Module-2

Organizing and Staffing: Meaning, Nature and Characteristics of Organization – Process of Organization, Principles of Organization, Departmentalization, Committees – meaning, Types of Committees, Centralization Versus Decentralization of Authority and Responsibility, Span of Control (Definition only), Nature and Importance of Staffing, Process of Selection and Recruitment.

Directing and Controlling: Meaning and Nature of Directing-Leadership Styles, Motivation Theories Communication – Meaning and Importance, Coordination- Meaning and Importance, Techniques of Coordination. Controlling – Meaning, Steps in Controlling.

Organization

STEPS IN ORGANIZING�

• While organizing, a manager differentiates and integrates the activities of his organization.
• By differentiation is meant the process of departmentalization or segmentation of activities on the basis of some homogeneity. Integration is the process of achieving unity of effort among various departments, segments or subsystems.
• Organization involves the following interrelated steps:
• (1) Consideration of objectives: The first step in organizing is to know the objectives of the enterprise. Objectives determine resources and the various activities which need to be performed and the type of organization which needs to be built for this purpose.
• Objectives also serve as guidelines for the management and workers.
• They bring about unity of direction in the organization.

• (2) Identification and grouping of activities: If the members of the group are to pool their efforts effectively, there must be proper division of the major activities.
• Each job should be properly classified and grouped.
• This will enable the people to know what is expected of them as members of the group and will help in avoiding duplication of efforts.
• For example, the total activities of an enterprise may be divided into major functions like production, purchasing, marketing, finance etc., and such function is further subdivided into various jobs.
• For example, in production department separate sections may be created for research, industrial engineering etc.
• The jobs then can be classified and grouped to ensure the effective implementation of other steps.

• (3) Assignment of duties:
• After classifying and grouping the activities into various jobs, they should be allotted to the individuals for ensuring certainty of work performance.
• Each individual should be given a specific job to do according to his ability and made responsible for that.
• (4) Delegation of authority:
• Authority without responsibility is dangerous and responsibility without authority is an empty vessel.
• Hence, corresponding to the responsibility authority is delegated to the subordinates for enabling them to show work performance.

CENTRALIZATION AND DECENTRALIZATION�

• Centralization refers to systematic reservation of authority at central points within the organization.
• Centralization means retention or concentration of managerial authority in few key managerial positions at the nerve centre of an organization i.e., at the top level.
• Everything that goes to reduce the subordinate’s role in decision making is centralization.

• Decentralization means dispersal of decision-making power to lower levels of the organization.
• In decentralized setup, ultimate authority to command and ultimate responsibility for the results is localized as far down in the organization.
• According to Allen “Decentralization refers to the systematic effort to delegate to the lower levels all authority except that which can only be exercised at central points”.
• In decentralized setup large number of decision, important decisions in large number of areas are made consulting few people.

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• The following are the advantages in decentralization:
• (1) It eases the burden of top level managers.
• (2) Decentralization permits quicker and better decision making.
• (3) With decentralization capable managers can be developed
• (4) Promotes participation in decision making and improves morale and motivation.
• (5) Decentralization facilitates diversification of products.

• Disadvantages of decentralization:
• (1) It increases administrative expenses.
• (2) It may create problems in bringing coordination among various units.
• (3) It may bring about inconsistencies in the company, because uniform procedures may not be followed for the same type of work in various divisions.

SPAN OF CONTROL�

• The span of control indicates the number of subordinates who can be successfully directed by a supervisor.
• It is often referred to as span of management, span of supervision, span of authority.
• Span of management is important because of two reasons.
• First is span of management affects the efficient utilization of managers and the effective performance of the subordinates.
• If the span is too wide, managers are overburdened and subordinates receive little guidance.
• If the span of management is too narrow, the managers are under utilized and subordinates are over controlled.
• The second reason is there is relationship between span of management and organization structure.

• A narrow span results in tall organization with many levels of supervision between top management and lowest organizational levels which creates more communication and cost problems.
• On the other hand, a wide span for the same number of employees results in flat organization with fewer management levels between top and bottom.

• Suppose a sales manager has 12 salesmen reporting to him, his span of management is 12.
• If he feels that he is not able to work closely enough with each salesman and decides to reduce the span by adding three assistant managers – each to supervise four salesmen then his span of management is three as shown in fig 3.7.
• In doing so, he has added a level of management through which communication between him and salesmen must pass and he has added the cost of three additional managers.

