Principles of organization
Division of function is the activities of enterprise must be divided into several sections and section must be entrusted to qualified persons in order to ensure systematic and efficient performance. There should be principle or right man for the right job.
The is must be definite and suitable division of responsibility. The structure must contain the duties and responsibilities of each person and each section or department so that one that one may clearly know one's respective functions.
There must be adaptability and flexibility in organization structure. Its changes must be made in response to changed circumstances in order to meet present situation.
The principle of delegation is fundamental to organization as well as to each group. So the scope of delegation of authority and responsibility must be understood and clearly defined, preferably in writing.
The must be vertical structure indicating an unbroken line of authority form the highest level to lowest.
The organization must be arranged so as to allow an easy co-operation at each level of work.
Group must be designed so as to attain a greater degree of specialization at each stage
There must be balance in various section of organization for the successful operation of the business.