This means effective organisation must include specialization. This allows the decisions to be made as near the source of information and action as possible. It should pass thorough democratic process if permitted by the prevalent circumstances. It increases decision-making authority of lower-level managers and organisational efficiency. Hence, it is important that an organisation should be efficient. This results is an increase in the production of the organisation and a decrease in cost. They should be clearly understood by all and support each other at every level to attain objectives at higher levels. Effective communication will remove all uncertainties, misunderstandings and ensures coordinated effort of all those engaged in the enterprise. Unity of Direction: According to Fayol, the unity of direction principle implies that each group of activities having some objectives must have one head and one plan. Internal changes include chiefly changes regarding policies and technology, while the external changes pertain to competition, the tastes of consumers, policies of the government, etc. Prohibited Content 3. This concept was originally suggested by Frederick Taylor. Nevertheless, these examples are exceptions to the rule. Proper scalar chain or line of command is prerequisite for effective organization. 1. All the departments established under the organisation are inter-dependent. at the lowest level of the organisation at which the particular responsibility can be efficiently discharged. The span of control should be minimum because there is a limit to the number of persons that can be effectively supervised by one boss. Simon has laid down three fundamental principles in preparing the structure of an organisation. This facilitates verification and co-ordination of activities and also completion of task as per the schedule. If a person has responsibility, he must be given adequate authority. The principle of unity of objective means that even if the various offices of the organisation have different aims, they are somehow or the other linked with the main objective of the organisation. Only exceptionally complex matters should be referred to the executives for their decision and matters of routine nature should be decided by the sub-ordinates themselves. Good organisation is not a straight jacket. From the social point of view the efficiency of an organisation can be seen through its efforts to make available good quality products at low prices to the consumers. This is also called the principle of specialisation. According to this principle, span of control is a span of supervision which depicts the number of employees that can be handled and controlled effectively by a single manager. The main drawback of functional organization developed by Taylor is that it fails to recognise the________________________. This important principle of management should also be kept in mind. Therefore, in order to make an organisation a success there should be coordination among all its parts or constituents. 47. Plagiarism Prevention 5. Authority carries no meaning if it is not acceptable to those who are to abide by the authority. Every manager should have a limited number of sub-ordinates reporting to him directly. Functional type of organisation was first developed by______________________. Ans. Taylor, Fayol and Urwick have discovered many principles with the help of their experience. Authority flows down the vertical hierarchy. Programmed decisions of repetitive and routine nature can be handled by standard procedures and these may be easily delegated but non-programmed decisions involve, one shot and unstructured elements. 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