Marathwada Institute of Technology, Bulandshahr (U.P.

DEPARTMENT OF MASTER OF COMPUTER APPLICATIONS

SUBJECT NOTES

KCA103 : Principles of Management & Communication

UNIT –I

Management: Need, Scope, Meaning and Definition. The process of Management, Development of
Management thought F.W. Taylor and Henry Fayol, Horothorne Studies, Qualities of an Efficient
Management.
MCA-I/KCA 103/PMC/U-1/N-2/Prof. Avnish Kumar Sharma

Process of Management
Everything you need to know about the process of management. The process is defined
as a series of actions or operations conducted to an end.
Management as a process emphasize that all managers, regardless of their particulars
aptitudes or skills, engage in certain interrelated activities in order to achieve their
desired goals.
Management process can be divided into a set of inter-related functions. Managers
have to perform certain functions in the organizations to get the things done by others.
Managers have to perform these functions by variety of ways.
Some of the elements of the process of management are:- 1. Planning 2. Organising 3.
Co-Ordination 4. Motivation 5. Control.

Additionally, learn about the functions of manager and the functions of management.

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Management Process: Planning, Organising, Co-
Ordination, Staffing, Directing, Motivation and
Controlling
Process of Management – 5 Elements of the Management
Process: Planning, Organising, Co-Ordination, Motivation and
Control
Management is exercised by planning, finalizing the strategies, making policies, taking
managerial decisions for different situations and options, so as to achieve the objectives
of the organisation. Management action is taken to utilize the resources of men,
machines, money and materials pertaining to the organisation, effectively, economically
and efficiently.
Main elements of the management process are:
1. Planning
2. Organising
3. Co-Ordination
4. Motivation and
5. Control
All the activities of an organisation are managed with these management principles.
Therefore, success of the business organisations will depend very much on the prudent
applications and uses of these fundamentals.
Process # 1. Planning:
Planning is the essence of management. Planning is done with the close considerations
of all the ingredients of the business organisations associated with its functioning for the
purpose, it has been set up. Therefore, planning is required for each function including
formulation of various policies to regulate all the functions of the organisations
associated with the main business activity.
‘Business objectives and evolution of management’, a business organisation deals in any
of the activity, such as manufacturing, creating a service and marketing, trading or
financial services as a business activity. With the main activity of manufacturing or
providing a service, there are other associated activities like sales and marketing,
materials procurement, human resource planning and finance etc., which too require
proper planning and co-ordination.
This is explained assuming that the business organisation is engaged in the
manufacturing activity, wherein production is the main function in the total
manufacturing process.

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Planning for production requires linkages with the following associated
functions:
i. Sales plan for the year
ii. Capacity available
iii. Technology presently in operation
iv. Present yields and techno-economic norms
v. Raw materials including other materials
vi. Maintenance
vii. Power
viii. Manpower
ix. Projects for additions, modifications, replacements and modernization
x. Funds for working capital and projects
xi. Logistics for dispatches of finished products.
Thus, planning for production and all the associated functions is done keeping into
consideration the corporate objective, vision, mission, corporate plan and policies of the
organisation.
Similar to the planning for production, other activities too are interfaced. For example,
planning for materials requires linkages with the production plan, stocks already
available, pending orders position, lead time from order to receipts, procurement policy
for materials etc.
Planning for sales requires assessment of internal and external variables. Internal
variables for sales planning are, production capacity, quality of products being
manufactured with the present technology available.
External variables are, demand of products in the home as well as export markets,
production by other manufacturers and present market share of the organisation.
Similarly, for funds requirement, planning depends on the sales plan, production plan,
funds required for working capital and projects under implementation, payment of
interest on loans, repayment of loans, payments to suppliers and contractors, receipts
from the customers against sales and services provided on credit, financing policy for
the projects, dividend payments, internal generation of resources etc.
Planning is described as advanced and prudent action for the future activities fay the
organisation to achieve its objectives.
Planning is done based on the corporate objective, vision, mission and policies for;
manpower, sales, procurement of materials, financing, payment and realizations from
customers (credit policy), capital structure etc. It requires interfacing with all the

