The organization has become an integral and important part of human life. According to Etzioni, “without well-run organization, our standard of living, our level of culture and our democratic life could not be maintained. We are born in organizations, educated by organizations and most of us spend much of our time working for organizations.” Andrew Carnegie observes: “Take away our factories, take away our trade, our money. Leave us nothing but our organizations, and in four years we shall have reestablished ourselves.” The significance of the organization lies in its usefulness and importance which may be stated as briefly as follows:
- It provides a means by which human efforts are properly directed more and more to productive, effective and fruitful results.
- It adds definiteness to the activities to be accomplished by allocating the duties and responsibilities to the individual members of the organization.
- The allocation of duties and responsibilities to the individual members prevents shrinking of responsibilities and thus secures certainty and promptness in the accomplishment of the task.
- It increases managerial efficiency and avoids delay, confusion, and misunderstanding in the performance of the work.
- The connecting link provided in an organization by assembling, integrating and co-coordinating all activities into a complete whole ensures necessary communication and instructions to move up, down and sideways without loss of time.
- It secures optimum use of physical, mechanical and human efforts by placing propionates importance to various activities, men and money.
- It thus facilitates the coordination of activities by welding together the structural relationship.