Management and Functions

Unit-1
• How mind controls the human body and its function.. similarly
management controls the various activities in the Organization.
• Management is an art of getting work done through people in a
formally organized group.
• Harold Koontz Def as “ Management is the process of designing and
maintaining an environment in which individuals, working together in
groups efficiently to accomplish selected aims”
•
Characteristics of Management
• Management is Universal
• Dynamic
• Group of managers
• Purposeful
• Goal oriented
• Integrative Function
• Social process
• Multi-faceted discipline
• Continuous process
• System of authority
• Resource
• Intangible
Basis of Distinction Administration Management

Policy and objectives Determination of objectives & Implementation of Policies

policies
Main Functions Legislative & determination Executive Function
function
Planning, Organising staffing Directing, Motivating, Coordinating
Controlling
Provides a sketch of the enterprise Provides the entire body

Influence Influenced mainly by public opinion Influenced mainly by administrative

& other outside force function

Levels of Management Mainly top level function involves Mainly middle level function
thinking & planning involves doing and acting
Level of Executives Owners/ Board of Directors MD, GM & Managers

Position Acts as a principal Acts as an agency

Knowledge Requires more admin ability than Requires more technical ability
technical ability than admin ability
Management as an Art
• The main elements of an art are –
• Personal Skills
• Practical know-how
• Application of knowledge
• Result orientation
• Creativity
• Constant practice aimed at perfection
Management as Science
The essential elements of Science
• Systematized body of Knowledge
• Underlying principles and theories developed through continuous
observation, inquiry, experimentation and research.
• Universal truth and applicability.
• Organized body of knowledge can be taught and learnt in class room
and outside.
• Management is a social science. It contains all the essentials of
science. It is an inexact science.
• PERT, CPM, Cost A/C, Finance, MBO etc
Management as a Profession
Elements of a profession

• Organised body of knowledge

• Learning and Experience
• Entry restricted by qualification
• Recognised national body
• Ethical code of conduct
• Dominance of service motive
Skills needed for a manager
• Conceptual skills
• Human Skills
• Technical Skills
• Design Skills – Decision making

Need for Management

1.To increase efficiency
2. To manifest the nature of management job
3. To improve research in Management
4. To attain social goals
Levels of Management
Top Level Management –
Board of Directors, MD, Owners, Chief Executives
• To analyze, evaluate and deal with the environmental forces
• To establish overall long term goals and broad policies of the
company including the master budget
• To appoint departmental and other key executives
• To represent the company to the outside world
• To coordinate the activities and efforts of different department
Middle Level Management –
Sales Executives, Production Executives, Production executives etc.
• To interpret and explain the policies framed by top management
• To compile and issue detailed instruction regarding operations
• To Cooperate among themselves so as to integrate various parts of
the division or a department
• To motivate supervisory personnel to work for Orgn goals
• To develop and train supervisory and operative personnel.
Supervisory / Operating / Lower Level
Management –
Superintendents, Branch managers, General Foremen
• To plan day to day production within the goals lay down by higher
authority
• To assign jobs to workers and to make arrangement for their training
and development
• To supervise and control workers and to maintain personal contact
with them.
Roles of a manager
Interpersonal Role -
• Interacting with people inside and outside the Orgn
• Figurehead – as a symbolic head of an organisation, the manager
performs routine duties of a legal nature
•Leader – Hiring, Training, motivating and guiding subordinates
•Liason - Interacting with other managers outside the orgn to obtain
favours and information
Informational Role
• Serving as a focal point for exchange of Information
•Monitor – Seeks and receive information concerning internal and
external events so as to gain understanding of the Orgn and its
environment.
•Disseminator – Transmits information to subordinates, peers and
superiors within the Organisation
• Spokesperson – Speaking on behalf of the Orgn and transmitting
information on Orgn plans, policies and actions to outsiders.
Decisional Role
•Entrepreneur – Initiating changes or improvements in the activities of
the Orgn
•Disturbance handler- Taking charge and corrective action when Orgn
faces unexpected crises
•Resource allocator – Distributing Orgn’s resources like money, time,
equipment and labour
•Negotiator – Representing the Orgn in bargaining and negotiations
with outsiders and insiders
Importance of Management
• Achievement of group goals
• Optimum utilization of resources
• Fulfillment of social obligations
• Economic growth
• Stability
• Human Development
• Meets the challenge of change
Managerial Functions
Planning
• Forecasting
• decision making
• strategy formulation
• policy making
• programming, scheduling, budgeting
• problem-solving, innovation
• Investigation and research.
Organising
• Grouping of Functions
• Departmentation
• Delegation
• Decentralisation
• Activity analysis
• Task allocation
Staffing
• Manpower planning
• job analysis
• Recruitment
• Selection
• Training, Placement
• Compensation, Promotion, appraisal, etc.
Directing

