ORGANIZING, LEADING &

CONTROLLING
Organizing
• MEANING :
• The word ‘organisation’ has come from the word ‘organism’ which
means a structure of interrelated and interdependent parts. The
parts or components of organisation consists of men, machines,
materials, methods, money, functions, authority and responsibility.
• The task of organisation is to unite or integrate these components
effectively for the purpose of attaining the common goal.
DEFINITION
• Organising is the process of identifying and grouping the work to be
performed, defining and delegating responsibility and authority, and
establishing relationships for the purpose of enabling people to work
most effectively together in accomplishing objectives’ – Louis A Allen
• Organisation is the structural frame work within which the various
efforts are coordinated and related to each other- Theo Haimann
• Thus, it is :
• As a process
• As a function
• As a group of people
PRINCIPLES OF ORGANIZING
1. Unity of Objectives
Every part of the organisation should be designed to facilitate the achievement of
common objectives. Therefore, the objectives must be stated in clear and concise
terms.
2. Division of work
The total work should be divided in such a way that as far as possible every
individual performs a single function.
3. Span of control
No executive in the organisation should be required to supervise more
subordinates than he can effectively manage. (span of management/ supervision)
4. Scalar principle
The line of authority (called the chain of command) from the top executive to the
lowest level should be clear and unbroken.
5. Principle of Exception
Every manager should take routine decision himself. Only exceptional matters
beyond the scope of authority should be refered to higher authorities.
6. Unity of command
Each individual should receive orders from and be accountable to only one boss.
7. Functional definition
The authority and responsibility of every individual should be clearly defined. The
relationships between different jobs should be clearly specified.
8. Unity of Direction
There must be one head and one plan for a group of activities directed towards
the same objectives.
9. Delegation
Authority delegated to an individual should be adequate to enable him to
accomplish the results expected of him.
11. Absoluteness of Responsibility
No superior should be allowed to avoid his responsibility by delegating
authority to his subordinates. He must be held accountable for the acts of his
subordinates.
12. Simplicity
The organisation structure should be kept simple with minimum numbers of
levels.
13. Flexibility
The organisation structure should be adoptable to changing circumstances.
There should be scope for expansion without disrupting the basic design.
14. Efficiency
The organisation structure should enable the enterprise to function efficiently
and to achieve its objectives with minimum cost and effort.
15. Continuity
The organisation structure should be continued for a long period of time.
FORMAL AND INFORMAL ORGANISATION

Formal Organisation
• ‘Formal organisation’ is deliberately and consciously created for the
accomplishment of the enterprise objectives. It provides for official relationships
between the individuals. The communication channel in a formal organisation is
also formal or official. It has well-established rules and procedures.

Informal Orgnisation
• Informal organisation arises from the personal and social relations of people. It is
not formally designed. It is developed spontaneously out of interactions between
persons. It is influenced by personal attitudes, likes and dislikes. Informal
relations occurs among individuals. According to Barnard, ‘informal organisation
is joint personal activity without conscious common purpose though contributing
to joint results’.
Leading
• Meaning :
• Giving direction or instruction to employees to get the job done.
• Leadership qualities are required
• Motivating employees by providing monetary and non-monetary
incentives
• Communicating with them at regular intervals.
Contd…
• It is that part of managerial function which actuates the
organizational methods to work efficiently for achievement of
organizational purposes. It is considered life-spark of the
enterprise which sets it in motion the action of people because
planning, organizing and staffing are the mere preparations for
doing the work. Direction is that inert-personnel aspect of
management which deals directly with influencing, guiding,
supervising, motivating subordinate for the achievement of
organizational goals.
Contd…
• Supervision- implies overseeing the work of subordinates by their
superiors. It is the act of watching & directing work & workers.
• Motivation- means inspiring, stimulating or encouraging the sub-
ordinates with zeal to work. Positive, negative, monetary, non-
monetary incentives may be used for this purpose.
• Leadership- may be defined as a process by which manager guides
and influences the work of subordinates in desired direction.
• Communications- is the process of passing information, experience,
opinion etc from one person to another. It is a bridge of
understanding
 Controlling : MEANING
• If planning is ‘looking ahead’ controlling is ‘looking back’.
• Planning helps to attain the goal of the enterprise in a systematic
manner.
• Control, on the other hand, ensures that everything has been done
as planned. It checks or verifies whether the actual performance
corresponds to the expected performance.

• Control means checking and correcting activities in order to ensure

that things occur in accordance with the plans.
 Control gives meaning to the planning function
• It is only because of control that the employees show commitment
to work. They show a sense of urgency to complete the task within
the stipulated period of time.
• Planning provides the basis for control. Control is not possible
without planning. This is because if a task is not planned, it cannot
be controlled. It may, therefore, be said that ‘Planning without
control is useless and control without planning is meaningless’.
DEFINITION
• Control consists in verifying, whether everything occurs in conformity with the
plans adopted, the instructions issued and principles established. It has for its
object to point out weaknesses and errors in order to rectify them and prevent
recurrence – Henry Fayol

• The managerial function of controlling is the measurement and correction of

the performance of activities of subordinates in order to make sure that
enterprise objectives and the plans devised to attain them are being
accomplished – Konntz and O’Donnell.

Thus, Control is the process by which managers ensure that performance is in

conformity with the plans and goals. It involves setting of standards, measuring
actual performance and coreccting the performance if it deviates from the
standards.
 NATURE OR CHARACTERISTICS
1. It is Backward looking: Controlling involves comparing the actual
performance with the targets. This requires checking of events after these have
taken place. Control is, thus, a backward looking activity.
2. It gives meaning to planning : Planning will lose its significance in the
absence of control. It is only control that indicates the extent to which the plan
has been successfully implemented. In the absence of control, it will not be
possible to know whether the target has been achieved.
3. It involves appraisal or evaluation : The very nature of the control function is
to make an appraisal or evaluation of the actual performance – production,
sales, etc., Deviation from the target can be detected only if actual performance
is assessed.
4. It is a pervasive function: Control, like planning, is a pervasive function, i.e,
performed at all levels of management – top, middle and lower levels.
5. It is forward looking too : By comparing actual performance with
the expected level of performance, deviations can be detected.
Once the causes for the deviations are found out, corrective
measures must be employed to prevent the occurrence of the flaws
in future. Thus, control provides the necessary safeguards for future
uncertainties.
6. It is a continuous process : As long as there is planning there will
be control. As planning is an endless activity, control should also be
endless.
7. Action Oriented: it implies taking corrective action to achieve
desired performance.
8. Positive and constructive process: Because it aims at making
things happen as desired.