Notes on Importance and Principle of Co-ordination | Grade 12 > Business Studies > Co-ordination | KULLABS.COM

Importance and Principle of Co-ordination

Notes, Exercises, Videos, Tests and Things to Remember on Importance and Principle of Co-ordination

Please scroll down to get to the study materials.

Registration open for Special Scholarships

  • Note
  • Things to remember
  • Exercise

Importance of Co-ordination


Co-ordination is an important and continuous function of management. It provides smooth operation of an organization. Smooth working and achievement of organizational goals depend on sound coordination. The primary reason for coordination is that department and workgroups are interdependent. It is necessary at every level of management. If there is greater interdependence between departments there may be a greater need for coordination. Coordination is essential in all types of organizations. The need for and importance of coordination for effective management are explained below:

  1. Specialization
    Specialization requires the segregation of organizations into different parts. However, all these parts are functioning towards achieving a common goal in the organization. The integration of these segregated parts of the organization requires coordination. Therefore, coordination is important due to work or job specialization.

  2. Encourages Team Spirit
    Coordination arranges the work and the objectives of the organization in such a way so that there are minimum conflicts and rivalries. To achieve the common objectives of the organization, it encourages the employees to work as a team. It also increases the team spirit of the employees.

  3. Proper Direction
    There are many departments in the organization. Each department performs different activities. Coordination integrates these activities for achieving the common goals or objectives of the organization. Thus, coordination leads to the proper direction of all the departments of the organization.

  4. Increase Efficiency and Economy
    Good coordination in an organization increases efficiency and economy in operation. It avoids delays and eliminates duplication of efforts. It facilitates mutual relations among the co-workers in an organization which helps to solve the problems.

  5. Improves Good Personnel Relations
    The conflicts among different persons between the line and staff can be settled by mutual discussions. Better personnel relations are also helpful in increasing the morale of employees, which ultimately leads to job satisfaction and efficiency.

  6. Facilitates Motivation
    Motivation is defined as an individual's willingness to put extra effort into the attainment of an organization's goal. It encourages the employees to show initiative. Motivation also gives many financial and non-financial incentives to the employees. Therefore, employees get job satisfaction, and they are motivated to perform better.

  7. Optimum Utilization of Resources
    Coordination helps to bring the human and material resources of the organization together. It also helps to make optimum utilization of the resources. These resources help in achieving the objectives of the organization. Coordination also helps in minimizing the wastage of resources in the organization.

  8. Promotes Employee-ship
    Employee-ship brings changes in the relationship between employer and employee in the balance of power. Reducing the power imbalances develops such values, develop loyalty and company goals by developing a shared vision.

  9. Improves Goodwill of the Organization
    The coordination helps to sell high-quality goods and services at lower prices in an organization. This helps to improve the goodwill of the organization. It also helps to earn a good name and image in the market and corporate world.

  10. Coordination Helps to Achieve Objectives Quickly
    Coordination helps in minimizing the conflicts, wastages, delays and other organizational problems. It facilitates the smooth working of the organization. Therefore, with the help of coordination, an organization can achieve its objectives easily and quickly.

  11. Scalar Chain
    The scalar chain joins all the members, managers, and employees from top to bottom. It is the line of authority. Every member should know the members superior to them, and he must also know who is his subordinate. Scalar Chain is necessary for good communication. Scalar Chain must not be broken in normal circumstances. (Kalyan City Blog Spot)

Principles of Coordination


Every management tries to improve its working through co-ordination. Coordination is crucial to the effectiveness of the organization. It is the ongoing process to secure unity of action in the pursuit of common goals. The important principles of coordination are as follows:

  1. Principle of Early Stage
    The process of co-ordination must begin in the early stage of planning and the policy formulation of the organization. Initial coordination of the organization improves the quality of plans and policies. This will lead to making the best plans and implementing these plans with success. If coordination is started early only then all the management functions will be performed successfully. There will be mutual trust and confidence among the members at the early stage of the organization.

  2. Principle of Continuity
    Coordination must be a continuous or never-ending process. The process of coordination must begin when the organization starts, and it must continue until the organization exists. During the management process, the coordination must be done continuously. The managers never stop to provide efforts towards effective coordination.

  3. Principle of Direct Contact
    Effective coordination should be based on direct contact or interpersonal relationship among the employees. The activities of different individuals can be coordinated through direct contact. Personal or face to face is the most effective means of achieving coordination. It helps to clarify misunderstanding and secure mutual co-operation.

  4. Principle of Mutual Respect
    Co-ordination will be successful only if there exists mutual respect throughout the organization. All managers working at different levels top, middle or lower must respect each other. All employees should respect each other and must show a friendly attitude during interactions. There must be a feeling of brotherhood among managers and employees.

  5. Principle of Clarity of Objectives
    Co-ordination will be successful only if the organization has set its clear objectives. Everyone in the organization must know the objectives very clearly. No one must have any doubts about the objectives of the organization. Clear objectives can be achieved easily and quickly.

  6. Principle of Reciprocal Relationship
    All factors of production such as men, material, money, and management are interdependent and interrelated. So, the decisions and actions of one person or department will affect all other persons and departments in the organization. Therefore, before taking any decision or action all managers must first find out the effect of that decision or action on other persons and departments in the organization.

  7. Principle of Clear Definition of Authority and Responsibility
    A clear definition of authority and responsibility for each individual and department also facilitates effective coordination in an organization. It helps in reducing conflicts among different positions which is essential for sound coordination. It defines who is accountable to whom so that the manager can hold subordinates responsible for violating the limits. (Kalyan city life)







Kalyan City Blog Spot. 2016. Electronic. 14 06 2016.

Kalyan City Life. 2016. electronic. 14 06 2016



  1. Smooth working and achievement of organizational goals depend upon sound coordination. 
  2. The greater the interdependence between departments the greater the need for coordination. 
  3. Coordination promotes efficiency and economy in the organization.
  4. If coordination is started early only then all the management functions will be performed successfully.
  5. Scalar Chain is necessary for good communication. Scalar Chain must not be broken in normal circumstances.

Questions and Answers

Click on the questions below to reveal the answers


ASK ANY QUESTION ON Importance and Principle of Co-ordination

No discussion on this note yet. Be first to comment on this note