Coordination is a conscious and national managerial function of pulling together. Various components of organised activity pre-determined goals. 

The significance of co-ordination may be understood on the basis of the following factors : 

(i) The backbone of Management: Management is essentially a task of co-ordination of all internal as well as external forces and activities that affect the organisation. Coordination may be regarded as a mother function of management in which all other functions (like planning, organising directing and controlling) are embedded.

(ii) Unification of activities: Co-ordination reduces diversity among various departments and individual employees. It is not possible to achieve the specialised task of various departments and individual employees. It is not possible to achieve specialist tasks of various departments without perfect co-ordination. Coordination welds the various sequents and parts of the organisation into one entry.

(iii) Core of Group efforts: Co-ordination is indispensable in group efforts for accomplishing common goals. Co-ordination integrates various activities for effective achievement of common goals. Co-ordination reconciles the employee’s goals with both department and organisation goals.