ORGANIZING AND STAFFING

DIRECT AND CONTROLLING

MODULE 2

1 11/21/2024
ORGANIZING AND STAFFING:

Unit 3
 Learning Objectives:
Examine the meaning, characteristics and
topology of organisations and staffing
Learn the principles and process of
organising
Understand the meaning and significance
of the span of management and the factors
governing it.
Describe the advantages and
disadvantages of different bases of
departmentalisation.
State the importance and need for proper
3 staffing 11/21/2024
LESSON PLAN
Sl TOPIC Date Date Remar
no planne engage ks
d d
1 Nature and purpose of
organization
2 principles of organization-types of
organization
3 Departmentation- Committes-

4 Centralisation Vs Decentralisation
of authority and responsibility

5 Span of control- MBO and MBE

(Meaning only)
6 Nature and importance of
staffing-

7 Process of selection and

recruitment (in brief)
 ORGNISATION
The process of identifying and grouping of
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 their objectives.

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 MEANING OF ORGANIZING
 Koontz and O'Donnel "It is grouping of activities
necessary to attain enterprise objectives and the
assignment of each grouping to a manager with
authority necessary to supervise it".

 Amitai Etizoni- ”Organisation is social unit or human

grouping deliberately structured for the purpose of
attaining specific goals”.

 Sehein- “Orgainsation as the rational coordination of

activities of a number of people for the achievement of
some common explicit purpose or goal, through
division of labour and function, and through a hierarchy
of authority and responsibility.
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 STEPS IN PROCESS OF
ORGANIZING

While organizing, a manager differentiates

and integrates the activities of his
organization.
By differentiation is meant the process of
departmentalization or segmentation of
activities on the basis of some
homogeneity.
Integration is the process of achieving unity
of effort among various departments,
segments or subsystems.
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 STEPS IN ORGANIZING
(1) Consideration of objectives:

The first step in organizing is to know the

objectives of the enterprise.
Objectives determine resources and the
various activities which need to be performed
and the type of organization which needs to
be built for this purpose.
Objectives also serve as guidelines for the
management and workers.
They bring about unity of direction in the
organization.
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 STEPS IN ORGANIZING
(2) Identification and grouping of activities:
 In order to achieve the objectives of the enterprise,
certain activities are necessary.
 The activities will depend upon the nature and size of the
enterprise.
 Each job should be properly classified and grouped.
 This will enable the people to know what is expected of
them as members of the group and will help in avoiding
duplication of efforts.
 For example, the total activities of an enterprise may be
divided into major functions like production, purchasing,
marketing, finance etc.
 such function is further subdivided into various jobs.
 For example, in production department separate sections
9 may be created for research, industrial engineering etc.
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 STEPS IN ORGANIZING
3) Assignment of duties:

After classifying and grouping the activities

into various jobs, they should be allotted to
the individuals for ensuring certainty of work
performance.

Each individual should be given a specific job

to do according to his ability and made
responsible for that.

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 STEPS IN ORGANIZING
(4) Delegation of authority

Every individual is given the authority

necessary to perform the assigned activity
effectively.
By authority we mean power to take
decisions, issue instructions, guiding the
subordinates, supervise and control them.

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 STEPS IN ORGANIZING
5) Coordinating activities

The activities and efforts of different

individuals are then synchronized.
Such coordination is necessary to ensure
effective performance of specialized functions.
Interrelationship between different job and
individuals are clearly defined so that
everybody knows from whom he has to take
orders and to whom he is answerable.

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 NATURE OF ORGANIZATION
(1) Organization is always related to certain
objectives:
 Each organization has an objective.
 The operations are divided; authority and
responsibility are determined to achieve
predetermined objectives.

(2) An organization is a group of people:

 Mc Farland has defined organization as “an
identifiable group of people contributing their efforts
towards the attainment of goals. People form groups
or organizations to accomplish common objectives
and pool their efforts by defining and dividing
13 various activities, responsibility and authority”.
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 NATURE OF ORGANIZATION
(3) Communication is the nervous system of
organization: The organizational members are able to
communicate with each other and may coordinate
their activities.
 No organization can survive without an efficient system
of communication.
(4) Organizing is a basic function of management:
Organizing is done in relation to all other functions of
management, namely planning, staffing, directing and
controlling and in all the areas of business namely
production, marketing, purchasing, personnel.

(5) Organization is a continuous process:

 Managers are continuously engaged in organizing and
14 reorganizing. 11/21/2024
 NATURE OF ORGANIZATION
(6) Organization is a structure of relationship:
 The structure of relationship deliberately created by the
management is referred to as formal organization.
 An organization may also have a network of social
relationships that arise between people working together.
Such relationships are known as informal organization.
(7) Organization involves a network of authority and
responsibility relationship:
 Various positions are created; specific tasks are assigned
to them.
 To perform the task, each position is delegated adequate
authority.
 Authority and responsibility relationships throughout the

15
organization must be clearly defined to achieve 11/21/2024
coordination and to avoid conflicts between individuals
 PURPOSE OF ORGANIZATION
(1) To facilitate pattern of communication:
 Organization structure provide pattern of
communication and coordination.
 By grouping activities and people, structure facilitates
communication between people centered on their job
activities.

(2) To allocate authority and responsibility:

 Organization structure allocates authority and
responsibility.
 It specifies who is to direct whom and who is
accountable for what results.
 The structure helps the organization members to

16
know what his role is and how it relates to others role.
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 PURPOSE OF ORGANIZATION
(3) To locate decision centers:
 Organization structure determines the location of
decision making in the organization.

(4) To create proper balance:

 Organization structure creates the proper balance
and emphasis of activities.
 Those more critical to the enterprises success
might be placed higher in the organization.
 Activity of comparable importance might be
placed at the lower level.
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 PURPOSE OF
ORGANIZATION
(5) To stimulate creativity:
 organization stimulates independent, creative thinking
and initiative.

(6) To encourage growth:

 If the organization structure is flexible, it will help in
meeting challenges and creating opportunities for
growth.

(7) To make use of technological improvements:

 organization structure which is adoptable to changes can
make the best possible use of latest technology.
 It can modify the existing pattern of authority-
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responsibility relationships in the wake of technological
 PRINCIPLES OF
ORGANIZATION
In order to facilitate the achievement of
objectives, management thinkers have laid
down certain principles of organization.
The principles are guidelines for planning
organization structure.

 (1) Objectives: (2) Specialization: (3) Span of control:

 (4) Exception: (5) Scalar principle: (6) Unity of
command:
 (7) Delegation: (8) Responsibility: (9) Authority:
 (10) Efficiency: (11) Simplicity: (12) Flexibility:
 (13) Balance: (14) Unity of direction: (15) Personal
19 abilities: 11/21/2024
 PRINCIPLES OF
ORGANIZATION

(1) Objectives:
Objectives of the enterprise should be clearly
defined.
Every part of the organization and
organization as a whole should be geared to
the basic objective determined by the
enterprise.

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 PRINCIPLES OF
ORGANIZATION

(2) Specialization:
Effective organization must promote
specialization.
The activities of the enterprise should be
divided according to functions and assigned to
persons according to their specialization.

