Importance of coordination.

Ans. Co – ordination refers to inter – linking activities in the organisation. It is a process of integration of activities of the members of an organisation to achieve common goals. The significance/importance of co – ordination are as follows:

1. Integrated Group Effort: Co – ordination is related to integrated group effort. It is only a team work under the guidance, direction and motivation of the manager which encourages the subordinates for the achievement of the organizational goals. This reduces the conflicts between the employees and increases their team spirit.
2. Creative Force: It is a group effort of all employees and not individual effort in an organization that helps to co – ordinate with each other and forma a creative force, as to achieve the desired results. Combined efforts of all the employees can help an organization to overcome its limitations and achieving organizational objectives.
3. Unity of Direction: All the departments in the organization perform different activities. Co – ordination brings together these activities for achieving common goals and objectives of the organization. Thus co – ordinating gives proper direction to all the departments of the organisation.
4. Higher Efficiency: -Efficiency can be measured in terms of Returns and Costs. Higher efficiency is a result of high return and low costs due to optimum utilization of resources. So co-ordination leads to high efficiency.

5. Improves Goodwill: -Higher efficiency means low costs and higher sales leading to higher returns. This leads to better prices of shares in the market. Better return also helps the organization to build a good image and goodwill for the organization in the market and corporate world.

6. Specialization: -All the departments of the organization are headed by specialized professionals in their respective fields. Co-ordination among these specialized professionals can lead the organization towards achieving the targets as planned.