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Introduction to Management UNIT 3

UNIT 3

Organizing, Staffing and Coordination – Syllabus Module 3

 Organizing- Introduction, Meaning, Concept and Process

 Overview Span of Management
 Line, Line and Staff, Functional and Matrix Organization
 Decentralization
 Delegation of Authority
 Formal and Informal Structure
 Principles of Organizing
 Staffing- Introduction, Meaning, Nature, Importance, Staffing Process
 Coordination- Introduction, Concept, Principle of Coordination

Organizing-

It is the process of bringing together physical, financial and human resources and developing productive
relationship amongst them for achievement of organizational goals.

According to Henry Fayol, “To organize a business is to provide it with everything useful or its
functioning i.e. raw material, tools, capital and personnel’s”. To organize a business involves determining
& providing human and non-human resources to the organizational structure.

“Organising is the process of identifying and grouping the work to be performed, defining and delegating
the responsibility and authority and establishing a pattern of relationship for the purpose of enabling
people work most effectively to accomplish the objective”. – Louis A. Allen

Process of Organizing

1. Identification of work: The very first step in organising is to identify work to be done. It refers to listing
down various activities to be performed. This listing is done on the basis of course of action laid down in
planning and in the direction of achievement of organisational goals.

2. Collection of people and resources: It involves bringing productive resources (human, financial,
physical, technological etc.) together at one place. The term place here should not be taken literally as
today there are number of organisation which are operating in a virtual and boundary less environments.
Coming together at one place implies bringing together everything under a common ownership for serving
a common purpose.

3. Division of work: Once the productive resources are gathered, the next step is the division of work to be
done into the smaller set of similar activities (known as jobs). This process is also called as
departmentalization. This step results in creation of different departments specialised in their working.

4. Allocation of work to people: Once the different set of critical activities are identified it is important to
create a skill and set match i.e. allocation of these jobs to people suited to perform them in the most
efficient manner. In this step, employees are allocated to different department under a manager head.

5. Creating authority-responsibility relationships: This is basically answering the questions who has to
report to whom? Who is accountable to whom and so on. It results in creation of organisational hierarchy
which further defines the structure of the organisation. Creation of authority-responsibility relationships
helps avoid any duplication of effort, brings in role clarity, and accountability. Thus, division of work,

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allocation of work to people and binding people together in a formal relationship constitute three very
important elements or steps of organising process.

6. Allocation of resources: In this step, each department is allocated with physical resources such money,
material and machine. Here the budget for each department is laid down and resources are allocated based
on the goals and objectives. Books are maintained in order to keep a count of resources being issued to
different departments.

7. Scheduling of activities: In this step, time of completion of each activity is specified. Schedules are laid
down in such a manner that it facilitates coordination in working of various departments

8. Follow up and revision: Organising is a continuous process. Once an organisation structure is laid
down, a continuous follow up should be made to identify the loopholes and gaps. A good organisation
structure is one which is flexible and can be adapted as per the changes in environment.

Principles of Organizing-

The organizing process can be done efficiently if the managers have certain guidelines so that they can take decisions
and can act. To organize in an effective manner, the following principles of organization can be used by a manager.

1.Principle of unity of objectives: Organizational goals, departmental goals, and individual goals must
be clearly defined. All goals and objectives must have uniformity. When there is contradiction among different level
of goals, then desired goals can’t be achieved. Therefore, unity of objectives is necessary.

2. Principle of specialization: The term specialization is related to work and employees. When an
employee takes special type of knowledge and skill in any area, it is known as specialization. Modern business
organization needs the specialization, skill and knowledge and thus, efficiency would be established .
3. Principle of coordination: Organisation involves division of work and departmentation. This naturally
suggests the need of proper coordination among the departments and efforts of people working in an Organisation.
Due to coordination one clear-cut direction is given to people/ departments and efforts will not be wasted or
misdirected. Coordination also brings integration in the basic functions of management. The principle of coordination
is important as it facilitates achievement of overall objectives of a business Organisation. It also brings unity of

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action in the Organisation. Coordination will not be available automatically. For this, working relationships need to
be established within the Organisation.

4. Principle of Authority: Authority is the kind of right and power through which it guides and directs the
actions of others so that the organizational goals can be achieved. It is also related with decision-making. It is vested
in particular position, not to the person because authority is given by an institution and therefore it is legal. It
generally flows from higher level to the lowest level of management. There should be unbroken line of authority.

5. Principle of Responsibility: The authority flows downstream in the line. Everyone is empowered to

complete the work. Although authority can be delegated, the responsibility rests with the man who has been
assigned the job. If a superior delegates his authority to his subordinate, the superior is not deprived of his
responsibility, although the subordinate becomes liable to his superior. No further responsibility can be assigned.

6. Principle of delegation: Process of transferring authority and creation of responsibility between superior
and subordinates to accomplish a certain task is called delegation of authority. Authority is only delegated, not
responsibilities in all levels of management. The authority delegated should be equal to responsibility. There should
be proper delegation of authority in every Organisation, particularly in large organisations. The basic idea behind
delegation is to see that decision-making power is placed at a proper place. Delegation should go to the lower levels
of management. Everyone should be given authority which is adequate to accomplish the task assigned to him.
Delegation is useful for getting the things done through others. A successful manager normally does not perform the
jobs by himself. He delegates the authority and responsibility to his subordinates.

