Technological Innovation & Management

Entrepreneurship
PRESENTATION

ON

“Organizing & Staffing,

Directing & Controlling”
Presented by: Guided by:
Group-2 Prof. Kaveri Talawar
Dept. Of ECE
DEPARTMENT OF ELECTRONICS AND COMMUNICATION ENGINEERING
CAY 2024-2025
 Content
• Meaning & Characteristics of Organizing
• Process of Organizing
• Principle of Organizing
• Span of Management
• Departmentalization
• Types of Committees
• Centralization vs Decentralization
• Need & Importance of Staffing
• Meaning & Requirements of Direction
• Motivation Theories
• Communication
• Types & Techniques of Coordination
• Need of Control System
• Benefits of Control
• Steps in Control System
• Conclusion
 ORGANISING

Organization is a process which integrates different type of activities to achieve

organizational goals and objectives. or,
It is a process of integrating and coordinating the efforts of men and material for the
accomplishment of set objectives.
• Robbins defines Organization as :
-A consciously coordinated social unit, composed of two or more people, that
functions as a relatively continuous basis to achieve common goals of set of goals.
• Agrawal defines organization as :
-A goal oriented open system composed of people, structure and technology.
CHARACTERISTICS OF ORGANISATION

1. It is an open system.

2. It is a goal oriented.

3. It is a collection of people.

4. Organization consists of people.

5. Organization consists of technology, and

6. It has continuity.
 Organization is an open system : An open system means open to environment. Organization
exists and functions in environment. Environment compels the organization to acquire right type
of people, technology and structure so that the goals to serve the environment can be attained.

 Organization is goal oriented : Without goal or set of goals, organization is useless. There is
nothing for the organization to do. Therefore, the major characteristic of any organization is its goal.

 Organization is a collection of people : People are the main performers in any organization. In
other world, all the elements of any organization are the same except the people.

 Organization consists of technology : Technology is the means of doing works. There are various
kinds of doing works. As an organization consists of more people, its performance procedure should
be of a fixed type so that each individual in the organization can exercise them well.

 Organization has continuity: As the organization involves people, and the people generate
different needs, they can leave the organization or some may die too. This does not affect the
organization to stop or decrease in size. Hence, it is said that every organization has its own
continuity.
PROCESS OF ORGANIZING
The Organizational Process
Organizing, like planning, must be a carefully worked out and applied process. This process involves
determining what work is needed to accomplish the goal, assigning those tasks to individuals, and
arranging those individuals in a decision‐making framework .
The stages or steps in the process of organization are explained below:
1. Fixing the objectives of the organization
At the top level, administrative management first fixes the common objectives of organization. At
the middle level, executive management fix the departmental objectives.
2. Finding activities must for achieving objectives
After fixing the objectives, the top-level management prepares a list of different activities which are
required to be carried out for achieving these objectives.
3. Grouping the similar activities
All similar or related activities having a common purpose are grouped together to make
departments. The various departments such as Purchase, Production, Marketing, Finance, etc. are
made.
4. Defining responsibilities of each employee
The responsibilities (duties) of each employee are clearly defined. This will result in the selection of a
right person for the right post / job. He / she will know exactly what to do and what not to do.
5. Delegating authority to employees
Each employee is delegated (surrender or given) authority. Without authority, the employees cannot
carry out their responsibilities. Authority is the right to give orders and the power to get obedience.
6. Defining authority relationship
When two or more persons work together for a common goal, it becomes necessary to clearly define
the authority relationship between them. Each person should know who is his superior, from who he
should take orders, and to whom he will be answerable.
7. Providing employees all required resources
After defining the authority relationships, the employees are provided with all the material and
financial resources, which are required for achieving the objectives of the organization
8. Coordinating efforts of all to achieve goals
This is the last stage or step in the process of organization. Here, the efforts of all the individuals,
groups, departments, etc. are brought together and coordinated towards the common objectives of
the organisation.
PRINCIPLES OF ORGANIZING

