Principles of Organizing

Principles are the guidelines that promote managerial thinking and action. Principles of organizing help managers in effectively carrying out the organizing function. These principles are as follows:

1.    Principle of unity of objectives:

All organizational activities are geared towards attainment of objectives. Objectives are framed for each level (tip, middle and low) and each functional area. The objectives must be clearly understood by all and support each other at each level to attain ejectives at higher levees.

2.    Principle of organizational efficiency:

Organizational goals should be achieved efficiently. It means optimum (efficient) use of resources, that is, maximum output should be achieved out of minimum inputs.

3.    Principle of decision of labor :

Division of labor means breaking the main task into smaller units. The major task, say making of a pin is broken into sub-tasks as drawing out wire, straightening the wire, cutting the wire, grinding the point and putting the pin head. This makes each person concentrate on his part of the job and perform it efficiently thereby, increasing the total output. Work should be divided and assigned to warders according to there skills.

4.    Principle of authority-responsibility:

Authority and responsibility must go hand in hand Responsibility means obligation to carry out the assigned task. To carry out this task, authority must be delegated to each person. Conversely, given the authority, the tasks assigned (responsibility) should be within the scope of authority. Authority without responsibility will result in misuse of authority and responsibility without authority will result in poor performance.

5.    Principle of delegation :

The total work load is divided into parts. A part is assigned to subordinates and authority is given to efficiently carry out that task. Top managers delegate part of their duties to lower levels and concentrate on important organizational matters.

6.    Principle of scalar chain :

Scalar chain is the line of authority running from top to lower levels. Authority flows from top to bottom in this chain and responsibilities flow from bottom to top. This chain promotes communication amongst people at different levels and facilitates decision-making. Every person in the chain knowns his superior and subordinate.

7.    Principle of span of control:

Span of control means the number of workers that managers can effectively supervise. Exact number of employees that managers can supervise cannot be determined.It depends upon competence of managers, nature of work, system of control, capacity of subordinates tall organization structures and supervision large number of workers. There will be more levels in the organs it strictures and vice versa. Supervising few subordinates creates tall organization structures and supervising large number of workers creates flat strictures.

8.    Principle of balance:

It states that one subordinate should have one boss. People should receive orders from their immediate boss only. This brings discipline and order in the organization. Receiving orders from two or more bosses can create confusion and in disciple.

9.    Principle of balance:

There must be balance between different principles of organizing. lance must be maintained between centralization and decentralization, narrow and wide span of control.

10.    Principle of flexibility :

Organization should be flexible. Changes in structure should be according to changes in environment factors.

11.    Principle of continuity :

Organization should adapt to the environmental changes for its long-run survival, growth and expansion.

12.    Principle of exception:

Every matter should not be reported to top managers. Only significant deviations should be reports to them. Routine matters should be dealt by middle and lower- level managers. It leads to growth and development of lower level managers as they have the authority to deal with simple and routine problems.

13.    Principle of simplicity :

Organization structure should be simple that can be understood by everyone.   People can work officially in a simple structure as they are clear of various jobs and authority/ responsibility associated with each job. A simple structure promotes co-operation, co-ordination and effective communication in the organization.

14.    Principle of departmentation :

It means dividing activities into specialized groups (departments) where each department performs specialized organizational task. All activities of similar nature are grouped in one department headed by her departmental manger. Departments can be created on the basis of geographical locations, customers, products etc.

15.    Principle of decentralization:

It means delegation of authority to lower-level managers. It increases the decision-making authority of lower-level managers and increases organizational efficiency.

16.    Principle of unity of direction :

All organizational activities of similar nature are grouped in one unit ( production or marketing ), headed by the  departmental manager and direct their efforts towards a single objective; the departmental objective.

17.    Principle of co-operation:

All individual and departments should co-operate with each other and help the organization achieve its goals.

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