Principle of Organizing:

The principle of organizing the structure of a business influences important elements like decision making, employee behavior, performance and rewards, personal accountability and managed information. It is important to understand the principle of organizing in order to effectively apply, change and use the businesses. The basic principle of organizing structures can be applied to any size business, from small start-ups to large corporations.

Principle of objective: The enterprise should set certain goals for the achievement of working in different departments. Organizational goals, departmental goals, and individual goals should be clearly defined. A common goal that is fully prepared for business and the organization is established to achieve that goal. In the absence of a general goal, different departments will set their own goals and there is a possibility of conflicting objectives for different departments. Then there should be an objective for the organization.

Principle of expertise: The word expertise is related to work and staff. When an employee takes specialized knowledge and skills in a field, then it is known as specialization. Modern business organization requires expertise, skills, and knowledge through this desired sector of the economy and, thus, efficiency will be established. The organization should be established in such a way that each person should be assigned a duty according to his skills and ability. This helps in increasing production in concern.

Principles of Coordination: Coordination of various activities is an important principle of organization. Coordination can be achieved by group effort, which insists on the unity of action. There should be some agency for coordinating the activities of different departments. In the absence of coordination, different departments have the possibility to set different goals. The ultimate purpose of concern can be achieved only when proper coordination is done for various activities.

Principle of authority: Authority is a type of rights and power through which it guides and directs the work of others so that organizational goals can be achieved. It is also related to the decision. It is inherent in the special situation, not for the person, because the authority is given by an institution and hence it is legal. It usually flows from the upper level to the lower level of management. There should be an integral line of authority.

Principle of Responsibility: The authentic body of an organization is the top-level management, the top-level management directs the subordinates. The departmental manager and other personnel take instructions from top-level management to work. Authorization is required to work. Only people are not empowered, but liability is also provided. So the duties and responsibilities of working are known as responsibility. The responsibility can not be entrusted, it can not be avoided.

Principle of Definition theory: The scope of authority and responsibility should be clearly defined. Every person should know his work with certainty. If the duties have not been explicitly assigned, it will not be possible to correct the responsibility also. Nobody will be responsible for everyone. To make the work efficient and smooth, relations between different departments should also be clearly defined.

Principle of the control period: The duration of control theory means how many subordinates can be monitored by a supervisor. The number of subordinates should be such that supervisors are able to effectively control their work. Apart from this, work should be supervised by the same nature. If the period of control is disproportionate, then it is obliged to influence the efficiency of the workers due to slow communication with the supervisors.

The principle of balance: Principle means that the assignment of work should be such that every person should be given only enough work to do well. Work is done on a person and if the other is done, then the work will be done in both situations. Authorization, centralization, decentralization should be equally balanced. It is a very challenging task but efficient management should maintain it. Work should be divided in such a way that everyone is able to give their maximum.

Principle of continuity: According to the changing circumstances, the organization should be amended. There are changes in the methods of production and marketing systems every day. The organization should be dynamic and not stable. There should always be the possibility of making necessary adjustments.

Delegation principle: In order to fulfill a certain task, the process of transferring authority between the superior and subordinate and the creation process is called the delegation of authority. Authorization is delegated only, not responsibilities in all levels of management. The delegated authority should be equal to the responsibility.

Theory of efficiency: The organization should be able to achieve enterprise objectives at a minimal cost. When the organization meets the objectives with minimal costs, then it is effective. The cost and the standard of cost are pre-determined and the performance should be in accordance with these goals. The organization should enable various employees to get job satisfaction.


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