Explain the importance of Organization by taking any two points.
Answer – Organising identifies and groups the work needed to achieve objectives, assigns duties and establishes authority relationships. An organisation structure is the framework within which managerial and operating tasks are performed. Span of management is the number of subordinates directly reporting to a superior.
Process
- Identify and divide work: break the total task into manageable activities, avoiding omission and duplication.
- Departmentalise: group related activities by function, product or another suitable basis.
- Assign duties: allocate work according to employees' competence and define responsibilities.
- Establish reporting relationships: specify who reports to whom and provide authority needed to perform duties.
Importance
- Benefits of specialisation: repeated attention to a task improves skill and efficiency.
- Clarity in working relationships: authority and responsibility become clear.
- Optimum utilisation of resources: duplication and waste are reduced.
- Adaptation to change: work and relationships can be redesigned as requirements change.
- Effective administration: clear roles make coordination and supervision easier.
- Development of personnel: delegation gives employees experience and reduces excessive managerial workload.
- Expansion and growth: a sound structure supports new products, locations and activities.