Summary - Principles - Organizing

Principles in Relation to Purpose

Principle of unity of objectives

An organization structure is effective if it as a whole, and every part of it, make possible accomplishment of individuals in contributing toward the attainment of enterprise objectives.

Modified to bring in things into the principle

An organization structure is effective if it as a whole, and every part of it, make possible accomplishment of individuals (in combination with things given to him for operating and utilizing) in contributing toward the attainment of enterprise objectives.

Principle of efficiency

An organization or organization structure is efficient if it is structured to make possible accomplishment of enterprise objectives by people with minimum unsought consequences or costs.

Modified to bring in things into the principle

An organization or organization structure is efficient if it is structured to make possible accomplishment of enterprise objectives by people (and things given to them to utilize) with minimum unsought consequences or costs.

Principles Related to the Cause of Organizing

Span of management Principle

There is a limit at each managerial position on the number of persons an individual can effectively manage. But this number is not a fixed number and it will vary in accordance with underlying variables of the situation.

Modified to bring in things into the principle

There is a limit at each operating position on the number of machines or equipments an individual can effectively operate. But this number is not a fixed number and it will vary in accordance with underlying variables of the situation (Japanese managers increased the number of machines to even 100 and ultimately into fully automated production systems requiring zero operating personnel).

Principles in Developing the Structure of Organization

The scalar Principle

The more clear the line of authority from the ultimate authority for management in an enterprise (CEO) to every subordinate position, the more effective will be decision making and organization communication at various levels in the organization.

Principle of delegation

Authority is a tool for managing to contribute to enterprise objectives. Hence authority delegated to an individual manager should be adequate to assure his ability to accomplish results expected of him.

Principle of responsibility

The responsibility of the subordinate to his superior for authority received by delegation is absolute, and no superior can escape responsibility for the activities of his subordinate to whom he in turn has delegated authority.

Principle of parity of authority and responsibility

The responsibility exacted for actions taken under authority delegated cannot be greater than that implied by the authority delegated, nor should it be less.

Principle of unity of command

The more completely an individual has a reporting relationship to a single superior, the less the problem of conflict in instructions and the greater the feeling of personal responsibility.

The authority level Principle

Maintenance of authority delegation requires that decisions within the authority competence of an individual manager be made by him and not be referred upward in the organization.



Principles in Departmentizing Activities

Principle of division of work

The better an organization structure reflects a classification of the tasks and activities required for achievement of objectives and assists their coordination through creating a system of interrelated roles; and the more these roles are designed to fit the capabilities and motivations of people available to fill them, the more effective and efficient an organization structure will be.

Principle of functional definition

The more a position or a department has clear definition of results expected, activities to be undertaken, organization authority delegated, and authority and informational relationships with other positions, the more adequately individual responsible can contribute toward accomplishing enterprise objectives.

Principle of separation

If an activity is designed to be a check on the activities of another department, the individual charged with such activity cannot adequately discharge his responsibility if he reports to the department whose activity he is expected to evaluate.

Principles in the Process of organizing

Principle of balance

The application of principles or techniques must be balanced in the light of the over-all effectiveness of the structure in meeting enterprise objectives.

Principle of flexibility

The task of managers is to provide for attaining objectives in the face of changing environments. The more provisions are made for building organization flexibility, the more adequately organization structure can fulfill its purpose.

Principle of leadership facilitation

The more an organization structure an authority delegations within it make possible for various managers to design and maintain an environment for performance, the more it will facilitate leadership abilities of managers.



Note: Principle of efficiency is there in Principles of Planning also.


Review Articles on Steps in Organizing

The Nature of Organizing - Review Notes
Departmentation in Organizations - Review Notes
Line-Staff Authority and Decentralization - Review Notes
Effective Organizing and Organizational Culture - Review Notes

References


Harold Koontz and Cyril O’Donnell, Principles of Management: An Analysis of Managerial Functions, 4th Ed., McGraw-Hill, New York, 1968

Harold Koontz and Cyril O’Donnell, Principles of Management: An Analysis of Managerial Functions, 2nd Ed., McGraw-Hill, New York, 1959

Updated  4 February 2017,  5 Jan 2015,  7.12.2012


Revision of Principles of Management in January Revision Plan.


MBA Core Management Knowledge - One Year Revision Schedule