7. Principle of efficiency: In enterprise different resources are used. These resources must be used in
effective manner. When the organization fulfils the objectives with minimum cost, it is effective. The Organisation
structure should enable the enterprise to function efficiently. This will enable the enterprise to accomplish its
objectives quickly and also at the lowest cost. For this, the structure introduced should be suitable to the nature, size,
activities etc. of the Organisation. A suitable Organisation structure ensures full and purposeful utilisation of
available human and material resources and ensures efficiency.

8. Principle of unity of command:  Unity of command principle suggests that each subordinate should
have only one superior whose command he has to obey. Dual subordination is undesirable as it leads to confusion,
disorder, uneasiness and indiscipline. An employee should not have more than one boss to whom he has to report and
also function as per his orders and instructions. Reporting to more than one boss leads to confusion.

9. Principle of span of control: Unlimited subordinates can’t be supervised by manager; this principle
thus helps to determine ideal number of subordinates to be supervised by a manager. This improves efficiency. Span
of control refers to the number of employees a manager can efficiently and effectively manage. This means a
manager should not be asked to keep supervision on large number of subordinates. It should be properly balanced.

10. Principle of Exception : The executives at the higher level are busy in important matters and have
limited time for the study of routine administrative matters. It is not desirable to take routine matters to the top level
managers frequently. Very crucial and exceptionally complex problems should be referred to the top executives and
routine matters should be dealt with by the junior executives at the lower levels. Moreover, time of top executives is
saved. They can use their time for dealing with more important and complex problems.

11. Scalar Principle: This principle refers to the vertical placement of supervisors starting from top and
going to the lower level. The scalar chain is a pre-requisite for effective and efficient organization. The principle of
chain of command suggests that the line of authority from the chief executive to the first line of superior should be
clearly defined. The line of authority should be properly defined so as to avoid any confusion as regards the line of
authority. This principle suggests that as far as possible, the chain of authority should be short and should not be
broken.

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12. Principle of Continuity: The organization should be amendable according to the changing situations.
Everyday there are changes in methods of production and marketing systems. The organization should be dynamic
and not static. There should always be a possibility of making necessary adjustments.

13. Principle of flexibility:  Organizational structure must be flexible considering the environmental

dynamism. Sometimes, dramatic change may occur in the organization and in that condition, organization should be
ready to accept the change. Organizational structure should be adaptable to changing situations and permits
expansion or replacement without any serious dislocation and disruption. There should be an in-built arrangement to
facilitate growth and expansion of an enterprise.

14. Principle of simplicity: This principle emphasizes the simplicity of organizational structure; the
structure of organization should be simple with minimum number of levels so that its member can understand duties
and authorities.

Overview Span of Management

Meaning
Span of management is a term used in business management, particularly human resource management. The term
refers to the number of subordinates or direct reports a supervisor is responsible for.
Span of Control can be defined as the total number of direct subordinates that a manager can control or manage. The
number of subordinates managed by a manager varies depending on the complexity of the work. The other name of
Span of Management is Span of Control, Span of Supervisions, Span of Responsibility or Span of Authority.

Type of span of Supervision/ Span of Control

It is of two types:
a. Narrow Span of Control
b. Wide Span of Control

Narrow Span of Control

Narrow Span of control means a single manager or supervisor oversees few subordinates. This gives rise
to a tall organizational structure. Problems: Over supervision, Long lines of communication, Slow &
multilevel decision making, limited initiative, minimal delegation, expensive operation.

Wide Span of Control

Wide span of control means a single manager or supervisor oversees a large number of subordinates. This
gives rise to a flat organizational structure. Problems: Less efficiency, Lack of training, less supervised
workers, Lack of co-ordination

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Factors affecting the span of management

1. Nature of Work: Some of the work is repetitive in nature and does not require special talent to perform
. In such a case , the supervisor can control a large number of subordinates. For example, a manager can
manage 4-6 subordinates when the nature of work is complex, whereas, the number can go up to 15-20
subordinates for repetitive or fixed work.

2.The ability of officers: Ability of the manager is an important factor to decides the span of control.
Very able manager or experienced manager may have a wide span whereas a less experienced manager
should restrict to a narrow span of control.
3.Ability and efficiency of subordinates: Skilled, experienced and sincere workers hardly need much
supervision and can even work without effective supervision hence provide for large span of control.
Fresher or unskilled or semi-skilled workers need a close supervision and hence a narrow span of control.
4. Communication method used: If face-to-face communication is used, then the span of control will be
narrow. However, if electronic devices are used for communication, then the span of control will be wide.
5. Degree of Centralization: Under decentralisation, the superior has to take fewer decisions. Therefore,
he can have a wide span of control. However, under centralisation, the superior has to take many
decisions. Therefore, he should have a narrow span of control.
6. Time Available for Subordinates: If the superior is loaded with multiple responsibilities, then he will
he left with less time for his subordinates so his span of control will be narrow.
7. Faith and Trust in Subordinates: If the superior has good faith, trust and confidence in his
subordinates then the span of control can be wider.

8. Quality of Planning: Span of management is wider in case if all plans and polices are well defined
and easily understandable. When plans and responsibilities are clear then the subordinates need not to go
to their supervisors repeatedly for consulting. They do not require much explanation, instructions and
guidance from their supervisors which saves their time and make management task easier for them. Hence,
they can have a wider span of control. On the other hand, if plans are ineffective and not well-defined then
they impose limit on span of management. 

