Consider the following statements about the importance of coordination:
(A) As organisations grow in size, it is important to harmonise individual goals and organisational goals through coordination.
(B) Under functional differentiation, conflicts arise because each department performs its activities in isolation from others.
(C) Under specialisation, coordination by a senior specialist is required to reconcile the differences in approach of the specialists.
(D) Specialisation arises out of the complexities of modern technology and the diversity of tasks to be performed.
(E) Under functional differentiation, the barriers between departments are becoming less rigid.
How many of the above statements are correct?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Three
(A) As organisations grow in size, it is important to harmonise individual goals and organisational goals through coordination. — Correct. More people means more individual goals to bring in line with the organisation’s.
(B) Under functional differentiation, conflicts arise because each department performs its activities in isolation from others. — Correct. Departments working in isolation clash, such as marketing wanting discounts that finance rejects.
(C) Under specialisation, coordination by a senior specialist is required to reconcile the differences in approach of the specialists. — Incorrect. Specialists trust only their own judgement, so an independent person must settle their differences.
(D) Specialisation arises out of the complexities of modern technology and the diversity of tasks to be performed. — Correct. Complex technology and many tasks make organisations need specialists.
(E) Under functional differentiation, the barriers between departments are becoming less rigid. — Incorrect. The barriers are becoming more rigid, which is why conflicts arise.
NCERT (2026-27 Edition): “(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: … In an organisation there may be separate departments of finance, production, marketing or human resources. All these departments may have their own objectives, policies and their own style of working. For example, the marketing department’s objective may be to increase sales by 10 per cent by offering discounts. But, the finance department may not approve of such discounts as it means loss of revenue. These kinds of conflict arise in organisations because each unit/ department is performing activities in isolation from others and barriers between departments are becoming more rigid. …” “(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.” |