Direction and Coordination

Importance and Limitation of Coordination

Coordination plays a huge role in the success of an organization. With different people and departments working towards a common goal, it offers many benefits to help keep the efforts synchronized and integrated. In this article, we will talk about the importance and limitations of coordination in management.

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Importance of Coordination in Management

Here are some reasons which describe the importance of coordination in management:

Unity in Diversity

Every large organization has a large number of employees, each with different views or opinions, activities and background. Therefore, there are diverse activities in an organization. However, all these activities would not be highly effective in the absence of coordination. Hence, coordination is important for unity in diversity.

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Let’s take a look at Concept and Features of Coordination

Unity of Direction

An organization needs to integrate the efforts and skills of different employees in order to achieve common objectives. Coordination also eliminates duplication of work leading to cost-efficient operations.

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Functional Differentiation

An organization has many departments or sections performing different functions. All these functions are important for achieving the overall goals of the organization. If all departments work in isolation from the others, then they might not work in tandem. Therefore, coordination is essential for integrating the functions.

Lesser disputes

Many departments play an important role in helping the organization achieve its goals. They are also capable of assessing the nature and scope of work they perform. However, they are usually unaware of the importance of other department’s roles leading to disputes. Coordination can help solve such disputes.

Reconciliation of goals

All individuals have their own goals which are more important to them than the organization’s goals. Coordination helps to reconcile the employee’s goals with the departmental and organizational goals.

Learn types of coordination here in detail. 

Differentiation and Integration

Usually, activities of an organization are divided into two types of units – specialized and homogeneous. Also, to achieve group efforts, authority is delegated to different levels in the organization. Coordination facilitates this process.

Optimum Utilization of Resources

Primarily, coordination ensures that employees do not engage in cross-purpose work since it brings together the human and material resources of the organization. Therefore, there is less wastage of resources which helps the organization utilize them optimally.

Encouragement of team spirit

In an organization, there exist many conflicts between employees, departments, etc. Coordination encourages people and departments to work as one big team and achieve the common objectives of the organization. Therefore, it encourages team spirit.


coordination in management

(Source: Pixabay)

 Limitations of Coordination in Management

Now, that you understand the importance of coordination in management, you also need to note that in practice, coordination faces some problems. Here are the limitations of coordination in management:

  • Lack of Administrative Talent – While hiring employees, it is possible that some inefficient candidates get selected who do not understand the administrative procedures properly. This can result in ineffective coordination.
  • Misunderstanding – In a large organization, hundreds of employees work together and interact on a daily basis. Ideally, they must have a mutual understanding and work as a team. However, in many cases, misunderstandings creep in between employees which creates a problem in coordination.

Solved Question on Coordination

Question – What are the reasons behind the importance of coordination in management?


The reasons are as follows:

  • Unity in diversity
  • Unity of direction
  • Functional Differentiation
  • Lesser disputes
  • Reconciliation of goals
  • Differentiation and Integration
  • Optimum utilization of resources
  • Encouragement of team spirit


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