NATURE AND SIGNIFICANCE OF MANAGEMENT — OCM STD 12 Commerce — Question

• To task of maintaining co-ordination and harmony among the different functions carried out by different departments in the business unit is called co-ordination.
• Although co-ordination is not a function of management but it is required at each and every stage of management.
• It is necessary right from the planning stage to controlling.

Characteristics of co-ordination:

1. Co-ordination is required for all the activities, right from planning to controlling. As a result, none of the management process is possible without co-ordination.
2. Co-ordination is required at every level of management.
3. Success of co-ordination depends upon effective communication.
4. Co-ordination is not possible without co-operation. Co-operation of employees engaged in different activities is necessary to maintain co-ordination among various activities of the organization.
5. Co-ordination makes possible optimum utilization of business resources.
6. Co-ordination is a part of every activity of management. Therefore co-ordination is considered soul of management.

Importance of co-ordination:

• Co-ordination makes management functions like planning, organizing, directing, controlling, etc. effective.
• Co-ordination makes possible smooth functioning of all the business activities.
• When there is proper co-ordination then neither any work remains incomplete nor any work gets duplicated.
• Co-ordination maintains harmony among various departments of management.
• Co-ordination enables to maintain a balance between order and time of business activities performed by various departments.
• Co-ordination enables accomplishment of pre-decided objectives.