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associate functions and resources of the organisation based on the strategic actions
combined with managerial decisions.
Thus, outcome of planning is; fixing of targets for all the functions and activities
associated with the performance of the organisation to achieve its objectives. These
targets become the management tools to measure the actual performance of the
individual activities and take corrective action in the event of shortfalls and
unfavourable variations.
Process # 2. Organising:
Organising is the management function associated with the arrangement and effective
utilization of resources of men, money, materials and machines for achieving the
objectives of the organisation.
In organising function, there are two activities:
i. Arrangement of resources
ii. Effective utilization
Organising is associated with the total functioning of the organisation for its proper and
effective performance and involves formal and informal organising functions.
‘Formal organising’ is the distribution of the resources into various segments (zones,
divisions, departments and sections) and placing them under the charge of empowered
personnel.
‘Informal organising’ is the management function associated with the behavioral
perceptions, attitudes and motivation of the employees, executives and non-executives
both.
Process # 3. Coordination:
Organisation is divided into various functionary units such as, production, materials
management, finance and accounts, sales and marketing, human resource management,
information technology and projects etc. These functions are placed under the senior
employees designated as the head of the department.
Functions of all the departments are co-ordinated for proper functioning to successfully
achieve the main objective of the organisation. This requires a proven and latest system
of communication in the organisation to inform each department, zone and section
through their respective heads for the departmental plans, actual performance, new
guidelines and procedures issued from time to time on the overall functioning of the
organisation.
Thus, coordination is an important management function bringing the entire
organisation together, making them jointly accountable for their plans and actual
performance, success and failures together with the reasons for failures. This is the
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regular exercise through the in-built system of communication, reports, meetings,
workshops, conferences and reviews of performance at various levels of senior
authorities in the organisation.
Process # 4. Motivation:
Motivation as a management function is more associated with the human resource
management. This includes human resource plan and creation of a quality workforce in
the organisation through a good system of recruitment, training and development,
placement on the jobs, remuneration, perks, recognitions, rewards and promotions etc.
Scope of motivation includes the individual employee as well as the group of employees
(executives and non-executives both).
Thus, a motivated and a quality workforce is a great asset in an organisation in
achieving the corporate objective. Workforce is meant to include the employees from
shop floor to the top management team in the organisation.

Environment of motivation is created in the organisation more with an

holistic approach in the management functions such as:
i. Positive behavioral change.

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ii. Trust amongst team members.
iii. Delegations to the senior executives to enhance the accountability in the senior level
managers in the management team.
iv. Appreciate and inspire for the good jobs.
v. Develop a powerful and good team.
vi. Take a balanced team of high and low performers in all the working zones and
departments.
Process # 5. Control:
Control is the prime function of management to regulate and optimize the overall
performance of an organisation.
This involves a series of actions such as:
i. To finalize the performance plans in respect of each department, division and zone in
consultation with their heads and the management team for each year.
ii. To finalize the plans based on the corporate objective, corporate plan, vision and
mission of the organisation.
iii. To intimate the finalized plans to the heads of all departments/divisions/zones.
iv. To monitor the actual performance as per the finalized plans.
v. To get the regular reports from all the departments/ divisions/zones.
vi. To review the performance and discuss with the concerned heads for the shortfalls
and to take necessary action to revive the performance.
Thus, it is seen that management control function requires a good system of compilation
of information, reporting and review at various levels of the management team
including the chief executive officer (CEO). Periodicity of the reports and review by the
respective authorities depends on the practice followed in the organisation.
Communication and Information System:
In the management process, ‘communication and information system’ plays a
significant role.
The basic fundamentals of communication and information system are:
(i) To inform the right things
(ii) To inform to the right people
(iii) To inform at the right time
To act as per these fundamentals, supporting segments of the communication and
information system need to be efficiently maintained and managed.
Important segments of communication and information system are:
I. Sources of information-
a. Within the organisation
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b. Outside the organisation
II. Collection of information is done manually or through an online computerized
system.
III. Analysis of information.
IV. To maintain the information through a permanent data bank system centrally in the
computer department or in the respective departments/divisions/zones.
V. To update the information regularly.
VI. To communicate the information throughout the organisation to all the concerned
departments/divisions/zones and also the respective heads.
VII. Form and format of the information. Information may be communicated in a report
or statement or in pamphlets and on notice boards for mass communication.
VIII. Time and periodicity of the information to be communicated.
IX. Recipients of the information i.e., the departmental heads or the chief executive
officer or the common employees for the general information.
X. Review through meetings.
XI. Corrective action for deviations from the approved plans.
Employees and departments of the organisation associated with the collection, analysis,
preparation of reports and communication should be well educated and experienced,
having analytical skills of collection, presentation etc.

Process of Management – With 5 Steps of Management Process

There is plenty of disagreement among management thinkers on the classification of
managerial functional process. Newman and Summer recognize only four steps in
management process, namely, organizing, planning, leading and controlling. Henry
Fayol identifies five functions of management, viz., planning, organizing, commanding,
coordinating and controlling. Luther Gulick states seven such steps in management
process under the catch word “POSDCORB’ which stands for planning, organizing,
staffing, directing, coordinating, reporting and budgeting.
Warren Haynes and Joseph Massie classify management process into decision-making,
organizing, staffing, planning, controlling, communicating and directing. Koontz and
O’Donnell divide the process into planning, organizing, staffing, directing and
controlling.
For our purpose, we shall designate the following six as the functions of a
manager:
1. Planning,