9. Location of subordinates: A supervisor can manage a large number of people if all subordinates are
located at same place and in his direct supervision. Management of peoples which are physically dispersed
and located at far places becomes a difficult task and span of management becomes narrow.
10. Control techniques: The control procedures followed in an organization also influence the span of
control. If management follows techniques like ‘management by exception’ wherein they interfere only
when there is deviations or variances then wide span of control can be followed. Control through personal
supervision favours narrow span.

Types of Organization

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1. Line Organization
 This is the simplest and the earliest form of organisation. It is also known as "Military", "traditional",
"Scalar" or "Hierarchical" form of organisation.

 The line organisation represents the structure in a direct vertical relationship through which authority
flows. Under this, the line of authority flows vertically downward from top to bottom throughout the
organisation. The quantum of authority is highest at the top and reduces at each successive level down the
hierarchy.

 All major decisions and orders are made by the executives at the top and are handed down to their
immediate subordinates who in turn break up the orders into specific instructions for the purpose of their
execution by another set of subordinates.

 A direct relationship of authority and responsibility is thus established between the superior and
subordinate.

 The superior exercises a direct authority over his subordinates who become entirely responsible for their
performance to their commanding superior.

Prof. Florence enunciates three principles which are necessary to realise the advantages of this system and the
non-observance of which would involve inefficiency.
1. Commands should be given to subordinates through the immediate superior; there should be no skipping of links
in the chain of command.
2. There should be only one chain. That is, command should be received from only one immediate superior.
3. The number of subordinates whose work is directly commanded by the superior should be limited.

Advantages or Merits of Line Organisation

1. It is the easiest to establish and simplest to explain to the employers.
2. It fixes responsibility for the performance of tasks in a definite manner upon certain individuals.
3. There is clear-cut identification of authority and responsibility relationship. Employees are fully aware of the
boundaries of their job.
4. It is most economical and effective.
5. It makes for unity of control thus conforming to the scalar principle of organisation.
6. It ensures excellent discipline in the enterprise because every individual knows to whom he is responsible. The
subordinates are also aware of the necessity of satisfying the superior in their own interests.
7. It facilitates prompt decision-making because there is definite authority at every level.
8. As all the activities relating to one department or division are managed by one executive, there can be effective
coordination of activities.
9.Under this system, responsibility and authority are clearly defined. Every member of the organisation knows his
exact position, to whom he is responsible and who are responsible to him. Because of the clear fixation of
responsibility, no person can escape from his liability.

Disadvantages or Demerits of Line Organisation

1. With growth, the line organisation makes the superiors too overloaded with work. Since all work is done according
to the wishes of one person alone, the efficiency of the whole department will come to depend upon the qualities of
management displayed by the head of that department. If therefore, something happens to an efficient manager, the
future of the department and of the concern as a whole would be in jeopardy.

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2. Being an autocratic system, it may be operated on an arbitrary, opinionated and dictatorial basis.

3. Under this system, the subordinates should follow the orders of their superior without expression their opinion on
the orders. That means there is limited communication.

4. There may be a good deal of nepotism and favouritism. This may result in efficient people being left behind and
inefficient people getting the higher and better posts.

5. The line organisation suffers from lack of specialised skill of experts. Modern business is so complex that it is
extremely difficult for one person to carry in his head all the necessary details about his work in this department.

6. Line organisation is not suitable to big organisations because it does not provide specialists in the structure. Many
jobs require specialised knowledge to perform them.

7. If superiors take a wrong decision, it would be carried out without anybody having the courage to point out its
deficiencies.

8. The organisation is rigid and inflexible.

9. There is concentration of authority at the top. If the top executives are not capable, the enterprise will not be
successful.

Line and Staff Organisation

In line and staff organisation, the line authority remains the same as it does in the line organisation. Authority flows
from top to bottom.

The main difference is that specialists are attached to line managers to advise them on important matters. These
specialists stand ready with their speciality to serve line mangers as and when their services are called for, to collect
information and to give help which will enable the line officials to carry out their activities better.

The staff officers do not have any power of command in the organisation as they are employed to provide expert
advice to the line officers.

The combination of line organisation with this expert staff constitutes the type of organisation known as line and
staff organisation.

The 'line' maintains discipline and stability; the 'staff' provides expert information.

The line gets out the production, the staffs carries on the research, planning, scheduling, establishing of
standards and recording of performance. The authority by which the staff performs these functions is delegated by
the line
and the performance must be acceptable to the line before action is taken.

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Types of Staff Notes

The staff position established as a measure of support for the line managers may take the following forms:
1. Personal Staff: Here the staff official is attached as a personal assistant or adviser to the line manager. For
example, Assistant to managing director.
2. Specialised Staff: Such staff acts as the fountainhead of expertise in specialised areas like R&D, personnel,
accounting etc. For example, R&D Staff.
3. General Staff: This category of staff consists of a set of experts in different areas who are meant to advise and
assist the top management on matters called for expertise. For example: Financial advisor, technical advisor etc.

Features of Line and Staff Organisation

1. Under this system, there are line officers who have authority and command over the subordinates and are
accountable for the tasks entrusted to them. The staff officers are specialists who offer expert advice to the line
officers to perform their tasks efficiently.

2. Under this system, the staff officers prepare the plans and give advice to the line officers and the line officers
execute the plan with the help of workers.

3. The line and staff organisation is based on the principle of specialisation.

Advantages or Merits of Line and Staff Organisation

1. It brings expert knowledge to bear upon management and operating problems. Thus, the line managers get the
benefit of specialised knowledge of staff specialists at various levels.

