PRINCIPLES OF ORGANIZATION

  1. Unity of objectives: The entire organization and every part of it should be function effectively to accomplish the basic objectives of the enterprise.
  2. Efficiency: All the accomplishments of the organization should be at the lowest possible cost. There should not be any waste of human resources.
  3. Span of control or span or management: Urwick states that a manager can directly supervise a limited number of people. No superior at a higher level should have more than six immediate subordinates.
  4. Division of work: Specialization and division of work should result in separate departments “established to reflect the most efficient breakdown of enterprise activities”. Each area of specialization must be interrelated.
  5. Functional definition: The duties and responsibilities must be properly defined. There should not be duplication or overlapping of activities.
  6. Coordination: The efforts of everyone in the organization must be coordinated to achieve common goals. Coordination is the orderly arrangements of collective efforts to accomplish a common organizational goal.
  7. Scalar principle (Chain or command): The line of authority flows, from the topmost to the lowest managerial level, and this continuation chain of command should not be broken.
  8. Unity of direction: There must be only one plan for a group of activities directed towards the same goal. “One person one plan” is the best way of achieving unity of direction.
  9. Unity of command: Each subordinate should have one superior only. Dual command is always dangerous and confusing.
  10. Delegation: Delegation should be made up to the lowest competent level. Delegation of authority increases efficiency and smooth operation.
  11. Responsibility: The superior is responsible for the activities of the subordinates, and the subordinates are responsible to their superiors for their performance. Authority should be consistent with responsibility.
  12. Balance: There should be a reasonable balance between centralization and decentralization, different sizes of various departments, limited span and longer lines of management.
  13. Communication: A good organization must have an effective channel of communication for smooth flow of information.
  14. Personal ability: Ultimately, an organization means people. Proper selection, placement and training of people will go a long way in developing a favorable organizational climate.
  15. Flexibility: The organization should adopt built-in devices for any change, expansion, etc. with least disturbance. The organizational structure should not be rigid. It should be able to adapt itself to all future changes.
  16. Continuity: There must be a provision for continuity of management and enterprise. Management development programmes should be encouraged.
  17. Exception principle: All routine, normal and programmed matters should be handled at the lower level itself. Only exceptionally vital decisions of unusual nature should be handled by superiors, as they have limited time.