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 PRINCIPLES OF
ORGANIZATION
(3) Span of control:
A manager can directly supervise only a
limited number of executives.
Hence, it is necessary to have a proper
number of subordinates answerable to a
manager.
A maximum of six may be prescribed for this
purpose.

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 PRINCIPLES OF
ORGANIZATION
(4) Exception:
This principle requires that organization
structure should be so designed that
managers are required to go through the
exceptional matters only.
All the routine decisions should be taken by
subordinates, where as problems involving
unusual matters and policy decision should be
referred to higher levels.

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 PRINCIPLES OF
ORGANIZATION
(5) Scalar principle:
This is also known as chain of command.
There must be clear lines of authority running
from the top to the bottom.
Unbroken line of authority from top level to
bottom level.

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 PRINCIPLES OF
ORGANIZATION
(6) Unity of command:
Each subordinate should have only one
supervisor whose command he has to obey.
Dual subordination must be avoided, for it
causes uneasiness, disorder, and indiscipline.

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 PRINCIPLES OF
ORGANIZATION
(7) Delegation:
Proper authority should be delegated at the
lower levels of the organization also.

The authority delegated must be equal to

responsibility i.e., the manager should have
enough authority to accomplish the task
assigned to him.
Handle special problems ,co ordinating
and planning evmts.
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 PRINCIPLES OF
ORGANIZATION
(8) Responsibility: accountability
A superior should be held responsible for the
acts of his subordinates.

 No superior should be allowed to avoid

responsibility by delegating authority to his
subordinates.

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 PRINCIPLES OF
ORGANIZATION
(9) Authority:
Right and power to act.

The authority is the tool by which a manager

is able to accomplish the desired objective.
Hence, the authority of each manager must
be clearly defined.
The authority should be equal to
responsibility.

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 PRINCIPLES OF
ORGANIZATION
(10) Efficiency:
The organisation structure should enable the
enterprise to function efficiency.

The organization should be able to attain the

mission and objectives at the minimum cost.

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 PRINCIPLES OF
ORGANIZATION
(11) Simplicity:
The organization structure should be as
simple as possible with minimum number of
levels.
A large number of levels of organization
means difficulty of effective communication
and coordination.

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 PRINCIPLES OF
ORGANIZATION
(12) Flexibility:
The organization should be flexible, should be
adaptable to changing circumstances.
It should permit expansion and replacement
without dislocation and disruption of the basic
design.
A organization must avoid complicated
procedures and excessive complication of
control so that it may adapt itself easily and
economically to business and technical
changes.
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 PRINCIPLES OF
ORGANIZATION
(13) Balance:
There should be reasonable balance in the
size of various departments, between
centralization and decentralization, between
span of control and among all types of factors
such as human, Technical and financial.

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 PRINCIPLES OF
ORGANIZATION
(14) Unity of direction:
There must be one objective and one plan for
a group of activities having the same
objective.

Unity of direction facilitates unification and

coordination of activities at various levels.

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 PRINCIPLES OF
ORGANIZATION
(15) Personal abilities:
As organization is a formal group of people
there is need for proper selection, placement
and training.
Organization structure must ensure optimum
use of human resources.

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 DEPARTMENTATION
Horizontal differentiation of tasks or
activities into discrete segments is called
departmentation.
Departmentation involves grouping of
operating tasks into jobs, combining of jobs
into effective work group and combining of
groups into divisions often termed as
‘departments’.
The aim is to take advantages of division of
labour and specialization up to a certain
limit.
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 DEPARTMENTATION
1) Departmentation by functions:
2) Departmentation by product:
3) Departmentation by customers:
4) Departmentation by territory:
5) Departmentation by Process:
6) Departmentation by time:

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 1)Departmentation by functions:

This is the simplest and most commonly used

base for Departmentation.
Each major function of the enterprise is
grouped into a department.
For example there may be production,
finance, marketing and personnel department
in an organization .
All functions related to production are grouped
together to form production department,
similarly other departments are formed on the
basis of function.
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 1)Departmentation by functions:

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 1)Departmentation by functions:

Advantages
(1) It is simple and suitable for small
organization which manufactures limited
number of products.
(2) It promotes specialization.
(3) It leads to improve planning and control of
key functions.
(4) Manpower and other resources of the
company are effectively used.

39 11/21/2024
 1)Departmentation by functions:

Drawbacks
(1) It fosters sub-goal loyalty. Department goal
becomes important than organizational goal
resulting into interdepartmental conflicts.
(2) Difficult to set up specific accountability and
profit centers within functional departments
with the result that performance cannot be
accurately measured.
(3) It does not offer a good training for overall
development of a manager.

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 2)Departmentation by product:

This form is suited for a large organisation

manufacturing varity of products.
All activities related to a particular product
line may be grouped together under the
direction of a semiautonomous division
manager.
Several companies such as Godrej, TATA have
product based departments.

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 2)Departmentation by product:

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 2)Departmentation by products:

Advantages
(1) It focuses individual attention on each
product line.
(2) It leads to specialization of physical
facilities on the basis of product which results
in economy.
(3) It is easier to evaluate and compare the
performance of various product division and it
enables the top management to invest more
in profitable product groups.

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 2)Departmentation by products:
Drawbacks
(1) This form results in duplication of staff.
(2) Extra expenditure is incurred in
maintaining a sales force for each product.
(3) Employment of a large number of
managerial personnel is required.

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 3)Departmentation by customers:

This is used in the enterprises engaged in

providing specialized services to different classes
of customers.
Management groups the activities on the basis of
customers to cater to the requirements of clearly
defined customer groups.
For example, an automobile service company
may organize its departments as heavy vehicles
servicing division, car servicing division and
scooter servicing division
 Similarly an educational institute may have
departments for regular courses, evening and
45 corresponding courses etc. 11/21/2024
 4)Departmentation by territory:
Under this classification, the market area is
broken up into sales territories and a
responsible executive is put in-charge of each
territory.
The territory may be known as district,
division or region.
The field salesmen under respective regions
report to their corresponding sales
supervisors.
Banks, Railways and big manufacturing
companies like petroleum companies are
46
some example for this. 11/21/2024
 4)Departmentation by territory:
Advantages
1) Places responsibility at lower level.
2) Ensures a better coordination with in a
region.
3) Provides region wise comparison of
performance.
4) Takes advantage of economics of local
operations.

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 4)Departmentation by territory:
Disadvantage
1) Requires more person with general manager
abilities.
2) Requires to maintain similar functional
people at all region.
3) Difficult to control from top management.

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 4)Departmentation by territory:

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 5)Departmentation by Process:
Departmentation here, is done on the basis of
several discrete process or technologies
involved in the manufacture of a product.
For example, a vegetable oil company may
have separate departments for crushing,
refining and finishing.
A textile mill may have departments for
ginning, spinning, weaving and dyeing.
A work that would otherwise be done in
several different locations in an enterprise is
done in one place because of special
50
equipments used. 11/21/2024
 6)Departmentation by Time:
One of oldest forms of departmentation, generally
used at lower level of an organisation.

It is grouping of activities on the basis of time.

The use of shifts is common in some organistions due

to economical or technological reasons.

For service organisation like hospital, fire

department, security round the clock work is
essential.

