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4.2.4 Principles of organising

June 27, 2023
  • Unity of objectives: The objectives of various departments and sections of enterprises must be formulated in such a way that every individual can contribute his/her efforts for a single objective.
  • Principle of efficiency: The degree of achievement of the predetermined objectives effectively and efficiently.
  • Scalar chain principle: Best results are obtained when a clear chain of command is established and followed.
  • Delegation of authority: This means that each manager in the organization should be given sufficient authority to achieve the desired results.
  • Principle of responsibility: Even if a superior delegates adequate authority to a subordinate, the superior is still responsible for the results if the goal is not attained.
  • Division of work: Work should be divided and grouped in a logical manner in order to eliminate duplication of effort and other forms of waste.
  • Unity of command: Employee should receive orders and instructions from only one superior at a time.
  • Principle of exception: The top-level manager must concentrate only on exceptional and creative issues.
  • Principle of efficiency: A manager has to make and develop a strategy for better utilization of organizational resources including human resources.
  • Principle of balance: There must be a balance between efficiency and effort.
  • Principle of simplicity: It should be designed in such a manner that all the members of the organization understand it easily.
  • Principle of continuity:  The organizational structure should be reviewed and revised according to the changing environment of business.
  • Principle of flexibility: The organization structure should be adaptable to changing environment and needs of the organization.