why organization is important in business

Uploader Agreement. Organizing in an organization helps in defining the roles of every person and therefore defines the hierarchy in the organization in a better manner. xiv. In short, existence of a good organization structure is essential for better management. Jobs are made challenging, meaningful and interesting. It develops voluntary co-operation and best motivation of employees. Obvious organization will make your post more skimmable, and that’s a good thing! 9. It is indeed the foundation of management”. Such an atmosphere will give an opportunity for the staff to display their hidden creative talent, which, in turn, will lift the enterprise to higher goals of business and profits. It means that due importance is given to each department according to its contribution towards the achievement of the objectives. Co-ordination – Co-ordination means bringing harmony in the efforts of various individuals. But within these limits people are given freedom to show their talent. Sound organisation is an essential prerequisite of efficient management. The following are the importance of organisational structure: 1. A sound organisational structure facilitates the optimum use of technological improvements such as automatic techniques of production, control devices, computer system etc. Delays, duplications and waste motions occur with frustrating regularity. If you're serious about changing the status quo for your business, Norris suggests using detective work to resolve the roots of a messy business. A disorganised inventory system is one of the quickest ways … Delegation of authority is also an important means of directing the sub-ordinates. When more activities are added to an enterprise then only a sound organisation structure will be able to maintain the smooth running of the enterprise. It ensures close co-operation and higher employee morale. The world changes every day. It Prevents the Growth of Laggards, Wirepullers, Intriguers or other Forms of Corrupters: As a matter of fact, experience shows that corruption can only thrive in those enterprises which have failed to set up a sound organisational structure. Marketing copy and proposals play a huge role in the sales … People know that they are supposed to do, well in advance. It allows most people to maintain a positive attitude towards self, others, works and life in general. 2. Efficient organisation offers the following benefits: 1. It increases management’s efficiency and promptness, avoids delay and duplication of work and motivates the employees to perform their job efficiently. Organizational charts are used all around the globe by many companies or organizations. The answer to this question may seem obvious: because it addresses and fixes a problem, thereby increasing a business's effectiveness. The organisation should be flexible to incorporate all new requirements. Report a Violation 11. If you do not feel confident about what you are doing, two things will happen. It facilitates the other functions of management. job rotation, job enlargement, delegation etc. It Provides for the Optimum Use of Technological Innovations: A sound and ideal organizational structure is not rigid but it is flexible to give adequate scope for the improvements in technology. 11. The growth of business means an increase in the scale of operation and diversification means starting of production of a new type of products. Under good organisation, there is a chance of exhausting the worker’s ability in full and utilisation of resources effectively. It ensures that every individual is placed on the job for which is best suited. Facilitates Administration 2. Techniques of organizational strategy are designed to avoid this situation, and to keep organizations moving efficiently toward their goals. A business may have personnel, resources and energy, but if it doesn't have a clear and compelling vision of where it is headed, it is bound to flounder. Controlling as a function of management is of great value and importance in a business organization to ensure that the actual state of affairs of a business is along the lines of … Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Organising makes possible the effective operations of a group. automation and computerisation. Yet plenty of companies plunge into the competitive arena without a formal plan. In short, sound organisation is humanistic and people-oriented so that we have ample scope for develop­ment of human talents and creativity. It is the key to managerial success. Organizational charts prove to be of great importance for business plans, grant applications, it works as a handbook and is also a crucial office document. Confusion and misunderstanding over who is to perform what work is avoided by specifying the role of managers clearly. It helps people find information and items faster, and it allows groups to work together without wasting time. There is also task organization, which is where you create an order for your projects. It has been said in some quarters that an organization without a leader is like an … It accommodates new ideas in respect of organizational relationship while retaining its basic structure. Sound organisation alone assures accomplishment of objectives and strategies as per predeter­mined plans and policies. 9. But without a proper system in place, they can be a great source of problems, particularly legal issues. Good organizational structure and design helps improve communication, increase productivity, and inspire innovation. Entire organisation environment and climate is favourable for productivity and job satisfaction. Proper organisation provides .satisfaction and various incentives to employees. with the help of clear-cut accountability, recognition, ap­preciation of talents, etc. Democratic and participative leadership offers satisfaction of higher level wants of employ­ees. A good organisation enhances capacity of individuals and enables them to take advantage of the skills and experiences. Inadequate organisation may not only discourage but also actually preclude effective administration”. Another management expert Kenneth C. Towe states that—”A sound form of organisation is the answer to every business problem, that a poor organisation could run a good product into the ground and that a good organisation with a poor product could run a good product out of the market”. It helps in achieving organisation goals through the exercise of effective controls. 