• Supervision
• Motivation
• Communication
• Leadership, etc
Controlling
• Fixation of standard
• Recording
• Measurement
• Reporting corrective action.
Taylor’s Theory of Scientific Management
• Frederick Taylor (1856-1915)
• “The Father of Scientific Management”

• Maximize worker capacity and profits

• PROBLEM: Get employees to work at their maximum

capacity

• PRIMARY FOCUS: TASK

 Taylor’s Theory of Scientific Management
Elements of Scientific Management
• Separation of planning and doing
• Development of supervision
• Scientific design of every aspect of every task
• Time and Motion Studies
• Careful selection and training of every task
• Proper remuneration for fast and high-quality work
• Maximize output - increase pay
• Standardization:- As far as possible, standardization should be maintained in
respect of instruments and tools, period of work, amount of work, work
conditions, cost of production cet.
• Equal division of work and responsibility between worker and
manager
Underlying Themes and Principles of scientific management

• Managers are intelligent

• Provide opportunities for workers to achieve greater financial

rewards

• Workers are motivated almost solely by wages

• Maximum effort = Higher wages

• Manager is responsible for planning, training, and evaluating

• Science, but not rule of the thumb
• Group harmony
• Co-operation
• Maximum output
• Development of workers
Taylor’s Theory of Scientific Management
• Application in the Modern Workplace
• Assembly Line Plants as Prototypical Examples
• System of Remuneration (quotas - commission)
• Re-Design - Reengineering
• Benchmarking
• Data are used to refine, improve, change, modify, and
eliminate organizational processes
• Lean Manufacturing
 Fayol’s Administrative Theory

• Henri Fayol (1841-1925)

• Henry Fayol started his career as a mining engineer in 1860 in a collier company in
France. In 1888, when the company’s financial position was critical, he was
appointed as the General Manager.
• Fayol felt that the activities of business could be dividing into six groups.
(1). Technical (2). Commercial (3). Financial (4). Security
(5). Accounting (6). Managerial
• Principles and Elements of Management - how managers should accomplish their
managerial duties
• PRIMARY FOCUS: Management
(Functions of Administration)
• More Respect for Worker than Taylor
• Workers are motivated by more than money
• Equity in worker treatment
Fayol’s Administrative Theory
• Five Elements of Management -- Managerial Objectives
• Planning
• Organizing
• Command
• Coordination
• Control
• Keep machine functioning effectively and efficiently
• Replace quickly and efficiently any part or process that did
not contribute to the objectives
Fayol’s Administrative Theory
• Fourteen Principles of Management (Tools for Accomplishing Objectives)
• Division of work - limited set of tasks
• Authority and Responsibility - right to give orders
• Discipline - agreements and sanctions
• Unity of Command - only one supervisor
• Unity of Direction - one manager per set of activities
• Subordination of Individual Interest to General Interest
• Remuneration of Personnel - fair price for services
• Centralization - reduce importance of subordinate’s role
• Scalar Chain - Fayol’s bridge
• Order - effective and efficient operations
• Equity - kindliness and justice. Manager should be both friendly and fair to their
subordinates.
• Stability of Tenure of Personnel - sufficient time for familiarity
• Initiative - managers should rely on workers’ initiative
• Esprit de corps - “union is strength” “loyal members ”. Promoting team spirit will
Fayol’s Administrative Theory
• communication as a necessary ingredient to successful
management

