Organisation is one of the basic functions of management. There is proper allocation of work. A sound organisational structure will give an opportunity for the staff to show their hidden talents which will help the enterprise to achieve the business goals and earn higher profits. The higher-ups, in turn, can concentrate on strategic issues-putting their creative abilities to good use. Executive Development 11. Getting organized can help: But don't just take our word for it. With these activities the organisation provides a framework within which the company grows. Sound organisation uses the material resources by taking into consideration the various constraints. Before uploading and sharing your knowledge on this site, please read the following pages: 1. It creates an environment where people can work effectively. Organisational structure lays down both channels and the patterns of communication. The actual work is completed at lower level of the organisation. It is felt by people. Inventory Tracking. Inspiring Morale. Promote Brand Values. It responds in time to the changes in the environment and thereby justifies its existence. A sound organisation structure facilitates growth by increasing its capacity to handle increased level of activity. 4. 6. Sound organisation has flexibility and also stability. 5. It prepares them to take more responsibilities whenever need arises. An enterprise takes advantage of the technological advancements through sound organisational structure. The job training is much better and gives good results as compared to class room training. 6 Reasons Why Organization Is Important for Your Business A Happy Workforce. It is the foundation upon which the whole structure is built; which contribute to the success and survival of the enterprise. Organisation provides a channel for better management. Any business big or small anticipates a large sum of cash flowing in and out of the company. The function of organizing is required for the performance. A sound organisational provides training to new staff members before placement and give refresher training to the existing staff members to improve their efficiency. It ensures close co-operation and higher employee morale. Sound organisation is a fine mecha­nism enabling people (living things) to collaborate and work together for integrated effort. 6. A good organisation is an asset to the management. It integrates the various functioning of various departments. Small business establishments and organizations use MS Excel spreadsheet for storing contact information of their clients and customers. If you're serious about changing the status quo for your business, Norris suggests using detective work to resolve the roots of a messy business. It provides for the optimum use of technological improvement, e.g. xii. Fosters Co-Ordination 4. 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. Organisation is also essential for the continuity and stability of the enterprise. Money and efforts are spent in proportion to the contribution made by each and every department. That is, if there is no organization there is nothing but chaos - which can’t be managed. Co-ordination – Co-ordination means bringing harmony in the efforts of various individuals. Save money by comparing insurance quotes from multiple carriers, Organization 101: Why organizing your business matters. Organisation is an important way of achieving coordination among different departments of an enterprise. Inventory is a current asset on your company’s balance sheet. A good organisation helps in proper assignment of jobs, gives due credit to all the employees, reduces conflicts, chaos and duplication of work. These resources include both human as well as other physical resources like material, machinery, money etc. Since total work cannot be performed by the manager alone, it must be divided among its staff in a well-planned manner. There will be a need for employing more persons whenever expansion and diversification takes place. 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. Inadequate and unscientific organisation may result in duplication of work and efforts and some of the important operations may be left out. Increases management efficiency – Good organisation assures all round efficiency by bringing definiteness all around, matching jobs with individuals and individuals with jobs, by utilising best skills, experience, abilities and specialisation and by avoiding delays and wastages. Poor organisation may mean improper arrangement of facilities and failure to achieve goals. The world changes every day. Privacy Policy 9. Employees make better decisions in less time with business ethics as a … Personal organizing has to do with managing yourself, such as your office and paperwork. Organizational culture in a business is important because it is one influential tool that greatly contributes to the success of one company or business. rise in the level of mutual trust, support, openness and completeness of communication, widespread participation in planning and decision making. It enhances the productivity through avoidance of duplication of activities and the consequential confusion as well as wastage of efforts. It lays solid ground-work for focusing the attention and action of management on the accomplishment of the objectives of enterprises. Following are some of the important advantages of a sound organizational design which have enhanced its importance and have, therefore, made it indispensable: The function of organizing is required for the performance of other functions of management like planning, staffing, directing and controlling. Efficient organisation offers the following benefits: 1. job rotation, job enlarge­ment, delegation, etc. The person or department in the organisation will neither be overworked nor underworked. Facilitates Administration 2. It offers ample scope for the training and development of managers,” e.g. Promotes Growth and Diversification 3. xi. It allows most people to maintain a positive attitude towards self, others, works and life in general. Clear definition of authority, responsibility relationship facilities better understanding of the objectives and the... 2. Ensures Optimum Utilisation of Material Resources and Human Efforts: 6. This ineffective administration can be removed by having a sound organisation. It promotes effective leadership and thereby ensures good em­ployee morale. The answer to this question may seem obvious: because it addresses and fixes a problem, thereby increasing a business's effectiveness. Remember, keeping your office organized is a form of risk management. Important of finance for business organizations. When items are organized, finding them is easier, and the time is takes to organize a home or office will save time that … Necessary functions are determined and assigned so that personnel and physical facilities are utilized effectively. 