51 All these call for shift work is essential. 11/21/2024

 6)Departmentation by Time:
Advantages:
1) Service can be rendered, that goes beyond
the normal 8 hour shift.
2) Facilities use of processes that cannot be
stopped or interrupted.
3) Expensive capital equipment can be better
utilized.
4) High and continuous production per day.

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 6)Departmentation by Time:
Disadvantages:
1) Lacks good and efficient supervision during
night shift.

2) Lack of effective coordination and

communication from people of one shift to
next shift.

3) Inconvenient for people to work in night

shifts and more difficult during shifts
changes from day to night.
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 TYPES OF ORGANIZATION
1) Lineorganisation.

2) Functional or stafforganisation

3) Line and stafforganisation.

4) Committeeorganisation

5) Matrixorganisation

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 TYPES OF ORGANIZATION
1) Line organisation
Line organization is the simple and oldest type
of organization and is also known of scalar or
military organization.
The line of authority flows vertically downward
from top to bottom throughout the organization.
The nquantum of authority is highest at the top
and reduces at each successive level.
The superior communicates his decision and
orders to his subordinates.
The subordinates, in turn, can communicate
them to those who are immediately under them.
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 TYPES OF ORGANIZATION
1) Line organisation
Three important principles of this system are

1) Command should be given to subordinate

through the immediate superior. There should be no
skipping of levels in chain of command.

2) There should be only one chain i.e, command

should be received from only one immediate
superior.

3) The number of subordinates whose work is directly

commanded by the superior should be limited.
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 TYPES OF ORGANIZATION
1) Line organisation

57 11/21/2024
 TYPES OF ORGANIZATION
1) Line organisation
Advantages
(1) Simple and easy to understand.
(2) Quick decision and speed of action.
(3) Clear division of authority and responsibility.
(4) Discipline and better coordination
(5) clear channel of communication.

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 TYPES OF ORGANIZATION
1) Line organisation
Disadvantages
(1) The organization is rigid and inflexible
(2) Being an autocratic system, managers may
become dictators and not leaders.
(3) due to task of specialisation there is more
wastage of material and man hour.
(4) Overload for few key executives.
(5) Lack of specialization.

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 TYPES OF ORGANIZATION
2) Functional Organization
The line organization does not provide specialists in
the structure.
Many jobs require specialized knowledge to perform
them. In functional organization the specialists are
made available in the top positions throughout the
enterprise.
Workers consult specialists in various areas to carry
out their work instead of referring to only boss.
Functional authority is the right which is delegated to
an individual or a department that authorizes control
of specified processes.
Functional authority remains confined to functional
60 guidance of different department. 11/21/2024
 TYPES OF ORGANIZATION
2) Functional Organization
 Under functional organization, various activities of the
enterprise are classified according to certain functions like
production, marketing, finance, personnel etc., and are put
under the charge of functional specialists.

 A functional in charge directs the subordinates throughout

the organization in his particular area of business operation.

 That means that subordinates receives orders and

instructions not from one superior but from several
functional specialists.

 For example personnel department would recruit, train and

61 deal with the people required to all other department.
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 TYPES OF ORGANIZATION
2) Functional Organization

62 11/21/2024
 TYPES OF ORGANIZATION
2) Functional Organization
 Advantages
(1) Specialization: Since a foreman is responsible for
only one function, he can perform his duties in better
manner and results better production rate at an improved
quality level.
(2) Cost reduction: Since for every operation expert
guidance is there, wastage of material, man and machine
hours are reduced.
(3) Mass production: This type of organisation helps
mass production through standardization and
specialization.
(4) No need for all round executives: A functional
manager is required to have expertise in one function
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only. This makes it easy for executive development.
 TYPES OF ORGANIZATION
2) Functional Organization
Disadvantages
(1) Violates principles of unity of command.
(2) The operation of functional organization is
too complicated.
(3) It develops specialists rather than
generalists.
(4) Lack of coordination among functional
executives which delays decision making.

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 TYPES OF ORGANIZATION
3) Line and Staff Organization
In order to reap the advantages of both line organization and
functional organization, a new type of organization is
developed i.e., line and staff organization.

In line and staff organization, the line authority remains the
same as it does in the line organization.

In addition, the specialists are attached to line managers to

advice them on important matters.

They were known as ‘staff’ as they were recruited to perform

staff or specialist function.

These specialists stand ready with their speciality to serve

line men and to give help which will enable the line officials
65 11/21/2024
to carryout their activity better.
 TYPES OF ORGANIZATION
3) Line and Staff
Organization
 The function of people in a pure staff capacity is to
investigate, research and give advice to line manager to
whom they report.

 The final decision to accept/implement the

recommendation of the staff executives remains in the
hands of the line executive.

 Staff officers are assigned an ‘authority of ideas’ and line

officers an ‘authority of command’ i.e., the line
executives function is to act, the staff executive function
is to think.

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 A staff officer’s job is to advice and not to command, then
 TYPES OF ORGANIZATION
3) Line and Staff
Organization
Line and staff structure has gained popularity
because certain problems of management
have become very complex and, in order to
deal with them, expert knowledge is
necessary which can be provided by the staff
officers.

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 TYPES OF ORGANIZATION
3) Line and Staff
Organization

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 TYPES OF ORGANIZATION
3) Line and Staff Organization
Advantages.
 Specialized knowledge: Line managers get the
benefit of specialized knowledge of staff
specialists at various levels.
 Reduction of burden: Staff specialists relieve
the line managers of the botheration of
concentrating on specialized functions like
accounting, selection and training, public
relations, etc.

 Proper weightage: Many problems that are

ignored or poorly handled in the line organization
can be properly covered in the line and staff
69 organization
ECE,MITE by the use of staff specialists. 11/21/2024
 TYPES OF ORGANIZATION
3) Line and Staff
Organization
Advantages.
 Flexibility. Line and staff organization is more flexible as
compared to the line organization.
 General staff can be employed to help line managers at
various levels.

 Unity of command. Under this system, the experts provide

special guidance without giving orders.
 It is the line manager who only has got the right to give orders.
 The result is that the enterprises takes advantage of functional
organization while maintaining the unity of command i.e., one
subordinate receiving orders from one boss only.

70 ECE,MITE 11/21/2024
 TYPES OF ORGANIZATION
3) Line and Staff
Organization
Disadvantages
1. There is generally a conflict between the line and
staff executives.

2. The allocation of duties between the line and staff

executives is generally not very clear. This may
hamper coordination in the organization.

3. There is a wide difference between the orientation

of the line and staff men. Line executives’ deals
with problems in a more practical manner. But
staff officials who are specialists in their fields
71 tend to be more theoretical.
ECE,MITE 11/21/2024
 TYPES OF ORGANIZATION
4) Committee Organization
• Some of the adminstarive tasks cannot be
performed by a single person alone.
• Such sitiuation may call for two or more person to
perform such tasks. This calls for a committee
organisation.
 “A committee is a group of persons performing a
group task with the object of solving certain
problems”.
 Committees help in taking corrective decision,
coordinating the affairs of different departments
and meeting communication requirements in the
72 organization.
ECE,MITE 11/21/2024
 TYPES OF ORGANIZATION
4) Committee Organization
 The committees may be of different types as
follows.
1)Ad-hoc committee: It is a temporary committee
formed for a short period to solve a minor
problem.
 For eg: a committee to decide the date and
venue of annual general body meeting.
2)Standing or Permanent committee: Such
committees is formed to solve problems which is
repetitive in nature.
 Eg: Disciplinary committee to solve discipline
related issues of individual workers from time to
73 ECE,MITE 11/21/2024
time.
 TYPES OF ORGANIZATION
4) Committee Organization
3)Advisory committee: This committee studies the
various aspects of a problem and suggests courses of
action to the management thus reducing its burden.
An advisory committee does not have power to act.
 For eg: a committee in a manufacturing industry
studying the feasibility in going for modernization of
the plant.

