Home » Management » Principles of Organization

Principles of Organization

There are certain principles of organization which are followed by all the business firms which are operating. It does not mean that all the business firms follow these. But they are indeed important and they should follow these for the smooth functioning of the management.

If you are looking for the information regarding the principles of organization. Then let me tell you that you have been landed on the right website.

Because in this article of mine, I will be telling you about all the principles of organizations. In my previous articles of mine, I have covered many things including the principles of management.

I would suggest you read the below-linked articles too.

The Principles of Organization

Principles of Organization

The principles of organization are as mentioned below, each of the principles is explained too.

1) Principle of Definition.

It is necessary to define and fix the duties, responsibilities, and authorities of each employee. In addition to that, the relationship of each employee with the others should be clearly defined during the organizational setup.

2) Principle of Objectives.

The objectives at all the levels of the organization should be aimed towards achieving the main objective of the business firm. The objectives of all the departments may be different but the main objective of all the department should be achieving the main objective.

3) Principle of Coordination.

If the coordination exists between the departments and the employees of then the objectives can be achieved easily.

4) Principle of Authority.

When many people are working in a group together then the different people will have different authorities. But the management should clearly declare the authorities to their subordinates. The authority to different employees is given by the process of delegation of authority.

5) Principle of Responsibility.

It is not enough to give the authority to the employees it is also important to make them responsible for the work. Hence the responsibilities of the employees should be clearly defined.

6) Principle of Explanation.

During the distribution of the duties to every employee, the liabilities should be explained to him clearly.

7) Principle of Efficiency.

Each work can be completed effectively whenever the organization structure facilitates the completion of the work. The work should be completed with the minimum usage of resources and within the decided time frame.

You can read more about the organizational structure in the span of control article.

8) Principle of Balance.

There will be several departments in the organization. The work of one department may be completed before the others. And hence the sequence of the work should be arranged systematically to avoid this kind of imbalance.

9) Principle of Continuity.

This is the process undertaken by every organization since the business is a going concern.


So these were the principles of organization. I hope you are clear with all the information that is mentioned in this article. But if you have any kind of doubts in your mind then you can comment below.