Business Studies

What is pre-requisite of organising? 


SOLUTION
An efficient organization is essential for the success of a business enterprise. The defining of duties and fixing responsibilities of all employees in the organization is essential. An effective organizational system ensures proper suspension and control. It facilitates expansion and diversification.
Pre-Requisites:
An effective organization has the following pre-requisites:

1. Able Organisers:
Success of an organisation depends upon the competence and calibre of those who are at the helm of affairs. The entrepreneur should understand all aspects of the business so that he may properly organise various aspects of the concern. A well-defined organisational set-up will be helpful in smooth running of the business. The persons at the top should be well versed with everything. He should be dynamic and should be able to cope with the changing business environment.
2. Sound Business Policies:
The management should be clear about the objective to be achieved. Various policies should be aimed to achieve the business goals. There should be no conflict and confusion regarding different policies. The policies should be clearly defined and different levels of management should be clear about the policies.

3. Proper Supervision and Control:
The success of an organisation will depend upon the effective supervision and control. If the activities of different individuals are not properly controlled, then business goals will not be achieved. The targets of work should be fixed and the performance should be recorded. A corrective action is necessary if the performance is less than the goals. The number of persons to be supenised (span of control) by the supervisors should also be realistic. The supervisors should be able to devote enough lime in checking the work of every employee under his control.

4. Co-operation and Co-ordination:
It is necessary to get the co-operation of everybody in the organisation lo make it a success. The goals of the business are common and everybody should try to achieve them in their respective fields. There should be some agency to co-ordinate the activities of various departments. Sales department must know the plans of purchase and finance department should also work in co­ordination with each other. The employees should develop an attitude of co-operation. A central agency should act as a co­ordinating body.

5. Efficient Personnel Organisation:
Management of personnel is an important aspect of organisation. Proper personnel organisation is necessary for enabling all persons to optimise their contribution towards realising the corporate objective. Personnel organisation includes recruitment, training, job evaluation, merit rating and fixing of remuneration. Working conditions should be improved so that workers are encouraged to work more efficiently and have job satisfaction.

6. Capacity for Business Expansion:
The organisation should be elastic to enable expansion and diversification of the business. The production may be raised in the same line or more products may be added. The organisational structure should be such that it allows increase or decrease of production, as the case may be without disturbing the whole organisation. If some change in production and sales require a change in organisational set up, it will discourage the growth of the enterprise.
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Subjective Medium Published on 18th 09, 2020
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