--- title: "Need for organization and its principles" subject: "Organization and Management" chapter: 1 key: "semester_7/organization_and_management:org-need-principles" source: https://www.bctengineer.com/q/semester_7/organization_and_management/org-need-principles site: BCT Engineering --- # Need for organization and its principles Organization and Management · Chapter 1: Organization - Asked in: 2072 Chaitra, 4+4 marks; 2071 Chaitra, 4+4 marks; 2072 Kartik; year not given (asked 3 times) - Video: [Organization principles | Principles of Organization](https://www.youtube.com/watch?v=sno8s_WVBNI) — Educationleaves - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/organization_and_management/org-need-principles - Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-1 ## Question Why do we need organizations? Describe the principles of an organization. ## Short answer Organizations achieve large goals, enable specialization, pool resources, provide employment, ensure continuity, and support economic growth. Key principles include unity of objective, division of work, unity of command, scalar chain, span of control, authority–responsibility parity, delegation, coordination, flexibility, and simplicity. ## Answer An organization is a group of people who work together in a structured way to achieve common goals that one person cannot achieve alone. #### Need for organizations 1. **Achieving big goals:** No single person can generate electricity for a country. The Nepal Electricity Authority (NEA) exists because hydropower, transmission and distribution need thousands of people working together. 2. **Specialization and division of work:** People do the job they are best at (engineer, accountant, lineman), which raises efficiency. 3. **Use of resources:** Money, machines, materials and skills are pooled and used economically. 4. **Employment and income:** Nepal Telecom, banks and factories give jobs and income to people. 5. **Continuity and stability:** Work continues even when individuals leave. 6. **Social and personal needs:** People get belonging, status and security. 7. **Economic growth and services:** Organizations produce goods and services, pay taxes and support development. #### Principles of an organization 1. **Unity of objective:** All parts must work towards the common goal of the enterprise. 2. **Division of work (specialization):** Divide work according to skill to avoid overlap. 3. **Unity of command:** One employee should receive orders from one superior only. 4. **Scalar chain:** A clear line of authority from top to bottom, so everyone knows whom to report to. 5. **Span of control:** A manager can supervise only a limited number of subordinates effectively (usually 5 to 8). 6. **Authority and responsibility:** Authority given must be equal to responsibility; a person is accountable for the work. 7. **Delegation:** Authority is passed down to lower levels to reduce load on top managers. 8. **Coordination:** Activities of departments are harmonised. 9. **Balance and flexibility:** The structure should adapt to change in technology and market. 10. **Continuity and simplicity:** The structure should be simple, clear and able to survive over time. A bank in Nepal, for example, divides work into credit, deposit, IT and operations (division of work), keeps a chain from branch manager to CEO (scalar chain), and each employee reports to one supervisor (unity of command). ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. Why does the answer say NEA exists as an organization? A. Generating and delivering electricity needs thousands of people working together, which one person cannot do B. Because individuals are not allowed to generate electricity by law C. Because organizations always earn more profit than individuals D. Because it reduces the need for specialization Answer: A. Organizations achieve big goals that no single person can achieve alone. (Key point: Why organizations exist) 2. Which principle says an employee should receive orders from only one superior? A. Scalar chain B. Unity of command C. Span of control D. Delegation Answer: B. Unity of command means one employee, one boss. (Key point: Unity of command) 3. What does span of control state? A. Authority must be equal to responsibility B. Each manager should supervise as many subordinates as possible C. A manager can effectively supervise only a limited number of subordinates (usually 5 to 8) D. Authority passes from top to bottom through a clear line Answer: C. Span of control limits the number of subordinates a manager can supervise effectively. (Key point: Span of control) 4. According to the principle of authority and responsibility, authority given should be: A. Greater than responsibility B. Less than responsibility C. Independent of responsibility D. Equal to the responsibility Answer: D. Authority must match responsibility so a person can be held accountable. 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