• Management experts suggest that the ideal number of subordinates is four in case of higher level management and eight to twelve in case of lower level management.
• Factors Affecting the Span of Management
• The following are some of the factors which influence the span of management:
• (1) Ability of the manager: Some managers are more capable than others and hence can handle a large number of subordinates.
• (2) Ability of the employees: If employees are more competent, less attention from the managers is required and a larger span of management can be used.
• (3) Type of work: If employees are doing similar jobs, the span of management can be large.
• If their jobs are quite different, a small span may be necessary.

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• (4) Geographic location: If all subordinates are located at the same place span of management can be large. If subordinates are geographically distributed, a
• lower span is essential.
• (5) Well-defined authority and responsibility: Clear-cut authority and responsibility helps a manager to supervise large number of subordinates.
• (6) Level of management: The span of management is narrow at higher level of management, and span can be wider at lower levels.
• (7) Economic considerations: Narrow the span, taller is the structure is more is the cost.
• On the other hand, wider span reduces the number of levels and cost.

MEANING OF STAFFING�

• Earlier staffing was considered to be a part of organization function of management.
• It is now recognized as a separate management function.
• The reason for separating the staffing from organizing is to give proper emphasis to the actual meaning of managerial roles.
• Today the staffing function has assumed greater importance because of rapid advancement of technology, increasing the size of the organization and complex behaviour of human beings.
• The enterprise has to give due importance to human resource planning.

• In modern enterprises, created a separate department known as personnel department or human resource department to perform staffing function.
• The organization structure spells out various positions of the organization.
• Filling and keeping these positions with right people is the staffing phase of the management function.
• Staffing involves the determination of manpower requirements of the enterprise and providing it with adequate competent people at all levels.

• The staffing function performs the following sub functions:
• (1) Manpower planning.
• (2) Recruitment
• (3) Selection of the best qualified from those who seeks job,
• (4) Training and Development.
• (5) Performance appraisal and compensation.

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NATURE AND IMPORTANCE OF STAFFING�

• The staffing function has assumed greater significance these days because of various factors.
• Staffing is also a pervasive function.
• Through separate department exist for this yet every manager is engaged in performing the staffing function, when they participate in selection, training and evaluating their subordinates.
• The various reasons which have increased the significance of staffing functions are discussed below:
• (1) Increasing size of organization: Advancement in science and technology has given rise to large scale companies employing thousands of employees.
• The performance of the company depends on the quality and character of the people.
• This has increased the importance of staffing.

• (2) Advancement of technology: In order to make use of latest technology, the appointment of right type of persons is necessary.
• (3) Long-range needs of manpower: In some industries, labour turn-over is high.
• The management is required to determine the manpower requirement well in advance.
• Management has also to develop the existing personal for future promotion.
• The role of staffing has also increased because of shortage of good managerial talents.

• (4) Recognition of human relations: The behaviour of individuals has become very complicated and hence human aspect of organization has become very important.
• Employees are to be motivated by financial and non-financial incentives.
• Right kind of atmosphere should also be created to contribute to the achievement of organizational objectives.
• By performing the staffing function, management can show the significance it attaches to the man power working in the enterprise.

RECRUITMENT�

• Recruitment refers to the attempt of getting interested applicants and providing a pool of prospective employees so that the management can select the right person for the right job from this pool.
• The various sources of recruitment are divided into two categories:
• (1) Internal Sources.
• (2) External Sources.

• Internal sources involve transfer and promotion.
• Transfer involves the shifting of an employee from one job to another.
• Many companies follow the practice of filling higher jobs by promoting employees who are considered fit for such positions.
• Filling higher positions by promotion motivates employees, boots employee’s morale.

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External Sources�

• (1) Direct recruitment: An important source of recruitment is direct recruitment by placing a notice on the notice board of the enterprise by specifying the details of the jobs available.
• This is also known as recruitment at factory gate.
• (2) Unsolicited{not asked for} applications: Many qualified persons apply for employment to reputed companies on their own initiative.
• Such applications are known as unsolicited applications.

• (3) Advertising: Large enterprises particularly when the vacancy is for higher post or there are large number of applications use this source where advertisements are made in local and national level newspapers.
• This helps in informing the candidates spread over different parts of the country.
• The advertisement contains information about the company, job description, and job specialization etc.