2. The expert advice and guidance given by the staff officers to the line officers benefit the entire organisation.

3. As the staff officers look after the detailed analysis of each important managerial activity, it relieves the line
managers of the botheration of concentrating on specialised functions.

4. Staff specialists help the line managers in taking better decisions by providing expert advice. Therefore, there will
be sound managerial decisions under this system.

5. It makes possible the principle of undivided responsibility and authority, and at the same time permits staff
specialisation. Thus, the organisation takes advantage of functional organisation while maintaining the unity of
command.

6. It is based upon planned specialisation.

7. Line and staff organisation has greater flexibility, in the sense that new specialised activities can be added to the
line activities without disturbing the line procedure.
Disadvantages or Demerits of Line and Staff Organisation

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1. Unless the duties and responsibilities of the staff members are clearly indicated by charts and manuals, there
may be considerable confusion throughout the organisation as to the functions and positions of staff members with
relation to the line supervisors.

2. There is generally a conflict between the line and staff executives. The line managers feel that staff specialists do
not always give right type of advice, and staff officials generally complain that their advice is not properly attended
to.

3. Line managers sometimes may resent the activities of staff members, feeling that prestige and influence of line
managers suffer from the presence of the specialists.

4. The staff experts may be ineffective because they do not get the authority to implement their recommendations.

5. This type of organisation requires the appointment of large number of staff officers or experts in addition to the
line officers. As a result, this system becomes quite expensive.

6. Although expert information and advice are available, they reach the workers through the officers and thus run the
risk of misunderstanding and misinterpretation.

7. Since staff managers are not accountable for the results, they may not be performing the duties well.

8. Line mangers deal with problems in a more practical manner. But staff officials who are specialists in their fields
tend to be more theoretical. This may hamper coordination in the organisation.

Functional Organization
Functional organization has been divided to put the specialists in the top position throughout the enterprise. This is
an organization in which we can define as a system in which functional department are created to deal with the
problems of business at various levels.

Functional authority remains confined to functional guidance to different departments. This helps in maintaining
quality and uniformity of performance of different functions throughout the enterprise.

The concept of Functional organization was suggested by F.W. Taylor who recommended the appointment of
specialists at important positions. For example, the functional head and Marketing Director directs the
subordinates throughout the organization in his particular area. This means that subordinates receives orders from
several specialists managers working above them.

Features of Functional Organization

1. The entire organizational activities are divided into specific functions such as operations, finance,
marketing and personal relations.
2. Complex form of administrative organization compared to the other two.
3. Three authorities exist- Line, staff and function.
4. Each functional area is put under the charge of functional specialists and he has got the authority to give all
decisions regarding the function whenever the function is performed throughout the enterprise.
5. Principle of unity of command does not apply to such organization as it is present in line organization.

Merits of Functional Organization

1. Specialization- Better division of labour takes place which results in specialization of function and it’s
consequent benefit.
2. Effective Control- Management control is simplified as the mental functions are separated from manual
functions. Checks and balances keep the authority within certain limits. Specialists may be asked to judge
the performance of various sections.
3. Efficiency- Greater efficiency is achieved because of every function performing a limited number of
responsibility.
4. Economy- Specialization compiled with standardization facilitates maximum production and economical
costs.
5. Expansion- Expert knowledge of functional manager facilitates better control and supervision.

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Demerits of Functional Organization

1. Confusion- The functional system is quite complicated to put into operation, especially when it is carried
out at low levels. Therefore, co-ordination becomes difficult.
2. Lack of Co-ordination- Disciplinary control becomes weak as a worker is commanded not by one person
but a large number of people. Thus, there is no unity of command.
3. Difficulty in fixing responsibility- Because of multiple authority, it is difficult to fix responsibility.
4. Conflicts- There may be conflicts among the supervisory staff of equal ranks. They may not agree on
certain issues
5. Costly- Maintenance of specialist’s staff of the highest order is expensive for a concern.
6. A functional manager tends to create boundaries around himself and think only in term of his own
department rather than of the whole enterprise. This results in loss of overall perspective in dealing with
business problems.

Matrix Organization-

In matrix organizations there is dual command responsibilities assigned to functional departments (marketing,
production, engineering, and so forth) and to product or market departments.

In other words, someone will report to two managers and work across two departments at any given time.

Every matrix contains three unique and critical roles: the top manager who heads up and balances the dual chains of
command, the matrix bosses (functional, product, or area) who share subordinates, and the managers who report to
two different matrix bosses. Each of these roles has its special requirements.

The matrix structure distributes resources and people across multiple operational units.

For example, a product manager of a geographic division is answerable to both the regional and global head.
Therefore, a matrix organization aligns organizational units to two different units at the same time. It uses a hybrid
hierarchy format, where an individual reports to two or more managers simultaneously.

When to use Matrix Organization

When an organization has limited personnel and multiple projects to manage, a matrix structure is ideal to
simplify tasks and improve efficiency

Typically, there are two managers an employee reports to—a functional manager, who has authority over
technical aspects and a project manager, who has authority over administrative aspects.

ADVANTAGES
1.It allows multiple departments to communicate and collaborate on a project. As one employee reports to multiple
managers and knows employee of different department, it’s easier to resolve issues.

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2.An individual works on a wide variety of projects, which allows them to utilize and adopt different skills.
Shouldering different responsibilities can increase professional development and lead to career advancement.

3.Matrix organizations encourage employee contribution. An individual has more autonomy and can freely share
their inputs for a project. This structure values multiple perspectives.

