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Meaning of Organization

Organisation may be defined as a group of individuals, large of small, that is cooperating under the direction of executive leadership in accomplishment of certain common object.

In other words, Organization is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives.

Features of Organization

The characteristics or features of organization are:

1. Outlining Objectives
2. Identifying and Enumerating Activities
3. Assigning Duties
4. Defining and Granting Authority
5. Creating Authority Relationship

Outlining Objectives

Born with the enterprise are its long-life objectives of profitable manufacturing and selling its products. Other objectives must be established by the administration from time to time to aid and support this main objective.

Identifying and Enumerating Activities

After the objective is selected, the management has to identify the total task involved and break up closely related component activities that are to be performed by an individual division, or department.

Assigning Duties

When activities have been grouped according to similarities and common purposes, they should be organized by a particular department. Within the department, functional duties should be allotted to particular individuals.

Defining and Granting Authority

The authority and responsibility should be well defined and should correspond to each other. A close relationship between authority and responsibility should be established.

Creating Authority Relationship

After assigning the duties and delegations of authority, the establishment of a relationship is done. It involves deciding who will act under whom, who will be his subordinates, what will be his span of control, and what will be his status in the organization. Besides these formal relationships, some informal organizations should also be developed.

Significance of Organization

The advantages of main significance of organization are as follows:

1. Facilitated Administration and management
2. Help in Growth of Enterprise
3. Ensures Optimum Use of Human Resources
4. Stimulates Creativity
5. A Tool of Achieving Objectives
6. Coordination in Enterprises

Facilitated Administration and management

Organization is an important and the only tool to achieve enterprise goals set as the administration and explained by management. Sound organization increases efficiency, avoids delay and duplication of work, increases managerial efficiency, increases promptness, and motivates employees to perform their responsibilities.

Help in Growth of Enterprise

Good organization is helpful to the growth, expansion, and diversification of the enterprise.

Ensures Optimum Use of Human Resources

A good organization establishes persons with different interests, skills, knowledge, and viewpoints.

Stimulates Creativity

A sound and well-conceived organizational structure is the source of creative thinking and the initiation of new ideas.

A Tool for Achieving Objectives

The organization is a vital tool in the hands of the management for achieving the set objectives of the business enterprise.

Coordination in Enterprises

Different jobs and positions are welded together by the structural relationship of the organization. The organizational process exerts its due and balanced emphasis on the coordination of various activities.

Sign of a Good Organization

A sound good or ideal and result-oriented organisation must possess the following characteristics:

1. Realization of Objectives
2. Harmonious Grouping of Functions
3. Reasonable Span of Control
4. Clear-Cut Allocation of Duties and Responsibilities
5. Promotion of Satisfaction
6. Fullest Utilization of Manpower
7. Provision and Development and Expansion
8. Coordination and cooperation
9. Unity of Command
10. Effective System of Communication
11. High Morale
12. Flexibility

Realization of Objectives

Organisation is a tool for achieving the objectives of an enterprise. For this purpose, the organization should be divided into several departments, sub-departments, branches and units, etc.

Harmonious Grouping of Functions

For achieving the organization’s objectives there must be a harmonious grouping of functions, jobs, and sub-jobs in such a way that there is action, consultation, and co-ordination without any delay and difficulty.

Reasonable Span of Control

Another characteristic of the organization is that it should have a reasonable span of control. Ordinarily, a person (personnel) cannot control more than five or six subordinates.

Clear-Cut Allocation of Duties and Responsibilities

There must be a clear-cut allocation of duties and responsibilities in any scheme of sound organization. Every executive must know his scope of activities, the ideal number is three.

Promotion of Satisfaction

The most important element of any human organization is the promotion of satisfaction of workers. A man works in a group or in an organization and hence the success or failure of any organization depends on how much the organization is in a position to provide satisfaction to individuals or groups working under him.

Fullest Utilization of Manpower

Another important characteristic of an ideal organization is how far it is successful in making the fullest and most economical utilization of the available manpower.

Provision and Development and Expansion

Another importance of an ideal organization is that there exists the necessary provision for development and expansion so that it is possible to expand and develop any organization according to needs and requirements and necessary changes and alternatives may be made.

Coordination and cooperation

In order to achieve the objectives of the enterprise, there must be close coordination and cooperation in the activities of everybody working in the organization. Further, there should also be active coordination and cooperation amongst the various departments and sub-departments.

Unity of Command

There must be unity of command. No one in any organization should report to more than one line supervisor, and everybody must know to whom he reports and who reports to him. No subordinate should get orders from more than one supervisor; otherwise, it will lead to confusion, chaos, and conflict.

Effective System of Communication

An ideal organization must possess an effective system of communication. The inter-communication system should be clear and easier and there should be no ambiguity at any level.

High Morale

An ideal organization is one in which the workers possess high morale. They work with full capacity, energy, enthusiasm, devotion, and sincerity.

Flexibility

The last but not the least important characteristic of an ideal organization is that it should be flexible so that necessary changes and modifications in the size of the organization, as well as technology, could be easily and conveniently effected.

FAQs About the Significance of Organization