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• (4) Employment agencies: This is the good source of recruitment for unskilled and semiskilled jobs. In some cases, compulsory notification of vacancies of employment exchange is required by the law.
• The employment exchanges bring job givers in contact with job seekers.

• (5) Educational institutions: Many jobs in business and industries have become increasingly varied and complex which need a degree in that particular area.
• That is why many big organizations maintain a close liaison with the colleges, vocational institutes and management institutions for recruitment of various jobs.

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• (6) Labour contractor: Often unskilled and semiskilled workers are recruited through labour contractors.
• (7) Recommendations: Applicants introduced by friends, relatives and employees of the organization may prove to be a good source of recruitment. Many employers prefer to take such persons because something about their background is known.

• SELECTION
• The process of selection leads to employment of persons having the ability and qualifications to perform the jobs which have fallen vacant in an organization.
• It divides the candidates into two categories; those will be offered employment and those who will not be.
• The basic purpose of the selection process is choosing right type of candidates to man various positions in the organization.

• In order to achieve this purpose, a well, organized selection procedure involves many steps and at each step more and more information is obtained about the candidates.
• The steps involved in selection procedure are discussed below.
• (1) Receipt of applications: Whenever there is vacancy, it is advertised or enquires are made from suitable sources and applications in standard form are received from the candidates.
• The applications give preliminary idea of the candidates like age, qualifi-cations, experience etc.,
• Standard forms make the application processing very easy.

• (2) Screening of applications: Applications received from the candidates are screened by the screening committee and a list of candidates to be interviewed is prepared.
• Applicants can be called for interviews on some specific criterion like sex, desired age group experience and qualification.
• The number of candidates to be called for interview is five to seven times the number of vacant positions to be filled.

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• (3) Employment tests: Employment tests help in matching the characteristics of individuals with the vacant jobs so as to employ the right kind of people.
• Intelligent tests, Aptitude tests, proficiency tests, personality tests, interest tests etc. may be used for this purpose.

• (4) Interviews: The employment tests do not provide the complete set of information about the candidate.
• Interview may be used to secure more information about the candidate.
• The main purpose of interview is to find out the suitability of the candidate, to seek more information about the candidate, to give an accurate picture of the job with details of terms and conditions.
• In addition, interview help to check the information given by the applicant in the application and to assess the capability and personality of the applicant.

• For senior positions, interviews may be in several stages.
• The preliminary interview is conducted by head of the department and the final interview is conducted by the selection committee consisting of chairman of the organization, head of the department, personal manager and outside experts.
• After all the candidates have been interviewed, a panel is proposed.
• The number of persons in the panel is generally about two to three times the number of vacancies to be filled up.

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• Background investigation and medical examination: Prior to final selection, the prospective employer normally makes an investigation about applicants past employment, education, personal reputation, police record etc.,
• Medical and physical examination has three objectives:
• (1) It serves to ascertain applicant’s capabilities to meet the job requirement.
• (2) It serves to protect organization against the unwarranted claims under worksman compensation.
• (3) It helps to prevent communicable deceases entering the organization.
• A proper medical examination will ensure standards of health and physical fitness of the employees and reduce the rates of accidents, labour turnover and absenteeism

• Final selection: After a candidate has cleared all the hurdles in the selection procedure, he is formally appointed by issuing him an appointment letter or by concluding with him a service agreement.
• The appointment letter contains the terms and conditions of employment, pay scale and other benefits associated with the job.

DIRECTING AND CONTROLLING

• MEANING AND NATURE OF DIRECTION
• Direction is a vital managerial function, performed by every manager.
• Direction may be defined as a function of management which is related with instructing, guiding and inspiring human factor in the organization to achieve organizational mission and objectives.
• There are three elements of direction, namely
• communication,
• leadership and
• motivation.

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• According to Koonz and O’Donnel,
• “Direction is a complex function that includes all those activities which are designed to encourage subordinates to work effectively and efficiently in both the short and long term”.

• The functions of direction involve two major activities:
• (1) Giving orders to employees
• (2) Leading and motivating them
• The order is a device employed by a line manager in directing his immediate subordinates to start an activity, stop it or to modify it.
• The orders should be clear and complete, compatible with the purpose of organization and with the personal interest of the organization.
• Motivation arises interest in the subordinates and leading channelise the efforts of the subordinates in the right direction.

