L2.4: PRINCIPLES OF GOOD ORGANIZATION

Question 1

What are the Principles of Good Organization?

Answer 1

1. Principle Objective
2. Analysis
3. Simplicity
4. Functionalism
5. Departmentalization
6. Centralization of Authority and Responsibility
7. Limited Span of Control

Question 2

• a clear and complete definition of the objective must be known
• any business concerned or any individual must adhere to a definite purpose or aim

Answer 2

Principle Objective

Question 3

• A sound business judgement attempts to build an organization through full knowledge of the requirements of the business
• There should be a study as to whether the project could be finished at the right time and at the right price the client would be able to pay

Answer 3

Analysis

Question 4

• The simplest organization that will serve to attain the desired objective is considered the best

Answer 4

Simplicity

Question 5

• The organization should be built around the main functions of the business and not around the individuals
• A function is a normal or a characteristic way of doing a task that stands out distinctively by itself

Answer 5

Functionalism

Question 6

• In an organization, the scoop of operation can be very broad, necessitating departmentalization to achieve a smoother flow operation

Answer 6

Departmentalization

Question 7

Departmentalization can be through function?

Answer 7

1. Functions
2. Products
3. Location
4. Projects by the Organization

Question 8

• In every organization, there should be centralized executive control or command authority
• This is necessary in order to have authority and responsibility definitely fixed

Answer 8

Centralization of Authority and responsibility

Question 9

The number of subordinates an executive
subordinates can manage effectively.

Answer 9

Limited Span of Control