Functions and Principles of Organization | Construction Management

Functions of Organization 


The various functions of organisation are :

  1. Long term planning 
  2. To prepare structure of organisation.
  3. To maintain good relations with the government
  4. To prepare wage policy
  5. Co-ordination of various departments and their control. 
  6. To monitor various activities and progress
  7. To fulfil management aims and development of management.
  8. To establish good relations between workers and the management 

Principles of Organization

Following are the principles of Organization

1) Unity of command :

Under this principle, cach employee should know clearly to whom he is answerable and who are answerable to him. 

The principle under which one person has to report only to one boss is known as the unity of command. 

At each level there should be one boss. If two superior heads exercise their authority over the same person or department there will be confusion.

2) Span of management :

The span of the management is the small number of workers which a manager has to supervise. 

Thus for a sound organisation the span of the management should be small so that a manager can supervise their work efficiently. 

The number of sub-ordinates that a supervisor can control depends upon :

  • Capacity of individual to work
  • Nature of work
  • Place of work
  • Definite and clear responsibilities

3) Delegation of Authority :

With the allocation of duties and responsibilities, necessary authority must also be given to the individual so as to enable him to perform his duties. 

In order to have effective control it is necessary to fix responsibilities of all concerned by the higher management.

When ever a person is assigned any task, he should be given sufficient powers to achieve his task. Thus the authority and responsibility both go together.

4) Unity of job assignment :

Functions of similar jobs in different departments should be closely related within

the structure of organisation. 

Functions assigned to each position should be adjustable and they should require reasonably equal demands of skill.

While assigning the job, following points should be kept in mind :

  • Assignments for an individual should be few in number and similar. 
  • Assignments of same nature in different departments must be of same skill so that the workers may be inter-changed.
  • An individual should be assigned only one job at a time.

5) Division of work :

The work should be divided into small parts and suitable job should be assigned to suitable person.

6) Separation of work :

The job of inspection and control should be assigned to those persons who are not associated with that work. 

There should be an arrangment in the organisation to identify mistakes and to suggest remedial measures.

7) Job Definition :

The work amongst the workers should be allotted very carefully on the basis of their skill experience and ability to do that work. 

For this purpose department must have following :

  • Information for identifying the job.
  • Name of the job code number of the job
  • Grade of the job particular shifts
  • Jobs relationship
  • Name of department and the section in which the job is to be performed

8) Contact :

The organisation should allow complete co-ordination of each branch of work. 

The performance of each worker of every unit should be economically related to all units keeping in view the policies of the organisation.

9) Ultimate authority and responsibility :

For all the acts of subordinates, higher officials are responsible. 

When a superintendent assign some job to his subordiate and the subordinate commit some mistake, for that mistake superintendent is held responsible.

10) Continuity of activity :

The structure of oganisation should be dynamic. It should not only confine the activities in achieving their goals but also continue such activities in future. It should establish a link between the past and the future.

11) Flexibility and Stability :

The organisation should be flexible to allow some changes and expansions etc. where ever necessary and it should be capable of adjusting its urgent demends. A good organisation should be capable to control wastage of labour, money and material.

12) Motivation and Professional growth :

The structure of organisation should be such that their employees gets sufficient opportunities for their growth. It should encourage the employees for their best performance. The employees should get satisfaction in their job.


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