THE PRINCIPLES OF ORGANIZATION

ORGANISATION

Organization is an essential part of human life.  We are born in organisation, and spent most of our lives working for organisations. The term organization is used in three different situations.

Designing

Building             Administrative structure

Resulting

          Organization is the formal structure of authority through which work sub-divisions are arranged, defined objective (Luther Gullick)

          An organization is a combination of the necessary human beings, materials, tools, equipment, working space and apparatus brought together in systematic and effective co-ordination to accomplish some desired objectives.

THE PRINCIPLES OF ORGANIZATION

According to Millet: - Three principles – gearing of different individuals.

(i) Through proper channel (ii) authority and responsibility to be equalled (iii) Unity of command.

The principles of organization that can facilitate smooth functioning of organization are as follows:

1. Unity of objectives: There should be unity of objective for each member of the organization so that all collective efforts can be concentrated on the set goals. The objectives of organization should be well understood and formulated so that every member is familiar with it.

2. Division of work and specialization: The division of total work is done as to confine every individual to the performance of a single job. It facilitates specialization in the organization and enhances efficiency and quality. Every area of specialization should be interconnected to the total integrated system by means of coordinating together of all activities done in all departments.

3. Definition of job: There should be appropriate defining of every position in relation to other positions in the organization. The overlapping of functions should be avoided. It can be done by assigning duties and responsibilities to every position and its relationships with other positions in the organization.

4. Separation of line and staff functions: Line functions are those functions that help in accomplishing the main objectives of the company. These line functions should be separated from staff activities. The functions other than line functions are staff functions.

5 . Chain of Command and Scalar Principle: According to this scalar principle, the line of authority from top level to bottom level of organization should be clearly defined. This authority refers to the right to decide direct and coordinate. The structure of the organization should facilitate delegation of authority. The clarity is completely achieved through delegation by steps or levels from the top position to the operating level of the organization. It is also referred to as chain of command.

6. Parity of Authority and Responsibility or Principle of Correspondence: The responsibility delivered to every employee should be accompanied with its corresponding authority. Every subordinate should have sufficient authority to perform responsibilities entrusted to him. It will make him self reliant and can help him in taking quiet decisions without concerning higher departments or authorities.

7. Unity of command: Every subordinate should report to his assigned superiors or boss. It will avoid state of confusion, chaos, conflicts and lack of action in the organization.

8. Unity of Direction: The unity of direction states that group of activities with a common goal should be managed by one person. It encourages one head and one plan of action for a common objective of different activities.

9. Exception principle: The exception principle states that high level of managers should attend to exceptional matters only. The higher level of managers should deal with problems that concerns with unusual matter and policy decisions. The routine decisions should be referred to lower level of managers.

10. Span of supervision: It refers to the number of persons that a manager or supervisor can direct or control. Every manager is confined with restricted numbers of subordinates so that he can direct them efficiently within the limits of available time and ability. The number of persons is dependent on the nature of job and the desired frequency of intensity of supervision required in the organization.

11. Principle of Balance: The principle of balance states that there should be proper balance between various parts of the organization. No function should be given undue importance at the cost of other functions. This balance should also be maintained between centralization and decentralization, span of supervision and lines of communication and authority allocated to department and personnel at various levels.

12. Communication: The objectives of organization desires good communication network. The two way communication between superiors and subordinates helps in uniting organization into working as effectively operating system.

13. Flexibility: The flexibility in organizational structure helps in adapting to changes in the nature of the business as well as changes corresponding to technological innovations.

14. Continuity: The continuity in efficient performance of organization can be achieved by adapting to new changes that takes place inside or outside the organization. It will help organization to survive and excel for longer duration of time.