PRINCIPLES OF DIRECTING�

• While directing a manager should understand the needs, motives and attitudes of his subordinates.
• The following principles of directing may be useful to a manager.
• (1) Harmony of objectives: Individuals and organization have their own objectives.
• The management should coordinate the individual objectives with the organizational objectives.
• Directions can integrate their objectives with organizational objectives.
• (2) Unity of direction or command: An employee should receive orders and instructions only from one superior.
• If not so, there may be indiscipline and confusion among subordinates and disorder will ensue.

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• (3) Direct supervision: Managers should have direct relationship with their subordinates.
• Face to face communication and personal touch with the subordinates will ensure successful direction.
• (4) Effective communication: The superior must ensure that plans, policies, responsibilities and orders are fully understood by the subordinates in the right direction.

• (5) Follow through: Direction is a continuous process. Mere issuing orders or instructions are not an end itself.
• Follow is necessary, so the management should watch whether subordinates follow the orders and whether they face difficulties in carrying out the orders or instructions.

LEADERSHIP AND LEADERSHIP STYLES�

• The success of a business concern depends upon the ability of its leadership.
• For example Microsoft, Reliance, Mittal Steels would not have attained their present success but for the able leadership of Bill Gates, Dheerubai Ambani and Lakshmi Mittal.
• Every enterprise may have will to do, but this will to do is triggered by leadership.

• “leadership is generally defined as influence, the art of process of influencing people so that they will strive willingly towards the achievement of group goals”.
• A leader is one who guides and directs other people.
• In the words of Alford and Beatty,
• “Leadership is the ability to secure desirable actions from a group or followers voluntarily without the use of coercion”.

• The leaders while influencing the subordinates perform the following functions:
• (1) Taking initiative: A leader has to take all initiative to lead the business activities. He himself should come in the field and take all steps to achieve
• predetermined targets. Hence a leader is initiator.
• (2) Guide: A leader has the primary duty of guiding others by communicating
• instructions and orders.
• (3) Representation: A leader is a representative of the organization.

• (4) Encouraging others: A leader is the captain of the team.
• Encouragement is necessary to build team work.
• The leader must win the confidence of his colleagues.
• (5) Arbitrator and mediator: A leader has to create a smooth relationship among employees.
• In addition, he has to settle disputes arising among employees.
• (6) Planner: A leader makes decisions concerning the ways and means by which the organizational goals can be achieved.
• (7) Administrator of rewards and punishments: Leaders encourage, upgrade, promote deserving people and reprove, transfer and fine inefficient workers.

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Leadership Styles�

• Leadership styles are the patterns of behavior which a leader adopts in influencing the behavior of his followers (subordinates in the organizational context).
• These styles are either based on either behavioural approach or situational approach as follows.
• Based on behavioural approach
• (1) Power generation
• (2) Leadership as a continuum

• (3) Employee-production orientation
• (4) Likert’s management system
• (5) Managerial grid
• (6) Tri-dimensional grid
• Based on situational approach
• (1) Fiedler’s contingency model
• (2) Hursey and Blanchard’s situational model
• (3) Path-goal model

• Leadership styles are also broadly classified based on three points of view:
• Motivation, Authority and supervision. On the basis of motivation leadership style can be positive or negative style.
• In positive style a leader motivates his followers to work hard by offering them rewards, for example, higher bonus.
• In negative styles, a leader forces his followers to work hard and punishes them for lower productivity.

• On the basis of Authority, leadership styles are divided into three types namely autocratic, democratic and free-rein.
• Autocratic leadership: An autocratic leader is one who dominates and drives his subordinates through coercion, command and the instilling of fear in his followers.
• An autocratic leader alone determines policies, plans and makes decisions.
• He demands strict obedience. Such leaders love power and love to use it for promoting their own ends.
• They never like to delegate their power for they fear that they may loose their authority.

• The merits of this type of leadership is that, it can increase efficiency, save time, and get quick results under emergency conditions, chain of command and division of work are clear.
• The demerits are people are treated machine-like cogs without human dignity, one way communication without feedback and the leader receives little or no input from his sub-ordinates for his decision-making which is dangerous in the current dynamic environment.