DISADVANTAGES
1.The primary disadvantage of a matrix structure is authority confusion. The presence of two leaders (project and
functional managers) can confuse an employee. There is a high chance of conflicting ideas and strategies as two or
more managers may oppose each other’s viewpoints.

2.It can be a costly form of management as multiple managers take charge of a project. Overhead costs can increase
and it can further impact an organization’s budget.

3.Individuals in matrix organizations often need to work on multiple tasks and projects, making it difficult to
define their roles. This is harmful as productivity and efficiency decrease.

Centralization v/s Decentralization

Centralization is said to be a process where the concentration of decision making is in a few hands. All the
important decision and actions at the lower level, all subjects and actions at the lower level are subject to the
approval of top management. According to Allen, “Centralization” is the systematic and consistent reservation of
authority at central points in the organization. The implication of centralization can be :-

1. Reservation of decision making power at top level.

2. Reservation of operating authority with the middle level managers.
3. Reservation of operation at lower level at the directions of the top level.

Decentralisation is referred to as a form of an organisational structure where there is the delegation of authority by
the top management to the middle and lower levels of management in an organisation.
In this type of organisation structure, the duty of daily operations and minor decision-making capabilities are
transferred to the middle and lower levels which allow top-level management to focus more on major decisions like
business expansion, diversification etc.
Delegation refers to the assigning a portion of work and the associated responsibility by a superior to a subordinate.
In simple words, when delegation is expanded on an organisational level, it is called decentralisation.
Good examples of decentralised business are Hotels, supermarket, Dress showrooms and etc. Because it is not
possible for one person to focus on more than 100 branches which have branches throughout the world, take an
example of a hotel. When a particular person holds a chain of hotels as his business, he particularly focuses on using
decentralised structures so that local hotel managers and assistants are empowered to make on-the-spot decisions to
handle customers – problems, complaints and requirements.

Implications of Decentralization
1. There is less burden on the Chief Executive as in the case of centralization.
2. In decentralization, the subordinates get a chance to decide and act independently which develops skills and
capabilities. This way the organization is able to process reserve of talents in it.
3. In decentralization, diversification and horizontal can be easily implanted.
4. In decentralization, concern diversification of activities can place effectively since there is more scope for
creating new departments. Therefore, diversification growth is of a degree.
5. In decentralization structure, operations can be coordinated at divisional level which is not possible in the
centralization set up.
6. In the case of decentralization structure, there is greater motivation and morale of the employees since they
get more independence to act and decide.
7. In a decentralization structure, co-ordination to some extent is difficult to maintain as there are lot many
department divisions and authority is delegated to maximum possible extent, i.e., to the bottom most level

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delegation reaches. Centralization and decentralization are the categories by which the pattern of authority
relationships became clear. The degree of centralization and de-centralization can be affected by many
factors like nature of operation, volume of profits, number of departments, size of a concern, etc. The larger
the size of a concern, a decentralization set up is suitable in it.

Delegation
Delegation is a term used for assigning the tasks and responsibilities to a person in the organisation. Delegation is an
activity used in all organisations no matter big or small. This activity is very necessary for efficient working of an
organisation. It is actually based and derived from principle of Management by Exception.

Management by exception stated that top management should concentrate on key areas of working whereas the
routine tasks should be delegated to lower works in hierarchy. It will save the energy of top management from
draining and hence will lead to smooth functioning of organisation. In order to assign a task to a lower level
management, top managers need to allocate responsibilities as well as give need to allocate authority matching with it
in order for smooth completion of work. This process of assigning responsibilities with authority is called as
Delegation.

According to Koontz and O’Donnell, “The entire process of delegation involves the determination of results
expected, the assignment of tasks, the delegation of authority for accomplishment of these tasks, and the exaction of
responsibility for their accomplishment.”

The process of delegation has three main elements 1. Authority 2. Responsibility and 3. Accountability

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The process of delegation is explained as follows:

1. Assignment of responsibilities: The very first step is distribution of work and responsibilities. The distribution of
work is necessary for two reasons-first is to take the burden off the shoulders of top management from routine work;
and second is to assign the work to a subordinate who has expertise and specialised knowledge in a specific area.
Therefore, a manger should assign the responsibilities and divide the work in such a manner that it serves in
enhancing the overall effectiveness and efficiency of an organisation in the direction of accomplishing the goals.

2. Delegation of authority: Once the tasks are assigned, every manager needs power on resources and labour which
can assist him in completion of work. In the absence of such a power, a person is as good as a barking dog who
cannot bite. Therefore, delegation of responsibility requires equal amount of delegation of authority as well. A
manager need to see where the balance can be maintained. As delegation of authority is a tricky area. As too less of
authority in comparison to responsibility is a red zone area similarly too much of authority may lead to its
exploitation.

3.Establishing Accountability: The last step in the process is creating accountability. Although it is a part of the
delegation process but it cannot be delegated. A departmental head may delegate and assign the work to its
subordinates but he will still remain answerable in front of top management for his work. Accountability works both
ways. It is dangerous in situation where the work has gone wrong but it is rewarding in situation where the work has
positively surpassed the standards of performance. It is also called as answerability. It should be clearly defined and
stated that who will be answerable to whom for clear lines of communication.

Advantages of Delegation
1. Concentrate on more important activities

The biggest benefit of delegation is that it helps the management in concentrating more on important
activities of the company because routine and repetitive work can be given to lower level managers.