8. In this way, the organisation maintains the relationship with each other in an enterprise. Organizational charts prove to be of great importance for business plans, grant applications, it works as a handbook and is also a crucial office document. An organisation consists of human beings and their satisfaction will help in improving human relations. Confusion and misunderstanding over who is to perform what work is avoided by specifying the role of managers clearly. It Prevents the Growth of Laggards, Wirepullers, Intriguers or other Forms of Corrupters: As a matter of fact, experience shows that corruption can only thrive in those enterprises which have failed to set up a sound organisational structure. Organizing is an important means of creating coordination and communication among the various departments of the organization. Good organizational structure and design helps improve communication, increase productivity, and inspire innovation. Bestry agrees that keeping too much of anything in your workspace is a bad plan. By providing training and practice on different jobs, and in different capacities, efficient organisation offers excellent scope to its employees for development. It encourages creativity, i.e. 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. 7. With the growing concepts and complexities of large scale business, the need and importance of organisation has grown substantially. Complete Insureon's online application and contact one of our licensed insurance professionals to obtain advice for your specific business insurance needs. It is, indeed, the foundation of management. Proper delegation and decentralisation helps development of managers. "If you have to jump through hoops and leap over storage tubs to get to your scanner or filing cabinet, you're going to avoid digitizing documents or filing forms," Bestry notes. Unsound organisation becomes the breeding ground of dishonesty, whether in matters of effort or of money. It helps an organisation in the following ways: It helps individuals to enlarge their capabilities. The top level executives perform the functions, like planning, organising, staffing, directing, controlling the lower level people. We asked two professional organizers why organization is so important for small businesses and how they can stay organized for the long haul. Confusion, delay and duplication of work are avoided in good organisation. A flexible organisational structure is needed to adopt a new technology. It develops voluntary co-operation and best motivation of employees. There should be an effective administration to achieve the objectives of the business. A clearly defined authority provides a scope for the use of talent. Thus, a sound organisation structure is the soul of the enterprise. Report a Violation 11. Thus routine duties can be transferred to subordinates so that superior line officers can concentrate on policy formation and forward planning. Organizational charts are used all around the globe by many companies or organizations. 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. Training and Development of Personnel: A good organisation offers an opportunity for the training and development of personnel. A definite organisation structure leads to smooth running of all its operations. Each department is receiving attention according to its importance it has in the achievement of business objectives. Organizing your business's workspace may not be high on the priority list, but it should be. Opportunities are seized quickly and exploited fully, ultimately, paving the way for growth and diversification. Techniques of organizational strategy are designed to avoid this situation, and to keep organizations moving efficiently toward their goals. Administration aims at earning the highest profit by utilising the available resources properly. 4. Marketing copy and proposals play a huge role in the sales … Norris suggests allocating at least 24 to 28 hours to the initial process. All content and materials are for general informational purposes only. If you do not feel confident about what you are doing, two things will happen. Moreover, they can then use that understanding to identify employees who exhibit leadership and other key behaviors. To avoid this, block out your time. In this sense, it is the foundation of management as well as its chief tool. "Sometimes it's easiest to remove everything from a work station if your problem is a combination of paper and ineffective furniture and storage," Norris says. Organization is important for dealing with information as well. The structure of the company can be changed whenever the growth and expansion activities are carried out. Sound organisation is an essential prerequisite of efficient management. It is an important means of bringing co­ordination among the various departments of the enterprise. These would create utter confusion, chaos and conflict. It lays the basis for other managerial functions such as planning, direction, co-ordination and control. It helps people find information and items faster, and it allows groups to work together without wasting time. Why Is Organizational Development Important to Businesses? 17. Give yourself time to get organized. 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 enables smooth management and operation of the enterprise, thereby, enhancing managerial efficiency, e.g. Better Relationships – A sound organisation helps in building better relationship amongst its personnel, department, sections etc. It facilitates the other functions of management. A flexible organisational structure will enable the employment of more persons without disturbing the working. 5. Activities that should be integrated or centralized are spread out and put to improper supervision. The organisation can undertake more activities without dislocation. It is indeed the foundation of management”. Independent, creative thinking is stimulated. The new entrants get sufficient training in their work. 