Wednesday, 30 November 2016

Principles of Organizations

PRINCIPLES OF ORGANIZATION

Principle of unity of objectives

Organizational goals, departmental goals, and individual goals must be clearly defined. All goals and objectives must have uniformity. When there is contradiction among different level of goals desired goals can’t be achieved. Therefore, unity of objectives is necessary

Principle of specialization

Sound and effective organization believes on organization. The term specialization is related to work and employees. When an employee takes special type of knowledge and skill in any area, it is known as specialization. Modern business organization needs the specialization, skill and knowledge by this desired sector of economy and thus, efficiency would be established.

Principle of coordination

In an organization many equipment, tools are used. Coordination can be obtained by group effort that emphasize on unity of action. Therefore, coordination facilitates in several management concepts
Organization is a means of creating co-ordination among different departments of the enterprise. It creates clear cut relationships among positions and ensure mutual co-operation among individuals. Harmony of work is brought by higher level managers exercising their authority over interconnected activities of lower level administrator.
For smooth running of an organization, the co-ordination between authority- responsibility is very important. There should be co-ordination between different relationships. Clarity should be made for having an ultimate responsibility attached to every authority. There is a saying, “Authority without responsibility leads to ineffective behavior and responsibility without authority makes person ineffective.” Therefore, co-ordination of authority- responsibility is very important.

Principle of authority

Authority is the kind of right and power through which it guides and directs the actions of others so that the organizational goals can be achieved. It is also related with decision making. It is vested in particular position, not to the person because authority is given by an institution and therefore it is legal. It generally flows from higher level to lowest level of organization. There should be unbroken line of authority.

Principle of responsibility

Authentic body of an organization is top level management, top level management direct the subordinates. Departmental administrators and other personnel take the direction from top level management to perform the task. Authority is necessary to perform the work .only authority is not provided to the people but obligation is also provided. So the obligation to perform the duties and task is known as responsibility. Responsibility can’t be delegated. It can’t be avoided.

Principle of delegation

Process of transferring authority and creation of responsibility between superior and subordinates to accomplish a certain task is called delegation of authority. Authority is only delegated, not responsibilities in all levels of management. The authority delegated should be equal to responsibility

Principle of efficiency

In enterprise different resources are used. Therese resources must be used in effective manner. When the organization fulfill the objectives with minimum cost, it is effective. Organization must always concentrate on efficiency.

Principle of unity of command

Subordinates should receive orders from single superior at a time and all subordinates should be accountable to that superior. More superior leads to confusion, delay and so on. It implies one subordinate-one superior relationship. Every subordinate is answerable and accountable to one boss at one time. This helps in avoiding communication gaps and feedback and response is prompt. Unity of command also helps in effective combination of resources, that is, physical, financial resources which helps in easy co-ordination and, therefore, effective organization.

Authority Flows from Top to Bottom

Inspector General of Police (I.G.P)
Deputy Inspector General of Police (D.I.G)
District Police Officer (D.P.O)
Inspectors of Police

Principle of span of control

Unlimited subordinates can’t be supervised by an administrator, this principle thus helps to determine numerical limit if subordinates to be supervised by an administrator. This improves efficiency. According to this principle, span of control is a span of supervision which depicts the number of employees that can be handled and controlled effectively by a single administrator. According to this principle, an administrator should be able to handle what number of employees under him should be decided. This decision can be taken by choosing either from a wide or narrow span. There are two types of span of control:-
  1. Wide span of control- It is one in which a manager can supervise and control effectively a large group of persons at one time. The features of this span are:-
    • Less overhead cost of supervision
    • Prompt response from the employees
    • Better communication
    • Better supervision
    • Better co-ordination
    • Suitable for repetitive jobs
According to this span, one administrator can effectively and efficiently handle a large number of subordinates at one time.
  1. Narrow span of control- According to this span, the work and authority is divided amongst many subordinates and an administrator doesn't supervises and control a very big group of people under him. The administrator according to a narrow span supervises a selected number of employees at one time. The features are:-
    • Work which requires tight control and supervision, for example, handicrafts etc.
    • Co-ordination is difficult to be achieved.
    • Communication gaps can come.
    • Messages can be distorted.
    • Specialization work can be achieved.

Principle of balance

The functional activities their establishment and other performances should be balanced properly. Authority, centralization, decentralization must be balance equally. This is very challenging job but efficient management must keep it.

Principle of communication

Communication is the process of transformation of information from one person to another of different levels. It involves the systematic and continuous process of telling, listening and understanding opinions ideas, feelings, information, views etc, in flow of information. Effective communication is important

Principle of personal ability

For sound organization, human resources is important. Employees must be capable. Able employees can perform higher. Mainly training and development programs must be encouraged to develop the skill in the employees

Principle of flexibility

Organizational structure must be flexible considering the environmental dynamism. Sometimes, dramatically change may occur in the organization and in that condition, organization should be ready to accept the change

Principle of simplicity

This principles emphasizes the simplicity of organizational structure, the structure if organization should be simple with minimum number of levels do that its member an understand duties and authorities.

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