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2. Organizing,
3. Staffing,
4. Directing,
5. Coordinating, and
6. Controlling that constitute the management process.
1. Planning:
Planning is the most elemental and the most all-encompassing step of management
process. If people working in groups have to perform effectively, they should know in
advance what is to be done, what activities they have to perform in order to do what is to
be done, and when it is to be done. Planning is concerned with ‘what’, ‘how’, and ‘when’
of performance. It is deciding in the present about the future objectives and the courses
of action for their achievement.
It thus involves:
(a) Determination of long and short-range objectives;
(b) Development of strategies and courses of actions to be followed for the achievement
of these objectives; and
(c) Formulation of policies, procedures, and rules, etc., for the implementation of
strategies, and plans.
Top management in the context of its basic purpose and mission, environmental factors,
business forecasts, and available and potential resources sets the organizational
objectives. These objectives are both long-range as well as short-range. They are divided
into divisional, departmental, sectional and individual objectives or goals.
This is followed by the development of strategies and courses of action to be followed at
various levels of management and in various segments of the organization. Policies,
procedures and rules provide the framework of decision-making, and the method and
order for the making and implementation of these decisions.
Every manager performs all these planning functions, or contributes to their
performance. In some organizations, particularly those, which are traditionally
managed, and the small ones, planning are often not done intentionally and
scientifically but it is done in modern, bigger and professional organizations.
The plans may be in the minds of their managers rather than explicitly and precisely
spelt out- they may be nebulous rather than clear but they are always there. Planning is
thus the most basic function of management. All managers at all levels of hierarchy
perform it in all kinds of organizations.
2. Organizing:

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Organizing involves identification of activities required for the achievement of
enterprise objectives and implementation of plans; grouping of activities into jobs;
assignment of these jobs and activities to departments and individuals; delegation of
responsibility and authority for performance, and provision for vertical and horizontal
coordination of activities.
Every manager has to decide what activities have to be undertaken in his department or
section for the achievement of the goals entrusted to him. Having identified the
activities, he has to group identical or similar activities in order to make jobs, assign
these jobs or groups of activities to his subordinates, delegate authority to them so as to
enable them to make decisions and initiate action for undertaking these activities, and
provide for coordination between himself and his subordinates, and among his
subordinates.
Organizing thus involves the following sub-functions:
(a) Identification of activities required for the achievement of objectives and
implementation of plans.
(b) Grouping the activities so as to create self-contained jobs.
(c) Assignment of jobs to employees.
(d) Delegation of authority so as to enable them to perform their jobs and to command
the resources needed for their performance.
(e) Establishment of a network of coordinating relationships.
Organizing process results in a structure of the organization. It comprises organizational
positions, accompanying tasks and responsibilities, and a network of roles and
authority- responsibility relationships.
Organizing is thus the basic process of combining and integrating human, physical and
financial resources in productive interrelationships for the achievement of enterprise
objectives. It aims at combining employees and interrelated tasks in an orderly manner
so that organizational work is performed in a coordinated manner, and all efforts and
activities pull together in the direction of organizational goals.
3. Staffing:
Staffing is an incessant and fundamental step in management process. After the
objectives have been determined, strategies, policies, programmes, procedures and rules
formulated for their achievement, activities for the implementation of strategies,
policies, programmes, etc., identified and grouped into jobs, the next logical step in the
management process is to procure suitable personnel for manning the jobs.
Since the efficiency and effectiveness of an organization significantly depends on the
quality of its personnel and since it is one of the primary functions of management to
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achieve qualified and trained people to fill various positions, staffing has been
recognized as a distinct function of management.
It comprises several sub-functions:
(a) Manpower planning involving determination of the number and the kind of
personnel required.
(b) Recruitment for attracting adequate number of potential employees to seek jobs in
the enterprise.
(c) Selection of the most suitable persons for the jobs under consideration.
(d) Placement, induction and orientation.
(e) Transfers, promotions, termination and layoff.
(f) Training and development of employees.
As the importance of human factor in organizational effectiveness is being increasingly
recognized, staffing is gaining acceptance as a distinct function of management. It
need hardly any emphasize that no organization can ever be better than its people, and
managers must perform the staffing function with as much concern as any other
function.
4. Directing:
Directing is the function of leading the employees to perform efficiently, and contribute
their optimum to the achievement of organizational objectives. Jobs assigned to
subordinates have to be explained and clarified, they have to be provided guidance in
job performance and they are to be motivated to contribute their optimum performance
with zeal and enthusiasm.
The function of directing thus involves the following sub-functions:
(a) Communication
(b) Motivation
(c) Leadership
5. Coordination:
Coordinating is the step of establishing such relationships among various parts of the
organization that they all together pull in the direction of organizational objectives. It is
thus the process of tying together all the organizational decisions, operations, activities
and efforts so as to achieve unity of action for the accomplishment of organizational
objectives.
Mary Parker Follet has aptly highlighted the significance of the coordinating process.
The manager, in her view, should ensure that he has an organization “with all its parts
coordinated, so moving together in their closely knit and adjusting activities, so linking,

