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Understanding Functions Of An Organisation

This article explains the various functions of an organisation and how it affects business performance. The role of management in a company is also discussed.

An organisation is a group of people who work together to achieve specific goals. It is a social structure that includes all formal human connections. The function of an organisation consists of task alignment and division of labour among personnel to meet the company’s ultimate aim. It is also known as the second most important managerial role, as it deals with coordinating employee effort and resources. Thus, it integrates the two to achieve the company’s objectives.

Functions of an Organisation

The functions of an organisation are as follows:

  • To define the individual’s role: An employee in an organisation must understand their function, position, and relationships with other employees in their department. Thus, all the people participating in the business can identify themselves. One might learn about their responsibilities by looking at the organisation. They understand how their position affects the rest of the company.
  • Assigning accountability: The organisational structure determines the level of performance of an employee. Irresponsible functions, behaviour, and attitudes will result from a lack of or incorrect determination of responsibility.
  • Authority determination: The assignment of a certain position implies the delegation of authority necessary for performance. Defining authority, or the rights and powers of persons in various roles, allows employees to fulfil their assigned responsibilities.
  • Coordination: The design of managerial operations is based on the division of labour. Thus, coordinating the activity of multiple individuals or departments is necessary.
  • Specialisation: Specialisation means that some parts of a task are performed only by qualified people. To encourage specialisation, an organisation is essential. When professionals execute diverse aspects of a job and pool their efforts to achieve the desired end product, the business can conduct efficient and smooth functioning.
  • Effective use of human resources: Companies should make the most of their human resources to boost the economy and reach their goals. The function of an organisation is to remove challenges and chances of work being held up, allowing for a fluid flow of performances.
  • Effective operation: The working of a business is affected by all of the above. Thus, the function of an organisation is to encourage the company to operate quickly, smoothly, and efficiently.

Role of Management in an Organisation

Managers control the business and its employees, thereby playing an important part in the efficient working of an organisation. The following are some critical roles and responsibilities of management:

  • Decision-making: Managers must identify the actions to be done, allocate responsibilities, and coordinate the many levels of operation while making decisions.
  • Planning: Managers determine the correct course of action to achieve the company’s objectives. They speak with various divisions within the organisation to create the best strategy for allocating capital.
  • Staffing: Another function of management is to find new talent to hire. Recruitment, performance, appraisal, promotions, and transferring personnel to the appropriate departments are all aspects of staffing.
  • Directing: Managers are responsible for supervising, motivating, leading, and communicating with their workforce.
  • Controlling: Managers must maintain control over their departmental staff and processes to guarantee that organisational goals are met.

What Is a Managerial Function?

Managerial functions include all supervisory tasks and processes. It deals with giving authority to make policy and administrative decisions in an organisation. 

Some examples of managerial functions are: 

  • Granting leaves
  • Giving raises
  • Taking disciplinary action
  • Terminating or suspending an employee
  • Changing company policy of the business or workers’ working conditions

Conclusion

No business can carry out its responsibilities effectively without organisation. It is the second stage in the management process. It aims to unite numerous activities in a firm to achieve predetermined goals. 

In other words, an organisation is just people cooperating toward a common purpose. As a result, it organises many actions to manage the company and achieve its goals.

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Frequently Asked Questions

Get answers to the most common queries related to the NTA UGC Examination Preparation.

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