For example- In a finance department of the company activities like daily payment of wages, payment
of routine expenses are given to lower management while important decisions like preparation of
monthly and yearly budget, financing decision and so on are taken by the top management.

2. Improves Morale of lower-level employees

Another advantage of delegation is that it improves the morale of the lower level managers because if
all decisions are taken by top-level managers and nothing is delegated than people at lower level work
like robots and they do not feel any attachment towards the organization. Hence delegation in a way
keep the lower-level employees happy by giving them some responsibility through delegation which in
turn make them more attached and help align their personal goals and objectives with the organization
goals and objectives.

3. Quick Action on Problems

Delegation results in quick action towards various challenges faced in day to day activities of the
company.

For example-If in finance department no work is delegated and some machinery breakdowns and
requires repairs then in the case of no delegation that machinery will remain non-operational until top
management approves the repair expense. However, if there is delegation then that machinery will start
within hours.

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Disadvantages of Delegation
1. Depends on competency of the lower-level employee

The biggest disadvantage of delegation is that the success of delegation lies in the employees to whom
the task is delegated so if the employee to whom the task is delegated is incompetent then delegation of
work will not be fruitful.

For example, if a company delegates recruitment process of taking new employees to lower level HR
managers who are not competent and are biased towards taking their own people in the company then
the whole process of the delegating the work will be a failure.

2. Managers avoid work

It sometimes leads to managers avoiding work because they tend to delegate all work to lower level
and they themselves do nothing and if anything happens then they blame it on lower level people
leading to dissent and fight between the lower-level and upper-level management.

3. Miscommunication

Chances of miscommunication in case of delegation is high because multiple people are involved. For
example in a purchasing department of the construction company purchasing manager delegates the
work of purchasing cement to junior staff and instructs him or her to buy cement from area A which
has good quality cement but due to miscommunication he or she purchases cement from area B where
the quality of cement is not good then the whole exercise of delegation turns futile.

Staffing

Definition: “The managerial function of staffing is defined as filling position in the organization structure through
identifying workforce requirements, inventorying the people available, recruitment, selection, placement, promotion,
appraisal, compensation and training of needed people.” ~ KOONTZ AND O’ DONNELL

According to Theo Haimann, “Staffing pertains to recruitment, selection, development, and compensation of

subordinates.”

Meaning

• Staffing is the process of finding the right worker with appropriate qualifications or experience

and recruiting them to fill a job position or role. 

• Through this process, organizations acquire, deploy, and retain a workforce of sufficient quantity and
quality to create positive impacts on the organization’s effectiveness.

• In management, staffing is an operation of recruiting the employees by evaluating their skills and
knowledge before offering them specific job roles accordingly

Essential Features of Staffing

1.Staffing Is Continuous Function

• Staffing is not an activity which can be undertaken only on temporary basis. It is a continuous activity so
that required manpower is available throughout the year and at all times.
• Starting with recruitment to training and development to managing employee expectations to important
transfers and promotions, staffing continues throughout the life cycle and thus is a continued function.

2. Staffing Is Needed at all Managerial levels

At every level in the organization, personnel are needed to do various task in a well organized and planned way.

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Therefore, we can say that staffing as an activity is needed at top level, middle level and lower level of management.

3.Staffing Is a Sequential Exercise

The various logical steps to be followed in staffing are: manpower planning, recruitment, selection, induction,
appraisal, training and maintenance of personnel. Staffing is a managerial function.

4.Staffing Deals with Present And Future Requirements

Changes keep on taking place very frequently in the staff on account of retirements, resignations, deaths,
terminations, etc. Staffing therefore not only deals with present but also with future.
If own people are not developed, an organization may have to hire people from outside.

5.Staffing Involves People

 In Organization, all personnel are placed at various jobs on the basis of staffing process to deal with other
people like customers, competitors etc.
 Thus, staffing is a function of the people, for the people and by the people.

6.Responsibility for Staffing

Staffing is not the responsibility of personnel department alone. In fact, the responsibility for the efficient planning
and execution of staffing function rests upon every manager at all levels

7.Critical Managerial Function

Staffing is a most critical managerial function. Managerial Function involves Planning, Organizing, Staffing,
Directing, Controlling. The success of all managerial functions depends on right workforce organized and hired by
the staffing function.

Significance of Staffing
(i) Facilitates control – Well trained staff works according to plans and helps in the achievement of the organisational
goals. They help in reducing the deviations in performance. This helps the managers in controlling various
organisational functions.
(ii) Optimum Utilisation of Human Resources – In order to get the optimum output from the personnel, the staffing
function should be performed in an efficient manner because a huge cost is involved in the selection and training of
staff.
(iii) Long-term implications – Investment in human resources has long-term effects. Since staffing function has long-
term implications, these decisions should be taken with utmost care. The decisions are crucial for the efficiency of
the staff in the organisation.
(iv) Efficiency – Since staffing helps to place the right person, with the right knowledge, at the right place and the
right time to perform the organisational activities, efficiency of the organisation increases.
(v) Motivation – The workers can be motivated through financial and non-financial incentives.  Financial rewards are
important but acceptance and recognition by managers are also strong forces of motivation for the employees. There
should be a balance between financial and non-financial incentives to motivate the employees.
(vi) Support to other functions – Staffing is the key to efficient performance of other functions of management. If an
organisation does not have competent personnel, it can’t perform planning, organisation and control functions
properly. Staffing supports other functions of management.