PRINCIPLES OF ORGANIZATION
The success of a business organization can be ensured if the following basic principles are used. In
order to develop a sound and efficient organization structure, there is need to follow certain principles.
They are as follows:
1. Objectives: The objectives of the enterprise influence the organization structure and hence the
objectives of the enterprise should first be clearly defined. Then every part of the
organization should be geared to the achievement of these objectives.
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
specialisation.
3. Span of Control: As there is a limit to the number of persons that can be supervised effectively by
one boss, the span of control should be minimum as far as possible, the minimum, that means
an executive should be asked to supervise a reasonable number of subordinates only, say six.
4. Exception: As the executives at the higher level have limited time, only exceptionally
complex problems should be referred to them and routine matters should be dealt with by
the lower levels.
5. Scalar principle : This principle is sometimes known as the "chain of command". The line of
authority from the chief executive at the top to the front – line supervisor at the
bottom, must be clearly defined.
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, indiscipline and undermining of authority.
7. Delegation: Proper authority should be delegated at the lower level of organization also to
carry out the work effectively.
8. Responsibility: The superior should be responsible for the acts of his subordinates.
9. Authority: Authority is a tool by which a manager accomplishes the desired
objectives, which should be clearly defined.
10. Efficiency: The organization structure should help enterprise to function efficiently
to accomplish the objectives at lowest cost.
11. Simplicity: The organization structure should be simple and the levels should be as minimum
as possible.
12. Flexibility: Should be flexible, adaptable to changing circumstances, permit
expansion,
replacement, without dislocation and disruption of the basic design.
13. Balance: There should be a reasonable balance in the size of various departments, between
centralization and decentralization, between the principle of span of control and short
chain of command and among all types of factors such as human, technical and financial.
14. Unity of direction: Should be one objective and one plan for a group of activities having same
objectives. Unity of direction facilities unification and coordination of activities at various
levels.
15. Personal Ability: As people constitute an organization, there is need for proper selection,
placement and training of staff. Organization structure must ensure optimum use of
human resources and encourage management development programme.
SPAN OF MANAGEMENT
The Span of Management refers to the number of subordinates who can be managed efficiently
by a superior. Simply, the manager having the group of subordinates who report him directly is
called as the span of management.
DEPARTMENTALIZATION
• Departmentalization is the process of grouping individuals into departments and grouping
departments into total organizations.

DEPARTMENTALIZATION

BASED ON FUNCTIONS BASED ON TERRITORY BASED ON PRODUCTS BASED ON TIME BASED ON SIMPLE
AND GEOGRAPHY NUMBERS
1. Departmentalization based on Products
This is more suitable for a large organization that manufactures a vast variety of products. Under this
separate groups or departments are created and each department is controlled by a manager who will
be responsible for all the activities of that sub group. Each subgroup will have its own facilities required
for manufacture, purchase, marketing and accounting etc. This type is advantageous where variety of
products are manufactured .
Advantages
 Top management is relieved of operational task enabling them to concentrate more on common
goals.
 Managers of individual products put better effort to improve his area compared to others.

Disadvantages
 Separate work force are required in sales, marketing and finance, resulting in extra expenditure.
 More managers are required.
2. Departmentalization based on functions
The departmentation is based on each major function of the organization. Depending on the
nature of organization the various functions are as follows:

Marketing, Engineering, Production, Finance, Personnel, Purchase etc. Functional

departmentation is most widely employed basis of organizing activities - and is present in almost
every organization at some level in its structure.

Advantages
 Simplifies training.
 Provides means of right control at top.

Disadvantages
 Reduces coordination between functions.
 Slow adoption to changes in environment
 Limits development of general managers.
3. Departmentalization based on time

One of the oldest forms of generally used departmentalization at lower levels of an

organization, is grouping of activities on the basis of time. The use of shifts is common in some
organizations due to economic or technological reasons. For service organizations like hospitals,
fire department, security, steel mills, chemical plants, round the clock work is essential. All
these call for 3 shift working of organization

Advantages
 Service can be rendered, that goes beyond the normal 8 hours shift/day.
 Provides part time jobs for people who are otherwise busy during day time (students going
for part time job etc.)