4)Educational committee: this is a committee which

guards the company policies and procedures. They
often educate and give an insight to the management
about the goals of the organisation whenever there is
confusion.
74 ECE,MITE 11/21/2024
 TYPES OF ORGANIZATION
4) Committee Organization
Characteristics of a committee
1. The number of members in a committee should
be a minimum( 3 to 8).
2. An agenda has to be prepared by the chairman
of the committee well in advance of meeting
and circulated among the members so that they
get sufficient time to think over the problem to
be discussed.
3. The duties, authority and responsibility of the
committee must be clearly defined.
4. The chairman must have enough authority to
efficiently conduct the meeting.
5. Problems which can be solved by individuals
75 should not be included in the agenda of the
ECE,MITE 11/21/2024
committee.
 TYPES OF ORGANIZATION
4) Committee Organization
 Advantages
(1) Committees provide a forum for the pooling of
knowledge and experience of many persons of different
skills, ages and backgrounds.

(2) It helps in throwing up new ideas, innovation and new

schemes.

(3) Committees are impersonal in action and hence their

decisions are generally unbiased and are based on facts.

(4) When departmental heads are members of committee,

people get an opportunity to understand each others
76 problems
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 TYPES OF ORGANIZATION
4) Committee Organization
 Disadvantages
1) Sometimes a committee may take a week or
two to arrive at a decision.
2) In a committee, no individual can be held
responsible for anything.
3) Final decision may not be fully acceptable to
everyone on the committee.
4) Very often aggressive members in the
committee may influence the final decision.
5) Committee meeting get postponed often when
key members are absent.
77 ECE,MITE 11/21/2024
 TYPES OF ORGANIZATION
5) Matrix organisation
 There are several departments under matrix
organisation.
 Each department is assigned with a specific task
or project.
 The available resources can be effectively used by
each department with the coordination of other
departments.
 Matrix organisation is used when an organisation
has to handle different projects but all using same
set of resources.
 This type of organisation is best suited where
large number of small project are to be managed.
78 ECE,MITE 11/21/2024
 TYPES OF ORGANIZATION
5) Matrix organisation
 For the matrix organisation to function effectively,
the following condition should prevail.

1) Scalar chin of command is not followed. A

project manager will give reports to several
superiors.
2) The physical, financial and human resources are
to be shared by people of different projects in a
cooperative way.
3) Sharing of resources may lead to conflicts if not
understood each other properly.
79 ECE,MITE 11/21/2024
 TYPES OF ORGANIZATION
5) Matrix organisation

The manager of each project share the resources of the different engineerin
80 Department.
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 TYPES OF ORGANIZATION
5) Matrix organisation
 Advantages.
1) Organisation structure is very flexible.

2) The cost of project is reduced because of shring

of man power and other resources.

3) Organisation is oriented towards end results.

4) Responsibility of each project is clearly defined

and fixed with respective project manager, who
control the project from start to finish.
81 ECE,MITE 11/21/2024
 TYPES OF ORGANIZATION
5) Matrix organisation
 Disadvantages.
1) Chances of conflicts in organisation authority
exists.

2) Lack of unity of command in organisation.

3) Some times resources may not available owing

to other priority projects.
4) Requires extreme planning for optimum
utilization of resources.
5) Since too many supervisors controlling the
82 activity, work may be delayed.
ECE,MITE 11/21/2024
 SPAN OF CONTROL
 The span of control indicates the number of
subordinates who can be successfully directed by a
supervisor.
 It is often referred to as span of management, span of
supervision, span of authority.
 Span of management is important because of two
reasons.
 First is span of management affects the efficient
utilization of managers and the effective performance
of the subordinates.
 If the span is too wide, managers are overburdened
and subordinates receive little guidance.
 If the span of management is too narrow, the
managers
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are under utilized and subordinates are
83 11/21/2024
over controlled.
 SPAN OF CONTROL
A narrow span results in tall organization with
many levels of supervision between top
management and lowest organizational levels
which creates more communication and cost
problems.
On the other hand, a wide span for the same
number of employees results in flat
organization with fewer management levels
between top and bottom.

84 ECE,MITE 11/21/2024
 SPAN OF CONTROL

85 ECE,MITE 11/21/2024
 SPAN OF CONTROL
 Factors Affecting the Span of Management

(1) Ability of the manager: Some managers are

more capable than others and hence can handle a
large number of subordinates.
(2) Ability of the employees: If employees are
more competent, less attention from the managers
is required and a larger span of management can
be used.
(3) Type of work: If employees are doing similar
jobs, the span of management can be large. If their
jobs are quite different, a small span may be
necessary.
86 ECE,MITE 11/21/2024
 SPAN OF CONTROL
 Factors Affecting the Span of Management
(4) Geographic location: If all subordinates are
located at the same place span of management
can be large. If subordinates are geographically
distributed, a lower span is essential.
(5) Well-defined authority and responsibility:
Clear-cut authority and responsibility helps a
manager to supervise large number of
subordinates.
(6) Economic considerations: Narrow the span,
taller is the structure is more is the cost. On the
other hand, wider span reduces the number of
levels and cost.
87 ECE,MITE 11/21/2024
 SPAN OF CONTROL
 Advantage of a narrow span of control are
1. Tight control and close supervision of work are
possible.
2. Personal attention can be given to the overall
development of each worker.
3. Availability of time to think and act.

Advantage of a wider span of control are

4. Organisation structure can be made simpler if
more workers come under each manager.
5. Saving salaries because less number of
manager.
88
Absence of over-supervision of worker.
6. ECE,MITE 11/21/2024
 SPAN OF CONTROL
 Disadvantage of a narrow span of control are
1. Superior too much involved in subordinates
work.
2. High cost due to many levels of management.
3. Excessive distance between lower level and top
level.

Disadvantage of a wider span of control are

4. Tendency of overloading superior to become
decision bottle necks
5. Danger of superior’s loss of control.
6. Requires managers with exceptional qualities.
89 ECE,MITE 11/21/2024
 1)Management by
objectives(MBO).
The concepts of Management by objectives
was first introduced by Peter Drucker in 1954.
In order to obtain the best result, the
management must be driven by clear cut
objectives from highest level to the lowest
level in the organisation.
Objectives are nothing but desired end result
of the management.
Objectives are target of the organisation.

90 ECE,MITE 11/21/2024
 1)Management by
objectives(MBO).
The performance of all employees in the
organisation are measured directly against the
achievement of those activities.
The actual result achieved are measured
directly against the expected result which
each manager is responsible for.
MBO is a result oriented approach to the
management and therefore is also called as
“Management by result”

91 ECE,MITE 11/21/2024
 1)Management by
objectives(MBO).
MBO is a process wherein the superior and
subordinate manager of organisation come
together jointly
1) Identify the common goals
2) Define each individual’s responsibility and
the results expected of him
3) Assess the contribution of each member as
against the expected results and analyses
the reason for any failure.

