The enterprise possesses the necessary adaptability to face new challenges. It increased the scope for innovation and diversification.

Training and Development

A good organization offers an opportunity for the training and development of human resources. A clearly defined authority provides a scope for the use of talent.

The new entrants are attached to experienced persons who guide them in undertaking various jobs. It facilitates sufficient opportunity for the training of new trainees and the development of existing human capital.

Stimulates Creativity

A sound organization encourages creative thinking and initiative on the part of employees. Delegation of authority provides sufficient freedom to lower-level executives for exercising discretion and judgment.

Individual objectives can be integrated with organizational goals. New and improved ways of working can be developed.

Ensures Optimum Use of Resources

A good organizational setup permits the adoption of new technology. It helps to avoid duplication of work, overlapping efforts, and other types of waste. As a result, it facilitates the best possible utilization of human and physical resources.

Foster Coordination

The organizing process fosters coordination by supplying the framework for holding together the various functions in an orderly pattern.

It is an important means of integrating individual efforts. It helps in putting balanced emphasis on different departments and divisions of the enterprise.

Facilitates Continuity

A well-established organization provides for the training and development of employees at all levels. It provides opportunities for leadership and helps in ensuring the stability of the enterprise through executive development. It makes for cooperation and harmony of actions.

Improves Efficiency and Quality of work

It is to improve efficiency and quality of work for an organization through synergism. Synergism can result from the division of labor, better utilization of human talent, optimum use of technological improvement, and above all increased coordination, all of which are products of a good organization.

Effective Control

A good organization helps in achieving organizational goals through the exercise of effective controls. It provides a channel for better management.

Better Human Relations

Human relations improve in a good organizational setup. Proper coordination and mutual cooperation encourage the development of healthy relations among the people. An organization consists of human beings and their satisfaction helps in improving human relations.

Benefits of Specialization

Organizing leads to a systematic allocation of jobs amongst the workforce. This reduces the workload as well as enhances productivity because of the specific workers performing a specific job on a regular basis.

Repetitive performance of a particular task allows a worker to gain experience in that area and leads to specialization.

Adaptation to Change

The process of organizing allows a business enterprise to accommodate changes in the business environment. It allows the organization structure to be suitably modified and the revision of inter-relationships amongst managerial levels to pave the way for a smooth transition.

It also provides much-needed stability to the enterprise as it can then continue to survive and grow in spite of changes.

Effective Administration

Organizing provides a clear description of jobs and related duties. This helps to avoid confusion and duplication. The clarity in working relationships enables the proper execution of work. Management of an enterprise thereby becomes easy and this brings effectiveness to administration.

Development of Personnel

Organizing stimulates creativity among managers. Effective delegation allows managers to reduce their workload by assigning routine jobs to their subordinates. The reduction in workload by delegation is not just necessary because of the limited capacity of an individual but also allows the manager to develop new methods and ways of performing tasks.

It gives them the time to explore areas for growth and the opportunity to innovate thereby strengthening the company’s competitive position. The delegation also develops in the subordinate the ability to deal effectively with challenges and helps them to realize their full potential.

Expansion and Growth

Organizing helps in the growth and diversification of an enterprise by enabling it to deviate from existing norms and take up new challenges. It allows a business enterprise to add more job positions, and departments and even diversify its product lines.

New geographical territories can be added to current areas of operation and this will help to increase customer base, sales, and profit. Thus, organizing is a process by which the manager brings order out of chaos, removes conflict among people through overwork or responsibility sharing, and creates an environment suitable for teamwork.


FAQ Related to Benefits of Organizations

What are the benefits of organizations?

The following are the benefits of organizations:
1. Optimum Utilization of Technological Innovation
2. Smooth Management
3. Facilitates Growth and Diversification
4. Training and Development
5. Stimulates Creativity
6. Ensures Optimum Use of Resources
7. Foster Coordination
8. Facilitates Continuity
9. Improves Efficiency and Quality of work
10. Effective Control.