Establishment of objectives and orderly planning are necessary for good organization as with the other functions of managing. Lack of design in organization is illogical, wasteful, and insufficient for success of an organization. It is illogical because good design, or planning, must come first whether one speaks of engineering or social practice.
The main sufferers from a lack of design in organization are those individuals who work in an undertaking. It is wasteful because unless jobs are clearly put together along lines of functional specialization, it is impossible to train new men (or women) to succeed to positions as the incumbents are promoted, resign or retire. It is inefficient because if management is not based on principles, it will be based on personalities, with the resultant rise of company politics. It is like a machine not running smoothly when fundamental engineering principles have been ignored in construction.
Planning for the ideal:
The search for an ideal organization to reflect enterprise goals under given circumstances is the impetus to planning. The search entails charting the main lines of organization, considering the organizational philosophy of the enterprise managers (e.g. whether authority should be centralized as much as possible or whether the company should divide its operations into semi independent product or territorial divisions), and sketching out consequent authority relationships.
The ultimate form established like all plans, seldom remains unchanged, and continuous remolding of the ideal plan is normally necessary. Nevertheless, an ideal organization plan constitutes a standard, and by comparing present structure with it, enterprises leaders know what changes should be made when possible.
An organizer must always be careful not to be blinded by popular notions in organizing, because what may work in one company may not work in another. Principles of organizing have general application, but the background of each companyâ€™s operation and needs must be considered in applying these principles. Organization structure needs to be tailor made.
Modification for the human factor:
If available personnel do not fit into the ideal structure and cannot or should not be pushed aside, the only choice is to modify the structure to fit individual capabilities, attitudes, or limitations. Although this modification may seem like organizing around people, in this case one is first organizing around the goals to be met and activities to be undertaken and only then making modifications for the human factor. Thus, planning will reduce compromising the necessity for principle whenever changes occur in personnel.