• Application in the Modern Workplace

• Fayol’s elements of management are recognized as
the main objectives of modern managers
• Planning - more participatory
• Organizing - human relationships and communication
• Especially applicable for large organizations (military)
Critical Evaluation
• Too formal • Not pay adequate attention to workers • Vagueness •
His principle hinted but did not elaborate that mgt can and should be
taught.
• - Despite these limitations, Fayol made a unique and outstanding
contribution to Mgt theory.
 INTRODUCTION

The Hawthorne studies were conducted in

order to find out the role of human resource in
increasing the production of an organization.

The Hawthorne studies included the following

experiments..
Experiments Conducted
• Illumination Experiment
• Relay Assembly Test Experiments
• Relay Assembly Room #2
• Mica Splitting Test Group
• Plant Interview Group
• Bank Wiring Observation Group
 HAWTHORNE EXPERIMENT

Conducted between 1924-1932

Conducted at WESTERN ELECTRIC

COMPANY, Chicago, USA

Conducted by,
 Elton Mayo
White Head
Roethlisberger
 CONCLUSION
•The Hawthorne studies have had a remarkable impact on management in organizations and
how workers react to various situations.

•The research carried out at the Western Electrics Hawthorne plant during the 1920’s and
early 1930’s helped to initiate a whole new approach to human behaviour studies.

•The final result was “the organization of teamwork-that is, of

sustained cooperation leads to success”.
OB UNIT-2 PLANNING AND DECISION MAKING
PLANNING (Introd..)
• Planning is the management function of anticipating the
future and the conscious determination of a future course of
action to achieve the desired results.

• And a plan is a pre-determined course of action to be

followed in future.
(Introd..)
• Deciding in advance what to do, how to do, when to do and
who is to do it.

• - Bridges the gap between where we are to where we want

to go. - Thinking before doing.

• - Intellectual demanding process.

The factors that go into planning varies from –
• Plan-to-Plan ,and
• Organization to Organization
• Depending upon;
• The type of Action, and
• The nature of Action.
Nature of Planning

