Organizing is now regarded as one of the essential functions of management. It, however, is not a phenomenon of the modern days. It existed in some form or other even in the primitive days. It has a vital role to play in every walk of life. Especially, an effective organization is of paramount important in the modern business world. Better the organization fuller would be the achievement of the cherished goals of the enterprise. Besides, it can contribute greatly to the continuity and , success of the enterprise. On the other hand, a loose organization implies an unhappy and dangerous state of affairs.
Advantages of a Sound Organization
The advantages of an organization can be listed as follows:
1. Facilitates Administration: A well structures organization facilitates both management and operation of the enterprise. An ineffective organization not only discourages the administration, buy in fact precludes it. Besides, proper delegation of authority also become impossible. Consequently, the employees cannot discharge the work assigned to them properly. The resultant will be the failure of the enterprise. Therefore, well planned organization is an essential need in all enterprises, and even in social institutions. It is only a sound organization can remove all drawbacks and makes it more meaningful.
2. Facilitates Growth and Diversification: The organization is the basis upon which the whole structure of the enterprise is built. A properly structured organization can create an ideal atmosphere which is favorable to expand and to diversify activities of undertaking. Especially a well knit, alert and sensitive organization is a must for large scale undertakings. An alert organization anticipates the probable changes in the volume of sales, demand, profit, etc., and can suitably adjust its operations. Similarly, it can make arrangements to enter into new lines of business.
3. Facilitates Adoption of New Technology: The technological changes has a greater influence on the modern organizations. A well designed and flexible organizational structure can adapt to the changes in the dynamic of an enterprise.
4. Stimulates Creativity and Initiative: A good organization provides an opportunity to the staff to display their talents. It stimulates their employees creativity, natural thinking and to initiate work with clear cut authority. All these add effectiveness to the organization which in turn helps in business success.
5. Intensive Use of Human Resources: Because of the accurate determination of job requirement and man specifications, right persons are placed in the right positions. Hence, full day’s work can be assigned .; to all persons. Besides, the benefits of specialization can be fully realized in the enterprise. The employees need not sit idle for want of instructions, orders, or guidance. All these factors facilitates intensive use of capital.
Thus, a well designed organization ensures creative results from creative people. It provides recognition for the meritorious staff members. It offers adequate training to human beings and thereby permits them to develop their capacity to the fullest extent.
Hence, we have seen that a proper organization is indispensable in all business enterprises, irrespective of their size, nature, resources, etc. In fact, not only business enterprise, but also all other institutions, be it social or political or whenever group effort is needed, require effective organization.