Democratic leadership:�

• This style of leadership is also known as participative leadership.
• As the name itself indicates, in this style, the entire group is involved in goal setting and achieving it.
• A democratic leader follows the majority opinion as expressed by his group. Subordinates have considerable freedom of action.
• The leader shows greater concern for his people’s interest, is friendly and helpful to them.
• He is always ready to defend their subordinates individually and collectively.

• This type of leadership encourages people to develop and grow, receives information and ideas from his subordinates to make decisions, and boosts the morale of employees.
• The demerits of this type of leadership are
• (1) Some leaders may use this style as a way of avoiding responsibility,
• (2) Can take enormous amount of time for making decisions.

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• Free-rein: In this type of leadership, the leaders exercise absolutely no control.
• He only provides information, materials and facilities to his subordinates. This type of leadership is employee centered and the subordinates are free to establish their own goals and chart out the course of action.
• This type of leadership can be disaster if the leader does not know well the competence and integrity of his people and their ability to handle this kind of freedom.

• Fig 4.1 shows the spectrum of leadership styles where at one end there is no freedom for people and full freedom at the other.

MOTIVATION�

• A manager gets work done through others.
• Getting the work done depends mainly on whether a person has been motivated to do it.
• Motivation is inspiring the subordinates to contribute with zeal and enthusiasm towards organizational goals. Performance of an employee depends on two factors, ability to work and willingness to work.
• Mathematically
• Performance = Ability × willingness
• Motivation is enhancing the willingness to work which improves the performance.

Motivational Theories�

• What can enhance the willingness to work are explained by a number of motivational theories as discussed below.
• Maslow’s Need Hierarchy Theory
• Every person has a variety of needs, some of these needs are satisfied and others are unsatisfied.
• An unsatisfied need is the starting point in the motivation process.
• When a person has an unsatisfied need, he attempts to identify something that will satisfy the need.
• This is called as goal.

• Once a goal has been identified, he takes action to reach that goal and thereby satisfy the need. A.H. Maslow has identified five categories of need which are arranged in hierarchy as shown in fig. 4.2.

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• (1) Physiological needs: These are the basic needs for sustaining human life itself, such as food, water, shelter and sleep.
• Maslow took the position that until these needs are satisfied to the reasonable degree necessary to maintain life, other needs will not motivate people.
• (2) Security or safety needs: People want to be free of physical danger and of the fear of losing job, property or shelter.

• (3) Social needs: Since people are social being, they need to belong, to be accepted by others.
• (4) Esteem needs: Once people begin to satisfy their need to belonging, they tend to want to be held in esteem both by themselves and by others.
• This kind of need produces such satisfaction as power, prestige and status.
• (5) Self-actualization needs: It is desire to become what one is capable of becoming to maximize one’s potential and to accomplish something.

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• According to Maslow, people attempt to satisfy their physical need first.
• As long as the needs are unsatisfied, they dominate behavior.
• As they become reasonably satisfied, they loose their motivational power and the next level i.e., security needs becomes the dominant motivational force.
• This process continues up the need hierarchy.

• Vroom’s Expectancy Theory
• Adam’s Equity Theory
• McClelland’s Need Theory
• Carrot and Stick Approach
• Skinner’s Reinforcement Theory

COMMUNICATION�

• The process of communication is as old as man himself.
• Individuals placed in various departments may perform different activities but they are functionally interrelated.
• The working and maintenance of these relationships is possible only through communication.
• In addition, communication establishes connections of the organization with external community.

• Communication means the process of passing information and understanding from one person to another.
• It is defined as “the process of exchange of information, ideas and opinions which bring about integration of interests aims and efforts among the members of a group organized for achievement of predetermined goals.

Communication Process�

• Communication process involves the sender, the transmission of a message through a selected channel and the receiver as show in fig. 4.4.
• The sender of the message: Communication begins with a sender, who has a thought or idea which is then encoded in a way that can be understood by both the sender and the receiver.
• It is usual to think of encoding a message into the English language but there are many other ways of encoding such as translating thought into computer language.

• Use of channel to transmit the message: The information is transmitted over a channel that links the sender and receiver.
• The message may be oral or written and it may be transmitted through a memorandum, a computer, telephone, telegram or television.
• Television of course also facilitates the transmission of gestures and visual clues.
• At times, two or more channels are used. In a telephone conversation, for instance, two persons may reach a basic agreement that they later confirm by a letter.
• Since many choices are available, each with advantages and is advantages, the proper selection of the channel is vital for effective communication.

