Normally, these help remove corruption, secret and influence. This helps to check out that all necessary expenses are met, including taxations t… We asked two professional organizers why organization is so important for small businesses and how they can stay organized for the long haul. It ensures, above all, accomplishment of objectives and strategies. quick disposal, minimum inter- department rivalry or friction, absence of divided responsibility, effective communication etc. It is in this sense it is claimed that there is no substitute for good organisation. It ensures closer co-operation and higher employee morale. A good organisational structure will provide sufficient scope for taking initiative. Confusion and misunderstanding over who is to perform what work is avoided by specifying the role of managers clearly. A neat space and functional sorting systems ensure you don't lose track of important documents and bills. Training and Development of Personnel 13. Better Relationships – A sound organisation helps in building better relationship amongst its personnel, department, sections etc. The structure of the company can be changed whenever the growth and expansion activities are carried out. effective communication system, and well knitted relationships bring unity in command and direction, fixed responsibilities and division of work and facilitate control and co-ordination. A manager leads, co-ordinates and controls the enterprise activities through the organisation. These would create utter confusion, chaos and conflict. Optimum use of physical resources – Efficient organising provides for optimum and economical use of all physical resources such as buildings, machines, tools, materials, finance etc. Running a small or even big business is not an easy job. Persons are allowed to try new ideas for improving upon their work. Sound organisation has flexibility and also stability. It also encourages new and automatic techniques of production, control devices and data processing. Sound organisation is a fine mecha­nism enabling people (living things) to collaborate and work together for integrated effort. Sound organisation helps in keeping the various activities under control and increase the capacity of the enterprise to undertake more activities. Organisation is an important way of achieving coordination among different departments of an enterprise. A definite organisation structure leads to smooth running of all its operations. The top level executives perform the functions, like planning, organising, staffing, directing, controlling the lower level people. "After returning from a networking event, note how you met each contact, determine how to get the data into your CRM, and determine how to best serve those new relationships," Norris says. Getting organized can help: But don't just take our word for it. It ensures close co-operation and higher employee morale. Opportunities are seized quickly and exploited fully, ultimately, paving the way for growth and diversification. Sound organisation is a must for every enterprise not only for its continuity but also for its success. A sound organisation by providing for training of staff at different levels and by proper delegation and decentralization helps development of managers. Paring back to just the essentials on your desk can help you stay focused on the work in front of you. Copyright 10. Why is organization important? By proper division of work, grouping tasks of individual jobs, grouping jobs or people into sections and de­partments, we can adopt consistent delegation and decentrali­sation, when necessary. 8. Facilitate Administration: 4. It ensures steady growth and diversification. The information provided on this website does not constitute insurance advice. All these factors assure stability. Whether you’re running your own business, or just starting out on your business career, you’ll need to be a great communicator! It gives smooth management and administration. Facilitates Growth and Diversification: Sound organisation helps in keeping activities under constant vigil and control. It develops voluntary co-operation and best motivation of employees. It Ensures an Optimum Use of Human Resources: Sound organisation matches the jobs with the individuals and vice-versa. Delays, duplications and waste motions occur with frustrating regularity. Organisation provides a channel for better management. Sound organisation encourages human use of human re­sources. Places Proportionate Importance to the Various Activities of the Enterprise: 9. Changes in the organisation may result in the appointment of additional staff members, de-centralisation of authority and responsibility, raising of additional capital, identification of the consumer’s satisfaction and preferences, expansion of sales promotion activities and the like. It helps management in performing other management functions such as planning, direction, delegation, control etc. That is why, it is generally said that organisation is the machinery of management in its achievement of the ends determined by administration. It integrates the various functioning of various departments. Jobs are designed to suit human needs. 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. Permits Optimum Use of Resources 7. Facilitates Growth of Enterprise 10. Duplication of work, wrong planning, inefficient personal, lack of motivation, improper allocation of duties and responsibilities, absence of co-ordination, communication gap, and improper instructions are the ingredients of ineffective administration. More important, it is a major part of your ongoing business operations. slow and poor decisions, lack of co-ordi­nation of activities, poor specification of duties, destructive conflict among members, non-synchronised timings in actions of individuals, sluggishness in response to changes in techno­logy and environment, etc. A sound organization structure facilitates effective operation of the enterprise. If businesses fail to keep up with these constantly-moving targets, they lag behind, become stale and, ultimately, fail. vii. Poor organisation leads to improper arrangement of duties and responsibilities. The technological improvements are taking place every time and management is required to make use of them to exist in competitive world. Incom­petent individuals are overused while talented people are under-utilized. 7. Division of work enables an individual to specialize in the job in which he is proficient leading to better utilization of resources and talents. Aid to Management 9. