Importance of Organization
The importance of organization can be easily understood by Andrew Carnegie’s words that the organization is the foundation of business enterprise.
Take away our factories, our trade, our avenues of transportation, our, wealth, leave only our organization with us and we shall re-establish ourselves in just few years.
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Increase in Managerial and Administrative Capability
It is necessary for the achievement of pre-determined goals of an institution that its organization must be sound and proper. If the organizational 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 organization increases the managerial and administrative capability of the institution.
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Increase in Production and Productivity
A sound organization 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.
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Opportunity for More Development
An efficient organization 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 organization.
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Motivation for Constructive Work
The organization 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 organization also encourages the research and development process.
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Best Utilisation of Resources
A sound organization makes possible the optimum utilization 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 economy.
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Increase in Morale
A sound organization emphasizes increasing the morale of employees. For this, all the efforts are made to keep the employees’ morale high, so that they can contribute their wholehearted cooperation towards the accomplishment of the goals of the enterprise.
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Establishment of Balance
With the help of the organization only, it becomes possible to balance workload, rights, and responsibilities, so that, the competitive strength of the enterprise increases.
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Control over Employees
In a sound organization, employees are always satisfied and they never wish to go to any other organization by leaving their organization. This brings stability to the organization.
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Elimination of Corruption
Corrupt persons and workers have not become successful in entering a sound organization so preventing corruption has become possible in the enterprise.
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Facilities of Training
A sound organization 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.
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Co-ordination
An efficient organization 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.
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Encouragement to Specialisation
An efficient organization promotes the adoption of specialization. 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.