Importance of Organisation in Modern Industrial Enterprises

Importance of Organisation

Importance of Organisation
Andrew Carnegie

The importance of organisation can be easily understood by Andrew Carnegie’s words that the organisation is the foundation of business enterprise.

Take away our factories, our trade, our avenues of transportation, our, wealth, leave only our organisation with us and we shall re-establish ourselves in just few years.

  1. Increase in Managerial and Administrative Capability

    It is necessary for the achievement of pre-determined goals of an institution that its organisation must be sound and proper. If the organisational structure of an institution is defective, it may cause hurdles to the institution, it may lead to friction between employers and employees, and it may disturb the growth and development of an institution. On the other hand, an efficient organisation increases the managerial and administrative capability of the institution.

  2. Increase in Production and Productivity

    A sound organisation helps in establishing a harmonious relationship between employee and employer. It provides the best working environment for the workers. It increases the working efficiency of workers which increases their productivity. Ultimately, as a result of an increase in productivity, the production of enterprise also increases.

  3. Opportunity for More Development

    An efficient organisation helps in obtaining the maximum production at a minimum cost, which encourages industrial growth and development. Apart from this, the enterprises find themselves able to face cut-throat competition only with the help of sound organisation.

  4. Motivation for Constructive Work

    The organisation encourages constructive work, and for this, experts are appointed in all the enterprises. These experts keep themselves always busy drafting the policies, developing the procedures and making the rules for different activities of the enterprise. A good organisation also encourages the research and development process.

  5. Best Utilisation of Resources

    A sound organisation makes possible the optimum utilisation of all the resources of production of an enterprise, It avoids unnecessary activities and overlapping of efforts. It checks all the wastages and emphasizes the economies.

  6. Increase in Morale

    A sound organisation emphasizes increasing the morale of employees. For this, all the efforts are made to keep the morale of all the employees high, so that they can contribute their wholehearted cooperation towards the accomplishment of the goals of the enterprise.

  7. Establishment of Balance

    With the help of the organisation only, it becomes possible to make a balance in workload, rights and responsibilities, so that, the competitive strength of the enterprise increases.

  8. Control over Employees

    In a sound organisation, employees become always satisfied and they never wish to go to any other organisation by leaving their organisation. This brings stability to the organisation.

  9. Elimination of Corruption

    Corrupt persons and workers are not become successful in entering a sound organisation so the prevention of corruption has become possible in the enterprise.

  10. Facilities of Training

    A sound organisation establishes different departments in an enterprise. Efforts are made to provide the best facilities of training for employees, so that; they may contribute their efforts to the enterprise towards the achievement of pre-determined goals.

  11. Co-ordination

    An efficient organisation also establishes good coordination at all Levels of Management. It attempts to solve all the problems at their origin. It builds a good working atmosphere.

  12. Encouragement to Specialisation

    An efficient organisation promotes the adoption of specialisation. It divides the activities of an enterprise into many sub-activities and an individual worker is assigned only a particular activity. All the workers become experts in their work. This increases the productivity of workers. It also improves the quality of production.

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