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• The receiver of the message: The receiver has to be ready for the message so that
• it can be decoded into thought.
• The next step in the process is decoding in which the receiver converts the message into thought.
• Accurate communication can occur only when both the sender and the receiver attach the same or at least similar meanings to the symbols that compose the message.
• Thus, it is obvious that a message encoded into French required the receiver who understands French.
• Similarly, a message in technical or professional jargon requires a recipient who understands such language.
• So communication is not complete unless it is understood. Understanding is in both the sender and the receiver.

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NOISE AND FEEDBACK IN COMMUNICATION�

• Unfortunately, communication is affected by ‘noise’ which is any thing-whether in the sender, the transmission or the receiver that hinders communication.
• For example, encoding may be faulty because of ambiguous symbols, inaccurate retention because of inattention of the receiver, decoding may be faulty because of wrong meaning attached to the words and symbols by the receiver or transmission may be interrupted which may be experienced in a poor telephone connection.

• To check the effectiveness of communication, a person must have feedback.
• One never is sure whether or not a message has been effectively encoded, transmitted and decoded or understood until it is confirmed by feedback.
• Similarly, feedback indicates whether individual or organizational change has taken place as a result of communi-cation.

TYPES OF COMMUNICATION�

• Based on the direction of flow of information communications are classified as upward, downward and horizontal communication.
• Downward communication: Downward communication flows from people at higher level to those at the lower levels in the organizational hierarchy.
• The purpose of downward communication is to communicate policies, procedures, programs and objectives and to issue orders and instructions to subordinates.
• Upward communication: Upward communication travels from subordinates to superiors. Upward communication is generally nondirective.
• Typical means of upward communications are suggestion systems, appeal and grievance procedures, complaint systems etc.

• Horizontal communication: It refers to transmission of information among positions of the same level.
• Horizontal communication helps to coordinate the activities of different departments.
• The production foreman and the maintenance foreman communicate directly without going through their managers.
• In this way horizontal communication avoids the much slower procedure of directing communication through a common superior.

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IMPORTANCE OF COMMUNICATION�

• The purpose of communication is to effect change, to influence action towards the welfare of the enterprise.
• Communication is essential because, it integrates the managerial function.
• (1) Every aspect of manager’s job may it be planning, organizing, staffing, directing and controlling involves communication. Researches have shown that about 75 per cent of the manager’s time is spent in communication.
• (2) Nothing contributes so much to managerial effectiveness as effective communication.
• Managers do not deal with ‘things’ but with ‘information about things’.
• (3) However, the decision at the top are, they will serve no purpose unless the manager successfully communicate the implications of these decisions to the subordinates who are to implement them.

• (4) Communication is the essence of organized activity.
• It is the basis of direction and leadership. The managers have to communicates to give instructions, orders, to assign jobs and to fix responsibility.
• (5) Communication renders the complexity of business intelligible and workable.
• (6) The better the communication, the more efficient the work performance.
• Good communication not only obtains manager’s effectiveness but organizational effectiveness too.

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FORMS OF COMMUNICATION�

• Broadly speaking there are three forms of communications: Oral, written and nonverbal.
• Oral communication: In oral or verbal communication, information is given directly, either face to face or through a telephone or intercom system.
• Generally in meeting, lecturers, interviews, conferences etc., the communication is oral.
• The oral communication saves time and money, involves personal touch, doubt can be clarified immediately.
• The demerits of oral communications are there is no permanent record of communication and is not suitable for lengthy communication.

• Written communication: Written communication is always in black and white and may be in the form of a report, statement, circular, manual, handbook, letter or memo.
• The merits of written communication are
• (a) It is a permanent record.
• (b) It is suitable for lengthy communication.
• (c) If the parties are far away beyond telephonic range, written communication is the only way.
• The demerits of written communications are it is not flexible and secrecy cannot be maintained and time consuming.
• Non-verbal communication: Non-verbal communication is expressed through the body – the facial expression, posture, gestures etc.

COORDINATION�

• The basic function of coordination in an enterprise is to get the activities of the group in such a manner that it brings harmonious and unified actions to achieve common purpose.
• Coordination is the management of interdependence in work situations.
• It is an orderly synchronization of the interdependent efforts of individuals.
• According to Terry, “Coordination deals with the task of blending efforts in order to ensure successful attainment of an objective.
• It is accomplished by means of planning, organizing directing and controlling”.