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Effective organisation enables growth and diversification through decentralisation and divisionalisa­tion on geographical or product basis. xiii. It ensures that every individual is placed on the job for which is best suited. "There are 8,760 hours in a year, so you can afford to invest this time in your business," she notes. iv. There is a planning, policy making, direction and co-ordination in the administration level to achieve the objectives. 14. It determines whether or not you stay in business. Organisation creates the relationship between top level executives and lower level staff members. But within these limits people are given freedom to show their talent. It allows most people to maintain a positive attitude towards self, others, works and life in general. 9. Confusion, delay and duplication of work are avoided in good organisation. A well-structured organisation also encourages co-ordination and co-operations amongst all the individuals in the organisation. Entire organisation environment and climate is favourable for productivity and job satisfaction. v. Sound organisation provides for optimum use of technological improvement. This is essentially due to the importance that businesses try to improve productivity and reduce costs. 7. 3. In turn, you are better able to serve your clients and cut down on work mistakes that can lead to lawsuits. Organising makes possible the effective operations of a group. Image Guidelines 4. It cannot be seen. Organizational culture in a business is important because it is one influential tool that greatly contributes to the success of one company or business. An organisation works in a dynamic environment and to cope with the changing business situation better technology is always helpful. There may also be a need to delegate new powers for making best utilisation of technological changes. The job training is much better and gives good results as compared to class room training. Professional organizers Julie Bestry and Vicki Norris explain why organization is such an important part of running a successful business. It promotes effective leadership and thereby ensures good em­ployee morale. Delegation of authority creates superior-subordinate relationship between various positions in the organisation. Ensures Co-Operation among Workers 12. It is a combination of many factors, such as management style, management values, the formal organisation (rules, policies, procedures, practices, organisational structure, reward system) informal organisation (norms of behaviour beliefs, values and attitude of the group) the communication system and all other managerial systems. 19. Since total work cannot be performed by the manager alone, it must be divided among its staff in a well-planned manner. Too much irrelevant content often results in information silos. Once you find the right policy for your small business, you can begin coverage in less than 24 hours. Right persons are given right jobs. Departments/units are formed on the basis of requirements of the enterprise. Organization is important because it allows individuals and groups to perform tasks more efficiently. It can secure the optimum use of human efforts through specialisation. Promote Brand Values. "In other words: function beats form!". Put items in an accessible place as part of getting organized. It gives proper recognition to the contribution of each individual, values their co-operation hence gaining their sincerity and loyalty. The organisation should be flexible to incorporate all new requirements. It helps in achieving organisation goals through the exercise of effective controls. It is the key to managerial success. Sound organisation has flexibility and also stability. Clear definition of authority, responsibility relationship facilities better understanding of the objectives and the... 2. It encourages creativity, i.e. In this sense, it is the foundation of management as well as its chief tool. Loose contact files and business cards are missed leads and lost revenue if information isn't managed and queued. We may have top manage­ment in the hands of a few chief executives forming a top level executive committee running the affairs of very big enter­prise. In an environment in which an organisation is dynamic and constantly changing to cope with ever changing situations, it is very important to encourage the employees to take proper initiative. A sound organisational structure facilitates the optimum use of technological improvements such as automatic techniques of production, control devices, computer system etc. These training institutes are collecting data directly from the field used in the training. Organisation classifies the entire business activities into departments. Nearly all businesses have an IT department, outsourced IT service of a full-time professional. automation and computerisation. You can't expect to overturn years of bad organizational habits in a day. "Studies from the Journal of Experimental Psychology report multitasking wastes time and leads to distraction, errors, and memory lapses," Bestry says. Personal organizing has to do with managing yourself, such as your office and paperwork. Organisation structure coordinates the activities of the organization properly. There are different types of organization, according to the Skills and Practices in Organizational Management website. Provides for the Optimum Use of Technological Innovations 5. As Lounsburry Fish points out-“Organisation is more than a chart, it is the mechanism through which management directly co-ordinates and controls the business. Why Company Culture is So Important to Business Success. Give yourself time to get organized. Privacy Policy 9. It gives them job satisfaction too. In this way, the organisation maintains the relationship with each other in an enterprise. A disorganised inventory system is one of the quickest ways … Obvious organization will make your post more skimmable, and that’s a good thing! The adjustment to new changes will require re-scheduling and re-adjustment of duties and responsibilities in the organisation. Good organizational structure and design helps improve communication, increase productivity, and inspire innovation. In any industry, trust plays a pivotal role in determining whether a business … It lays the basis for other managerial functions such as planning, direction, co-ordination and control. xiv. Geber86/Vetta/Getty Images Communication within an organization is important in the areas of customer service resolution, producing marketing campaigns and fostering relationships between coworkers, according to the Chron Small Business. Organisational deficiencies give rise to a number of inefficiencies, e.g. This will give job satisfaction to employees. 