Disadvantages
 Lacks good and efficient supervision during night shifts.
 Lack of effective coordination and communication from people of one shift to next shift.
4 .Departmentalization based on Territory and Geography

Departmentalization by Territory is common in organizations that operate over a wide

geographical area. The activities of an enterprise are divided into territories like, western region,
northern region, eastern region, southern region etc. Banks, Railways and big manufacturing
companies like petroleum companies (HP, Indian Oil etc.), cosmetic companies are some of the
examples of this.

Advantages
 Places responsibility at lower level.
 Places emphasis on local problems and markets.
 Ensures a better coordination within a region.
 Provides a region-wise comparison of performance.

Disadvantages
 Requires more persons with General Manager abilities.
 Requires to maintain similar functional people at all regions.
 Difficult to control from top management.
[Link] based on simple numbers

This was one of the most widely used ancient methods of departmentalization. This is achieved by
tolling of persons performing the same job and grouping them together under one supervisor. This
is not in common use now.
COMMITTEES

Committee can be defined as a group of organizational members who

discuss and develop solutions to problems.

TYPES OF COMMITTEES
AUTHORITY
It is the formal right given to an individual to command. An authority may be
defined as the "right to act". It may also be referred to as the power to take
necessary steps or decisions in order to achieve organization's goals.

RESPONSIBILITY

It is also called Accountability or Answerability. It may be considered as the

obligation of a subordinate to his superior to do a work assigned to him. Each
person who is given responsibility must recognize that the executive above him will
hold him responsible for the quality of his performance.
CENTRALIZATION VS DECENTRALIZATION
Decentralization Centralization

Definition

Decision-making capabilities delegated Decision-making capability rests

across multiple levels with the top
management

Flow of Information

Open and free Vertical

Ideal for
 Decentralization is ideal for large- Centralization is ideal for small-
sized organizations sized organizations

Decision-making speed

Significantly faster Comparatively slow

People Involved

In decentralization, a higher number of In centralization, only a few

people from each level are involved in handpicked people are
the involved in the decision-
decision-making process making process
STAFFING

Meaning of Staffing:
Staffing is the traditional management function of attraction and selection of the
best people and putting them on job where their talents and skills can be best
utilized, and can also be helpful for job training and job enrichment programmes, in
order to achieve both individual and organizational objectives.
NATURE OF STAFFING
Staffing is defined as filling and keeping filled positions with the right people in the organization
structure. It is a human resource management .
The sub functions of the staffing are as below,
• Identifying the people available
• Recruitment or fulfilment of vacancies
• Selecting the best qualified from those who seek the jobs
• Promoting
• Performance appraisal
• Planning the careers
• Compensation plan (retaining the people and holding the qualified person)
• Training (training those who need further instruction to perform their work effectively or to
qualify for promotion
IMPORTANCE OF STAFFING
• It helps in discovery of talented & competent worker and developing them to move up
the corporate ladder .
• It ensures greater production by putting the right man in right job.
• It avoids sudden disruption of the production due to shortage of workers, since it plans
and fills the positions.
• It provides the information to the management of internal succession or
failure of
managerial personnel or other department.
• It plans the requirement of man power at various time and various levels of projects.
• It maintains harmony and creates healthy atmosphere.
RECRUITMENT PROCESS

It is an important step in the employment of labour. Haphazard recruitment of labour brings in a

measure of chances and uncertainty in an industry and may result in inefficiency and loss of
production. The numbers of workers required by a concern depends on
1. The scale of production
2. The degree of mechanization

The various sources of recruitment are divided into two categories:

● Internal Sources.
● External Sources.
1. Internal source
Internal sources involve filling job vacancies with current employees through promotions, transfers, or
rehires. This method utilizes existing talent and familiarity with the organization.
• Promotions: Moving employees to higher positions based on performance or experience
• Transfers: Shifting employees to different roles or locations within the company.
• Former Employees: Rehiring individuals who previously worked for the company.
• Previous Applicants: Revisiting candidates who applied earlier. These applicants may have gained
new skills, speeding up the hiring process.

