Principles of organising (short note)

Meaning

The principles of organising are guides for building a sound structure, criteria of good organising rather than rigid rules, since no single structure suits every organisation or every period.

The principles

• Scalar chain. A clear line of authority should run from the top to every position below; the clearer it is, the better the performance.
• Unity of command. Each subordinate reports to one boss only, so that he does not receive conflicting orders.
• Management by exception. Routine decisions are left to subordinates, and only unusual problems and policy matters go up to the managers.
• Unity of direction. A group of activities with the same objective has one head and one plan.
• Limited span of control. A manager can supervise only a limited number of people effectively, because his physical and mental capacity is limited.
• Authority matching responsibility. A person can discharge a responsibility properly only when he is given authority in keeping with it.
• Flexibility. The structure should be able to absorb changes arising inside and outside the organisation.

In a chain of pharmacies in Chennai, for instance, each store pharmacist reports to one area manager, the area managers report to a regional head, and only unusual matters such as a large refund or a drug recall reach head office.