Importance of Coordination - Why Co-ordination is Necessary?

Why Coordination is Necessary?

Coordination means to integrate (bring together) all the activities of an organization. It is done for achieving the goals of the organization. There must be proper co-ordination throughout the organization.

According to management experts, coordination is necessary because:

1. "Coordination is the Essence of Management." I.e. Coordination affects all the functions of management, viz., Planning, Organizing, Staffing, etc.
2. Coordination is a function of management.
3. Coordination is a principle of management, and all other principles are included in this one principle, i.e. Co-ordination is the "Mother Principle".
4. According to Mary Parker Follett, Coordination is the "Plus-value of the group". That is, if there is good Co-ordination then the combined group achievement will be greater than the total of the individual achievement, i.e. 2+2=5. This is impossible in the physical world, but it is possible in human affairs through co-ordination.

Importance of Coordination

The need and importance of coordination can be judged from these points:

1. It encourages team spirit,
2. It gives proper direction,
3. It facilitates motivation,
4. It makes optimum utilization of resources,
5. It helps to achieve objectives quickly,
6. It improves relations in the organization,
7. It leads to higher efficiency and
8. It improves goodwill of the organization.

1. Coordination encourages team spirit

There exists many conflicts and rivalries between individuals, departments, between a line and staff, etc. Similarly, conflicts are also between individual objectives and organizational objectives. Coordination arranges the work and the objectives in such a way that there are minimum conflicts and rivalries. It encourages the employees to work as a team and achieve the common objectives of the organization. This increases the team spirit of the employees.

2. Coordination gives proper direction

There are many departments in the organization. Each department performs different activities. Coordination integrates (bring together) these activities for achieving the common goals or objectives of the organization. Thus, coordination gives proper direction to all the departments of the organization.

3. Coordination facilitates motivation

Coordination gives complete freedom to the employees. It encourages the employees to show initiative. It also gives them many financial and non-financial incentives. Therefore, the employees get job satisfaction, and they are motivated to perform better.

4. Coordination makes optimum utilization of resources

Coordination helps to bring together the human and material resources of the organization. It helps to make optimum utilization of resources. These resources are used to achieve the objectives of the organization. Coordination also minimizes the wastage of resources in the organization.

5. Coordination helps to achieve objectives quickly

Coordination helps to minimize the conflicts, rivalries, wastages, delays and other organizational problems. It ensures smooth working of the organization. Therefore, with the help of coordination an organization can achieve its objectives easily and quickly.

6. Coordination improves relations in the organization

The Top Level Managers coordinates the activities of the Middle Level Managers and develop good relations with them. Similarly, the Middle Level Managers coordinate the activities of the Lower Level Managers and develop good relations with them. Also, the Lower Level Managers coordinate the activities of the workers and develop good relations with them. Thus, coordination, overall improves the relations in the organization.

7. Coordination leads to higher efficiency

Efficiency is the relationship between Returns and Cost. There will be higher efficiency when the returns are more and the cost is less. Since coordination leads to optimum utilization of resources it results in more returns and low cost. Thus, coordination leads to higher efficiency.

8. Coordination improves goodwill of the organization

Coordination helps an organization to sell high quality goods and services at lower prices. This improves the goodwill of the organization and helps it earn a good name and image in the market and corporate world.