14 Principles of Organizing Function of Management [Explained]

Principles of Organizing

Organizing is the process of creating a harmonious and systematic relationship between various components of the organization. Organizing principles are guidelines that guide managers to effectively establish productive relationships among different departments, employees, resources, and organizational objectives.

To effectively organize various components of the organization managers can use the following organizing principles. They are:

Principle of Unity of Objectives

According to the organizing principle known as “unity of objectives,” all departments and organizational units must have the same, clearly stated goals and objectives. This means that the goals and objectives of the organization should not conflict with those of the departments and units.

The same organizational goals must be the focus of all departments and units’ objectives. This aids in maximizing the use of organizational resources in the direction of achieving organizational goals.

Principle of Specialization

According to the specialization principle, personnel should be given responsibility based on their interests, qualifications, knowledge, skills, and experience.

When a person has the chance to perform a specific work that matches their interests and experience, they will do so flawlessly and in accordance with the established standards. The economic size of production, productivity, and effectiveness are all increased as a result.

Principle of Span of Control

According to the span of control principle, a manager or supervisor must have a sufficient number of subordinates under their direction. The effectiveness of supervision decreases as the number of employees under a supervisor rises.

It may be simpler to manage a small team of employees, but it will also be more expensive. Therefore, it is crucial to evaluate the proper span of control i.e. the number of supervisors. It depends on the organization and the job’s size and type.

In many situations, 15 people under one supervisor are considered to be an adequate quantity i.e. the size of the span of control.

Related: The 14 Principles of Management

Principle of Coordination

Because different sorts of work are carried out concurrently in several areas within an organization. Coordination of various organizational operations is necessary to ensure that all departments are operating in sync. To accomplish the organization’s unified aim, coordination is crucial.

Principle of Exception

According to the exception principle, all managers must make decisions in accordance with their level of authority. Except in urgent situations, they should not abandon this obligation to their superiors.

When making judgments that fall within their sphere of assigned responsibility, managers shouldn’t be hesitant. They may only consult a higher authority for judgment in some complex cases.

Principle of Scalar Chain

According to the scalar chain organizing principle, there must be a formalized relationship between the various levels of responsibility within the company.

The unbroken chain of command from the top level to the bottom level that specifies who will function at the lower level is known as the scalar chain. This chain forms a line connecting workers at various levels, making it easier for them to follow instructions and transmit communications from one level to the next.

It establishes the person’s obligation to rule others. Additionally, it keeps each person accountable when they are handling various levels of responsibility.

Principle of Unity of Command

Only one manager may issue an order to an employee at once. According to this principle, a worker should only have one manager to report to (it does not mean that each employee should have a separate boss).

When there are multiple orders coming from different supervisors at once, employees struggle to decide which orders to obey first, which makes it difficult for them to do their jobs properly. To achieve things properly and quickly, each employee should have only one commander at a time and consistent commanding.

Principle of Delegation of Authority

According to organizing principles the delegation of authority, authority must be delegated according to the need for responsibility. Employees cannot make judgments at work without authority, and as a result, their performance cannot be at a high level.

The level of duty should determine the authority. The personnel becomes more accountable and responsible for completing their individual responsibilities on time as a result. Employees are motivated by a delegation of authority because it offers chances for personal development and satisfaction in making decisions for themselves.

Principle of Efficiency

According to the efficiency principle, effective management is a requirement for an organization to be efficient. The best organizations are those that can carry out tasks and accomplish their objectives for the least amount of money.

The effectiveness of the organization should be guaranteed by the organizational structure. It should be planned so that the existing resources can be used as effectively as feasible, resource waste can be reduced to the lowest level possible, and productivity can be kept at the highest level.

Related: Process of Organizing

Principle of Simplicity

According to the idea of simplicity, the organizational structure should be as straightforward as feasible so that every member can grasp their responsibilities and the authority-responsibility relationship

Coordination makes it possible to create and carry out plans and strategies more successfully. The function, duty, and authority of each personality within the organization are less ambiguous when there is a simple organizational structure.

Principle of Flexibility

An organization’s structure must be adaptable and have provisions for necessary alterations or revisions to roles and responsibilities. The need to modify or adapt policies and strategies arises from the ongoing change in the corporate environment.

The organizational structure and rigidity with strict standards may make it more difficult to carry out plans. As a result, the structure must be adaptable enough to meet organizational changing needs.

Principle of Balance

To the balance principle, the organizational structure should have a balance between centralization and decentralization. This facilitates the efficient execution of organizational duties with the active involvement of all those involved in the relevant tasks.

While decentralization permits decision-making authority at the level of decision execution, centralization is the idea of making decisions from top-level management. There is no centralized or decentralized authority at all.

Principle of Direction

According to the direction principle of organizing, there should be one objective and one plan for a group of activities having the same objective.

This means that there should be unity of direction. The organizational structure should be designed in such a way that there should be one official direction for each set of similar activities.

Principle of Continuity

From our list of 14 principles of organizing the continuity principle is last. The continuity principle states that organizing should be continued till the existence of the organization. Organizational structure can be changed or amended according to necessity.

This may be important in several situations like the fulfillment of predetermined objectives, modification of objectives, change in resources, change in business environment factors, etc. Thus, organizations should be continuous in designing responsibility-authority relationships.

Read Next: Principles of Directing Function

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