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Importance and objectives of organization


Posted Date: 15-Jun-2009  Last Updated:   Category: Education    
Author: Member Level: Gold    Points: 25


This article describes about the Importance and objectives of organization.



The effectiveness and efficiency of organization helps in providing the continuity and success to the enterprise. There are many factors that explain the importance and objectives of organisation and they are:-

1. Facilitates Administration: An efficient and sound organisation make easy for the management to relate the flow of resource continually to the overall objectives. A sound organisation helps in providing appropriate platform where management can performs the functions of planning, direction, coordination, motivation and control.

2. Facilitates Growth and Diversification: A sound organisation helps in the growth and diversification of activities. The growth is facilitated by clear division of work, proper delegation of authority etc. In short, it helps in the organisational elaboration. In case of reasonable expansion of organisation, the functional types get replaced by a more flexible decentralized organisation.

3. Permits optimum use of Resources: The optimum use of technical and human resources gets facilitated in sound and efficient organisation. The organisation can have the facilities of latest technological developments and improvements. It also facilitates optimum use of human resources through specialization. The people in the organisation get appropriately trained and get promotion opportunities. A sound organisation provides all the desired potential and strength to the company to meet the future challenges.

4. Stimulate Creativity: The specialization in the organisation helps individuals in getting well defined duties, clear lines of authority and responsibility. It encourages the creativity of the people. The sound organisational structure enables mangers to concentrate on important issues where their talent can be exploited to the maximum.

5. Encourages Humanistic Approach: A sound organisation helps in adopting efficient methods of selection, training, remuneration and promotion for employees. It makes people work in a team and not like machines or robots. Organisation helps in providing factors like job rotation, job enlargement and enrichment to its employees. A sound organisation provides higher job satisfaction to its employees through proper delegation and decentralization, favorable working environment and democratic and participative leadership. It enhances the mode of communication and interaction among different levels of the management.

The steps involved in the progress of an organization are:

1. Determination of Objectives: Organisation is usually associated to definite objectives. Therefore, it is necessary for the management to identify the objectives before opening any activity. It will assist the management in the selection of men and materials with the help of which it can attain its objectives. Objectives also provide as the strategy for the management and the workers. They will give unity of direction in the organisation.

2. Identification and Grouping of Activities: When the members of the groups are to group their efforts effectively there must be appropriate division of the main activities. Each job should be properly classified and grouped. This will facilitate the group to know what is expected from them as members of the group and will help to avoid any duplication of efforts. For example, the total activities of an individual industrial organisation may be separated into major functions like production, purchasing, marketing, and financing, and each such function is further subdivided into various jobs. The job assigned may be classified and grouped to ensure the useful achievement of the additional steps.

3. Allotment of Duties: After categorizing and grouping the activities into various jobs, they should be permitted to the persons so that they could carry out them effectively. Each individual should be given a particular job to do according to his ability and made responsible for that. He should also be given the sufficient authority to do the job assigned to him.

4. Developing Relationships: While there are various individuals working in the same organisation it is the duty of management to lay down structure of relationships in the organisation. Everybody should clearly know to whom he is accountable. This will facilitate in the smooth functioning of the enterprise by facilitating delegation of responsibility and authority

5. Integration of these Groups of Activities: Integration can be accomplished in the entire activities in following ways:

(a) Through authority relationships – horizontally, vertically, and laterally

(b) through organized information or communication systems, i.e., with the help of effective coordination and communication. It will enable to achieve unity of objectives, team work and team spirit by the integration of different activities.


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