1. It’s contribution to purpose and objectives.

2. Primacy of functions – Planning & control are inseparable
3. Pervasiveness of planning – it is a function of all managers.
Varies from level to level
4. Efficiency of plans – Pans are efficient if they achieve their
purpose at a reasonable cost
• Intellectual process : A mental process involving imagination,
foresight and sound adjustment but not guesswork.
• Continuous process : An on-going/dynamic exercise as old
assumptions change, old plans are revised or new ones are
prepared.
• Forward process : No plan can be prepared without
knowledge of future.
• Involves choice : Decision making is core of planning
objectives
• To reduce uncertainty and change.
• To provide sense of direction.
• To encourage innovation and creativity.
• To help in coordination.
• To guide decision making.
• To provide a basis for decentralisation.
• To provide economy in operation.
• To facilitate control.
Types (scope) of plans
Purposes or missions:
• - Meaningful existence– special task
• - Elements are primary market, profitability, management philosophy
and corporate image
• Eg. 1. Distribution of goods & services - ITC “ Satisfaction”
• - Dupont “better things through chemistry”
• - Hallmark “The social expression business”
• - GEC / USH “We are in energy business”
• Strategies:
• - General program of action and deployment of resources to
attain Comprehensive objectives.
• - SWOT analysis
• E.g 1. rural marketing 2. Extension of Distribution width &
Length, social marketing, co-branding, co-marketing.
- Contingent plan to meet the demands of a difficult situation.
- Mainly the job of the top management.
Policies:
• - General statements or understandings which guide or
channel thinking and take actions in decision making.
• - Guidelines for decision making
• - All policies are statements, sometimes it is only practices
(implied)
• - Allows for some discretion otherwise it becomes rules
• - It is a means of encouraging discretion and initiative, but
within limits. - Policies are developed with the active
participation of the entire top level executives.
• - Policy is in writing. They take concrete shape when they
are put in writing. This will ensure uniformity in application,
continuity and greater conformity
 Advantages:
i. Top management provides guidelines to lower level managers.
ii. Gives managers to act at all levels without the need to consult the
superiors every time.
iii. Better Administrative control. Provides rational basis for evaluating the
results.
iv. By setting up of policies, the management ensures that the decisions
made will be in tune with the objectives and interests of the organization.
v. They save time and effort by pre-deciding problems in repetitive
situations. They save the management from the botheration of repeating
the expensive analysis required to take the policy decision every time.
 Limitations:
• - Policy is formulated under particular preset conditions which do
not remain the same for all problems.
• - Requires constant review and revision.
• - No formula for all problems
• - Serve as guides for thinking and action and do not provide
solutions to problems.
• - They are not substitute for human judgment. They only point out
the limits within which the judgment is to be taken.
• - They may suppress individual initiative and creativity.
 Types of Policies:
a) Organizational and functional policies.
b) Originated, Appealed or interested and Imposed or forced
policies
c) General and Specific policies.
d) Written and Implied policies
• Procedures:
- It establishes a required method of handling future activities.
- They are guides to action, rather than to thinking. - Provides
details of certain activity, the exact manner in which it must
be achieved. - Chronological order. (stated in steps) - Found in
every level of an organization
Advantages
• - Minimizes the burden of decision making - Leads to simplification of
work flow - Elimination of unnecessary steps. - Developed after
careful analysis of various operations which are necessary to bring co-
ordination in organization. - Uniformity and conformity of action - Aid
to communication – steps to be followed to complete a particular
work. - Medium of control to evaluate the performance of the
subordinate
• Limitations - Rigidity- discourages improvement - Fixed way of doing a
particular job - Need to be reviewed and updated constantly
Steps in Planning:
1. Being aware of opportunities. --
---SWOT analysis
2. Establishing objectives.
3. Developing premises
- Planning premises are forecasts, applicable basic policies, and existing
company plans.
- They are assumptions about the environment in which plan is to be
carried out. - Forecasting is important for premising. - Premises should
be make practical what volume of sales? What price?
• Determining alternative courses of action
• 5. Evaluating alternative course of action - Operation Research –
Decision tree
• 6. Selecting a course of action - Decision making
• 7. Formulating Derivative plans - Supporting plans for basic plan
• 8. Numerating plans by budgeting - Income and expenses
• Objectives: -
• Ends towards which all activities are directed - They are the most basic
plan and all other plans are based on the objectives
• - They are multiple in nature.
• - MBO - Objectives and goals are interchangeable - They have hierarchy. -
They are verifiable - They form a network. - They differ in time span. Some
are long term and short term.
• Objectives may be general or specific. - Classified into External
institutional objectives (to develop high degree of corporate
image – TATA) Internal Objectives (profit/maximum rate of return)
Kinds/types of planning
1. Short term and long term planning
2. Financial & non financial planning
3. Formal &informal planning
4. Specific or Routine planning
5. Corporate planning and strategic planning
Features of a good plan
1. Based on clearly defined objectives
2. Simple, easily understandable
3. Flexible or adaptable to changing conditions
4. must be balanced in all respects
5. must provide standards for the evaluation of performance and actions
6. It should be economical
7. It should be practicable
8. Prepared with the consultation of concerned persons
9. Should be clear, specific and logical
10.Should be capable of being controlled
Planning can be classified as –
1. Corporate Planning
2. Divisional Planning
3. Strategic Planning
S.No Strategic Planning Operational Planning
1 Lays down major goals and Decides the use of
Policies of the Organization resources in day to day
operations

