PRINCIPLES OF ORGANISATION

                                          PRINCIPLES OF ORGANISATION

Scalar Principle
Line of authority must proceed from the highest executive
to the worker at the bottom level through a downward flow. This is
known as ‘chain of command’. The superior has a direct authority
over his immediate subordinate. He is responsible for efficient
performance of the work entrusted.
Unity of Command
Each individual should receive orders from only one boss.
A person cannot serve under two masters. He is accountable to his
immediate superior. Dual subordination should be avoided. It
creates disorder and confusion and leads to indiscipline.
 Unity of Objectives
The term objective means a goal to be achieved.The
organisation structure depends upon the objectives of the enterprise.
Therefore the objectives of an enterprise must be clearly fixed.
Every part of the organisation should be designed to facilitate the
accomplishment of common objectives.
Division of Work
The total work should be divided. This is known as
departmentation. All the activities must be planned. This gives an
idea of the total workload of the enterprise. Effective organisation
must promote specialisation.
Span of Control
No executive in the organisation should be required to
supervise more subordinates than he can effectively manage. An
executive should be asked to supervise a reasonable number of
subordinates.
Functional Definition
The authority and responsibility of every individual should
be clearly defined. The relationship between different jobs should
be clearly specified.
Unity of Direction
There must be one head and one plan for a group of activities
directing towards the same objectives. This is necessary to ensure
completion of tasks and co-ordination of activities.
Co-Ordination
The various activities of undertaking should be co-ordinated
to secure the desired results. The different departments may have
to function frequently in close consultation with other departments
in a departmental store. The purchase department and sales
department activities must be well coordinated to increase profit.
Delegation of Authority
Delegation means the entrustment of part of the work or
some duties to the subordinates. Superior has to entrust some of
his duties to his immediate subordinate. The subordinates should
be granted necessary powers and rights. He becomes accountable
to his superior. Delegation creates obligation on the part of the
subordinate.
 The Principle of Responsibility
The superior should be held responsible for the acts of his
subordinates. He cannot escape from the responsibility. He is
accountable to his higher authorities.
Flexibility
The organization should be flexible. It should be adaptable
to changing circumstances. There should be scope for expansion
without disrupting the basic design.
Efficiency
Efficiency should be the watchword of the organisation. The
organisation structure should enable the enterprise to function
efficiently and accomplish its objective with the lowest possible
cost.
Personal Ability
As people constitute an organisation there is need for proper
selection, placement and training of staff. The organisation must
ensure optimum use of human resources and encourage
development programmes.
Simplicity
Another principle of organisation is that it should be simple.
Too many levels of authority for example, complicate
communication channels and by causing confusion and friction
makes achievement of co-ordination impossible.