2. External source
• External sources involve recruiting candidates from outside the organization through job postings,
recruitment agencies, and referrals.
• Consulting agencies: A consulting agency is commonly utilized to find specialized executive person
• Applications Introduced by friends and relatives.
• Casual callers: Sometimes on his own initiative, the applicant sends his application for the job
• Employment exchange: The recruitment is also done through the employment exchange of the
persons who are enrolled in the exchange. The main function of the exchange are:
 SELECTION PROCESS
Selection is the process of identifying and choosing the most suitable candidate from a pool of
applicants for a job.
Techniques of selection:
1. Preliminary
Interview:
-Initial screening of
candidates.
-Filters out unqualified
applicants early.
2. Application Form:
- Collects personal,
educational, and
professional details.
- Provides a
standardized way to
compare applicants.
3. Employment Test:
- Assesses specific skills,
DIRECTING AND CONTROLLING

Direction means issuing of orders, leading and motivating subordinates as they go about
executing orders. The direction has two major activities namely
1. Giving orders to employees
2. Leading and motivating them to accomplish the goals.

DEFINITION OF DIRECTION:
"Directing is the interpersonal aspect of managing by which subordinates are led to
understand and contribute effectively to the attainment of enterprise objectives. (Harold D
Koontz &O’Donnell)
REQUIREMENTS OF EFFECTIVE DIRECTION

The role of a manager is to understand the needs, motives and attitudes of his subordinates. He
should use appreciate strategies according to the people and situations. The following are some of
the principles of effective direction:

(i)Harmony of objectives:
For an organization to function well, it the goals of company and goals of individuals are in complete
harmony.

(ii) Unit direction of command:

This principle implies that an employee should receive orders and instructions only from one
supervisor or boss.

(iii) Efficiency:
If the superior consults with the subordinates in decision-making, then there would be a sense of
commitment.
(iv) Direct supervision:
Managers should have direct face-to-face contact with the subordinates

(v) Effective communication:

The supervisor must have good communication skills.

(vi) Effective control:

The management should monitor the behavior and performance of subordinates to
exercise effective control over subordinates.

(vii) Follow-through:
Direction is a continuous process. Having given the directions may not ensure carrying
out them.
GIVING ORDERS
The order is a devise employed by a line manager in directing his immediate subordinates to start an
activity, stop it and modify it. A staff executive does not issue orders. Mary Parker Follett lays down
the following principles which should be followed in giving orders:
1. The attitude necessary for the carrying out of an order should be prepared in advance. People
will obey an order only if it appeals to their habit patterns.
2. Face-to-face suggestions are preferable to long distance orders.

[Link] order should be depersonalized and made an integral part of a given situation so that
the question of someone giving and someone receiving does not come up.
These are:
1. Order should be clear and complete;
2. Order should be compatible with the purpose of the organization;
3. Order should be compatible with the employee’s personal interest; and
4. Order should be operationally feasible. Orders may be communicated verbally or in writing.
MOTIVATION
The success or failure of a business organization depends on the performance of people working
for it.
NATURE OF MOTIVATION
Motivation is not an easily observed phenomenon. We observe an individual's actions and then
interpret his observed behavior in terms of underlying motivation. The following points reveal
the complexities involved in understanding true motivation:
1. Individuals differ in their motives.
The viewpoint (called -monistic approach") that there is only one "economic drive" which
determines behavior is untenable. The goals to which individuals aspire differ and so do their
motives.
2. Sometimes the individual himself is unaware of his motive.
Freud uncovered this phenomenon while analyzing his critical patients. He found that in many
ways man is like an iceberg. Only a small part is conscious and visible, the rest is beneath the
surface.
3. Motives change:
Hierarchy of motives of each individual called "structure" is not fixed. It changes from time to time.
An individual's primary motive today may not be primary tomorrow, even though he may continue to
behave in the same way.
4. Motives are expressed differently.
The ways in which motives are eventually translated into actions also vary considerably between one
individual and another.
5. Motives are complex.
It is difficult to explain and predict the behavior of workers. The introduction of an apparently
favorable motivational device may not necessarily achieve the desired ends if it brings opposing
motives into play.
6. Multiple motives make the choice of goals difficult for an individual
We have been referring to examples of motivations as if they exist one at a time. This is hardly the
case. The fact is that multiple motivations operate simultaneously to influence an individual's
behavior.
(i) Approach
(ii) Avoidance
(iii) Approach
 MOTIVATION THEORIES
MOTIVATION THEORIES