COORDINATION AND COOPERATION�

• The terms ‘coordination’ and ‘cooperation’ cannot be used interchangeably because they have got different meanings.
• Coordination is an orderly arrangement of group efforts to provide unity of action in the pursuit of common objectives.
• It is a process of deliberately bringing together the efforts of various components of an enterprise in order to give them unity of purpose.
• Cooperation denotes the collective efforts by the persons working in the enterprise voluntarily for accomplishing a particular purpose.
• It is the willingness of the individuals to help each other.
• Thus, it is obvious that the concept of coordination is broader in scope than that of cooperation.
• The differences between cooperation and coordination are given in table 4.2.

• IMPORTANCE OF COORDINATION
• An organization is a consciously coordinated system of cooperative human endeavor focused towards achievement of certain goals.
• The need for coordination arises due to differential perceptions, orientation, interests and attitudes of individual members of the organization.
• In the absence of coordination, members are likely to pull in different directions; there may also be destructive conflict of interests and goals.

• Coordination is intended to channelize cooperative efforts and behaviour of people along organizationally determined lines and to contain the possibilities of conflict within tolerable limits.
• An organization represents a pooling of diverse resources and facilities, adopted of diverse skills, techniques, processes and practices determination and achievement of diverse goals and initiation of diverse activities. Diversity demands unity.
• To manage diversity means to bring about unity or unification.
• Otherwise diversity is likely to lead to disintegration.
• The managerial function of coordinator, strives for desired degree of unity, without destroying diversity.

TECHNIQUES OF COORDINATION�

• Managers can use a number of techniques to enlist coordination. Some of the techniques of coordination are discussed below:
• 1. Clearly Defined Objectives
• Each and every organization has its own objectives.
• These objectives would be clearly defined.
• Then the employees of all the organization should understand the objectives of the organization well.
• Unity of purpose is a must for achieving proper coordination.

• 2. Effective Chain of Command
• There is a line of authority in every enterprise which indicates as to who is accountable to whom.
• The line of authority and responsibility should be clearly defined to achieve coordination.
• Clear cut authority relationship help in reducing conflicts among different positions, particularly line and staff which is essential for sound coordination.

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• According to E F L Brech, “Control is checking current performance against predetermined standards contained in the plans, with the view to ensuring adequate progress and satisfactory performance”.
• In the words of George R. Terry,
• “Controlling is determining what is being accomplished, that is, evaluating the performance and if necessary applying corrective measures so that the performance takes place according to plans”.

STEPS IN A CONTROL PROCESS�

• There are three basic steps in a control process namely
• establishment of standards,
• measurement of performance and
• comparing the performance with the standards and taking corrective action.

• 1. Establishment of standards: The first step in control process is the setting up of standards of performance.
• A standard acts as a reference line or a basis of actual performance.
• Standards should be set precisely and in quantitative terms.
• Standards expressed in vague or general terms such as “Costs should be reduced” or “rejections should be reduced” are not specific as “cost should be reduced by 10 percent” or “rejections should be reduced to 0.5 percent”.

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• Standards are used as the criteria or benchmarks by which performance is measured in the control process.
• Since standards cannot be set for entire operations, each organization must first develop its own list of key result areas for the purpose of control.
• Different standards of performance are set up for various operations at the planning stage. As a matter of fact, planning is the basis of control.
• Standards are to be flexible in order to adopt changing conditions.

• For example, a new salesman who seems to be an above average performer should have his sales standard adjusted accordingly.
• Every objective, goal, policy, procedure and budget becomes a standard against which actual performance might be measured. However, in practice different types of standards used are:
• (1) Physical standards such as units of production per hour.
• (2) Cost standards, such as direct and indirect cost per unit.
• (3) Revenue standards such as sales per customer.
• (4) Capital standards such as rate of return of capital invested.
• (5) Intangible standards such as competency of managers and employees.

• 2. Measuring and comparing actual performance with standards:
• The second step in the control process is measuring the actual performance of individuals, group or units and comparing it with the standards.
• The quantitative measurement should be done in cases where standards have been set in numerical terms.
• This will make evaluation easy and simple. In all other cases, the performance should be measured in terms of qualitative factors as in the case of performance of industrial relations manager.