2 Done at higher levels of Done at lower level of

Management Management

3 Long term in nature Short term in nature

4 Broad and general Detailed and specific
5 Based on long term forecast Based on past experience
and appraisal of
Environment
Obstacles of Effective Planning
1. Inadequate inputs
2. Lack of ability
3. Sudden emergencies
4. Need for creativity
5. Resistance to Change
Ways to Overcome the Obstacles
1. Clear cut Objectives
2. Develop a sound Management Information System
3. Create carefully planning premises
4. Develop a dynamic outlook away manages
5. keep plans flexible
6. provide required resources
7. Undertake a cost benefit analysis of all plans
 Planning Premises Classification—Environmental uncertainities
1. External & Internal
EXTERNAL Economic Environment
• Includes the type of economic system that exist in the economy
• The nature and structure of the economy, the business cycle, the fiscal,
monetary and financial policies of the govt, foreign trade and foreign
investment policies of the govt.
• The type of economic system, that is socialist, capitalist or mixed provides
institutional framework with in which business firm have to work.
SOCIAL AND CULTURAL ENVIRONMENT
- Members of a society wields important influence over business firms.
- Activities of business firm may harm the physical environment and impose
heavy social costs.
- Business should consider the social implication of their decisions.
- Social responsiveness ‘the ability of a corporate firm to relate its
operations and policies to social environment in way that are mutually
beneficial to the company and society at large..
- Social responsibility / social responsiveness related to ethics.
POLITICAL AND LEGAL ENVIRONMENT
• Closely related to government.
• Political philosophy of the govt yields a great influences over business
policies.

TECHNOLOGICAL ENVIRONMENT
• The nature of technology used for production of goods and services in
an important factor responsible for the success of a business firm.
The improvements in technology raises total factor productivity of a firm
and reduces unit cost of output.
• Technological environment affects the success of firms and the need for
technological advancement cannot be ignored.
DEMOGRAPHIC ENVIRONMENT
• Includes the size and growth of population, life expectancy of the people
rural urban distribution of population the technological skills and educational
levels of labour force.
• Since new workers are recruited from outside the firm, demographic factors
are considered as parts of external environment.
• The skills and ability of a firms workers determine to a large extent how well
the orgn can achieve its mission.
NATURAL ENVIRONMENT
• Ultimate source of inputs such as raw materials, energy which business
firms use in their productive activity.
• Availability of natural resources
• Minerals and oil reserves
• Water and forest resources
• Climatic conditions
• Port facilities are all highly significant for various business activities.
• Not the availability of natural resources alone but also the technology
 INTERNAL ENVIRONMENT • Internal factors are mostly controllable factors
to improve its efficiency.
VALUE SYSTEMS • The ethical beliefs to achieve its mission and objective. •
• Value system of a business firm determines its behavior towards its
employees, shareholders and society at large.

• Infosys “Our corporate culture is to achieve our objectives in environment

of fairness, honesty, transparency and courtesy towards our customers
employees, vendors and society at large”
 MISSION AND OBJECTIVES
• Long – run profits.
• Mission influences its business decision and
economic activities.
• The choice of business domain, choice of
business strategy and policies are all guided by
the overall mission of the company.
ORGANISATION STRUCTURE
• Board of directors
• Independent directors
• Share holding pattern has significant influence
over decision making
QUALITY OF HUMAN RESOURCES
• Quality of employees of a firm
• The Success depends to a great extent on the skills, capabilities,
attitudes and commitment of its employees.

LABOUR UNIONS
• Unions collectively bargain with top managers regarding wages,
working conditions of different categories of employees.
• Smooth working of a business organization depend on good
relations between mgmt & labor union.
Tangible and Intangible premises
Tangible – those which can be quantified. Eg – Money, Units of Production,
etc
Intangible Premises – refers to the qualitative factors like Public relations,
company reputation, Employee morale, etc.