There is no shortage of motivation theories. We can classify them under three broad- heads:
1. Content theories
2. Process theories
3. Reinforcement theory

THEORIES OF HUMAN MOTIVATION

There are several theories of motivation based on different structures of human needs and
expectations. Some of them are
4. Maslow's Hierarchy of Needs Theory
5. Herzberg's Motivation - Hygiene Theory
1. MASLOW'S HIERARCHY OF NEEDS THEORY

Abraham Maslow's Need-Hierarchy theory, published in 1943, is one of the most popular
theories of motivation. According to him, the behavior of an individual is determined by his
strongest need at a particular moment. According to Maslow, all human needs can be arranged in
an order of priority.
• Physiological Needs:
Includes food, shelter, clothing, water, sleep, and other bodily needs. The physiological needs are the
basic needs in life. These are essential for everybody to remain alive.
• Safety Needs:
Includes security and protection from physical, emotional and economical harm.
Once the physiological needs are satisfied, the safety needs or security needs become predominant.
• Social Needs :
Includes affection, belongingness, acceptance and friendship. Social needs come into the picture
when the primary needs are taken care of. Since man is a social animal, he has to interact with the
society, and live with respect in society.
• Esteem Needs :
Includes self-respect, autonomy, status, recognition, responsibility, attention, achievement,
prestige, etc., Esteem needs represent an individual's concern for feeling important and be respected
by others. These needs are primarily satisfied by the individuals themselves.
• Self-Actualization Needs :
Includes Self-advancement, self-fulfilment, self-development, self-realization etc., Self-actualizationis
the highest level need in Maslow's hierarchy. It is the desire to become what is one is capable of
becoming
2. HERZBERG'S MOTIVATION-HYGIENE THEORY OR THE TWO-FACTOR THEORY
The Motivation-Hygiene theory or the Two-Factor theory was proposed by Frederick Herzberg in
the year 1959.
(i) Hygiene factors
(ii) Motivators.
(i) Hygiene-Factors
He found that certain factors did not motivate the employee
when present on the job but their absence caused
dissatisfaction. These factors were called Hygiene factors
because they primarily prevented dissatisfaction just like
hygiene conditions prevent sickness.
These factors are:
• Company policy and administration
• Supervision
• Working conditions
• Salary and status
• Security in job and personal life
• Interpersonal relationship with superiors, peers and sub-
(ii) Motivators:
According to Herzberg, Motivational factors are essential to provide job satisfaction and to maintain
high job performance. Motivators act as stimuli to make people work hard voluntarily and be happy
in the organization. Motivators or `Satisfiers' include the following
factors :
• Challenging work
• Responsibility
• Recognition
• Promotion opportunities
• Achievement
• Job content.
COMMUNICATION
Communication has been variously defined by a number of writers. According to Newman and
summer, it is an exchange of facts, ideas, opinions or emotions by two or more persons.
IMPORTANCE OF COMMUNICATION
1. Communication is fundamental to accomplish work
Communication is the means by which he persuades, informs, motivates and leads his employees
towards organizational goals through communication that there is a transmission of information
among employ.
2. Communication facilities planning
Planning, the most important function of management requires extensive communication among
the rank and file of the organization.
3. Communication helps in decision-making
Managers rely heavily on the quality and quantity of information that is available in order to take
decisions.
4. Communication is the basis of co-ordination
If all the departments and divisions of an organization have to co-ordinate their efforts to
achieve the common goals, communication is highly essential.
5. Communication improves relationships between employees.
A good communication system helps exchange of facts, ideas, feelings and sentiments among
the employees. Apart from work-related information this results in in a better understanding
among the employees
6. Communication improves morale and motivation:
Good communication helps in addressing workers problems and therefore keeps their morale
and motivation high.
7. Communication is key to managerial-efficiency:
Good communication skills are a must for modern-day managers. The growth success or the
growth of a manager largely depends on his communication skills.
PURPOSES OF COMMUNICATION :

