Notes on Principals of Organization

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Role of Organization:

1. If individuals also contribute to enterprise objectives, the organization runs more efficiently.

2. If an organization is structured to aid the accomplishment of enterprise objectives with minimum unsought consequences or costs, the organization runs more efficiently.

3. While it is true that a manager can manage a limited number of individuals, the exact number of manageable individuals depends upon the impacting underlying variables.

4. Line of authority from top management to every subordinate position should be clear to ensure greater responsibility in decision making and organizational communication.

5. Enough power should be given to individual managers so that they can successfully carry out their duties.

6. The superiors and their subordinates should fully handle their share if responsibility within the organization.

7. This responsibility relegated to subordinates and their managers should neither be greater nor less than necessary.

8. Individuals should establish complete relations with their superiors, as this enables clearer communication and permits greater responsibility.

9. Organizational decisions should always be made by managers for their subordinates; decisions should not originate from the lower level.

10. Managers and departments should have full understanding of business forecast, future activities, and organizational authority, so that each individual can contribute towards accomplishing enterprise objectives.

11. Principles should be strictly followed to ensure overall effectiveness of the structure in meeting enterprise objectives.

12. Organizational structure should be as flexible as possible so as to accommodate any change factors.

13. Leadership qualities of managers can be enhanced if organizational structure and its delegations of authority enable managers to design and maintain an environment for performance.

Additional Readings:

1. Functions of a Business Manager
2. Henry Fayol and Modern Management Theory
3. Modern Management Thoughts and McKinsey's 7-S framework
4. Industrial Planning
5. Management and Setting of Objectives
6. Principals of Organization
7. Matrix Organizations
8. Functions of the Human Resources and Accounting within an Organization
9. Differentiation between Motivation and Satisfaction
10. Barriers to Good Communication
11. Requirements of Effective Controls
12. Formal and Informal Organizations
13. Bonded Rationality

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