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interlocking and interrelation, that they make a working unit, which is not a congeries of
separate pieces, but what I have called a functional whole or integrative unity”.
Coordination, as a management function, involves the following sub-
functions:
(a) Clear definition of authority-responsibility relationships
(b) Unity of direction
(c) Unity of command
(d) Effective communication
(e) Effective leadership
6. Controlling:
Controlling is the step of ensuring that the divisional, departmental, sectional and
individual performances are consistent with the predetermined objectives and goals.
Deviations from objectives and plans have to be identified and investigated, and
correction action taken. Deviations from plans and objectives provide feedback to
managers, and all other management processes including planning, organizing, staffing,
directing and coordinating are continuously reviewed and modified, where necessary.
Thus, controlling itself involves the following process:
(a) Measurement of performance against predetermined goals.
(b) Identification of deviations from these goals.
(c) Corrective action to rectify deviations.
Functions of Management:
Management practices are as old as human civilization, when people started living
together in groups, for every human group requires management and the history of
human beings is full of organizational activities. Even a smallest human group in our
society, i.e., family also needs management. The head of the family acts as top
management and the housewife acts as a home manager. She plans about the work to be
done, how the work has to be done, who is to do the work and whether the work is done
properly or not.
She performs all the four functions of management, i.e., planning the budget and day-
to-day activities, organizing the things and activities of different people, directing the
servants and different members of the family and controlling activities of different
members of the family. Family is a very informal type of individuals’ cluster. Even if this
informal individuals’ cluster is not managed properly it will lead to great fuse and
confusion.
During the last five decades, management as a discipline has attracted the attention of
academicians and practitioners to a very great extent. The basic reason behind this
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phenomenon is the growing importance of management in day-to-day life of people.
Today, the society has large and complex institutions with many people working
together.
The relationship between managers and managed has changed as compared to the older
master-servant relationship making it more complex. People have greater expectations
from their jobs. In order to make all these things function properly, people have been
trying to evolve some method and techniques. Such attempts have given birth to
management as a separate discipline. It has grown over the period of time making itself
one of the most respected disciplines. Today, the study of management has become an
important fact of human life.
Understanding Management as Concept:
The term management can have different meanings, and it is important to understand
these different definitions.
The term management can be considered as:
“People who wish to have a career as a manager must study the discipline of
management as a means toward practising the process of management”.
1. Management as a Process:
Have you ever said “That is a well-managed company” or “That organization has been
mismanaged”? If you have, you seem to imply that- (i) management is some type of
work or set of activities and (ii) sometimes the activities are performed quite well and
sometimes not so well.
2. Management as a Discipline:
If you say you are a student of management or majoring in management, you are
referring to the discipline of management. Classifying management as a discipline
implies that it is an accumulated body of knowledge that can be learned. Thus,
management as a subject with principles, concepts and theories. A major purpose of
studying the discipline of management is to learn and understand the principles,
concepts, and theories of management and how to apply them in the process of
managing.
3. Management as People:
Whether you say, “That company has an entirely new management team” or “She is the
best manager I have ever worked for” you are referring to the people who guide, direct
and thus, manage organizations. The word management used in this manner refers to
the people, manager who engage in the process of management.
4. Management as a Career:

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“Mr. Saxena has held several managerial positions since joining the bank upon his
graduation from college”. This statement implies that management is a career. People
who devote their working lives to the process of management progress through a
sequence of new activities and, often, new challenges. More than ever before, today’s
business environment is fast changing and competitive, posing challenges,
opportunities, and rewards for individuals pursuing management as a career.
These different meanings of the term management has been related as follows by John
M. Ivancevich—
You are referring to management as a process involving set of activities. Since the late
nineteenth centuiy, it has been common practice to define management in terms of four
specific functions of managers. Planning, organizing, leading and controlling. We can
thus say that management is the process of planning, organizing, leading and
controlling the efforts of organization members and of using all other organizational
resources to achieve stated organizational goals.
All the managers in the organization perform certain functions to get the things done by
others. However, what are these functions, which comprise management process, is not
quite clear and divergent views have been expressed on this.
Earnest Dale has suggested innovation and representing also as important management
functions besides these. Thus, it can be seen that there is no agreement over the various
functions of management. These functions have been treated differently over the period
of time. Ervin Williams has summarized the various managerial functions developed
over the period of time.
All the above functions can be categorized into five fundamental functions
of management, i.e.,:
1. Planning
2. Organizing
3. Staffing
4. Directing and
5. Controlling
1. Planning:
The planning function is the primary activity of management. Planning is the process of
establishing goals and a suitable course of action for achieving those goals. Planning
implies that managers think through their goals and actions in advance and that their
actions are based on some method and plan. Plans give the organization its objectives
and set up the best procedures for reaching them. The organizing, leading and
controlling functions all derived from the planning function.
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The first step in the planning is the selection of goals for the organization. Goals are then
established for each of the organization’s subunits-its division, department, and so on.
Once these are determined, programmes are established for achieving goals in a
systematic manner.
The organizational objectives are set by top management in the context of its basic
purpose and mission, environmental factors, business forecasts, and available and
potential resources. These objectives are both long-range as well as short-range. They
are divided into divisional, departmental, sectional and individual objectives or goals.
This is followed by the development of strategies and courses of action to be followed at
various levels of management and in various segments of the organization. Policies,
procedures and rules provide the framework of decision-making, and the method and
order for the making and implementation of these decisions.
2. Organizing:
After managers develop objectives and plans to achieve the objectives, they must design
and develop an organization that will be able to accomplish the objectives. Thus, the
purpose of the organizing function is to create a structure of task and authority
relationships that serves this purpose.
Organizing is the process of arranging and allocating work, authority, and resources
among an organization’s members so they can achieve the organization’s goals.
Stoner defines “Organizing as the process of engaging two or more people in working
together in a structured way to achieve a specific goal or set of goals.
The organizing function takes the tasks identified during planning and assigns them to
individuals and groups within the organization so that objectives set by planning can be
achieved. Organizing, then, can be thought of turning plans into actions. Organizing
function can be viewed as a bridge connecting the conceptual idea developed in creating
and planning to the specific means for accomplishing these ideas.
The organizing function also provides on organizational structure that enables the
organization to function effectively. Managers must match an organization’s structure to
its goals and resources, a process called organizational design.
3. Staffing:
Staffing is a continuous and vital function of management. After the objectives have
been determined, strategies, policies, programmes, procedures and rules formulated for
their achievement, activities for the implementation of strategies, policies, programmes,
etc., identified and grouped into jobs, the next logical step in the management process is
to procure suitable personnel for manning the jobs.