Controllable and Uncontrollable Factors

Controllable – entirely within the control and realm of management Eg-
Policies, programmes, rules of the enterprises
Uncontrollable Factors – Enterprises has absolutely no control are
uncontrollable premises. Eg – War, natural calamities, new invention,
population trends.
Decision Making
- is the process of choosing a course of action from
available alternatives - Def . Haynes & Massie “ Decision
making is a process of selection from a set of alternative
courses of action which is thought to fulfills the objective
of the decision – problem more satisfactorily than
others.”
- Types of Managerial Decisions 1. Organizational and
Personal Decisions 2. Routine and Strategic Decisions 3.
Programmed and Non programmed Decision 4. Policy
and Operating Decision 5. Individual and Group decision
Decision making Process
1. Defining the problem 2. Analysing the problem 3. Developing
alternative solutions 4. Evaluating the Alternatives 5. Selecting the best
alternatives 6. Implementing the decision
• Factors involved in Decision Making 1. Tangible Factors - things
which can be measured e.g. Fixed cost, operating cost, profits,
machine, etc 2. Intangible factors – Unmeasurable elements. Eg.
Employee morale(confidence), quality of labour relations, Consumer
behaviour, etc.
• Personal values & Orgn Culture
• Group decision making
• Creative and innovation
Problems of Decision Making
1.Indecisiveness(vagueness)
2. Time pressure
3. Lack of Information
4. confusing symptoms with causes
5. Failure to evaluate correctly
6. Lack of follow through
Key to success in Decision Making
1. Be problem oriented not just solution oriented 2. Set decision
making goals 3. Always check the accuracy of the information 4.
Don’t be afraid to develop innovative alternatives 5. Be flexible 6.
Gain commitment for decision at an early stage 7. Evaluate and
follow up the decision
 Authority
And
Responsibility
Contents

1 ORGANIZING

2 AUTHORITY

3 RESPONSIBILITY

4 ACCOUNTABILITY
 ORGANIZING

 Organizing is the process of defining and grouping the

activities of the enterprise and establishing the authority
relationship among them.

Characteristics-
 Division of Work
 Coordination
 Common Objectives
 Well defined authority and responsibility
 Superior subordinate relationship
 Universal Process
 Dynamic
 ORGANIZING
PROCESS
 Identification and division of work
 Departmentalization
 Determination of Key activities
 Assignment of duties
 Establishing reporting relationship
 Providing Right Environment
 Delegation of Authority

 “Delegation of authority means assigning

work to others and giving them authority to
do it.”
- F.G. Moore

“Delegation of authority merely means the

granting of authority to subordinates to
operate within prescribed limits.”
- Theo Haimann
 Elements :

Elements of Delegation of Authority :

 Responsibility
 Authority
 Accountability
 RESPONSIBILITY

Responsibility is the obligation of a subordinate to

properly perform the assigned duty. When a
superior assigns a job to his subordinate it
becomes the responsibility of the subordinate to
complete the job.
Features :-
 Responsibility can be assigned to some other
person
 The essence of responsibility is to be dutiful
 It gets originated because of superior-subordinate
relationship.
 AUTHORITY

It means the power to take decisions. Decision can

be related to the use of resources and to do or not
to do something.
Features:-
 Authority can be assigned to some other person.
 It is related to the post (with the change of post,
even authorities change).
 It makes implementation of decisions possible.
 It is the key to a managerial job, because a post
without authority cannot be a managerial post.
 Authority

Definition

The power to A Right & a

make decision Power to
which guides influence the
the action of behavior or
others efforts of
other
persons
 Difference
Basic of
Authority Responsibility
Distinction

The power or right of a It is an obligation to

Meaning superior to give order to perform the assigned duty
others or order

It emerges from a formal

Sources of It emerges from superior
position in the
Origin subordinate relationship
organisation

Direction of It flows downwards i.e. It flows upward i.e. from

Flow from top to bottom level bottom level to top level

Its purpose is to make Its purpose is to execute

Purpose decisions and get the the duties assigned by the
decisions executed superior
 ACCOUNTABILITY

 Accountability means the answerability of the

subordinate to his superior for his work
performance.