Recruitment and Selection

Steps in process of selection
1. Scrutiny of application
2. Preliminary Interview
3. Application Blank
4. Selection Test and Group Discussion
5. Interview
6. Medical Examination
7. Checking References
8. Final Approval, Placement and Induction.

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1. Scrutiny of application
Standard application forms are designed for different jobs. This application form help the organization in getting
information about the age, qualification, experience etc of the candidate. All the application forms received needs to
be scrutinized by human resource department in order to eliminate applicants those who don’t fulfill the job
requirements.

For example- Qualification required for a job is B.Tech, and a person having B.Com Degree has also applied. HR
will REJECT this application form. Information not completely filled by the candidates, if that information is
absolutely mandatory then the HR will REJECT.

2.Preliminary interview
This is a very general and basic interview conducted so as to eliminate the candidates who are completely unfit to
work in the organization.
The personality of the candidate can be immediately evaluated. Example- Communication
This leaves the organization with a pool of potentially fit employees to fill their vacancies.

3. Application Blank
 Candidates who clears the preliminary interview has to fill application form commonly known as
application blank.
 The information sought and information provided will facilitate the selection process.
 The application gives the interviewers information about the candidates like the personal information,
educational information, work experience, hobbies and interests, references.

4. Selection Test and Group Discussion

Before an organization decides a suitable job for any individual, they have to assess their talents and skills.
This is done through various employment tests like intelligence tests, aptitude tests, proficiency tests, personality
tests etc. and group discussions.

5. Interview

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Employment interviews are done to identify a candidate’s skill set and ability to work in an organization in detail.
The purpose of an employment interview is to find out the suitability of the candidate and to give him an idea
about the work profile and what is expected of the potential employee. An employment interview is critical for the
selection of the right people for the right jobs.

6. Checking References
The person who gives the reference of a potential employee is also a very important source of information. The
referee can provide info about the person’s capabilities, experience in the previous companies and leadership and
managerial skills. The information provided by the referee is meant to kept confidential with the HR department.

7. Medical Examination
The medical exam is also a very important step in the selection process. Medical exams help the employers know if
any of the potential candidates are physically and mentally fit to perform their duties in their jobs. A good system
of medical checkups ensures that the employee standards of health are higher and there are fewer cases of

absenteeism, accidents and employee turnover.

8. Final Approval, Placement and Induction

This is the final step in the selection process. After the candidate has successfully passed all written tests, interviews
and medical examination, the employee is sent or emailed an appointment letter, confirming his selection to the
job.
The appointment letter contains all the details of the job like working hours, salary, leave allowance etc.
Often, employees are hired on a conditional basis where they are hired permanently after the employees are satisfied
with their performance.

Difference between Selection and Recruitment

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Coordination
Coordination is balancing and keeping a team/group together by ensuring a suitable allocation of working activities
to the various members and see that these are performed with due harmony among the members themselves.

According to Mary Parker Follett

“Coordination is a “Plus value of the group”. That is if there is good coordination then the combined group
achievement will be greater than the total of individual achievement.”

Nature of Coordination

1. Coordination integrates group efforts: Coordination unifies diverse interests of the employees and giving a
common focus to group. It aims that performance goes as it was planned.
2.Coordination ensures unity of action: Coordination acts as the binding force between departments and ensures
unity of action to achieve the goals of the organisation.
3. Coordination is a continuous process: It is a continuous process. It begins at the planning stage and continues still
controlling.
4. Coordination is all pervasive function: Coordination is required at all the levels of the management. It integrates
the efforts of different departments like purchase, production or sales and at different levels.
5. Coordination is the responsibility of all managers: Coordination is the function of every manager in the
organisation. Eg, Middle level management coordinates with both top level and first line managers.
6. Coordination is a deliberate function: A manager has to coordinate the efforts of different people in conscious and
deliberate manner. Thus, being a part of all management functions

Importance of Coordination

Coordination is important to the success of any enterprise. It helps an organisation in the following ways:

Coordination pulls all the functions and activities together. Waste motions, overlapping and duplication of efforts,
misuse of resources are, thus, prevented. Coordination, enables an organisation to use its resources in an optimum
way. The resources flow through productive channels, paving the way for required quality and quantity of output.
Efficiency is thus improved.

Coordination brings unity of action and direction. Members begin to work in an orderly manner, appreciating the
work put in by others. They understand and adjust with each other by developing mutual trust, cooperation and
understanding. They move closer to each other. In short, it improves human relations.

According to Fayol, where activities are well-coordinated, each department works in harmony with the rest.
Production knows its target; maintenance keeps equipment and tools in good order; Finance procures necessary
funds; Security sees to the protection of goods and service personnel and all these activities are carried out in a
smooth and systematic manner. Coordination, thus, creates a harmonious balance between departments, persons and
facilities. This in turn, helps in meeting goals efficiently and effectively.

The importance of coordination, largely lies in the fact that it is the key to other functions of management like
planning, organising, staffing, directing and controlling. The different elements of a plan, the various parts of an
organisation and phases of a controlling operation must all be coordinated. Coordinating makes planning more
purposeful, organisation more well-knit, and control more regulative and effective.

Principles of Co-ordination

1. Early-Stage Principle
This principle states that coordination must start at a very early stage. Thus, it can be said that this should start at
the planning stage. So, this will ensure that the best plans are made. Also, it is necessary to implement these plans
successfully.
Example- If the heads of departments themselves frame the policies without consulting others, then there might be
disagreement and opposition. On the other hand, if the heads of the departments meets and discusses every question
involved and frames the policy in consultation with all the persons concerned, then the implementation of policy may
be easier. Therefore, achieving coordination in the initial stages of planning and policy making is necessary.