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Since the efficiency and effectiveness of an organization significantly depends on the
quality of its personnel and since it is one of the primary functions of management to
achieve qualified and trained people to fill various positions, staffing has been
recognized as a distinct function of management.
As the importance of human factor in organizational effectiveness is being increasingly
recognized, staffing is gaining acceptance as a distinct function of management. It need
hardly any emphasize that no organization can ever be better than its people, and
managers must perform the staffing function with as much concern as any other
function.
4. Directing:
Directing is the function of leading the employees to perform efficiently, and contribute
their optimum to the achievement of organizational objectives. Jobs assigned to
subordinates have to be explained and clarified, they have to be provided guidance in
job performance and they are to be motivated to contribute their optimum performance
with zeal and enthusiasm.
Once objectives have been developed and the organizational structure has been
designed and staffed, the next step is to begin to move the organization toward the
objectives. The directing function serves this purpose. It involves directing, influencing
and motivating employees to perform essential tasks.
The best human resources employed will be of house if they are not motivated and
directed in the right direction to achieve the organizational goals. Managers lead is an
attempt to persuade others to join them in pursuit of the future that emerges from the
planning, and organizing steps. By establishing the proper atmosphere, managers help
their employees to do their best.
Effective leadership is a highly prized ability in organizations and is a skill that some
managers have difficulty in developing. The ability requires both task-oriented
capabilities and the ability to communicate, understand and motivate people.
5. Controlling:
Finally, the manager must be sure that actions of the organizations members do in fact
move the organization towards its stated goals. This is the controlling function of
management. The controlling is the process of ensuring that actual activities confirm to
plan activities.
Controlling implies that objectives, goals and standards of performance exist and are
known to employees and their superiors. It also implies a flexible and dynamic
organization which will permit changes in objectives, plans, programmes, strategies,
policies, organizational design, staffing policies and practices, leadership style,
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communication system, etc., for it is not uncommon that employees failure to achieve
predetermined standards is due to defects or shortcomings in any one or more of the
above dimensions of management.
It may be pointed out that although management functions have been discussed in a
particular sequence-planning, organizing, staffing, directing, coordinating and
controlling – they are not performed in a sequential order.
Management is an integral process and it is difficult to put its functions neatly in
separate boxes. Management functions tend to coalesce, and it sometimes becomes
difficult to separate one from the other. For example- when a production manager is
discussing work problems with one of his subordinates, it is difficult to say whether he is
guiding, developing or communicating, or doing all these things simultaneously.
Moreover, managers often perform more than one function simultaneously.
Through the controlling function, managers keep the organization on track. Without the
controlling functions, other functions lose their relevance. If all the activities are
properly planned, organized and directed but there is no control on the activities, then
there are full chances that the organization does not achieve its planned goals.
Controlling function helps us knowing the deviations but the reasons for such deviations
and the corrective actions is to be taken depends on the managers. Hence, the personal
ability of the managers makes the controlling function effective or ineffective.

Process of Management – Management Process Functions

Every business enterprise has certain pre-determined objectives. No business enterprise
can achieve its objectives until and unless all the members of the unit make an
integrated and planned effort under the directions of a central coordinating agency,
which is technically known as MANAGEMENT and the methodology of getting things
done is known as management process.
The process in general is defined as a series of actions or operations conducted to an
end. The logic of the management and the sequence in which they are performed is
designated as Management process.
Generally this includes the main functions of a manager viz.:
1. Decision making, and
2. Implementation of decisions.
Naturally these two are the functions which are included in management process.
These functions are performed by:
1. Planning,