Features:-
 Accountability cannot be delegated.
 It originates because of delegation of authority.
 It is only towards the delegators.
 Its base is senior – subordinate relationship
 Difference
Basic of
Responsibility Accountability
Distinction

It is an obligation to
perform the assigned Answerable to the
Meaning duty or order superior for the work
performed

Sources of Relationship between

Delegation of Authority
Origin senior & superior

Responsibility
Accountability
( Responsibility for) or
( Responsibility to)
Delegation the work can be
cannot be delegated to
delegated to some
some other person
other person
Can Accountability
be Delegated ?
 Process of Delegation
of Authority

Assigning responsibility

Granting Authority

Fixing Accountability
 IMPORTANCE

Importance of Delegation of Authority :

Effective Management
Employee Development
Motivation of Employees
Facilitation of Growth
Better Coordination
Organisational Constraints
•Inadequate planning
•Lack of Unity of Command
•Non availability of
competent managers
•Unclear authority On the part of Subordinates
relationship Obstacles •Lack of Information
to and resources
Delegation •Over Burdened
•Lack of self confidence
On the part of superior •Dependence on Boss
•Lack of Control
•Fear of subordinates
•Love for authority
•Lack of receptiveness
•Lack of trust in subordinates
COORDINATION
According to Henry Fayol “ to co-ordinate is to
harmonize all the activities of a concern so as to facilitate
its working and its success”
Co-ordination implies an orderly pattern or arrangement of
group efforts to
ensure unity of action in the pursuit of common objectives.
Co-ordination requires unification of diverse and specialised
activities.

Coordination is a process to establish harmony among the

different activities of an organisation, so that the desired
objectives can be achieved.
Viewing coordination as a Pyramid

Unity in
harmony

Unification/integration
process

Group efforts/different activities

The three elements of Co-ordination are :-
Balancing
Timing
Integrating
NATURE AND CHARACTERISTIC OF
COORDINATION
co-ordination is not a distinct function but the very
essence of management.

It is a basic responsibility of management.

Co-ordination does not arises spontaneously or by
force.
Heart of co-ordination is the unity of purpose.
Co-ordination is a continuous or an on going process.
Co-ordination is required in group efforts not in individual
effort.
Co-ordination is the responsibility of each and every
manager.
NEED AND IMPORTANCE OF COORDINATION
Increase in size and complexity of operations: Need for
coordination arises as soon as the operations become multiple and
complex.

Specialization: Division of work into specialized functions and

departments leads to diversity and lack of uniformity.
Clash of interests – Coordination helps to avoid conflict
between individual and organizational goals.

Efficiency and Effectiveness: Coordination helps to improve the

efficiency of operations by avoiding overlapping efforts and
duplication of work. Quality of coordination determines the
effectiveness of organized efforts.
 Unity of Direction/Team work:

Coordination helps to ensure unity of action in the face of

disruptive forces. It helps unity of action and helps to avoid conflicts
between line and staff elements

Human Relation:

Coordination helps to improve team spirit and morale of

employees. In a well coordinated organization, organizational goals
and personal goals of people are reconciled.
 Essence Of Management: Coordination is all inclusive concept
and the end result of management process.
Coordination helps in the accomplishment of organizational goals.

Different outlook :It becomes imperative to reconcile differences

in approach ,timing and effort to secure unity of action.

Conflicts :Co-ordination avoids potential sources of conflict

Others

Unity in diversity
Term work or unity of directions
Functional differentiation
 Types of Coordination
Internal Coordination….
Horizontal coordination:
Horizontal Coordination refers between the persons of
the same status.
Coordination between the departmental heads,
supervisors, co-workers
Vertical coordination:
Superior coordinates his work with his sub coordinates
and vice versa.
Sales manager coordinates his work with the activities of
the sales supervisor.
Types of Coordination….