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2.Continuity Principle
According to the second principle, coordination is a process that requires continuity. Thus, it means that the process
should not be only a one-time process. So, the process of coordination should begin at the time the organization starts.
This shall also continue until an organization exists.
Co-ordination is not a separate function and employing of each managerial function involves coordination. So
management should make constant efforts to achieve co-ordination. It should not be left to a mere chance.
3. Direct contact Principle
This principle believes in direct contact. It states that managers should directly contact their subordinates. Thus, it will
help in building good relations for managers with their subordinates. Also, because of this principle, any
misunderstanding will be avoided. Along with this, misinterpretations and disputes will be avoided between the
subordinates and the managers. It also helps in bringing out agreement on actions, methods and ultimate attainment of
goals.
It involves direct face to face communication, personal discussion, settlement of differences, exchanges of ideas
between the personnel.

4. Reciprocal relation Principle

The actions and decisions of the people working in the organization and their departments are inter-related. Thus, the
actions and decisions of one department or the person will affect other departments and people in the
organization.
So, before taking any decision every manager must find out the effect of that decision on the other departments. This is
the principle of reciprocal relations. Thus, the coordination in the organization will be followed properly only if the
principles are followed.

5. Clarity of objective Principle

Coordination in an organization is possible only when there are clear objectives set in the organization. Everyone
working in the organization should be clear about the objectives. Thus, there should not be any doubt regarding the
objectives of the organization. Thus, the objective of the organization is can be achieved quickly and easily.

6. Effective communication Principle

Coordination in the organization will be achieved only if there is a presence of effective communication. So, there
should be good communication present between all the different departments in an organization. Furthermore, effective
communication should also be present between the manager and their subordinates as well as within the employees.

Coordination
Coordination is balancing and keeping a team/group together by ensuring a suitable allocation of working activities
to the various members and see that these are performed with due harmony among the members themselves.

According to Mary Parker Follett

“Coordination is a “Plus value of the group”. That is if there is good coordination then the combined group
achievement will be greater than the total of individual achievement.”

Types of Coordination-

Internal Coordination

Coordination between the activities of departments and people working within the organisation is known as internal
coordination.
Internal Coordination is aimed at building a strong bond between the executives, the managers, the departments,
the divisions, all the branches and the workers or the employees. This establishes an integration of organizational
activities. Coordination examples or types for internal coordination are as follows:

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Vertical Coordination: Vertical coordination includes the coordination of tasks from superiors to the subordinates
and vice versa.

A coordination example can be stated as the coordination of a particular task from a sales manager to his supervisors.

Horizontal Coordination: Horizontal coordination builds strong relationships among same rank holding employees.
This ensures better performance with increased productivity. Coordination examples can include those among the
managers, the supervisors or the co-employees.

External Coordination
External coordination is aimed at establishing connections between the employees in a business organization with
people outside of the organization.

Such relationships provide a better comprehension of the outside world, in the process providing an analysis of the
marketing agencies, the public, the customers at various levels, the competing organizations, the agencies of the
government and the financial institutions.

Public Relations Officers (PROs) play the most significant role in such cases building relationships between the
organizations and the people outside of it.

It can thus be noted that as a part of internal coordination, employees report vertically to the supervisors as well as
the subordinates, and horizontally with the co-workers or colleagues.

As a part of external coordination, relationships are established between the organization and the outsiders. Both
internal and external coordination is equally important for the successful running of an organization. 

Coordination in Various Managerial Operations

Coordination in various managerial operations can be achieved through the following strategic actions: 

 Planning: Coordination in planning makes managers frame plans in the most effective order, analyzing
what to include and what not to. Planning with coordination eases the procedure with the help of mutual
discussion and constant exchange of ideas building productivity.
 Organizing: Immense coordination is required as a part of organizing for the performance of business
operations, directed towards a synchronized approach towards the fulfilment of organizational objectives.
 Staffing: Coordination in staffing ensures the placement of the right people in the right jobs. It specifies the
staff requirements helping the management to recruit skilled employees with the required qualifications.
 Directing: Subordinates on receiving orders and instructions work accordingly, only with proper
coordination and integration. As a part of coordination in directing, managers are focused on building a
coordinating environment in the organization.
 Controlling: Coordination ensures a controlled working structure in an organization. It makes the
management ensure that the established standards are recognized and met with the actual performance.

Therefore, these are the types of coordination, explained with the help of appropriate coordination examples.
Coordination is an important tool for establishing a healthy work environment in an organization. The management
should aim for it and train its officials accordingly.

Coordination is the essence of management: As we studied, that management consists of various activities. All
these activities are interrelated and interdependent on each other. However, the cycle of management can work only
on the pillar of coordination. The entire process may fail if the activities are not coordinated with each other. It is
very important to ensure coordination between various departments and resources in order to ensure coordinated
working of an organisation.

Caselet-

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A company that has annual sales of $14 billion and employs about 400,000 people in scores of diverse businesses—
General Electric. For decades, despite the diversity of its businesses, GE used one basic structure throughout its
organization: five functional managers reporting to one general manager.

Employing the logic that a company must organize to meet the particular needs of each business.

Can you suggest which type of the organization structure will suit the need of the company like GE which deals in
multiple product line selling in different geographic areas. Explain its features and state why?

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