Importance of organization

Importance of organization

Organization is the back bone of the management is any enterprise. It establishes the relationship on the one hand between the manager and workers and on the other work and resources to get better production and enables the enterprise to succeed contionously. The following are the advantages and establishes the importance of good organization.

  1. Increases the efficiency of management: there is the maximum utilization of workers ability and productive capacity of the material resources under good organization. Good organization avoids confusion delays and duplicate of work.
  2. Ensure optimum utilization of material resources and human efforts: right man at the right job is fundamental to organization. Good organization beings harmony in the efforts of the employees and the working conditions which add to the total productivity of the enterprise.
  3. Helps in the growth of organization: good organization contributes to the growth, diversification and expansion of all enterprise. Big and giant enterprises are the direct result of the success of the organizing functions of the management.
  4. Places proportionate importance to the various activities of the enterprise: organization divides the entire enterprise activities into departments and sub departments, each receiving attention according to its importance or role played towards accomplishing the enterprise objective. Money and efforts are spent proportionately to their contribution which means that emphasis is given according to their relative importance.
  5. Facilitates coordination: functions and activities of the various departments are welded together to accomplish the enterprise goals. Different departments perform their functions in a closely related manner and not so rivals.
  6. Provides facilities for training, testing and development of managerial personal: by placing the persons in different departments training can be imparted, as also their abilities tested. This will be followed by their placement to the placed to which they are best suited.
  7. Prevents growth of intrigues and corruption: unsound organization becomes a breeding ground of intrigues and corruption. Good organization develops the morale, honesty, devotion to duty and the feeling of oneness with the enterprise.
  8. Consideration growth and expansion: organizing practise has encouraged the business enterprises to expand their size to an ever increasing level. With hundreds of employees and extensive ramifications of operations giant enterprises are the direct outcomes of the organizing function of management.

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