Co-ordination types may be internal or external to the organization.
Internal co-ordination exists between:
1. Different groups of employees of the same department or section.
2. Managers and workers at different levels.
3. Board of directors and departmental managers.
4. Different departments, branches, plants and other parts of the enterprise.
On the other hand, External co-ordination exists between the company and the outside parties, such as customers, suppliers, government, community and other allied agencies.
Need for Co-ordination
When a number of people are working to carry out a task, co-ordination is the only method of synchronization. It is an important method by which a manager can avoid potential sources of conflict between members. Through co-ordination, duplication of work and work at cross-purposes can be eliminated. A good deal of trouble may be created by “empire builders”
who always expect cooperation from others but are not prepared to accord it to others. It is the duty of the manager to cope with such disruptive elements. The need for co-ordination also arises conflict between line and staff. A specialist might follow his own line and may not appreciate the point of view of others.
Although the need for co-ordination is obvious in all kinds of enterprises, it is not easily achieved. The task of co-ordination is becoming increasingly complex and difficult. The factors which contribute to the increasing complexity of co-ordination types may be briefly listed as follows:
1. Growth in size: With the growth in the size of an enterprise, there is a consequent growth in the number of employees thus enlarging the area and leads to be co-ordinated. A more complex organization structure involving more subordinates brings about added problems of communication. All this makes co-ordination, difficult.
2. Growing specialization: Modern business has become increasingly complex due to the fact that the various functions are to be performed by specialists. Specialisation, in turn, brings about the need for more co-ordination because of the diversity of tasks to be undertaken and of persons to carry them out.
3. Human nature: The nature of human beings presents problems of co-ordination. Executives, in general, are preoccupied with the work of their own units or departments and, therefore, are reluctant to become involved in the activities of other units or departments. This tendency is more discernible if the compensation of the executives is determined in relation to the financial performance of his department.
Thus, the need for co-ordination arises from the diversity of tasks to be undertaken and of persons to carry them out.