(iv) The Principle of Departmentation: Logical grasping of related jobs and fucntions is quite natural
in developing the organisation structure. Departmentation requires analysing everything that has to
be done and determining the grouping in which it can be placed without violating the principle of
homogeneity. Departmentation is desirable because individuals vary considerably in the range of
activities which their ability will permit they to perform effectively.
(v) The Principle of Unity of Command: A business organisation must have a single head in whom
all authority and responsibility is concentrated, but this has to be blended with the efforts of the
organised people below. Unity of efforts, consistency of direction, high morale, and effectiveness of
coordination depend upon one executive as the locus of ultimate responsibility.
(vi) The Principle of Span of Control: The idea of span of control is related to the horizontal dimension
of an organisation structure. Span of control refers to the number of subordinates reporting directly to
the executive, the more difficult it tends to be for him to supervise and coordiante them effectively.
(vii) The Principle of Flexibility: Organisation is created to accomplish certain goals. Both the
environment and the individuals comprising the organisation are constantly in flux. To cope with
these changes and yet reach its objectives, an organisation must be designed with sufficient amount
of flexibility.
(viii) The Principle of Balance: This principle implies that each area and function of an enterprise
should operate with equal effectiveness in making its allotted contribution to total purpose. The idea
of balance applies to organisation structures as well as to functions and process.
(ix) The Principle of Exception: This principle implies that only problem involving unusual matters
should be reffered to upward and decided by higher level executives, and that routine problems
should be passed on to lower levels and resolved there itself. Exception principle is also the principle
underlying delegation of authrotiy.