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. A well devised organisational system will provide a sufficient opportunity for the training of new trainees and development of existing staff. Its importance lies in the systematically evolved pattern of relationships designed to set in motion the processes of managerial functions. Persons are allowed to try new ideas for improving upon their work. Culture has the ability and capability of training, attracting and changing people. Besides, the administration classifies the activities of the business department-wise and appoints the officers, assistants, supervisors, executives to facilitate the achievement of objectives. Organising makes possible the effective operations of a group. There is a planning, policy making, direction and co-ordination in the administration level to achieve the objectives. Nearly all business experts agree on one thing: the importance of drafting a business plan. Each department performs its own function in a closely related manner and not as competitors. Organisation structure coordinates the activities of the organization properly. It can secure the optimum use of human efforts through specialisation. It disposes of conflict between individuals; individuals and the enterprises, enterprise and the economy as a whole. vii. A one man business, will have no difficulty about coordinating the efforts of the buying, selling and other management functions of the business. All these ensure an optimum use of human resources of an enterprise. "There are 8,760 hours in a year, so you can afford to invest this time in your business," she notes. Delegation of authority is also an important means of directing the sub-ordinates. Vicki Norris, president of professional organizing services company Restoring Order, says, "Disorganized individuals take longer to complete work." A good organisation clearly defines the scope of work of every person and allows them to grow in that sphere. It helps the management in several ways. 18. Allen observes that “A properly designed and balanced organisation facilitates both management and operation of the enterprise. Places Proportionate Importance to the Various Activities of the Enterprise: 9. Here are just a few of the many things that are important to consider when thinking about the structure of your organization adapted from Factors Affecting Organizational Design...Strategy, Size, Organizaition … Better administration and control – A sound organisation helps in achieving better managerial administration and control. Well-designed and balanced organisation facilitates management and operations of the enterprise. resourcefulness, independent thinking, initiative, spirit of innovating etc. Sound organisation offers effective management of changes continuously and gives premium to innovations. Good organisation improves interpersonal and intergroup behaviour to secure team work, i.e. Avoids confusion and misunderstanding – By assigning definite duties and responsibilities, establishing definite superior-subordinate relationships, clear cut delegation of authority and by proper selection and training of the Staff, organisation brings definiteness and knits all its segments to operate together to realise its goals, Each of its departments or employees knows his specific mission, duty, authority and responsibility. 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. It helps management in performing other management functions such as planning, direction, delegation, control etc. Balance should be maintained in authority and responsibility through organisation structure. "Studies from the Journal of Experimental Psychology report multitasking wastes time and leads to distraction, errors, and memory lapses," Bestry says. There may also be a need to delegate new powers for making best utilisation of technological changes. Obvious organization will make your post more skimmable, and that’s a good thing! Facilitates Training and Development of Managerial Personnel: 10. Good organizational skills naturally feed productivity, enabling small business owners to cross off more items from their to-do lists. All these factors assure stability. Division of work enables an individual to specialize in the job in which he is proficient leading to better utilization of resources and talents. Why Is Inventory Important for a Business?. 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. 20. It promotes effective leadership and thereby ensures good employee morale. Human relations improve in a good organisational set up. with the help of clear-cut accountability, recognition, ap­preciation of talents, etc. A sound organisation structure encourages better relations between the worker and the management, and increases employee satisfaction and decreases employee turnover. Following are the advantages of a sound organisation structure: 1. It ensures steady growth and diversification. vii. A reader is more likely to stick around when a quick scan reveals that the information in your article is relevant. Stimulates Creativity. Thus, it facilitates human use of human beings. Uploader Agreement. Co-operation – A sound organisation ensures proper co­operation amongst its employees. 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. 11. The bottom line is a company’s net income after all expenses have been paid out of its earnings. viii. "In other words: function beats form!". A good organisation enhances capacity of individuals and enables them to take advantage of the skills and experiences. Development of manpower – A sound organisation aims at continuous improving its human resources. Anything you use at least every day should be within easy reach. It helps equitable distribution of work. It gives them job satisfaction too. It facilitates the optimum use of resources and new technological developments. Organisation classifies the entire business activities into departments. It will help you recognize what you actually need in front of you and force you to put away things that don't need to be immediately handled. There will be a sufficient scope to try new ideas in improving the working of the organisation. You can't expect to overturn years of bad organizational habits in a day. 9. 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