Coordination is like teamwork. It is about making sure everyone in a group is working together smoothly towards the same goals. It's an important part of management because it helps keep everything running smoothly and ensures that different parts of an organization are working together effectively. The need for coordination arises out of the fact that different elements and efforts of an organization are to be harmonized and unified to achieve common objectives. The importance of coordination are:
Encourages Team Spirit: In organizations, a group of individuals works together. There may be the existence of conflicts, disputes between individuals, departments, and employers, and employees regarding organizational policies, roles, and responsibilities, etc. Coordination arranges the work in such a way that minimum conflicts are raised. It increases the team spirit at the workplace.
Gives Proper Direction: Coordination integrates departmental activities for achieving the common goal of the organization. The work is arranged in a very systematic way. The interdependence of departments gives proper direction to the employees.
Facilitates Motivation: Coordination motivates the employees to take initiative while completing their assigned tasks. Effective coordination increases efficiency and results in the growth and prosperity of the organization. A prosperous organization ensures job security, higher income, promotion, and incentives. Such monetary and non-monetary incentives provide job security and motivate employees to hard work.
Optimum Utilization of Resources: Managers try to integrate all the resources systematically. It helps in utilizing all available resources at their optimum level. Coordination also helps to minimize the wastage of resources and control the cost of work.
Achieve Organizational Objectives: Coordination leads to minimizing the wastages of materials, idle time of employees, delay in the completion of targets, departmental disputes, etc. to a great extent. It ensures the smooth working of the organization in the process of achieving its objectives of the organization.
Improves Relation: Coordination develops cordial relations between all the levels of management of an organization. Every department depends on the functioning of other departments. For example, the sales department works according to the production department, the Production department depends on the Purchase department, and so on. Coordination helps the employees to build strong relations among themselves and achieve the given targets.
Leads to Higher Efficiency: With the help of optimum utilization of resources and effective integration of resources, the organization can achieve high returns in terms of high productivity, and high profitability as well as can reduce cost. Thus, coordination leads to higher efficiency.
Improves Goodwill: Higher sales and higher profitability can be achieved due to synchronized efforts of organizational people, strong human relations, and lower costs. It directly results in creating goodwill for the organization in the market. It reflects on the market value of shares as well as helps in building a good image in society.
Unity of Direction: Different activities are performed by different departments. Coordination harmonizes these activities for achieving the common goal of the organization. Thus, coordination gives proper direction to all departments of the organization.
Specialization: All departments of the organization are headed by experts in their respective fields. The specialized knowledge of these departmental heads helps in managerial decisions. It leads the organization to march toward growth and success in the competitive world of business.
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