92 ECE,MITE 11/21/2024
 1)Management by objectives(MBO).
 Types of objectives.
 (1) Short term objectives: Those which are to be
achieved by the organisation in immediate future eg., Work
which is running behind schedule.

 (2) Long term objectives: These are aimed to be

achieved over a long period of time say 5 t0 10 years.

 (3)tangible objectives: Objectives which can be

quantified in number are tangible objectives. Eg., No of
cars rolling out of the plant.

 (4) Intangible objectives: Objectives which cannot be

quantified but are qualitative in nature are called intangible
93 ECE,MITE 11/21/2024
objectives. eg.,satisfaction level of customer in a bank
 1)Management by objectives(MBO).
 Basis of objectives
1) Objectives must be reasonable and fair to the working
capabilities of all department.
2) Objectives should be specific rather than being
general.
3) Objectives must be specified in all areas on which the
survival of the business depends.
4) Objectives should be clearly defined and
communicated to all.
5) It is better to have multiple objectives than a single
objectives.
6) Objectives must take government rules and regulation
, taxes, restriction, price control etc into consideration.
7) Objectives have to be reviewed from time to time.
94 ECE,MITE 11/21/2024
 1)Management by objectives(MBO).
 Steps of process of MBO
1) Step 1 : The objectives of the whole organisation are established.

2) Step 2: A proper organisation structure is selected or the existing one

is revised to suit the needs.

3) Step 3 : Goals are set for each department.

4) Step 4: In each department superiors and subordinates discuss and

set goals to each subordinate and his juniors.

5) Step 5: The points at which every performance is checked and

compared.

6) Step 6: The performance of each individual is appraised by his

immediate boss.

7) Step 7: Corrective measures are taken in case of any deviation at any

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level
 1)Management by objectives(MBO).
 Advantage of MBO
1) End result: the performance of every individual is evaluated in
terms of the end result as agreed between the superior and
subordinate.
2) Better relationship: MBO leads to greater satisfaction, more
agreement, greater comfort and less tension between superior
and subordinates.
3) Co ordination: It coordinates the efforts of various
departments of an organisation.
4) Direction: MBO keeps company objectives and target
constantly in view.
5) Weak links: By its result oriented approach, MBO helps in
identifying the weak link in the organisation.
6) Short term & Long term goals: MBO forces the management
to think ahead with respect to its short term goals and long term
goals.
7) Reduced wastage: It prevents wasted efforts and unnecessary
96 ECE,MITE 11/21/2024
expenditures.
 1)Management by objectives(MBO).

 Disadvantage of MBO
 No flexibility: Measuring the performance of every
individual only with respect to the end result makes MBO too
rigid and without human values.

 Difficulty in setting objectives: Intangible objectives are

difficult to set and difficult to all levels.

 Lack of skills: Manager should have enough skills to

realistically set the objectives for his subordinates.

 MBO Philosophy: For MBO to succeed every individual must

understand the philosophy and underlying principles of MBO.

 Insecurity: Employment always feel insecure because they

97 ECE,MITE 11/21/2024
are evaluated always against the end result.
 2)Management by Exception(MBE).

The principle of “ Management by exception” was

first proposed by F.W Taylor in 1919.
According to this principle, only unusual and
exceptional deviation in daily routines of the factory
should be brought to the management notice.
All normal work going on as per schedule and as per
plans need not be brought to the manager’s
attention.
But if there is major deviation from standard, it
should be reported to the manager.
Thus MBE is a systematic approach to handle the
problems in such a way that the manager is
relieved from demands of routine work which can be
98 handled
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 2)Management by Exception(MBE).

 Advantages
1) Managers would save time, efforts and their
talents and would rather apply these to more
important areas
2) Easier identification of problem areas in the
organisation.
3) Management by exception increases span of
control.
4) Critical problems are separated from non critical
problems.
5) It provides an opportunity to subordinates for
using their talents to solve less critical problems.
6) It prevents management from over managing
99 their workers.
ECE,MITE 11/21/2024
 2)Management by Exception(MBE).

Disadvantages
1) Subordinate may misuse the authority given
to them.
2) Worker may not work properly if there is
less supervision from superior.
3) A minor problems today could be a major
problem tomorrow. If a minor problem is not
judged properly by subordinates, it may
grow into huge one by the time it comes to
notice of the manager.

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0
 STAFFING
“Staffing is the process of attracting and
devoloping human resources to work for an
organisation and also to evaluate them in their
work”.

It is now recognized as a separate management

function.

Today the staffing function has assumed greater

importance because of rapid advancement of
technology, increasing the size of the organization
10 and complex behavior of human beings.
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1
 STAFFING
 The organization structure spells out various positions of the
organization.
 Filling and keeping these positions with right people is the
staffing phase of the management function.
The staffing function performs the following sub
functions:
 (1)Manpower planning.
 (2) Recruitment of employees.
 (3) Selection of the best qualified from those who
seeks job
 (4) Training and Development.
 (5) Decision on remuneration packages.
 (6) Performance appraisal .
10 ECE,MITE 11/21/2024
2  (7) Promotion and transfer.
 STAFFING
 In any organizations have separate department
known as personnel department or human
resource (HR Dept.) department to perform
staffing function.

 They are all time involved in determining what

personnel are needed in what quantity and of
what quality.

 Staffing is a development oriented function as it

tries to maintain and develop employees through
appropriate training and compensation program
10 ECE,MITE 11/21/2024
3
 STAFFING
 Nature or features of staffing
(1) Staffing is a continuous process:
Staffing is a continuous process because the
employees leave the organisation for a number of
reasons. Also to meet the need of an organisation, fresh
recruitment has to be done from time to time.
(2) Staffing involves people:
Staffing involves people and hence it is the most
difficult job. Russi Mody once admitted that among 5 M’s
of the management( men,money, material, machines
and methods) , Men who are the most difficult to handle.
(3) Staffing is development oriented.
It aims at developing and orienting people to the needs
of the company through appropriate training programs.
10 ECE,MITE 11/21/2024
4
 STAFFING
 Nature or features of staffing
(4) Staffing involves multidisciplinary knowledge.
Staffing as a function makes use of information drawn
from various branches of knowledge such as
psychology, sociology, economics etc.

(5) Staffing is step by step process.

Staffing has to be done in step by step process in
order order to be meaningful. It takes time and
immense patience on the part of people involved in
staffing.
Various steps involved in staffing are human resource
planning, recruitment, selection, placement, training,
and development, remuneration, performance
ECE,MITE
10 11/21/2024
5 appraisal, promotion, transfer, retirement etc
 RECRUITMENT
“Recruitment is the process of identifying the
sources for prospective candidates and to
stimulate them to apply for the jobs”.
It is a linking activity that brings together
those
offering jobs and those seeking jobs.
• Recruitment enables management to select
suitable employees for its different job.
• The various sources of recruitment are divided
into two categories:
(1) Internal Sources.
10 (2) External Sources.
ECE,MITE 11/21/2024
6
 RECRUITMENT
(1) Internal Sources.
 Internal sources involve transfer and
promotion.
Transfer involves the shifting of an employee
from one job to another.
Many companies follow the practice of filling
higher jobs by promoting employees who are
considered fit for such positions.
Filling higher positions by promotion
motivates employees.

