(A) Meaning : Co-ordination as a function of management refers to the task of developing harmony between various sections of departments and between various departments of the organisation. Thus, coordination is a hidden force which binds all other functions of the management integrating the group activities to accomplish the organisational goal efficiency. As the work of each one is linked in an organisation is necessary in co-ordination.
(B) Importance :
The importance of Coordinating is explained as follows:
(1) Encourages Team Spirit : Co-ordination is concerned with integrated group efforts. Team work under the direction of the manager encourages the subordinates to work sincerely and give better performance to achieve organisational goals. Co-ordination helps to reduce the conflicts between the employees and departments regarding policies, roles, etc. and increase their team spirit.
(2) Gives Proper Direction : Group or combined efforts of all the employees in an organisation helps to co-ordinate with each other and achieve the desired goals. Thus, combined efforts of all the employees always help an organisation to remove its limitations and achieve organisational objectives. The interdependence of departments gives proper direction to the employees.
(3) Facilitates motivation : In the process of co-ordination the superiors motivate their subordinates by providing them with monetary and other incentives. An effective co-ordination increases efficiency and results in growth and prosperity of the organisation which encourages job security, high income, promotion and incentives.
(4) Optimum utilisation of resources : Proper and effective co-ordination helps to bring together all the resources of the organisation. This in turn helps to make the optimum possible use of available resources to achieve organisational goals. Co-ordination also helps to avoid wastage of resources and control the cost.
(5) Achieve organisational objectives : Proper coordination helps to reduce wastages, delays in completion of targets, departmental disputes, etc. of the organisation to a great extent. This ensures smooth working of the organisation in the process of achievement of objectives.
(6) Improve relations : Co-ordination brings develops good relations among the employees working at different levels of management. For instance, marketing department depends upon production department, production department : depends upon purchase department and so on. Proper co-ordination always helps employees to improve and build strong relations among the employees working in different departments.
(7) Leads to Higher Efficiency : Co-ordination facilitates the optimum use of physical and human resources. This leads to higher returns at lesser cost, thereby higher efficiency. Coordination ultimately leads to the optimum use of the resources, higher efficiency reduction in cost and reduction in wastages.
(8) Improves goodwill : Higher sales and higher profitability can be achieved due to synchronized efforts. It earns a name and goodwill in the corporate world. This leads to better value of shares in the stock exchange (market).
(9) Unity of direction : Co-ordinating function helps to bring together activities of different departments to achieve common goals and objectives of the organisation. Therefore, co¬ordination is needed to give proper direction to all the departments of the organisation.
(10) Specialisation : In every business organisation all departments are headed by qualified and specialised professionals in their respective field. The specialised knowledge of these departmental heads helps in various managerial decisions. Proper and efficient coordination among these professionals helps to achieve organisational goals (targets) as planned by the top management.
