i. Division of labour
ii. Interdependence of units
iii. Integration of individual with organization
In another way, such needs can be understood in the following ways:
i. Coordination is important because of growth in size of organization
ii. Coordination is important because of growing specialization
iii. Finally, it is important due to diversity of human nature
Here, however, we have discussed needs, importance and significance of coordination point wise as under:
Principles of division of labour and specialization require segregation of organization into different parts. However, all these parts are functioning towards achieving a common goal or goals. Integration of these segregated parts of organization requires coordination. Coordination, therefore, is important due to work or job specialization.
2. Unity of Action:
Coordination is important because it provides unity of action of diversified resources, skills, activities and perceptions. Diversity is inherent in an organization due to the difference in human attributes and characteristics. Through coordination, we reduce such diversity and restore unity of action to achieve intended organizational goals.
3. It Balances Unequal and Restores Teamwork:
Coordination is important because it balances inequalities and restores teamwork. Individual differences create imbalances, thereby making it difficult to accomplish organizational goals. Through coordination we enforce teamwork in organizations. Team work balances unequal factors and achieves organizational goals.
4. It Helps in Harmonizing Individual and Organizational Goals:
Individual goals are largely influenced by individual needs. Hence, it may be different from group goals and organizational goals. Conflict between these goals may be deterrent to accomplish desired results. Coordination, through the process of harmonization, integrates individual goals with organizational goals, and that is why coordination is so important for an organization.
5. It Is Important for Differentiation and Integration:
Coordination helps in synergizing differentiated work units and authority to achieve the integrated effects. Differentiated work units and authority centres are inevitable in an organization for obvious reasons of specialization mentioned earlier. Achieving synergy is possible through coordination as it helps integration even in differentiation.
6. It Reduces Personality Conflicts and Eliminates Organizational Rivalry:
Complexity of individual characteristics creates personality conflicts. Such conflicts automatically develop rival groups. Coordination helps in eliminating such conflicts and rivalry by developing a friendly and cooperative relationship. Conflicts and rivalry are counterproductive. Hence, elimination of these two deterrent situations from organization through coordination is very important.
Even though an organization works by segregating its activities into different functional areas, interdependence of each and every function ultimately helps in accomplishing the organizational objectives. Without coordination, such interdependence cannot be achieved. Similarly, interdependence also promotes mutuality in an organization. Mutuality involves relating and interrelating with people positively. It develops cooperation and fosters a culture where everyone strives to win for himself and also for the team.
8. Coordination Promotes Employee-ship:
Employee-ship brings changes in the balance of power in the relationship between employer and employee. Responsibility, initiative, loyalty and commitment are the values which every organization aspires to achieve and tries to inculcate in their workforce. Employee-ship by reducing the power imbalance develops such values, which enable employees to take responsibilities, develop loyalty, initiative and ultimately align company goals with individual goals by developing a shared vision.
9. Coordination Promotes Employees’ Competence:
Coordination also develops self-managed team and leadership-linking strategy with the individual employee’s knowledge by developing a knowledge pool. This helps an organization to enhance the competence of their employees and ultimately makes it possible for them to respond to the competitive environment.
All these points, therefore, amply illustrate that coordination is important prerequisite for success of any organization. Without coordination, it is difficult to achieve the desired goals. This is why Chester Barnard opined. The quality of coordination is the crucial factor in the survival of an organization.’
10. Coordination is important to overcome unhealthy human nature.
11. Coordination promotes synergy within a group which helps in accomplishing even in excess of the standard rate of individual performance.
12. Coordination helps a growing organization by developing an effective network of huge number of people working in an organization.