10 ECE,MITE 11/21/2024
7
 RECRUITMENT
Advantage of recruitment from Internal
Sources.
1) It provide them to develop financially.
2)Employees from within the organisaton
adjust to new positions much faster than
employees from outside.
3) This method is less time consuming and
less expensive.
4) It encourages employees to work harder in
order to attract promotions and generates
higher motivation levels.
10 ECE,MITE 11/21/2024
8
 RECRUITMENT
Disadvantage of recruitment from Internal
Sources.
1) It may not be possible to find the required
talent, skill from within the organisation.

2) There may be a limited choice for promotion.

3) No chance for new ideas and talents to flow

into the organisation.

4) Employees who are not successful in getting

10 promoted get de motivated.
ECE,MITE 11/21/2024
9
 RECRUITMENT
(2) External Sources
(1) Direct recruitment: An important source
of recruitment is direct recruitment by placing
a notice on the notice board of the enterprise
by specifying the details of the jobs available.
This is also known as recruitment at factory
gate.

(2) Voluntary or walk in applicant: Many

qualified persons apply for employment to
reputed companies on their own initiative.

11 ECE,MITE 11/21/2024
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 RECRUITMENT
(2) External Sources
 (3) Advertising: Advertisement in newspapers,
employment news, trade and professional journals,
internet etc., help to get prospective employees
having suitable skills and qualification.
 This helps in informing the candidates spread over
different parts of the country.
 The advertisement contains information about the
company, job description, and job specialization
etc.

 (4) Labour unions: Labour unions also supply

workers to the factory for employment. This
11 ECE,MITE 11/21/2024
1 method of employment has also lost its popularity.
 RECRUITMENT
(2) External Sources

 (5) Employment agencies: Many organisations

these days entrust their manpower requirements
to private agencies devoted to recruitment thus
saving vital time effort.
 (6) Recommendations: Applicants introduced by
friends, relatives and employees of the
organization may prove to be a good source of
recruitment.
 Many employers prefer to take such persons
because something about their background is
known.
11 ECE,MITE 11/21/2024
2
 RECRUITMENT
(2) External Sources

 (7) Campus interview: Many industries visit

engineering colleges, polytechnics and other
institution to conduct campus interviews in order
to recruit fresh employees.

11 ECE,MITE 11/21/2024
3
 SELECTION
 Selection of candidates start after the completion of
the recruitment process.

 Selection is the process of picking out few suitable

persons from large number who have applied for the
job and thus eliminating the rest.

 The process of selection leads to employment of

persons having the ability and qualifications to perform
the jobs which have fallen vacant in an organization.

 In order to achieve this purpose, a well, organized

selection procedure involves many steps and at each
step more and more information is obtained about the
11 ECE,MITE 11/21/2024
4 candidates.
 SELECTION
 Steps involved in selection procedure are
 (1) Receipt of applications:
 Whenever there is vacancy, it is advertised or enquires
are made from suitable sources and applications in
standard form are received from the candidates.
 The applications give preliminary idea of the
candidates
 like family background , age , qualifications,
experience etc.,
 Standard forms make the application processing very
easy.
 Candidates who do not posses the required
qualification are eliminated and others are called for
preliminary
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interview.
11 11/21/2024
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 SELECTION
 Steps involved in selection procedure are
 (2) Preliminary interview
 The purpose of preliminary interview is to
eliminate unfit, unqualified and less qualified
applicants.

 Preliminary interview are brief and give a general

idea about candidates education, experience,
appearance, personality and salary requirement of
the candidate.

11 ECE,MITE 11/21/2024
6
 SELECTION
 Steps involved in selection procedure are
 (3) Employment Tests
 Candidates who pass the preliminary interview are asked to
appear for selection tests.
 Tests are conduct to measure the skills and abilities of
candidates in detail.
(1) Proficiency tests: To measure the knowledge and
proficiency in the areas already claimed in the application
form.
(2) Aptitude tests: Aptitude tests consists of
(a) Intelligence test
(b) Attitude test
(c) Interest test

11
(3) Personality
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7 spontaneity, ability to meet stressful situation etc
 SELECTION
 Steps involved in selection procedure are
(4) Group Discussion
 In this test, candidates are assembled in small
groups and general topic of current interest is
given for discussion.

 This test gives an idea about candidates

communication skills, general awareness, ability
to contribute in team and ability to command the
attention of others and so on.

11 ECE,MITE 11/21/2024
8
 SELECTION
 Steps involved in selection procedure are
 (5) Final interview
 The employment tests do not provide the complete
set of information about the candidate.
 Interview may be used to secure more information
about the candidate.
 The main purpose of interview is to find out the
suitability of the candidate, to seek more information
about the candidate, to give an accurate picture of
the job with details of terms and conditions.
 In addition, interview help to check the information
given by the applicant in the application and to
assess the capability and personality of the
11 applicant.
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9
 SELECTION
 Steps involved in selection procedure are
 (6) Checking references.
 This is one of the last steps before candidate is
offered a job in the organisation.

 An investigation is made on the reference given

by candidates regarding his past employment,
education, character, personal reputation etc

12 ECE,MITE 11/21/2024
0
 SELECTION
 Steps involved in selection procedure are
(7) Medical examination.
 A thorough medical check up of candidate is
carried out prior to placement.

(8)Final selection:
 After a candidate has cleared all the hurdles in the
selection procedure, he is formally appointed by
issuing him an appointment letter or by
concluding with him a service agreement.
 The appointment letter contains the terms and
conditions of employment, pay scale and other
12
benefits
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1
 Authority and Responsibility
According to Henri Fayol authority is defined
as “The right to give order and compel his
subordinates to perform certain task”
The term authority refers to the rights
conferred on a person to order his
subordinates.
In an organisation, appropriate authority is
given to a particular person on his position on
hierarchy.
Each manager is given degree of authority in
12
2
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 Authority and Responsibility

Without required authority, a manager may

find it difficult to exercise power and work
effectively in an organisation.

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3
 Responsibility
 Just an authority is the right of a superior to issue commands;
responsibility is the obligation of a subordinate to obey those
commands.

 When a superior assigns some work to subordinates, it becomes

his responsibility to perform it.

 Responsibility is divided into two parts namely operating

responsibility and ultimate responsibility.

 The subordinates assumes only operating responsibility and

superior retains ultimate responsibility.

 If the subordinate fails to perform the job (operating
responsibilities) the superior is held responsible for thisfailure
12 ECE,MITE 11/21/2024
4 (Ultimate responsibility)
 Responsibility
Responsibility may be specific or continuing.

It is specific when on being discharged by a

subordinate, it does not arise again.

The responsibility of a foreman is continuing

nature.

The more authority a person gets, the more

responsibility he will have to carry.

