Question: What are the mechanics of an organisation? How are these effective to achieve the objectives of an organisation? (Summer 2005)
"Organisation is more than a chart, it is the mechanism through which thw management direct, coordinates and controls the business. It is indeed the foundation of management. If the organisation plan is ill-designed, if it merely makes a shift arrangement, then management is rendered difficult and ineffective. If on the other hand, it is logical, clear - cut and streamlined to meet present day requirements then the first requisite of sound management has bee achieved."
"Organisation refers to more than the frame of the edifice. It refers to the complete body, with all its co-related functions. It refers to these functions as they appear in action - the very pulse and heartbeat, the circulation, the respiration, the vital movements, so to speak of the organised unit. It refers to the coordination of all these factors as they cooperate for the common purpose."
A good organisation results in the following advantages:
1. It facilitates administration : By dividing duties, and delegating powers and analysing jobs, the organisation siphons of the routine duties and thus frees the executives for policy formulation, forward planning and many other important jobs.
2. It promotes specialisation : By allocating duties to different individuals according to their suitability, it brings about specialisation and diversification of work.
3. It creates favourable climate for growth : By developing a large number of activities, opportunities are provided for framework within which the unit may grow.
4. It leads to creative thinking and initiatives : By providing well-defined areas of work with broad latitude for the development of new and improved ways of doing things.
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