Coordination is the orderly arrangement of group efforts to provide unity of action in pursuit of common purpose. It involves unifying, integrating and harmonising the activities of different departments and individuals for the achievement of common goal.
Importance of coordination can be understood by following points:
(i) Growth in size As the organisations grow in size, the number of people in the organisation also increase. Different individuals have different objectives. Coordination is needed to integrate diverse individual objectives with organisational objectives.
(ii) Functional differentiation Different departments in the organisation have their own set of objectives, policies, etc. This creates conflicting situations many a times. Coordination seeks to intergrate the efforts and activities of various departments.
(iii) Specialisation In modern organisations, high level of specialised activities take place, which are performed by specialists. Specialists often consider themselves to be supreme and are not open to suggestions and advice. This brings conflicting situations, which can be resolved by coordination.