Importance of Organization

Vital for Implementing Plans

Organization follows planning. Implementation of the business plans cannot be possible without the aid of organization. It is only through organization, the resources required, to accomplish the enterprise goal, are acquired. Organization assigns work to the superiors and subordinates. Accomplishment of tasks by individuals and departments should result in realization of the business goal.

Specialization

The entire work of a manufacturing concern is divided into production, finance, personnel and marketing according to importance. A separate department is created to look after each of these. This results in specialization.

Optimum Use of Resources

Organization gives utmost importance to the optimum utilization of the enterprise resources, namely, men, machines, materials and money. Right men are recruited for the right job. All efforts are made to ensure that there is no overlapping of activities and duplication of work. Materials are kept at the right place and made available at the right time. Tools and equipment are properly maintained and put to the best possible use.

Teamwork

The work that is done in an organization is teamwork. The work of each individual is determined by the work done by others. In       other words, a series of operations will have to be carried out to complete any task. A number of persons will be performing these operations. It is, therefore, necessary for them to work as a team and with proper understanding.

Communication Relationship

It is not possible for an individual in an organization to do his work without getting orders, instructions and advice from others. For example, a subordinate has to work as per the instructions given to him by his superior. If the subordinate needs any clarification, he can either ask his superior or another subordinate. Thus, it becomes clear that organization encourages communication relationship between the individuals.

Creativity

An organization provides ample scope for the individuals to exhibit their creative skills. As authority is delegated to every subordinate, he has the freedom to act. He can use all his innovative ideas in performing the task. He will also be suitably rewarded for the initiative he has made. Such a reward may be in the form of incentives, greater decision-making authority and so on.

Coordination

The activities performed by different departments are interrelated and also interdependent. For example, production is dependent on the availability of finance. Marketing is dependent on production. It is, therefore, important that a proper link is established between the activities of different departments. Such a link is what is called co-ordination and it is secured through the medium of organization.

Continuity

Men may come and go; machines may be replaced; materials may be purchased whenever necessary – all these activities go on in an organization on a continuous basis. Organization ensures that there is no disruption of work due to non-availability of men, machines, materials and money.