Economics/Business

Organizational principles 12 most important principles

Some of the most important organizational principles  are goal orientation, hierarchy, specialization, responsibility, and chain of command. The organization is an administrative thread.

This procedure consists of organizing organizational resources so that the expected results can be obtained in the defined time, with efficiency and effectiveness.

It is at the time of organization that the ways of producing and using resources are decided, as well as the role that each team member will play. The idea behind the concept of organization is that of coordinated effort.

These principles constitute the platform on which the operations of any entity or company will be carried out and their configuration is governed by the philosophy of the founders and a legal framework.

What are the organization’s principles?

In general, the organization’s principles are oriented towards the following:

– Be a way forward towards the business goal.

– Simplify work.

– Clearly establish workflows and communication channels.

– Define role hierarchy.

– Disseminate the resources of organizational philosophy.

– Transmit and maintain the organizational culture.

Most relevant organizational principles

1- Goal orientation

Like any process within the administration, it must respond to the objective that the company has set itself.

Each action contemplated, as well as the way of selecting and structuring the information on which the plan is based, must serve the main objective of the company.

Management criteria such as efficiency and effectiveness must also be taken into account. It’s about making profits with low operating and production costs.

2- Specialization

It is the principle that establishes the serial performance of a very specific task.

It’s about making the most of a very specific capability of an employee or machine to get the most out of that task.

This implies that the production chain must be very well structured, thought out and timed to accommodate this sequence of specialized tasks.

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3- hierarchy

It is the principle according to which power is distributed within the company so that it can be exercised for the benefit of achieving objectives.

Generating this chain of command will help you have better control over tasks in terms of methodology (how things are done) and outcomes (what things are done for).

This chain of command also works as an incentive for the people who make up the organization, because it presents them with opportunities for professional growth and/or employment in the company.

And this also has an unclear educational dimension; people within the company can understand the structure of a state and its raison d’être.

4- Responsibility

Organizing the use and management of resources and assigning tasks also requires generating and distributing responsibilities.

The magnitude of responsibilities will depend on the person’s position and role within the institution.

This principle allows us to have an idea of ​​the scope of actions, manage expectations and develop management indicators.

It is also important that each responsibility is assigned to a person with sufficient authority to carry it out.

5- Chain of command

In this organization, standards of action and procedures must be established within the chain of command.

In this way, mistakes will be avoided during the operational work, and responsibilities can be established in case of failure and recognition in case of success.

The manager must ensure clear and effective communication of this chain of command so that employees can recognize their immediate bosses and hold them accountable.

6- Dissemination or dissemination

It is a fundamental part of the entire administrative process: only by disseminating the company’s structure and processes in a correct and timely manner, employees will be clear about its scope.

All members participate in the internal dissemination of this information, but mainly the upper and middle levels of the company, which cascade the data down to the base employees.

It is critical that there is written support for all this information, to follow institutional events and that there are ways to verify orders and procedures.

7- control section

At the time of organization, the structure of the line of supervision must be considered, a group of people with the responsibility to supervise others.

Here, a criterion of rationality must be used to determine the number of subordinates for each supervisor. Ideally, one person should not supervise more than 5 direct employees.

8- Coordination

This principle refers to the harmony or balance achieved by the distribution of responsibilities among the different units of the company and how these units contribute proportionately to the achievement of the objective.

9- Continuity

Continuity is the principle according to which, when organizing, it is necessary to think in the long term, how to guarantee the stability of the process over time.

The idea is that each process has a way of starting and going until the objectives are reached, and even if it can continue beyond the objectives, until the respective verification and adjustment.

This principle stems from the certainty that the organizational structure requires maintenance, but also adaptation to environmental conditions.

This principle implies a task of constant documentation of the processes, so that there is continuity of the procedures, independently of the people who execute them.

10- Flexibility

The organization must be sufficiently prepared so that, if it needs to make adaptations to technical changes or possible alterations, it is as abrupt as possible.

That is, you have the ability to react without excessively affecting employees, bureaucracy, or control systems.

11- Efficiency

Maximum goal at the lowest cost. It is the most accurate definition of efficiency applicable to the organization. The efficient work of any organization depends on how the management function of the organization is carried out, which must also promote satisfaction among the employees so that – redundancy pays off – efficiency is effective.

12- Communication

The organization must have a constant, fluid, top-down flow of communication in both directions. This principle encompasses concepts such as business policies, complaints, suggestions, company programs, news, reactions, etc. 

Communication channels must be fluid and serve as a funnel to eliminate all irreverent information, generate controversy, misunderstanding or uncertainty. 

We hope that you have known about the Organizational principles.

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