Organization is the means with which human association can be made through which common goals can be obtained. Therefore, organization is an important tool to achieve the firm's goals.
Roles and importance of organization can be discussed as follows:
1. Organization helps optimum utilization of human resources
A effective organization utilizes the human resources properly. It places the individuals- the right individuals in the right jobs in the right position and department. Such marching of individual and job helps better use of human talent and capability. A sound organization effectively performs the selection, training, remuneration and promotion function, which helps to encourage the personnel to identify themselves with the enterprise.
2. Effective and efficient administration
Organization is needed for efficient and effective administration, because it defines very clearly, the various activities and authority relationship in the organization structure.
3. Organization facilitates growth and diversification
A sound and effective organization contributes to the growth and diversification of the enterprise through the effective management. It is always accepted that a sound organization helps the management to implement decentralization and divisionalization, through which management can enhance its strength and undertake more activities and thus become large in its shape and size.
Roles and importance of organization can be discussed as follows:
1. Organization helps optimum utilization of human resources
A effective organization utilizes the human resources properly. It places the individuals- the right individuals in the right jobs in the right position and department. Such marching of individual and job helps better use of human talent and capability. A sound organization effectively performs the selection, training, remuneration and promotion function, which helps to encourage the personnel to identify themselves with the enterprise.
2. Effective and efficient administration
Organization is needed for efficient and effective administration, because it defines very clearly, the various activities and authority relationship in the organization structure.
3. Organization facilitates growth and diversification
A sound and effective organization contributes to the growth and diversification of the enterprise through the effective management. It is always accepted that a sound organization helps the management to implement decentralization and divisionalization, through which management can enhance its strength and undertake more activities and thus become large in its shape and size.
4. Organization provides optimum use of new technology
A sound organization is always flexible. As it is so, it has capacity of absorbing changes in the environment. Hence, according to the situation and on the demand, it helps and allows the management for the proper and optimum use of technological improvement.
A sound organization is always flexible. As it is so, it has capacity of absorbing changes in the environment. Hence, according to the situation and on the demand, it helps and allows the management for the proper and optimum use of technological improvement.
5. Effective coordination and communication
It is only sound organization of an enterprise which creates coordination and establish communication among various departments and individuals along with different levels of the enterprises. It helps to establish structural relationship between different jobs and positions. It also fixes the channels of communication among different members of the business home.
6. Training and development
A sound and effective organizing function offers a good scope for the development of managerial ability and competency by providing training.
7. Productivity and job satisfaction
Productivity and job satisfaction is another importance of organization. Productivity of human resources can be increased when personnel of any organization are made free to exercise their ideas. This is possible only in those organization where exists democratic and participative management. If there exists participative management, the members can use their talent freely and maximum, thus, their productivity will be increased and they will get maximum satisfaction in their jobs.
It is only sound organization of an enterprise which creates coordination and establish communication among various departments and individuals along with different levels of the enterprises. It helps to establish structural relationship between different jobs and positions. It also fixes the channels of communication among different members of the business home.
6. Training and development
A sound and effective organizing function offers a good scope for the development of managerial ability and competency by providing training.
7. Productivity and job satisfaction
Productivity and job satisfaction is another importance of organization. Productivity of human resources can be increased when personnel of any organization are made free to exercise their ideas. This is possible only in those organization where exists democratic and participative management. If there exists participative management, the members can use their talent freely and maximum, thus, their productivity will be increased and they will get maximum satisfaction in their jobs.
