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Home/Practice questions/Business Studies
Business StudiesNature and significance of Management

Which of the following bring out the importance of coordination? A) G…

Which of the following bring out the importance of coordination?

A) Growth in size
B) Unity of action
C) Specialisation
D) Deliberate function
E) Functional differentiation

Choose the correct answer from the options given below.

Answer & explanation+

Correct answer: option 1

The correct answer is Option (1) → ACE

A) Growth in size — Correct. A growing organisation employs more people, each with different habits and goals. Coordination is needed to harmonise individual goals with organisational goals.

B) Unity of action — Incorrect. Ensuring unity of action is a characteristic of coordination: it binds all departments and people so that every action aims at the same goals. It is not a reason that makes coordination important.

C) Specialisation — Correct. Specialists often do not take advice from others, and this leads to conflict. An independent person has to reconcile the differences between the specialists.

D) Deliberate function — Incorrect. Being a deliberate function is a characteristic of coordination: a manager coordinates in a conscious way. It does not show why coordination is needed.

E) Functional differentiation — Correct. Work is divided into departments, each with its own objectives and style, and they may clash. Coordination links the activities of the departments towards common goals.

NCERT (2026-27 Edition): “Importance of Coordination …
(i) Growth in size: As organisations grow in size, the number of people employed by the organisation also increases. At times, it may become difficult to integrate their efforts and activities. All individuals differ in their habits of work, background, approaches to situations and relationships with others. It becomes necessary to ensure that all individuals work towards the common goals of the organisation. But employees may have their own individual goals also. Therefore, for organisational efficiency, it is important to harmonise individual goals and organisational goals through coordination.”

“(ii) Functional differentiation: … However, all departments and individuals are interdependent and they have to depend on each other for information to perform their activities. The activity of each department needs to be focused on attainment of common organisational goals. The process of linking the activities of various departments is accomplished by coordination.”

“(iii) Specialisation: Modern organisations are characterised by a high degree of specialisation. Specialisation arises out of the complexities of modern technology and the diversity of tasks to be performed. Organisations, therefore, need to employ a number of specialists. Specialists usually think that they only are qualified to evaluate, judge and decide according to their professional criteria. They do not take advice or suggestions from others in matters pertaining to their area of specialisation. This often leads to conflict amongst different specialists as well as others in the organisation. Therefore, some coordination is required by an independent person to reconcile the differences in approach, interest or opinion of the specialists.”

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