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2. Organising,
3. Staffing,
4. Motivating and
5. Controlling.
Management process, aimed at achievement of organisational goal includes these five
functions. These functions are to be performed in the sequence they are mentioned.
Thus we can say that managers have to walk along the route of management process to
reach organisational goals. The desired result, objective or goal is attained by
performing certain fundamental management functions.
Process # 1. Planning:
Planning means thinking in advance the future course of action. Planning is intellectual
in nature. It is a mental exercise. It is a vision of future and preparing for it. Planning, as
decision making, is selecting among many choices. Planning forecasts future problems
and involves selection of courses of action to handle them. Foreseeing the problems is
one of the essentials of planning. Their severity is anticipated so that preparatory
provisions can be made to handle them.
Planning, as decision, answers to the following basic questions:
i. What should be done?
ii. How should it be done?
iii. Who will be responsible for doing it?
iv. Where it should be done?
v. Why is it to be done?
vi. When should it be done?
Planning involves taking decisions of action in advance. Planning emphasizes the fact
that if one knows where he is going, he is more likely to get there. Good managers
endeavour to draft a plan which will make things happen in the desired way. This is also
stressed by the saying. “Good managers make things happen. Things do not just happen
to them.”
Best planning is concerned with fixing the objectives, determining the strategies policy
and prescribing the procedures as guidelines to future action. It is the most important
step in the process of getting results. It enables the management to be a step ahead of
each activity, retain initiative to make use of any opportunity and anticipate problems
which may actually arise. Thus planning assumes first step in management process.
It means that the plans must be in detail but flexible so that bear the capability of being
re-adjusted in case there is a change in working condition or in objectives of the
organisation.
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Process # 2. Organising:
Once plan is prepared and methodology to achieve goal is decided, the jobs are required
to be allotted and allocated to a group or groups. Naturally groups are formed. The
whole process of forming groups and allocating jobs is organisation.
Thus, after planning the next important step is organising. In order to accomplish the
work it is necessary to distribute or allocate the necessary component activities among
the members of the group. Generally the component time and cost, will be realised.
After assignment of a component activity it is a must to delegate authority, so that the
allotted activity can be accomplished. From this authority delegation arises various
organisational relationships.
This task of allocation, authority delegating and establishing relationship by the
manager is known as organising. Thus organising is basically concerned with grouping
the activities required to attain the planned objectives, defining responsibilities of the
people in the organisation, delegating appropriate authority to them to discharge their
respective responsibilities and establishing structural as well as, working relationship to
enable coordination of the individual efforts towards accomplishment of objectives of
the enterprise.
The process of organising is a fundamental function of management authority and the
key to the managerial job. Delegation of authority is the key to organisation. We cannot
speak of manager unless he has authority and we cannot speak of creating an
organisation unless authority is delegated.
The organisation structure is, of course, not an end in itself but a tool for accomplishing
enterprise objectives. Efficient organisation will contribute to the success of the
enterprise and for this reason, application of organisational principles is very important.
Process # 3. Staffing:
Staffing is concerned with ensuring that the right type of personnel is available to
undertake and execute the varied activities required to attain the planned objectives of
the organisation. Staffing involves filling the positions needed in the organisation
structure by appointing competent and qualified persons for the jobs. It, therefore
includes activities such as anticipating manpower needs, adoption of an appropriate
selection procedure, providing manpower appraisals and development.
This needs manpower planning and manpower management. Much of the work relating
to human resource planning and management is delegated to personnel manager.
However, top management is ultimately responsible for all activities to staffing.

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Process # 4. Motivating:
Motivating means inspiring the personnel with zeal to work and co-operate for the
accomplishment of common objectives.
Motivation is the process of creating organisational conditions which will impel
employees to strike to attain objectives and development. Motivation is the complex of
forces starting and keeping a person at work in an organisation. We may define
motivation as a willingness to expend energy to achieve a goal or reward.
It is a force that activates dormant energies and sets in motion the action of the people.
It is the function that kindles a burning passion for action among the human beings of
an organisation.
Motivation is a powerful tool in the hands of a manager for getting things done.
Effective motivation improves the performance of the employees. Employees can be
motivated by giving them reward, proper appreciation of work, fair treatment which
helps in increasing their enthusiasm and performance too.
There are four types of motivation techniques i.e.:
i. Positive or incentive motivation
ii. Negative or fear motivation
iii. Financial motivation
iv. Non-financial motivation.
If a manager wants to get work done by his employees, he may either hold out a promise
of a reward for them for doing work in a better or improved way, or he may constrain
them, by installing fear in them or by using force, to do the desired work. In other
words, he may utilise a positive or negative or financial or non-financial type of
motivation. All these types of motivation are widely used by management.
Process # 5. Controlling:
Controlling means observing whether everything is going on according to plan or not.
Controlling is nothing but conciliation of the plan with the actual work, ensuring that
the objectives in terms of the plan are fulfilled.
Controlling includes an evaluation to determine whether the planned objectives have
been achieved or not. Controlling shows where improvements are required. Adequate
control can thus lead to innovation, improvements or modifications in previously
determined objectives.
Control is a fundamental management function that ensures work accomplishment
according to plans. It is concerned with measuring and evaluating performance so as to
secure the best result of managerial efforts. It is an essential feature of scientific
successful management.
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Controlling is nothing but conciliation of the plan with the actual work and locating the
lapses, if any, so as to bring the methodology of work on correct track. For this the
manager has to be very alert and find out the reasons for such lapses or deviations. He is
also responsible for implementing corrective measures. All these things are ultimately
aimed at achievement of business goals.
Management can be looked upon as a process by which mangers formulate, direct and
operate organisations with coordinative human effort to attain predetermined
objectives. Management is a process concerned with planning executing and controlling
the activities of an enterprise. Managerial behaviour must be goal directed which results
in a succession of activities and events by which the organisation’s work proceeds.
Management is concerned with evolving workable plans which are then put into action
resulting in certain consequences which have to be observed, evaluated and constantly
compared with the objectives prescribed in the plan. This cyclical process can be
described as the management process.
Thus this process starts from a point i.e. planning and till it reaches the point i.e. goal
some certain distance is covered. But this wheel does not stop. It further moves to cover
further distance in forms of another activity.
A ladder, to be climbed to reach the goal is management process.

