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Principles of Organization

The document discusses the principles of business organization, defining business as any legal activity involving the sale and purchase of goods or services, and an organization as a group of people with a shared purpose. It outlines 9 principles of business organization, including the principles of unity of objectives, specialization, coordination, authority, efficiency, balance, communication, personal ability, and flexibility.

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111 views

Principles of Organization

The document discusses the principles of business organization, defining business as any legal activity involving the sale and purchase of goods or services, and an organization as a group of people with a shared purpose. It outlines 9 principles of business organization, including the principles of unity of objectives, specialization, coordination, authority, efficiency, balance, communication, personal ability, and flexibility.

Uploaded by

Suleman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Assignment no 1

Subject:
Introduction to Business

Submitted by:
Bareera Nazo

To:
Professor Mahad Jahangir

Qurtuba University D.I.Khan

Definition of business:
Any legal activity which involves the sale and purchase of goods or
services is called business.

Definition of Organization:
Organization can be defined as, an organized group of people with
a particular purpose, such as a business or government department etc.

Principles of a business organization:


Following are the principles of business organization

1.

Principle of unity of objectives:

Organizational goals, departmental goals, and individual goals


must be clearly defined. All goals and objectives must have uniformity. When
there is contradiction among different level of goals then desired goals cannot be
achieved. Therefore, unity of objectives is necessary.

2. Principle of specialization:
The term specialization is related to work and employees. When
an employee takes special type of knowledge and skill in any area, it is known as
specialization. Modern business organization needs the specialized, skilled and
knowledgeable employees in order to achieve organizational goal.

3. Principle of coordination:
Coordination means performing duties with the help of one
another in an organization. Coordination among employees facilitates in several
organizational management concepts.

4. Principle of authority:
Authority is the kind of power through which it guides the actions
of others so that the organizational goals can be achieved .Basically Top level
management directs the tasks with the authority of performing it to the
subordinates of an organization.

5. Principle of efficiency:
Business organizations use different resources in order to produce
demanded products. These resources must be used in effective manner. When an
organization fulfills the objectives with minimum cost, it means the organization is
working efficiently. Organization must always concentrate on efficiency.

6. Principle of balance:
The functional activities in any business organization should be
balanced properly. Authority, centralization, decentralization must be balance
equally. This is very challenging job but efficient management perform this job very
well.

7. Principle of communication:
Communication is the process of transformation of information
from one person to another. It involves the systematic and continuous process of
telling, listening and understanding opinions ideas, feelings, information, views etc.
Effective communication is important in any organization in order to transfer ideas
or information from one person to another.

8. Principle of personal ability:


For sound organization, human resource is important. Employees
must be capable. Employees having good personal abilities can perform higher.
Mainly training and development programs must be encouraged to develop the skill
in the employees.

9. Principle of flexibility:
Organizational structure must be flexible. Sometimes,
dramatically change may occur in the organization and in that condition,
organization should be ready to accept the change.

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