Notes on Principles Of Sound Organisation In Management:

       The term organisation has been defined differently by different authors. The following are some precise definitions.

Defined by Messrs Mooney and Reiley:

       Messrs. Mooney and Reiley describes organisation as "the form of every human association for the attainment of a common purpose."

Defined by G.E. Milward:

       In the words of G.E. Milward organisation is "the harmonious inter- relation of function and staff."

Defined by Haney:

       In the opinion of Haney organisation is "a harmonious adjustment of Specialised parts for the accomplishment of some common purpose or purpose."

       From the above definations it can be said that the term organisation implies co- ordination and arrangement of men and material of an under taking in order to achieve a certain purpose.

Importance of Organisation:

       The following are the significance of organisation:

  1. Organisation is required to coordinate the functions of different personnel towards a common purpose.
  2. Organisation adds definiteness to the activities to be accomplished by delegating duties and responsibilities to the individual member of the organisation.
  3. Organisation secures promptness and accuracy by proper delegation of duties and authorities.
  4. It increases Managerial efficiency and avoids delay, confusion and misunderstands in work process.
  5. It induces a proper channel of communication and instructions more in all the directions without any delay.
  6. It gives proportionate importance to various activities and secures optimum use of men, money and materials.
  7. It binds together all executive leaders and provides Coordination at the top level.
  8. It provides the scope for required research and development through technically sound and experienced personnel.
  9. It provides a harmonious growth and expansion without any resistance internal or external.
  10. A sound organisation puts a strict vigilance on unethical activities and checks it at the roof level.
Principles Of Sound Organisation:

      Principles of Organization in management is a basic statement or a fundamental truth that provides understanding and guidance to thinking and practice.

       An organisation is like an organ of a business. It cannot function with life and breathe if it is not properly and methodically arranged and worked into.

       The principles of or steps in the process of sound organisation are:

1. Realization Of objectives:

       Objectives are realized through organisation. It is the duty of the organisation to keep the employees always aware of the objectives of the organisation. Deviation from objectives is dangerous to the very life of the organisation.

2. Determination Of Activities:

       A sound organisation May determine the activities of every single individual working in it. Specialization and division of work produce more and better work result with the same effort. Equitable division of work burden is the key.

3. Grouping Of Activities:

       The different activities of the organisation should be divided into different sections, units or sub units according to their capitals; it may be on the basis of functions- purchase, sale, production etc. or according to geographical areas, types of customers' equipments etc.

4. Definiteness:

       Every single person from top to bottom must know his definite position, purpose and responsibility in the organisation.

       It is necessary to maximize work with Minimum effort.

5. Caution and Conviction: (Causation & Conviction)

       The principle of caution and conviction states that efforts of organized group of people are more productive than the sum total of their individual efforts. Keeping this in mind, organisation must infuse the in the employees the virtue of Causation and conviction.

6. Economy And Standardization:

       Uniform practice and procedure for routine works regarding quantity, quality, cost, time etc should be standardize inorder to achieve economy in cost and time and avoid wastage to the extent possible.

7. Fixing Of Responsibility:

       Responsibility should be fixed on the basis of competence, skill, experience and ability. The responsibility for doing a task should be clearly fixed and feasible.

8. Delegation Of Authority:

       Authority is the power to command and to net. Responsibility without authority makes a man powerless and its dangerous for effective leadership.

       Fixing of responsibility should be made effective by delegation of authority.

9. Coordination:

       Coordination is the effective arrangement of group efforts to provide unity of action. The organisation should be so designed to facilitate Coordination which is the fruit of effect Coordination.

10. Control:

       Control consists in verifying whether everything occurs in conformity with the plan adopted. The span of control should be such as would allow maintaining a proper balance between supervisory load and organisational levels.