Principles of Organizing
Organizing means the arrangements of all organizational activities to make the proper functioning. It is one of the crucial functions of management after the planning. To make an effective arrangement a manager has to consider some principles of organizing.
Organizing principles clarify the philosophy of organizing comprehensively. These are the fundamental truth and systems which are applied in the process of functioning. They are;
14 Important Principles of Organizing
- Unity of Objectives
- Authority and Responsibility
- Delegation of Authority
- Unity of Command
- Scalar Chain
- Span of Control
Let’s get to know these organizing principles,
Principle #1 Unity of Objectives
The unity of objectives principle assumes that the objectives of the organization must be known to each department, section, and even each position in the organization structure.
This principle implies that the objectives of various departments and sections of enterprises must be formulated in such a way that every individual can contribute his/her efforts for a single objective.
For this, common objectives of the enterprise should be defined first and then they should be divided into every department and section. By doing this every individual is informed and leads to complete the work on time.
Principle #2 Specialization
This principle of organizing implies that as far as possible each individual of the organization should be given a specific task based on his/her ability. In such a situation, employees can concentrate on single work with greater efficiency.
Repetitive functioning on a specific task builds up confidence among the workers to complete the work within the determined standard, time, and cost. Specialization is helpful to maintain and develop working efficiency and it also minimizes the cost of output.
It assumes that giving multiple tasks to a single employee creates confusion in the mind of that employee, he can be frustrated, he can not meet the determined standard, time, and cost, thus there can be lateness in completing the work.
Principle #3 Coordination
Coordination is the essence of organizing. Every organization is established for a definite objective. For the accomplishment of defined objectives, many departments are created and many persons are appointed. All the departments and persons involved in various activities have a common goal.
Coordination among various departments and activities is one of the crucial parts of organizing. This principle facilitates the creation of harmonious working relationships among departments and employees. It also integrates the efforts of all individuals of the enterprises.
Principle #4 Authority and Responsibility
Authority and responsibility are two wheels of a cart. There must be a balance between these principles of organizing. When an individual is responsible for a particular task, he should be given the required authority to complete the given task efficiently.
Without proper authority, an employee can not fulfill his responsibilities effectively. Similarly, sufficient authority to an employee without responsibility may result in the misuse of authority. So, it is essential to be a balance between authority and responsibility of the employees.
Principle #5 Delegation of Authority
Delegation of authority means assigning the authority to the subordinates by the top-level manager. Subordinates are assigned authority to complete the particular work at the given time.
Authority is assigned for a limited time and after it, the given authority is restored. The main objective of this principle is to continue the organizational work without lateness.
Principle #6 Unity of Command
This principle ensures that an employee should receive orders and instructions from only one superior at a time. When he is answerable to more than one superior at a time, he can not fulfill his duties on the required time.
While receiving orders and instructions from two or more superiors he may come into confusion for taking priority of superior instructions. Thus, it is essential for the unity of command in the organization.
Principle #7 Scalar Chain
This principle implies that the unbroken line of authority from the top-level to the lowest level of an enterprise. It is a root of communications from the top level to the lower level and from the lower level to the top level. It also promotes mutual understanding among subordinates and superiors.
The chain of command must be clear and short for its effectiveness.
Principle #8 Span of Control
This principle of organizing refers to that there should be a limited number of subordinates under a supervisor so that their work can be effectively supervised. In fact, several factors determine how many subordinates a supervisor can supervise.
The narrow span ensures close and effective supervision as there is a limited number of subordinates under the supervisor. Similarly, a wide span makes simple supervision of the subordinates. Therefore, depending upon the size and nature of the enterprises, there must be manageable numbers of subordinates under a supervisor to make effective supervision.
Principle #9 Exception
This principle emphasizes that the top-level manager must concentrate only on exceptional and creative issues. These activities involve planning, policy-making, setting long-term objectives, and formulation of strategies.
Also, the exception principle of organizing emphasizes that repetitive and operational activities should be assigned to subordinate levels. This is essential to optimize the efficiency of both top-level management and subordinate officials.
Principle #10 Efficiency
Organizational efficiency means the degree of achievement of the predetermined objectives effectively and efficiently. For this purpose, optimum utilization of resources is most essential.
A manager has to make and develop a strategy for better utilization of organizational resources including human resources. And ultimately an efficient organizational structure ensures optimum utilization of organizational resources.
Principle #11 Balance
According to this principle, there must be an equal division of work among all departments and sections of an organization. There must be a balance between efficiency and effort.
There should be a division of work to a particular person or department based on their capability. Based on the nature of work, there must be an appropriate blend of concepts of centralization and decentralization.
The feeling of overemphasis on a particular department or person must be avoided to increase the efficiency of work.
Principle #12 Homogeneity
This principle implies every department should be assigned only homogeneous functions. It means functions of similar nature and has the same objectives should be divided into one group. This helps to ensure unity of direction and coordination of efforts.
Principle #13 Simplicity
This principle emphasizes that the management must design a simple organizational structure. It should be designed in such a manner that all the members of the organization understand easily.
All members of the organization from top-level to bottom level should understand their line of authority and responsibility. It provides a framework for better cooperation among all the members.
Principle #14 Continuity
Organizing is the continuous process up to the existence of the organization. It must be watched from time to time.
The organizational structure should be reviewed and revised according to the changing environment of business. The organizational structure must be reviewed and modified according to the demand of the situation.
In other words, the organization structure should be flexible to adjust to the changing business environment.
In addition, the above-mentioned organizing principles a manager also concern with some following principles of organizing.
- Principle of Flexibility
- Principle of Direction
- Principle of Responsibility
- Principe of Staffing
- Principle of Communication