1. Communication is needed in the recruitment process to persuade potential employees of the

merits of working for the enterprise.
[Link] is needed in the area of orientation to make people acquainted with
peers, superiors and with company's rules and regulations.
3. Communication is needed to enable employees to perform their functions effectively.
4. Communication is needed to teach employees about personal safety on the job.
5. Communication is of vital importance in projecting the image of an enterprise in the society.
6. Communication helps the manager in his decision process.
7. Communication helps in achieving coordination.
8. Communication promotes cooperation and industrial peace.
9. Communication increases managerial efficiency
LEADERSHIP
Leadership is defined as "Influence, that is, the art or process of influencing people so that
they will strive willingly and enthusiastically towards the achievement of group goals".
DIFFERENCE BETWEEN A LEADER AND A MANAGER:
CHARACTERISTICS OF LEADERSHIP:
1. Leadership implies the existence of followers:
We appraise the quality of a person's leadership in practice by studying his followers. We ask:
How many and what kind of followers does he have? How strong is their commitment as a result
of his leadership? How long will their commitment last?

2. Leadership involves a community of interest between the leader and his followers:
In other words, the objectives of both the leader and his men are one and the same. If the leader
strives for one purpose and his team of workers for some other purpose, it is no leadership.

[Link] involves an unequal distribution of authority among leaders and

group members:
Leaders can direct some of the activities of group members; that is the group members are
compelled or are willing to obey most of the leader's directions.

4. Leadership implies that leaders can influence their followers or subordinates in

addition to being
able to give their followers or subordinates legitimate directions:
In other words, leaders not only tell their subordinates what to do by way of command but also
BEHAVIORAL APPROACH:

Several studies have been made did not agree as to which traits are leadership traits or their
relationship to actual instances of leadership. Style based on authority: Based on how the authority
is used, the leaders are styled into 3 groups:

1. The first is "autocratic leader" who commands and expects compliance, is dogmatic and positive,
and leads by the ability to withhold or give rewards and punishment.

2. The second is "democratic or participative leader” who consults with subordinates on proposed
actions and decisions and encourages participation from them.

3. The third type is "free-rein" leader who uses his power very little and gives a high degree of
independence to his subordinates to carry out their work.
CO-ORDINATION
"Co-ordination refers to the orderly arrangement of individual and group efforts to ensure unity
of action in the realization of common goals. On the basis of these definitions, we can state the
basic features of co-ordination, which are as under:

