Apparel Industry Management

Apparel Industry Management 3(3+0)

Lesson 10 : Concept of Organisation

Principles of Organisation

Certain basic principles of organization may be enumerated as below:

1. Unity of objective: It means that every part of the organization and the organization as a whole should be geared to the basic objective determined by the enterprise.
2. Efficiency: The organization should be able to attain the mission and the objectives at the minimum cost, and if it does so, it satisfies the test of efficiency.
3. Span of Management: A manager can directly supervise only a limited number of executives; hence it is necessary to have a proper number of executives answerable to the top manager. A maximum of six may be prescribed for this purpose.
4. Division of work: Proper departmentation is an important principle of sound organization.
5. Functional definition: The duties and authority relationships in a good organization must be properly and clearly defined so that there may be no confusion or over-lapping.
6. Scalar principle: Every subordinate must know who his superior is and to whom policy matters beyond his own authority must be referred for decision.
7. Exception principle: According to this principle only exceptionally complex problems be referred to the higher levels of management and the routine matters be dealt with by executives at lower levels.
8. Unity of command: According to this principle each subordinate should have one superior whose command he has to obey. This will avoid conflict of commands and will help in fixing responsibility.
9. Unity of direction: There should be only one plan for a group of activities directed toward the same end.
10. Responsibility: In a sound organization, the superior is responsible for the activities of his subordinates and the subordinates must be held responsible to their superiors for the performance of the tasks assigned to them.
11. Authority of Responsibilities: These must be co-extensive in an organization.
12. Balance: A proper balance between centralization should be maintained.
13. Flexibility: A sound organization must avoid complicated procedures, red tape and excessive complication of control so that it may adapt itself easily and economically to business and technical changes.
14. Continuity: Proper provision be made for the training and development of the executive.
15. Facilitation of leadership: Organisational structure should be so devised that there is enough opportunity for the management to give effective leadership to the enterprise.