Process of Management – Planning, Organizing, Directing,

Controlling and Coordinating
(1) Planning:
It means thinking about goals and objectives of the organization and deciding how best
to accomplish them. It is not day-dreaming, building castles in the air. It is a rational
activity, based on SWOT analysis—examination of strengths and weakness of the
organization and opportunities and threats posed by its external environment. The idea
is how to harness the available resources for achievement of organizational goals.
(2) Organizing:
It means acquiring and putting in place the human, physical, and financial resources
and defining relationships between them—who has authority over what and whom. It
establishes positions of authority and responsibility (chief executive officer, production
manager, sales manager, finance manager, and so on). It also lays down which superior
and subordinate will exercise control over which resources to accomplish the duties
assigned to him and to whom he will be accountable.

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Again, an organization is not mere vesting of authority and responsibility in a position,
it also requires constant monitoring of whether the person holding any position is
exercising his authority and performing the duties assigned to him. If found wanting,
there is also provision for his replacement by another, more competent person.
(3) Directing:
It means influencing subordinate-behavior to ensure that he performs his task and duty
ably and willingly. This will include issuance of instructions and directions, constant
supervision of work performance, provision of suitable motivation and inspiring
leadership.
All this with a view to inculcate in the subordinates a sense of belonging to the
organization such that they identify themselves with organization objectives and realize
that accomplishment of their personal goals (salary and perks, job security, stability,
etc.) can be possible only through accomplishment of organizational goals.
Thus, while ‘planning’ and ‘organizing’ functions represent the abstract aspect of
management process, ‘directing’ function personifies its tangible and concrete aspect; it
involves working with and through people.
(4) Controlling:
It means ensuring that activities of all superiors and subordinates are focused on
accomplishment of organizational goals.
The controlling function has three aspects:
(a) Determination of reasonable and realistic standards of performance for each
subordinate and department;
(b) Measurement and comparison of actual performance with prescribed standards; and
(c) Initiation of necessary corrective action where actual performance falls short of the
determined standards.
The controlling function enables management to ensure that all superiors and
subordinates of the organization ably and willingly perform their duties to enable it to
accomplish its goals.
The ‘controlling function’ reflects certain elements of the ‘planning function’; it involves
determination of realistic and reasonable standards of performance, and also speaks of
corrective action if the actual performance deviates from the standard performance
level. Sometimes corrective action may also necessitate modification of the ‘organizing’
and ‘direction’ functions.
(5) Coordinating:
The tasks or activities of an organization are grouped on the basis of their similarity.
They are assigned to different individuals and departments based on their capacity and
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specialization achieved because of performance of the same task or activity again and
again. Specialization in performance of any task or activity results in greater
productivity and efficiency-level. However, division of duties also requires an effective
mechanism to integrate and focus them to achieve overall organizational objectives.
Coordination is the process of integrating or linking-up performance of different tasks
and activities to keep them focused on achievement of organizational goals. The need for
integration will be in direct proportion to the inter-dependence between individuals and
departments performing different tasks and activities.
Where performance by any individual or department wholly depends on the per-
formance by others, as in Fig. 2 and 3, there will be need for maximum coordination, as
non-performance, under-performance or delayed performance of one individual or
group will adversely affect the performance of others.

Management, all said and done, is an Integrated Process:

While discussing the process of management, it is convenient as also necessary to
describe each function or operation or ‘process’ separately. But this does not mean that
management process is only a series of mutually independent functions. In practice, a
manager may, and often does, perform many of these functions simultaneously and as a
part of a continuum, and not necessarily in the order in which they are listed and
discussed.

Process of Management – Planning, Organizing, Staffing,

Directing and Controlling
The process is defined as a series of actions or operations conducted to an end.
Management as a process emphasize that all managers, regardless of their particulars
aptitudes or skills, engage in certain interrelated activities in order to achieve their
desired goals.