[Link]-ordination implies deliberate actions on the part of managers to bring about harmony
and unity of actions.
[Link]-ordination applies to group efforts, and not to individual effort. It involves the
orderly arrangement of group efforts.
3. Co-ordination does not result in a one-shot action. It is continuous action.
[Link]-ordination is all-pervasive. It hasto happen along
all verticals and horizontals of an organization.
[Link]-ordination is necessary not only within the organization but also of the organization
with the outside environment.
TYPES OF CO-ORDINATION
Coordination may be variously classified as internal or external, vertical or horizontal and procedural
or substantive.
Internal Coordination
Internal Coordination is aimed at building a strong bond between the executives, the managers, the
departments, the divisions, all the branches and the workers or the employees. This establishes an
integration of organizational activities.
Vertical Coordination: Vertical coordination includes the coordination of tasks from superiors to the
subordinates and vice versa. A coordination example can be stated as the coordination of a particular
task from a sales manager to his supervisors.
Horizontal Coordination: Horizontal coordination builds strong relationships among same rank
holding employees. This ensures better performance with increased productivity. Coordination
examples can include those among the managers, the supervisors or the co-employees.
External Coordination
External coordination is aimed at establishing connections between the employees in a business
organization with people outside of the organization
TECHNIQUES OF CO-ORDINATION
A variety of techniques are used by managers to achieve co-ordination. The important ones are:
1. Co-ordination by plans and procedures
If plans and procedures are highly structured and in place, co-ordination becomes somewhat
automatic. Apart from these, if the other types of plans such as schedules, rules, budgets, policies etc.,
are stated in precise terms so as to avoid confusion, it results in better co-ordination.
2. Co-ordination by sound and simple organization
If the structure of an organization is sound and simple, it leads to better co-ordination. If the authority,
responsibility and accountability are established in a clear-cut manner, it improves co-ordination.
3. Co-ordination by chain of command
If it is very clear as to who should report to whom in an organization, it helps co-ordination.
Establishing a clear chain of command or a superior-subordinate relationship goes a long way in
ensuring coordination.
4. Co-ordination by effective communication
Effective communication plays a vital role in achieving co-ordination. Communication facilitates proper
understanding between individuals and groups among whom co-ordination is to be achieved.
5. Co-ordination by committees
Formation of committees to co-ordinate is a sound management technique. Committees are made
up of Knowledgeable, experienced and responsible persons entrusted with discharging some
functions collectively as a group.
6. Co-ordination by conference
In large business organizations conferences are organized at regular intervals to provide a platform
for discussion to the various units which could be geographically widespread
7. Co-ordination by special co-ordinators
If a manager in an organization has very less time to address issues of co-ordination, he may hire
an assistant or a 'Special coordinator' to do the job for him.
8. Co-ordination through sound leadership
Sound leadership of top management is the surest means of achieving co-ordination. Good leaders
may persuade and convince their subordinates to place
CONTROLLING
"Control is checking current performance against predetermined standards contained in the plans,
in order to ensure adequate progress and satisfactory performance".
controlling functions involves-
(i) developing appropriate standards
(ii) Compare on-going performance against those standards.
(iii) Take steps to ensure that corrective actions are taken when
necessary.

NEED FOR CONTROL SYSTEM

A control system is needed for four purposes:
1. to measure progress;
2. to uncover deviations;
3. to indicate corrective action; and
4. to transmit corrective action to the operation.
1. To Measure Progress
There is a close link between planning and controlling the organization’s operations. We have
discussed in Chapter 4 how in the planning process, the fundamental goals and
objectives of the organization and the methods for attaining them are established. The control
process continually measures progress towards goals.

2. To Indicate Corrective Action

Controls are needed to indicate corrective actions. They may reveal, for example, that plans need to
be redrawn or goals need to be modified or there is need for reassignment or clarification of duties
or for additional staffing or for conforming to the way the work should be done.

3. To Transmit Corrective Action to the Operation

Controls are needed to transmit corrective action to the operation while it is progressing so that the
transformation subsystem modifies its inputs or its production plan to reduce any discrepancy or
error and keeps the output "on course.
4. To Uncover Deviations
Once a business organization is set into motion towards its specific objectives, events occur that
tend to pull it "off target". Major events which tend to pull an organization "off target" are as
follows:
• Change
Change is an integral part of almost any organization’s environment. Markets shift, new products
emerge, new materials are discovered and new regulations are passed.
• Complexity
Today's vast and complex organizations, with geographically separated plants and decentralized
operations make control a necessity
• Mistakes
Managers and their subordinates very often commit mistakes. For example, wrong parts are
ordered, wrong pricing decisions are made, problems are diagnosed incorrectly, and so on
• Delegation
As we discussed in Chapter 8, when managers delegate authority to subordinates, their
responsibility to their own superiors is not reduced. The only way managers can determine if their
subordinates are accomplishing the tasks that have been delegated to them is by implementing a
system of control.
BENEFITS OF CONTROL