12 Authority
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should equal responsibility. 11/21/2024
5
 DELEGATION OF AUTHORITY
A manager in an enterprise cannot do all the
tasks necessary for the accomplishment of
group goals.
He therefore assigns same part of his work to
his subordinates and grants them necessary
authority to make decisions.
This downward pushing of authority to make
decisions is known as “delegation of
authority”.
The delegating manager always retains the
overall authority which was assigned to him to
ECE,MITE
12
6 perform his functions. 11/21/2024
 DELEGATION OF AUTHORITY
Advantages of delegation of authority.
(1) It relieves the manager of his heavy work
load.
(2) It leads to better decision. This is because,
the subordinates are closest to the situation
and have the best view of the facts, are in
better positions to make decision.
(3) It speeds up decision-making.
(4) It helps to train the subordinates and builds
moral.
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 Authority Responsibility

Authority refers to the power to Responsibility refers to

command accountability for actions.

Authority comes with the position Responsibility matches the

in organisation. authority conferred on any
position

Authority can be delegated Responsibility can never be

delegated.
Authority is the right to give order Responsibility may be defined as
and power to take obedience. the obligation to perform
assigned duties.

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 CENTRALIZATION AND DECENTRALIZATION
 Centralisation refers to the extent to which decision
making process rests with the top management.

 If the top management makes all the important

decision in the organisation with little or no
participation from the lower level employees, then
the organisation is said to be a highly centralized
orgainsation.

 Everything that goes to reduce the subordinate’s

role in decision making is centralization.

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 CENTRALIZATION AND DECENTRALIZATION
 If the organisation encourages lower level personnel to
participate in the decision making process by giving them
greater freedom, the organisation is called a decentralized
organisation.

 In decentralized setup, ultimate authority to command

and ultimate responsibility for the results is localized as
far down in the organization.

 According to Allen “Decentralization refers to the

systematic effort to delegate to the lower levels all
authority except that which can only be exercised at
central points”.
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 CENTRALIZATION AND DECENTRALIZATION
Advantages in decentralization:
(1) It eases the burden of top level managers.
(2) Decentralization permits quicker and better
decision making.
(3) With decentralization capable managers can
be developed
(4) Promotes participation in decision making
and improves morale and motivation.

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

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 Centralization De centralization

1)Centralization is preferred if Decentralization is preferred if

experience is concentrated at the experience is spread over the
top level hierarchy.

2)This is more stable in simple This is more appropriate in

and stable organisation complex and uncertain
organisation
3)This is preferred if the lower This is preferred if the lower level
level managers are not managers are competent to take
competent enough to take decision.
decision.
4)Centralization is needed if the It is better if the decisions taken
decision to be taken are are insignificant and relatively
significant minor ones.

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 Centralization De centralization

5)Organisation tends to be Organisation tend to be de

centralized if the environment is centralized if environment is free
threatening and distrustful and friendly

6)Centralization is better in single Decentralization is better in multi

location facilities. location facilities.

7)If the minds of top If the minds of top management

management is more autocratic, is more democratic, it leads to
it leads to more centralization. more decentralization.

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 Questions
1.Describe the departmentalisation based on functions
with its and demerits. 6marks, dec/jan
2015
2. Explain the advantages of delegation of authority.
6marks, dec/jan 2015
3. Explain the various sources of recruitment.
8marks, dec/jan 2015
4. What does organization mean? Explain any four
types of organizations. 10marks, june/july 2014
5. discuss the meaning, importance and factors
governing the span of management. 10marks,
june/july 2014

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 Questions

6. Briefly explain the principles of organization.

(10Marks)
7. Determine the process of selection and
recruitment process.
(10Marks)
8. Briefly Explain the Departmentation.
(10Marks)
9. Classify the types of organization.
(10Marks)
10. Explain the Following
(10Marks)
i)MBO
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6 ii) Centralization Vs Decentralization
 Directing and
Controlling
Unit 4

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 Learning Objectives:
Explain the meaning of direction and
requirements of effective direction.
 describe orders and the principles to be
followed in giving orders.
Discuss the meaning, nature and process of
motivation
Analyse the important content, process and
reinforcement in motivation theories.
Describe the characteristics of leadership
Examine the situational forces determining
the choice of leadership style
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LESSON PLAN
Sl TOPIC Date Date Remar
no planne engage ks
d d
1 Meaning and nature of
directing
2 leadership styles
3 motivation ,
communication
4 meaning and importance
and techniques of
coordination
5 meaning and steps in
controlling – essentials of a
sound control system
6 methods of establishing
control
 DEFINITION OF DIRECTING
Directing is defined as telling people what
to do and seeing that they do it for the best
of their ability.
Directing is that function through which
managers gets the work done from others.
Thus directing function includes three
important components:
 communicating
 leading and
motivating.

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 LEADERSHIP
Thus most important features of leadership are:
 Leaders possess great influential power.
 Leaders, have followers and they influence the behaviour
of followers.
 There is a reciprocal relationship between leaders and
followers.
 Leaders have a great vision for future.
 Leaders create a shared vision among followers and
direct them to work towards the achievement of common
goals. .
 Leaders are sensitive towards the needs of followers and
they motivate followers.
 Leadership is situational and effectiveness of leaders is
influenced by situational
 variables like environment, interpersonal relationship, job
content, group relations, size of group, group norms etc.
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 Importance of Leadership
Leadership is the most important
component of managing process.
 A manager can be efficient and effective
only if he is a good leader.
a. Leaders guide and inspire
subordinates:
Leaders motivate their followers and guide
them towards accomplishment of group
goals which inturn contributes to the
accomplishment of organizational goals.

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 Importance of Leadership
b. Leaders build good work environment:
Leaders create a work environment in which
employees can contribute by performing to the best
of their abilities. The environment creates a
relationship based on trust.
e. Leaders build confidence in followers:
Leaders recognize abilities of their followers and
encourage them to develop to their potential by
building confidence in them.
d. Leaders secure cooperation from the group:
Leaders influences the group members in such a
way that all the members work collectively towards
group objectives and thus instill cooperation among
all members.
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 Importance of Leadership
e. Leaders act as change agents:
 organizations operate in an environment which is
subjected to continuous changes, and if the
organizations do not respond to these changes, then
survival of the organizations may be difficult.
 But organizational members resist any changes, as
they are accustomed to particular methods of work.
 It requires great leadership to reduce the resistance
to change and convince the employees to accept the
change.
 Thus leaders act as change agents of the
organization and helps in implementing successful
positive changes in the organization.

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 Importance of Leadership
f. Leaders are representatives of the
followers: On one hand leaders direct the
employees of the organization, but on the
other hand they are also representatives of
their followers. They always take personal
interest in helping their followers and protect
the interests of the followers while taking any
major organizational decisions.
g. Leaders develop great vision: Leaders
are known for their great vision and they
develop the vision for building great
organizations.

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 MOTIVATION
Motivation is the process of stimulating
people to action to accomplish desired
goals.
 Motivation represents inner drive within
an individual which directs him to
behave in specific way.
 Only highly motivated employees can
achieve the goals of an organization.

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 MOTIVATION
Motivation is also defined as the one which
accounts for direction, intensity and persistence
of efforts towards achievement of goal.
Direction refers to quality of efforts, and if efforts
are not channelized in proper direction they may
not yield expected results.
 Intensity of efforts refers to how hard an
individual puts efforts.
 Persistence refers to sustenance of efforts till the
achievement of goals.
 Motivated individuals put same intensity of
efforts till they achieve the goals.