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Management process can be divided into a set of inter-related functions. Managers have
to perform certain functions in the organizations to get the things done by others.
Managers have to perform these functions by variety of ways.
But there is no unanimity among them about the nomenclature of the functions of
management. Henry Fayol for the first time, classified managerial functions as planning,
organizing, commanding, coordinating and controlling. Appley included planning,
executing and controlling in management function.
Luther Gulick and Urwick described it as PODSCORB. PODSCORB denoted the
following function – (i) Planning, (ii) Organizing, (iii) Directing, (iv) Staffing, (vi)
Coordinating, (vi) Reporting, and (vi) Budgeting. E.F.L, Brech emphasized on planning
motivating, coordinating and controlling; while Koontz and O’Donnell take planning,
organizing, staffing, directing and controlling.
Ernest Dale emphasized on innovation and representation. Joseph Massie prescribed a
list of seven functions of management. In practice, it is not always possible to place all
managerial activities neatly into these categories since the functions tend to coalesce.
Thus, G.R. Terry described managerial functions under four heads.
The list of managerial functions varies from three to eight. There have been no new
ideas, research findings, or techniques that cannot readily be placed in the
classifications of planning, organizing, staffing, leading and controlling.
Let’s briefly define what each of these management functions encompasses:
(i) Planning:
Planning involves selecting mission and objectives and the actions to achieve them; it
requires decision-making that is, choosing further course of action from various
alternatives. It is the determination of a course of action to achieve the desired results.
Planning is a pervasive, continuous and never ending activity. It leads to move effective
and faster achievements in any organization and enhances the ability of the organization
to adapt to further eventualities.
The planning involves selection of – (a) objectives; (b) policies; (c) procedures; and (d)
programmes. This also involves taking the decision about choosing the best one out of
several alternatives available to the management. Planning involves the determination
of future course of action, that is, why in action, what is to be done how to be done and
when to be done. The answers to all such questions constitute planning functions.
The planning function involves the following steps:
(a) Determination of the objectives,
(b) Searching of alternative courses of action,
(c) Evaluation of alternatives,
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(d) Formulation of a plan, policies and procedures,
(e) Preparation of concrete formation of plan on the basis of schedules programmes and
budgets.
(ii) Organizing:
Organizing is the part of management that involves establishing an internal structure of
roles for the people to fill in an organization. Organizing is considered as a process of
integrating, balancing, unifying and coordinating activities of the employees for the
accomplishment of pre-determined activities? Organization helps in establishing
relationships among the members of the enterprise.
The relationship is created in terms of authority and responsibility. According to Louis
A. Allen, “Organisation involves identification and grouping among the individual and
creating authority and responsibility relationship among them for the accomplishment
of organizational objectives.”
Thus organization involves the following steps:
(a) Identification of activities,
(b) Grouping of activities,
(c) Assignment of work,
(d) Delegation of authority to subordinate, and
(e) Establishing relationship through the organization.
Organizational functions contribute to the efficiency of the organization through
employing human and other resources of the organization.
(iii) Staffing:
Staffing involves managing the process created by organization process. Staffing
involves filling and keeping filled the positions in the organization structure. This is
done by identifying workforce requirements; inventorying the people available; and
recruiting, selecting, placing, promoting appraising, planning the careers of,
compensation, and training or otherwise developing both candidates and current work
force so that tasks are accomplished effectively and efficiently.
The manager performs the duty of job analysis, job description, appraisal of efficiency,
etc., which come under the staffing function, since every manager is concerned with
management of human resource, he must perform the staffing function. In most of the
organizations, personnel department is set up to provide the necessary help to managers
in performing their staffing functions efficiently.
According to Koontz and O’Donnell, “The managerial function of staffing involves
managing the organization structure through proper and effective selection appraisal,
and development of personnel to fill the roles designed into the structure.”
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Staffing functions involve:
(a) Manpower planning,
(b) Recruitment,
(c) Selection,
(d) Placement,
(e) Promotion,
(f) Performance appraisal, and
(g) Training and Development.
(iv) Directing:
Direction may be defined as a function which is related with instructing, guiding and
inspiring human factor in the organization to achieve organizational objectives. It is not
only a process of direction, but it includes the process of guiding and inspiring them.
‘Direction consists of the process and techniques utilized in issuing instructions and
making certain that operations are created out as originally planned.’
Theo Haimann, direction functions consists of three elements:
(a) Communication,
(b) Leadership and Supervision, and
(c) Motivation.
In the words of Marshall, “Directing involves determining the course, giving orders and
instructions and providing dynamic leadership”. Simply direction involves issuing
instructions to the subordinates, guiding, motivating and supervising them.
(v) Controlling:
Controlling deals with the measurement and correction of the performance of
subordinates against the predetermined standards. Controlling is measuring and
correcting organizational performance to ensure events conform to plans.
It involves measuring performance against goals and plans, showing where deviations
from standards exist, and helping to correct them. In short, controlling facilitates the
accomplishment of plans. Control activities generally relate to the measurement of
achievement.
Control process comprises:
(a) Fixing appropriate standard for measuring work performance;
(b) Comparing actual and planned work;
(c) Finding variances between two and reasons for the variance;
(d) Taking corrective actions.

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Control keeps a check on other functions for ensuring successful functioning of
management. It brings to light all bottlenecks to move performance and operates as a
straight pointer to the needs of the situation.
A manager has to perform his functions in the organization, whatever the level of
manager or the objective of the organization.

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