A well-developed control system

 increases productivity reduces defects and mistakes,
• helps meet deadlines,
• facilitates communication,
• improves safety,
• lowers cost, and
• gives the workers control over their environment.
EFFECTIVE CONTROL
The essentials of an effective control system are as follows.
i) Suitable
The control system should be appropriate to the nature and needs of the activity. Controls used in
the sales department will be different from those used in finance and personnel.
ii) Timely and Forward Looking
Although an ideal control system, as in certain electric controls, should be able to detect deviations
before they occur, the same is not possible in personnel and marketing controls which always
include a time lag between the deviation and corrective action.
iii) Objective and Comprehensible
The control system should be both objective and understandable. Objective controls specify the
expected results in clear and definite terms and leave little room for argument by the employees.
iv) Flexible
The control system should be flexible so that it can be adjusted to suit the needs of any change in
the basic nature of the inputs and/or the sizes, varieties or types of the same product or service.
One way of introducing flexibility into a control system is to make the adjustments automatic
v) Economical
Economy is another requirement of every control system. The benefit derived from a control
system should be more than the cost involved in implementing it. To spend a dollar to protect 99
cents is not control. It is waste.

vi) Prescriptive and Operational

A control system in order to be effective and adequate must not only detect deviations from the
standards but should also provide for solutions to the problems that cause deviations. In other
words, the system should be prescriptive and operational

vii) Acceptable to Organization Members

The system should be acceptable to organization members. When standards are set unilaterally by
upper-level managers, there is a danger that employees will regard those standards as
unreasonable or unrealistic. They may then refuse to meet them.
STEPS IN CONTROLLING
The various steps that are involved in the process of
controlling are as follows:

Step 1: Setting of standards

The first step in the control process is to establish standards. Standards are the targets against which
actual performance will be compared. Standards are nothing but criteria of performance. They serve
as benchmarks as they specify acceptable levels of performance. Control standards are broadly
divided into two types.
(i) Quantitative standards:
These are standards which can be quantified.
Eg: Production level, rejection level, labor-hours, speed of service, sales volume, profit, expenses .
(ii) Qualitative standards:
These are standards which cannot be quantified i.e.,
they are qualitative in nature.
Eg: Employee morale, brand image, company
image, goodwill, industrial relations etc.
Step 2: Measurement of actual performance
The second step in the control process is to measure actual performances of various individuals,
teams and departments in the background of established standards. Wherever quantitative
measurement is applicable, it is easy to measure, while qualitative standards are difficult to measure.
Tests, surveys, employee appraisals, exit interviews, media reports, open forums etc., are some of the
ways employed to measure qualitative standards. To make any measurement process effective, the
following three aspects have to keep in mind:

(i) Completion
The actual performance measurement has to be complete in all respects. In other words, all aspects
of the job should be measured and not just the ones that are more evident.

(ii) Objective
Performances at work should be measured in an objective manner without fear, favorer bias. Only
then measurement can be effective.

(iii) Responsiveness:
The management of any performance should support the belief that effort and performance lead to
improvement, both from the personal and organizational point of view.
Step 3: Comparison of actual performance with standards
The third step in the control process is to compare the actual performances with established
standards and ascertaining the causes of deviation. The causes of deviation may be machine-
dependent, process dependent, plan-dependent, manpower-dependent etc.

Step 4: Taking corrective measures

The final step in the control process consists of taking remedial actions so that deviation may not
occur again in future. Corrective actions may include the following activities.
1. Change in methods, rules, procedures strategies etc.
2. Introduce training programs
3. Job redesign
4. Replacement of personnel
5. Re-establishing budgets and standards
6. Better compensation packages to employees
7. Changing machinery and processes
8. Identifying recurring bottle necks and avoiding them
9. Trying to understand the competition better.
10. Looking at raw material resources and suppliers.
CONCLUSION

• Effective leadership is not solely about authority or position; it's about

influence, vision, and the ability to inspire and guide others towards a common goals.
• True leaders exhibit qualities such as empathy, adaptability, integrity etc.
• They foster collaboration, encourage growth, and create an environment
where individuals can thrive and contribute their best..