Co-ordination is an abstract of management. The purpose of coordination is to synchronize the functions of various sections for achieving organizational goals with minimum effort. It is an orderly management of group effort to provide unity of action in the pursuit of common purpose.
In this context, Ordway Tead says
“co-ordination is the effort to assume a smooth inter-play of the functions and forces of all the different component parts of an organization to the end that its purpose will be realized with a minimum of friction and a maximum of collaboration effectiveness”.
The need for co-ordination arises due to the following
1. In every organization, the nature of work is such that it requires to be divided into homogeneous and specialized sub-tasks and then without Integration and co-ordination the output of the organization will be nil.
2. Co-ordination applies to group effort rather than to individual effort. It gives importance to unity of effort and united action. The outcome of coordinated group efforts will be much better than the sum results of various individuals.
3. Coordination motivates the employees to consider their work from the point of view of business and so the employees will willingly contribute towards the success of the concern. Therefore, coordination is heartbeat of organization which brings integration of efforts and action among employees in the organization.
3. Coordination ensures commitment on the part of divisions, groups, individuals toward organizational goals.
4. Coordination ensures efficiency and economy in the organization, enterprise to ensure smooth working. It also helps in saving of time by bringing efficiency and economy to the enterprise.
5. There may arise certain circumstances that may demand sacrifice of objective of one department in the welfare of the enterprise as a whole. In such situation, the need for co-ordination arises.
6. Coordination is directed towards channelizing the efforts, skills, energies of work groups along organizationally established lines. If the co-ordination is absent, group members may be pulled in different directions and work at cross purposes.