7. Sound organisation facilitates the performance of various managerial functions by division of labour, consistent delegation or job definition and clarity of authority and responsibility relationship. According to Allen, “A sound organisation can contribute greatly to the continuity and success of the enterprise”. Undoubtedly, the importance of business organization takes pride of place in any business, because ultimately sets the design, structure and processes necessary to achieve the goals proposed, reducing efforts and increasing productivity, always in a way as efficient as possible. With the growing concepts and complexities of large scale business, the need and importance of organisation has grown substantially. 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. In the business world, organization might be said to be everything. Business leaders can first use their understanding of organizational behavior to evaluate their own attitudes and behaviors as well as the company’s values, strategies and goals. Training and Development of Personnel: A good organisation offers an opportunity for the training and development of personnel. The following are the importance of organisational structure: 1. Effective business writing drives sales. (5) It Encourages Human Use of Human Resources: A sound organisation provides for job rotation and job enlargement and makes job meaningful and interesting. That perspective will help you make organization part of your business life. A well devised organisational system will provide a sufficient opportunity for the training of new trainees and development of existing staff. ix. Bestry recommends you think of your desk as your "prime real estate." 5. An ill-defined organisation plan will not enable the management to make an effective exhibition of its managerial talents to realise business goals. There may be a collective office of the chief executive to direct all operating and staff departments. Under good organisation, there is a chance of exhausting the worker’s ability in full and utilisation of resources effectively. Management, Functions, Organisational Structure. Clear au­thority relationships and proper assignment of work facilitate the task of achieving coordination at all levels. Sound organisation is a must for every enterprise not only for its continuity but also for its success. It is the means by which the problems of an enterprise relating to policies, procedures, operations and administration can efficiently be solved. It is the backbone of a management and without it; no management can manage the various operations of an enterprise. It facilitates attainment of the objectives of the enterprise. Here's what they had to say. Development of manpower – A sound organisation aims at continuous improving its human resources. And without effective business communication, you won’t. The policies and procedures are laid down for the guidance of managerial personnel. It facilitates the optimum use of resources and new technological developments. It enables smooth management and operation of the enterprise, thereby enhancing managerial efficiency, e.g. The effectiveness of an enterprise is measured by the reaction of staff members to the adopting of a new technology. 4. Everybody will know his limitations and may try to remain in that sphere. It enhances the productivity through avoidance of duplication of activities and the consequential confusion as well as wastage of efforts. Important of finance for business organizations. Sound organisation helps in coordinating various jobs in the department or organisation. It responds in time to the changes in the environment and thereby justifies its existence. It facilitates administration by avoiding waste motions, overlap in work and duplication of effort. An enterprise takes advantage of the technological advancements through sound organisational structure. Necessary functions are determined and assigned so that personnel and physical facilities are utilized effectively. 16. Jobs are made challenging, meaningful and interesting. Sound organisation develops the morale, honesty, devotion to duty and loyalty of business organisations. It Stimulates Independent, Creative Thinking and a Spirit of Initiative through Well-Defined Areas of Work: An ideal organizational structure based on clear-cut demarcation of authority, higher range of responsibility, discretionary freedom granted to personnel, incentives offered for specialized work etc., will certainly foster the spirit of constructive and creative approach in management. But once the business starts to grow and separate departments are created for buying, selling, accounting, administration and so on, the need for organisation undoubtedly grows with it. Brings unity in direction, facilitates control and co-ordination – Efficient delegation and effective communication system, and well knitted relationships bring unity in command and direction, fixed responsibilities and division of work and facilitate control and co-ordination. Following are the advantages of a sound organisation structure: 1. If the new technology is adopted by the enterprise, the maximum benefits can be obtained in any field or activity. It permits management to res­pond in time to the changes in the environmental influences and make necessary adjustment to satisfy the new demands of society. An organisation is not merely a chart or a lifeless structure. Thus, it facilitates human use of human beings. The training may be given within the company or outside the company according to the training facilitates available. Moreover, they can then use that understanding to identify employees who exhibit leadership and other key behaviors. The activities of different departments are grouped together to achieve the business objectives. The new entrants get sufficient training in their work. Organizations must tailor communication based on the audience to maximize efficiency. 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. They are attached to experienced persons who guide them on undertaking various jobs. Society is constantly changing. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Yet plenty of companies plunge into the competitive arena without a formal plan. Nearly all business experts agree on one thing: the importance of drafting a business plan. Better Human Relations and a Few Others. Report a Violation 11. 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