• His performance should be measured in terms of attitude of workers, frequency of strikes and morale of workers.
• In general, measurement of performance can be done by personal observation as in the case of the subordinates being observed while they are engaged in work or by a study of various summaries of figures, reports, charts and statements.
• Once the performance is measured, it should be compared with the standards to detect deviations.
• The measurement and comparison are to be made at various stages in the total process and not at the end.

• 3. Taking corrective action:
• The final step in the control process is taking corrective action so that deviations may not occur again and the objectives of the organization are achieved.
• This will involve taking certain decisions by the management like replanning or redrawing of goals or standards, reassignment or classification of duties.
• It may also necessitate reforming the process of selection and training of workers.
• This control function may require change in all other managerial functions.

• If the standards are found to be defective, they will be set up again in the light of observations. Joseph Massie has pointed out that a manager may commit two types of mistakes at this stage.
• The first is, he may take action when no action is needed.
• The second is he may fail to take action when some corrective action is needed.
• A good control system should provide some basis for helping the manager estimate the risks of making either of these types of errors.
• Of course, the final test of a control system is whether correct action is taken at the correct time.

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ESSENTIALS OF A SOUND CONTROL SYSTEM�

• The essentials of a sound control system are as follows:
• (1) Suitable: The control system should be appropriate to the nature and needs of the activity.
• For example, a machine based method of production requires control system which is different from the system that is used in labour intensive methods of production.
• Thus every enterprise should develop such a control system it would serve its purpose.
• (2) Timely and forward looking: The control system should be directed towards future.
• It should report all the deviations from the standards quickly in order to safeguard the future.
• The feedback system should be as short and as quick as possible.
• If the control reports are not directed at future, they are of no use as they will not be able to suggest the types of measures to be taken to rectify the past deviations.

• (3) Objective and comprehensible: The control system should be both objective and understandable.
• Objective controls specify the expected results in clear and definite terms and leave little room for the argument by the employees.
• They provide employees with direct access to any additional information which they may need to perform their task.
• Employees are not made to go up and down the hierarchy to get the information.
• (4) Flexible: Control system should be flexible so that it can be adjusted to suit the needs of any change in the environment.
• It should be adoptable to new developments including the failure of the control system itself.

• (5) Economical: Another requirement of a good control system is economy. The benefits derived from the control system should be more than the cost involved in implementing it.
• (6) Control by exceptions: This is also known as “management by exception” according to this principle, only significant deviations from standards, whether positive or negative requirement management as they constitute exceptions.
• An attempt to go through all deviations tends to increase unnecessary work and decrease attention on important problems.

• (7) Prescriptive and operational: A control system in order to be effective and adequate, must not only detect deviations, but should also provide solutions to the problems that cause deviations.
• In other words, the system should be prescriptive and operational.
• It must disclose where failures are occurring, who is responsible for them and what should be done about them.
• It must focus more on action than on information.
• (8) Acceptable to organization members: The system should be acceptable to organization members.
• When standards are set unilaterally by upper level managers, there is a danger that employees will regard those standards of unreasonable or unrealistic.
• They may then refuse to meet them.

• (9) Motivation: A good control system should be employee centered.
• The control system is designed to secure positive reactions from employees.
• If large deviations are found, the employees will be properly directed and guided instead of being punished.
• The very purpose of a control is prevention and not punishing.

• Define term organization. Explain the important steps in the process of organizing.
• What are various types of organization? explain the principles of organization.
•  Explain the nature and purpose of organization.
• What are committees? Explain the principles of committees.
•  Explain with a diagram Maslow’s theory of motivation.
• Explain process of staff selection and write what are the techniques adapted in selection.
• Distinguish between centralization and decentralization

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• What do you mean by span of control? Explain the factors affecting span of it.
• Explain in brief the nature and importance of staffing.
• Explain various sources of recruitment.
• Explain the steps involved in selection process.
• Explain in brief the meaning and nature of direction.
• What do you mean by leadership? Explain various styles of leadership.
• What do you understand by motivation? Why people are to be motivated?

• With block diagram explain the communication process.
• Explain the importance of feedback in communication.
• ‘Without communication organization cannot function”. Justify the statement.
• Explain in brief formal and informal communication.
• Define coordination. Distinguish it from cooperation.
• Explain the steps involved in managerial control.
• Explain the techniques of control.
• Explain in brief the essentials of good control system.