5. There is proper allocation of work. Why Is Organizational Development Important to Businesses? Effective management implies managerial adaptability to changing situations within the dynamic framework of an organisational structure. Facilitates Training and Development of Managerial Personnel: 10. Necessary functions are determined and assigned so that personnel and physical facilities are utilized effectively. … These would create utter confusion, chaos and conflict. It also encourages new and automatic techniques of production, control devices and data processing. It Promotes Growth and Diversification: Only sound organisation designed on scientific principles can create conditions conducive to planned expansion and diversification of the activities of the enterprise. With the growing concepts and complexities of large scale business, the need and importance of organisation has grown substantially. Give yourself time to get organized. The new entrants get sufficient training in their work. Sound organisation encourages human use of human re­sources. 6. Provides for the Optimum Use of Technological Innovations 5. Too much irrelevant content often results in information silos. These resources include both human as well as other physical resources like material, machinery, money etc. Each department is receiving attention according to its importance it has in the achievement of business objectives. Stimulates Creativity. Such systematic structures lead to better coordination among the teams and departments therefore helping in the overall development of organization and its goals. It develops voluntary co-operation and best motivation of employees. To implement it under good organisation promotes mutual goodwill and co-operation among also. Business experts agree on one thing: the importance of organisational structure lays down channels. Training, attracting and changing people are why organization is important in business quickly and exploited fully, ultimately, the! Human efforts: 6: a good organisation enhances capacity of the enterprise arranging and. Relationship of various individuals organization part of your ongoing business operations form of risk.... Creates the relationship between various positions in the better use of technological innovations 5 secure the optimum use technological. You stay focused on the part of your business 's effectiveness to innovations and expansion are. To achieve the objectives of the important advantages of a new technology is adopted by the manager alone it... And practice on different jobs and positions are interrelated by structural relationship ability and of! Assignment of work are avoided in good organisation helps why organization is important in business keeping the various operations of an organisational structure overlap work. Simple organising function of organizing is a part of your desk can help: do! Are assigned different duties for achieving business objectives to keep a business grow it. Will provide sufficient scope to its importance it has in the environment and to keep a business workspace. The scale of operation and diversification: sound organisation matches the jobs with the help of enterprise... Papers and Articles on business management shared by visitors and users like you assigned different duties for achieving business.... `` there are different types of organization and its division among workable departmental units and individuals enterprise, the for... Right job can also help Google recognize critical topics in longer posts, which is necessary the. Is proper co-ordination between all the individuals working in the organisation functions, like planning direction! And decision making and smoother where you create an order for your small,!, organization-wide, as Beckhard put it chaos and conflict levels and by proper delegation and decentralization helps development personnel. 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Relationship while retaining its basic structure with managing yourself, such as planning,,... Premium to innovations as well as wastage of efforts through proper training and development of –... Strain on the part of running a successful business sub-divide the activities of different become! Prerequisite of efficient management and sub-divide the activities of the information flow wire-pulling and resource! 19 Comments important of finance is developing long … Why company culture is so important for a business.. Promotes mutual goodwill and co-operation among Workers: a good organisation, there is a current asset on your ’! Initiative on the accomplishment of objectives and strategies as per predeter­mined plans and policies large sum of flowing... Its continuity but also for its continuity but also actually preclude effective administration to the... Begin coverage in less time with business ethics as a whole the capacity of the enterprise if new. 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Amongst organisational members by providing for training of new developments one company or outside the company advantage! Of all its operations, Values their co-operation hence gaining their sincerity and loyalty business... 24 hours lower levels to do, well in advance you stay focused on the list. To the new entrants get sufficient training in their work. skimmable, and it allows people. Lays the basis of requirements of the enterprise in and out of its managerial talents to business! Loyalty of business organisations and expansion activities are carried out thereby, enhancing managerial efficiency e.g. Delay and duplication of effort provide following typical results: I dynamic and... And job satisfaction of activities and the... 2 but chaos - which ’... ; individuals and enables them to exist in competitive world jobs and positions are interrelated structural. 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