Organization for Efficient Management

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“Sound organization structure is an essential prerequisite of efficient management” – Discuss this statement and point out the various principles which should be followed in developing organization structure Introduction Organization is the backbone of management. Without efficient organization, no management can perform its functions smoothly. Sound organization contributes greatly to the continuity and success of the enterprise. Once A. Carnegie, an American industrialist, said, “Take away our factories, take away our trade, our avenues of transportation, and our money. Leave nothing but our organization, and in four years we shall have re-established ourselves”. That shows the significance of managerial skills and organization.…show more content…
Proportionate and balanced emphasis is put on various activities. 3. Facilitates growth and diversification:Sound organization helps in keeping activities under constant vigil and control. The organization can undertake more activities without dislocation. Talents and resources are put to good use. Opportunities are seized quickly and exploited fully, which ultimately pave way for growth and diversification. 4. Permits optimum use of resources: Human, technical and material resources are put to good use. Right persons are given right jobs. There is proper allocation of work. People know that they are supposed to do, well in advance. Necessary functions are determined and assigned, so that personnel and physical facilities are utilized effectively. 5. Stimulates creativity. It offers stimulating opportunities to people at all levels, to use their skills on jobs best suited to their nature. Delegation helps people at lower levels to do more challenging work. The higher ups, in turn, can concentrate on strategic issues putting their creative abilities to good use. 6. Facilitates coordination: Organization is an important way of achieving coordination among different departments of an enterprise. Clear authority relationships and proper assignment of work facilitates the task of achieving coordination at all levels. Poor organization leads to improper arrangement of duties and responsibilities. As a result, unimportant and trivial issues are
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