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 Importance of Motivation
 Highly motivated workforce is absolutely essential for
any organization to achieve its objectives.
 Management basically aims at optimum utilization of
various resources of the organization.
 These resources are human resources, financial
resources, and physical resources like materials, tools,
machines, equipments etc.
 All these resources are very precious and they cannot
be wasted.
 Use of financial and physical resources always
depends on human resources and thus only motivated
employees can effectively convert financial and
physicaJ resources into useful products and services.

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 Importance of Motivation
 Motivation results in desirable behaviour of employees.
 These behaviours are essential for implementation of
organizational plans successfully.
 Thus successful achievement of goals not only depends
on good plans but also on motivated workforce.

 Individuals may possess abilities or skills to perform a task

effectively and efficiently. But translation of these abilities
into actual performance will depend on their willingness to
do the task. This inturn will depend on his or her
motivation. Motivation thus bridges the gap between
ability to work and willingness to perform. Hence
motivation is essential for effectiveness and efficiency.

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 Importance of Motivation
Motivation is an important factor which
contributes to employee retention and
building a stable workforce.
Motivation brings down number of
employee grievances and complaints.
 Active involvement of employees in
whatever task they do will also brings down
any chances of accidents and losses
resulting out of accidents.
 Highly motivated workforce can produce
best quality of products and services. This
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 COMMUNICATION
The source or sender or communicator:
Communication process starts with sender.
Sender is the person who has an intended
message to convey to some one. He has the
purpose of communicating information or
message to one or more persons.
Encoding: Encoding means putting
message into a code. Encoding is the process
of translating message into a form which can
be understood by the receiver. It can be in
the form of oral, written or symbols.

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 Types of Communication
Formal and Informal Communication
Formal communication is officially accepted
communication in the organization and it uses
official channel for transmitting messages.
It follows official route for flow of communication
between various people in the organization.
 Commands, instruction, orders flowing from top
level to lower level, messages for coordination
between people at same level, suggestions from
people at different levels, requisitions from lower
level to higher level etc represent formal
communication.

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 Types of Communication
Formal and Informal Communication
Informal communication is that
communication which is not officially
accepted part of the communication in an
organization.
It does not adhere to the organizational
hierarchy. Informal communication is based
on the informal relationship among the
organizational members.

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 Types of Communication
Oral and Written Communication
 Oral communication is face to face interpersonal
communication between individuals.
 Message is exchanged through word of mouth
i.e. it is exchanged through spoken words.
 Written communication is transmitted through
written document in the form of letters,
circulars, memos, reports, manuals etc.
 It is the most popular mode of formal
communication and it is very widely used.
 It creates a permanent and verifiable document
which serves as proof for communication
process.

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 Types of Communication
Merits of oral communication .
 It is very quick and saves time.
 Direct contact establishes personal touch and hence it
is more effective.
 Message can be transmitted to large number of people
at the same time (through speech).
 Easy to understand and scope for immediate feedback.
 Chances of misinterpretation are minimum.
Demerits :
There is no recorded proof for message and hence fixing
responsibility for both sender and receiver is difficult.
Keeping attention of receiver is difficult when messages
are lengthy. . Requires good oratory skills.

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 Types of Communication
Non Verbal Communication or Body Language
Non verbal communication refers to messages sent
through human actions and behaviours rather than
words.
We generally use body language in the form of
facial expressions,
body positions, gestures, eye contact, posture,
silence, etc to convey different messages.
Body language is also a very powerful in conveying
messages.
Research has proved that non verbal cues are more
impact on message interpretation than actual
spoken words.
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 Types of Communication
Vertical and Horizontal Communication
Communication is said be vertical when messages
flow from one hierarchy level to another.
 Vertical communication can be downward or
upward.
 Downward communication starts from top
management and flows down to lower level through
different hierarchy levels.
Downward communication is used to give orders,
instructions, ihform procedures, inform organization
goals etc.
 Job instruction sheets, circulars, memos, orders, etc
are examples for downward communication.
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 Types of Communication
Vertical and Horizontal Communication
Upwards communication flows from lower
level to top management and it provides
top management information about what is
happening at lower levels.
 But upward communication is used more
when managers use open door policy and
encourage subordinates to share
information.
Examples for upward communication
include requests, applications, reports,
15
suggestions
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 Types of Communication
Vertical and Horizontal Communication
Horizontal communication refers to
exchange of information between two
people at same hierarchy level or peer
level.
For example information exchanged
between two departmental heads of an
organization, a production engineer
informing a maintenance engineer about
breakdown of a machine etc.
 It is also called as lateral communication.

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 COORDINATION
 Coordination is the process of integration or
synchronization of the interdepartmental
efforts of individuals in order to attain common
goals.
 For example coordination between various
departments like production, marketing,
purchase, quality, human resource
management, finance etc are very important
for smooth functioning of the organization.
 Coordination helps in unifying efforts of all
these departments and achieving the common
organizational objectives.

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 Need of Coordination
Coordination is very much essential due to
following reasons.
Organizations 'are made up of various units
and departments, which are
interdependent.
The splitting of work into smaller and
smaller units through division of work
creates the need for coordination among
many individuals who need to complete the
full task.

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 Requirements of Good Coordination
Good coordination requires the following
important prerequisites.
Direct personal contact between individuals who are
responsible for task completion improves coordination.
 Direct personal contact eliminates any
misunderstanding among individuals.
 Mutual consultation and joint planning ensures better
support for each other and commitment for common
goals.
 Defining clear objectives ensures clarity of role and
responsibility among individuals resulting in better
coordination.
 Clear definition of authority and responsibility of
individuals eliminates any ambiguities among
individuals.
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 Requirements of Good
Coordination
Good coordination requires the
following important prerequisites.

Effective communication is very

Communication ensures harmonious
different departments.
 Effective leadership ensures coordination
among groups and individuals since an
effective leader creates a sense of shared
vision among them.

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 CONTROLLING
 Controlling is defined as the process of
measuring the actual work and comparing it
with a predetermined standard in order to
determine any deviation so that timely
corrective actions are taken and tasks are
completed as per original plans.
 Controlling is defined as the continuous
function of determining what is being
performed, measuring its actual results in
relation with predetermined objectives and
devising such corrective measures that may
be necessary to make the performance
conform to the original plans.
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 Objectives of Controlling
To ensure effectiveness and efficiency in all
management functions.
To determine what is happening in the organization
and measure actual progress from time to time.
To ensure effective communication between
various units of organization.
To keep a check on resource utilization.
To reframe organizational plans in relation to
changes in the environment.
To detect any deviation and take timely corrective
actions.
To ensure that all the activities are performed
according to predetermined plans.

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 Questions:
1. What is leadership? Explain. 4marks, june/july 2014
2. discuss the characteristics of motivation. 6marks, june/july
2014
3. Define co-ordination .what are its characteristics?
5marks, june/july 2014
4. differentiate between co0ordination and co-operation.5marks,
june/july 2014
5. describe the maslow’s need- hierarchy theory of motivation.
8marks, dec/jan 2015
6. explain any three techniques of co-ordiantion. 6marks, dec/jan
2015
7. Describe any three essential factors of effective control system.
6marks, dec/jan 2015

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