The information provided on this website does not constitute insurance advice. The higher-ups, in turn, can concentrate on strategic issues-putting their creative abilities to good use. It is not simple organising function of management, it is more than that. The adjustment to new changes will require re-scheduling and re-adjustment of duties and responsibilities in the organisation. This ensures that each person and department will contribute to his best capacity and skill, will feel definite and specific responsibility, will avoid duplications and overlaps and will improve the efficiency and speed of work. It will help you recognize what you actually need in front of you and force you to put away things that don't need to be immediately handled. It lays the basis for other managerial functions such as planning, direction, co-ordination and control. In the business world, organization might be said to be everything. A sound organisation structure facilitates growth by increasing its capacity to handle increased level of activity. (9) It Ensures Co-Operation among Workers: A good organisation promotes mutual goodwill and co-operation among workers also. It is the backbone of a management and without it; no management can manage the various operations of an enterprise. Sound organisation encourages human use of human resources. The answer to this question may seem obvious: because it addresses and fixes a problem, thereby increasing a business's effectiveness. And without effective business communication, you won’t. It Prevents the Growth of Laggards, Wirepullers, Intriguers or 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 organisational structure. There will be a need of proper authority to carry out the functions systematically and effectively. Loose contact files and business cards are missed leads and lost revenue if information isn't managed and queued. It also helps in making communication easier and smoother. Various managerial functions will be effectively performed with the help of an organisation. The effectiveness of an enterprise is measured by the reaction of staff members to the adopting of a new technology. Thus, it facilitates human use of human beings. A lot of new businesses are carried away and figure their passion and optimism are enough to build […] Sound organisation stimulates creative thinking and initiative on the part of employees. There are a number of benefits and reasons for having an organizational chart. It helps equitable distribution of work. Organizing your business's workspace may not be high on the priority list, but it should be. Why Is Inventory Important for a Business?. Delegation of authority is also an important means of directing the sub-ordinates. Changes in the organisation may result in the appointment of additional staff members, de-centralisation of authority and responsibility, raising of additional capital, identification of the consumer’s satisfaction and preferences, expansion of sales promotion activities and the like. Increases management efficiency – Good organisation assures all round efficiency by bringing definiteness all around, matching jobs with individuals and individuals with jobs, by utilising best skills, experience, abilities and specialisation and by avoiding delays and wastages. iii. 8. Account Disable 12. A sound organization structure facilitates effective operation of the enterprise. Following are some of the important advantages of a sound organizational design which have enhanced its importance and have, therefore, made it indispensable: The function of organizing is required for the performance of other functions of management like planning, staffing, directing and controlling. Similarly, extensive use of staff specialists and creation of a good management information system together with electronic data processing (EDP) equipment will help manage effectively a multi-national company. Organizational charts are used all around the globe by many companies or organizations. It is in this sense it is claimed that there is no substitute for good organisation. It is the basis for necessary team work among the various members of a common enterprise and helps in coordinating their efforts. Any business big or small anticipates a large sum of cash flowing in and out of the company. Development of manpower – A sound organisation aims at continuous improving its human resources. Good organizational structure and design helps improve communication, increase productivity, and inspire innovation. The bottom line is a company’s net income after all expenses have been paid out of its earnings. 15. A well-structured organisation also encourages co-ordination and co-operations amongst all the individuals in the organisation. All these factors assure stability. If offers stimulating opportunities to people at all levels to use their skills on jobs best suited to their nature. It also provides for efficient methods of selection, training and promotion of employees, further not as machines. 5. It encourages creativity, i.e. Whether you’re running your own business, or just starting out on your business career, you’ll need to be a great communicator! Since total work cannot be performed by the manager alone, it must be divided among its staff in a well-planned manner. To avoid this, block out your time. Departmentation enables proper planning of work. Copyright 10. It facilitates the other functions of management. with the help of clear-cut accountability, recognition, appreciation of talents, etc. As Lounsburry Fish points out-“Organisation is more than a chart, it is the mechanism through which management directly co-ordinates and controls the business. Organisation classifies the entire business activities into departments. Better Human Relations and a Few Others. Organising makes possible the effective operations of a group. It enables smooth management and operation of the enterprise, thereby enhancing managerial efficiency, e.g. It is the foundation upon which the whole structure is built; which contribute to the success and survival of the enterprise. When more activities are added to an enterprise then only a sound organisation structure will be able to maintain the smooth running of the enterprise. It integrates the various functioning of various departments. Develop Long Term Goals. For instance, maybe your strewn business cards are a result of not having a system to catalog new contacts. Encourages Initiative 14. Management creates and forms various groups of closely- related and similar activities; which is necessary for the functioning of the enterprise. It specifies the channel and mode of communication among different members. Why is organization important? Bestry agrees that keeping too much of anything in your workspace is a bad plan. Prohibited Content 3. 7. The importance of sound and ideal organizational structure can be studied under the following heads:-, 1. Published on November 10, 2015 November 10, 2015 • 235 Likes • 19 Comments Delegation helps people at lower levels to do more challenging work. It is the basis for necessary team work among the various members of a common enterprise and helps in coordinating their efforts. These resources include both human as well as other physical resources like material, machinery, money etc. 6. xii. Organisation is a fine structured process in which individuals interact (acting and reacting upon one another) to accomplish objectives. As a result, unimportant and trivial issues are given top priority. It facilitates in introducing changes in the enterprise by modifying the authority and responsibility relationship in the wake of new developments. Bestry suggests grouping similar tasks together. Facilitates Growth and Diversification: Sound organisation helps in keeping activities under constant vigil and control. quick disposal, minimum inter- department rivalry or friction, absence of divided responsibility, effective communication etc. You can't expect to overturn years of bad organizational habits in a day. Jobs are designed to suit human needs. Proper organisation provides .satisfaction and various incentives to employees. Now-a-days training institutes give training to the needy persons with the help of the different experts from various fields. xi. 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