Importance of co- ordination (Essence of Management): 

Coordination is an integral element or ingredient of all the managerial functions as discussed below:

a) Co-ordination through Planning - Planning facilitates coordination by integrating the various plans through mutual discussion, exchange of ideas. e.g. - coordination between finance budget and purchases budget.

b) Co-ordination through Organizing - Mooney considers co-ordination as the very essence of organizing. In fact when a manager groups and assigns various activities to subordinates, and when he creates department’s co-ordination uppermost in his mind.

c) Co-ordination through Staffing - A manager should bear in mind that the right no. of personnel in various positions with right type of education and skills are taken which will ensure right men on the right job.

d) Co-ordination through Directing - The purpose of giving orders, instructions & guidance to the subordinates is served only when there is a harmony between superiors & subordinates.

e) Co-ordination through Controlling - Manager ensures that there should be co-ordination between actual performance & standard performance to achieve organizational goals.

Now we can conclude that all the functions of management are affected by coordination. Hence coordination is essential for achieving the objectives of the organisation. It is also required for the survival, growth and profitability of the organisation. Coordination encourages team spirit, gives right direction, motivates employees, and makes proper utilization of resources. Therefore, Coordination is rightly called the "Essence of Management".