Coordination based on Organizational structure

Pooled Coordination
It exist in pooled interdependence model. In this type of interdependence,
each
organizational department or business unit performs completely separate
functions. While departments may not directly interact and do not directly
depend on each other in the pooled interdependence model, each does
contribute
individual pieces to the same overall puzzle. This creates an almost blind,
indirect dependence on the performance of others.
This model requires standardization in rules and operating procedures
The demand for coordination to prevent slowdown is greater in this model
Coordination based on Organizational structure
Sequential Coordination
This type of coordination occurs in a Sequential interdependence model.
This
model occurs when one unit in the overall process produces an output
necessary
for the performance by the next unit. Perhaps the most obvious example of
sequential interdependence is an assembly line. Resources in a sequential
interdependence model is essential to efficient operations.

Reciprocal Coordination
This also exist in in Reciprocal interdependence model. This model is
similar to
sequential interdependence in that the output of one department becomes
the
input of another, with the addition of being cyclical. In this model, an
organization’s departments are at their highest intensity of interaction.
Reciprocal models are the most complex and difficult to manage--one
unit can
change the rules and affect everyone else at any time."
Techniques of Coordination

Sound planning
Simplified organisation
Coordination by committees
Self Coordination
Effective communication
Effective leadership and supervision
Chain of command
Indoctrination and incentives
Liaison departments
General staff/Cooperation
Voluntary coordination
Problems of Coordination

Natural hindrance (e.g. bad weather, poor health situation, etc)

Inadequate /lack of administrative talent
Lack/Inadequate of techniques of coordination
Misunderstanding
Competition for resources
Threats to autonomy
Disagreement on objectives and idea
Differing expectations of coordination
Lack of trust
Cost/benefit perceived as unsatisfactory
Unilateral donor actions and agendas
Rapid staff turnover
Poor transition preparations
Steps of effective of Coordination

Proper delegation of authority and responsibility

Whole or entire activities of the organization should be divided
into department/section/units
There should be to rigid rules and regulations, procedures,
policies, etc.
Adherence to rigid rules and regulations, procedures, policies,
etc. must be maintained
Establishment of an effective communication system
Establishment of employees’ grievances cell
 There should be a proper system for reporting.
Skilled workers must be rewarded adequately.
The management should induce the employees to take active part in
meeting.
The management should encourage the employees to have friendly
relationship with others.
Managers should have opportunities to get training in the area of
leadership, coordination, planning staffing and the like.
Span Of Control
What is span of control?
• span of control is a span of supervision which
shows the number of can be effectively handled
and controlled by a single manager.

• There are two types of span: 1.Narrow and

2.wide.
Narrow span
• According to narrow span, the manager
supervises a selected number of employees at
one time.
• it is the difficult to get effective co-ordination.
• Also, due to this kind of span of control, number
of managers are increases and hence the overall
costing of the company increases.
Wide span
• According to wide span, the manager supervises
and control effectively a large group of persons
at one time.
• it is the easy to get effective co-ordination ,better
communication.
• Also, due to this kind of span of control, number
of managers required are few, so overall cost is
law.
Factors affecting the span of control
1. Managerial abilities
• When managers are capable, qualified and
experienced, wide span control is always helpful
to control more number of employees.
2.Competence of subordinates
• Where the subordinates are capable and
competent and understanding levels are proper,
the subordinates tend to very frequently visit the
superiors for solving their problems. In such
cases, the manager can handle large number of
employees. Hence, wide span is suitable.
3. Nature of work
• If the work is of repetitive nature, wide span of
supervision is more helpful. On the other hand, if
work requires mental skill or craftsmanship,
tight control and supervision is required in which
narrow span is more helpful.
4. Delegation of authority
• When the work is delegated to lower levels in an
efficient and proper way, confusions are less and
congeniality of the environment can be
maintained. In such cases wide span of control is
suitable and the supervisors can manage and
control large number of sub-ordinates at one
time.
5. Economic Consideration
• Economic considerations also determines the
span of control. As we know that small span of
control requires more economic resources and
vice versa. So, when there is problem of
economic conditions, wide span of control is
adopted. Economic Consideration