Organization, staffing, directing and controlling

Organization and staffing

1. ORGANIZING AND STAFFING
DIRECT AND CONTROLLING
6/10/20241
MODULE 2

2. ORGNISATION
2
Theprocessofidentifyingandgroupingofthe
worktobeperformed,defininganddelegating
responsibilityandauthorityandestablishing
relationshipsforthepurposeofenablingpeople
toworkmosteffectivelytogetherinaccomplishing
theirobjectives.
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3. MEANING OF ORGANIZING
3
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".
AmitaiEtizoni-”Organisationis social unit or human
grouping deliberately structured for the purpose of
attaining specific goals”.
Sehein-“Orgainsationastherationalcoordinationof
activitiesofanumberofpeoplefortheachievementof
somecommonexplicitpurposeorgoal,throughdivision
oflabourandfunction,andthroughahierarchyof
authorityandresponsibility.
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4. STEPS IN PROCESS OF
ORGANIZING
4
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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5. STEPS IN ORGANIZING
(1) Consideration of objectives:
5
Thefirststepinorganizingistoknowtheobjectives
oftheenterprise.
Objectivesdetermineresourcesandthevarious
activitieswhichneedtobeperformedandthetypeof
organizationwhichneedstobebuiltforthispurpose.
Objectivesalsoserveasguidelinesforthe
managementandworkers.
Theybringaboutunityofdirectioninthe
organization.
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6. STEPS IN ORGANIZING
(2) Identification and grouping of activities:
6
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
may be created for research, industrial engineering etc.
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7. STEPS IN ORGANIZING
3) Assignment of duties:
7
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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8. STEPS IN ORGANIZING
(4) Delegation of authority
8
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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9. STEPS IN ORGANIZING
5) Coordinating activities
9
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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10. PURPOSE OF ORGANIZATION
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(1) To facilitate pattern of communication:
Organizationstructureprovidepatternofcommunication
andcoordination.
Bygroupingactivitiesandpeople,structurefacilitates
communicationbetweenpeoplecenteredontheirjob
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 know what
his role is and how it relates to others role.
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11. PURPOSE OF ORGANIZATION
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(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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12. PURPOSE OF ORGANIZATION
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(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-responsibility
relationships in the wake of technological improvements.
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13. PRINCIPLES OF ORGANIZATION
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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 abilities:
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14. PRINCIPLES OF ORGANIZATION
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(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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15. PRINCIPLES OF ORGANIZATION
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(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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16. PRINCIPLES OF ORGANIZATION
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(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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17. PRINCIPLES OF ORGANIZATION
17
(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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18. PRINCIPLES OF ORGANIZATION
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(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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19. PRINCIPLES OF ORGANIZATION
19
(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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20. PRINCIPLES OF ORGANIZATION
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(7) Delegation:
Properauthorityshouldbedelegatedatthelower
levelsoftheorganizationalso.
Theauthoritydelegatedmustbeequalto
responsibilityi.e.,themanagershouldhaveenough
authoritytoaccomplishthetaskassignedtohim.
Handlespecialproblems,coordinatingand
planningevmts.
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21. PRINCIPLES OF ORGANIZATION
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(8) Responsibility: accountability
A superior should be held responsible for the acts of
his subordinates.
Nosuperiorshouldbeallowedtoavoid
responsibilitybydelegatingauthoritytohis
subordinates.
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22. PRINCIPLES OF ORGANIZATION
22
(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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23. PRINCIPLES OF ORGANIZATION
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(10) Efficiency:
The organisationstructure 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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24. PRINCIPLES OF ORGANIZATION
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(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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25. PRINCIPLES OF ORGANIZATION
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(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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26. PRINCIPLES OF ORGANIZATION
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(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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27. PRINCIPLES OF ORGANIZATION
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(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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28. PRINCIPLES OF ORGANIZATION
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(15) Personal abilities:
Asorganizationisaformalgroupofpeoplethereis
needforproperselection,placementandtraining.
Organizationstructuremustensureoptimumuseof
humanresources.
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29. SPAN OF CONTROL
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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
are under utilized and subordinates are over controlled.
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30. SPAN OF CONTROL
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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.
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31. SPAN OF CONTROL
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32. SPAN OF CONTROL
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Advantage of a narrow spanof 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
1.Organisationstructure can be made simpler if more
workers come under each manager.
2.Saving salaries because less number of manager.
3.Absence of over-supervision of worker.
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33. SPAN OF CONTROL
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Disadvantage of a narrow spanof 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
1.Tendency of overloading superior to become decision
bottle necks
2.Danger of superior’s loss of control.
3.Requires managers with exceptional qualities.
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34. DEPARTMENTATION
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Horizontaldifferentiationoftasksoractivities
intodiscretesegments iscalled
departmentation.
Departmentationinvolvesgroupingof
operatingtasksintojobs,combiningofjobs
intoeffectiveworkgroupandcombiningof
groupsintodivisionsoftentermedas
‘departments’.
Theaimistotakeadvantagesofdivisionof
labourandspecializationuptoacertainlimit.
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35. DEPARTMENTATION
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1)Departmentationbyfunctions:
2)Departmentationbyproduct:
3)Departmentationbycustomers:
4)Departmentationbyterritory:
5)DepartmentationbyProcess:
6)Departmentationbytime:
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36. 1)Departmentationby functions:
36
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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37. 1)Departmentationby functions:
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38. 1)Departmentationby functions:
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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.
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39. 1)Departmentationby functions:
39
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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40. 2)Departmentationby product:
40
Thisformissuitedforalargeorganisation
manufacturingvarityofproducts.
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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41. 2)Departmentationby product:
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42. 2)Departmentationby products:
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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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43. 2)Departmentationby products:
43
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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44. 3)Departmentationby customers:
44
This is used in the enterprises engaged in providing
specialized services to different classes of customers.
Management groups the activitieson 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
corresponding courses etc.
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45. 4)Departmentationby territory:
45
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 some example for this.
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46. 4)Departmentationby territory:
46
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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47. 4)Departmentationby territory:
47
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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48. 4)Departmentationby territory:
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49. 5)Departmentationby Process:
49
Departmentationhere, 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 equipments used.
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50. 6)Departmentationby Time:
50
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 organistionsdue
to economical or technological reasons.
For service organisationlike hospital, fire department,
security round the clock work is essential.
All these call for shift work is essential.
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51. 6)Departmentationby Time:
51
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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52. 6)Departmentationby Time:
52
Disadvantages:
1)Lacksgoodandefficientsupervisionduringnight
shift.
2)Lackofeffectivecoordinationandcommunication
frompeopleofoneshifttonextshift.
3)Inconvenientforpeopletoworkinnightshiftsand
moredifficultduringshiftschangesfromdayto
night.
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53. Committee Organization
53
•Some of the adminstarivetasks cannot be performed by
a single person alone.
•Such sitiuationmay 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 organization.
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54. Committee:Types
54
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 time.
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55. 55
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 organisationwhenever there is
confusion.
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56. STAFFING
56
“Staffing is the process of attracting and devoloping
human resources to work for an organisationand
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
and complex behavior of human beings.
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57. STAFFING
57
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 .
(7) Promotion and transfer.
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58. STAFFING
58
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
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59. STAFFING
59
Nature or features of staffing
(1) Staffing is a continuous process:
Staffing is a continuous process because the employees
leave the organisationfor 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. RussiModyonce 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.
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60. STAFFING
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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 appraisal,
promotion, transfer, retirement etc
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61. RECRUITMENT
61
“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
twocategories:
(1) Internal Sources.
(2) External Sources.
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62. RECRUITMENT
62
(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.
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63. RECRUITMENT
63
Advantageof recruitment from Internal Sources.
1) It provide them to develop financially.
2)Employees from within the organisatonadjust 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.
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64. RECRUITMENT
64
Disadvantageof 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
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65. RECRUITMENT
65
(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.
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66. RECRUITMENT
66
(2) External Sources
(3)Advertising:Advertisementinnewspapers,
employmentnews,tradeandprofessionaljournals,
internetetc.,helptogetprospectiveemployeeshaving
suitableskillsandqualification.
Thishelpsininformingthecandidatesspreadover
differentpartsofthecountry.
Theadvertisementcontainsinformationaboutthe
company,jobdescription,andjobspecializationetc.
(4) Labourunions: Labourunions also supply workers
to the factory for employment. This method of
employment has also lost its popularity.
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67. RECRUITMENT
67
(2) External Sources
(5) Employment agencies: Many organisationsthese
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.
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68. RECRUITMENT
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(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.
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69. SELECTION
69
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 candidates.
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70. SELECTION
70
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
interview.
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71. SELECTION
71
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.
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72. SELECTION
72
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
(3) Personality test: To check candidates balance in thoughts,
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73. SELECTION
73
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.
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74. SELECTION
74
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 applicant.
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75. SELECTION
75
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
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76. SELECTION
76
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 benefits associated
with the job.
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77. Unit 4
Directing and
Controlling
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78. 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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79. LEADERSHIP
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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.

80. Importance of Leadership
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Leadershipisthemostimportantcomponentof
managingprocess.
Amanagercanbeefficientandeffectiveonlyif
heisagoodleader.
a.Leadersguideandinspiresubordinates:
Leadersmotivatetheirfollowersandguidethem
towardsaccomplishmentofgroupgoalswhich
inturncontributestotheaccomplishmentof
organizationalgoals.

81. Importance of Leadership
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b.Leadersbuildgoodworkenvironment:Leaders
createaworkenvironmentinwhichemployeescan
contributebyperformingtothebestoftheirabilities.
Theenvironmentcreatesarelationshipbasedon
trust.
e.Leadersbuildconfidenceinfollowers:Leaders
recognizeabilitiesoftheirfollowersandencourage
themtodeveloptotheirpotentialbybuilding
confidenceinthem.
d.Leaderssecurecooperationfromthegroup:
Leadersinfluencesthegroupmembersinsucha
waythatallthemembersworkcollectivelytowards
groupobjectivesandthusinstillcooperationamong
allmembers.

82. Importance of Leadership
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e.Leadersactaschangeagents:
organizationsoperateinanenvironmentwhichis
subjectedtocontinuouschanges,andifthe
organizationsdonotrespondtothesechanges,
thensurvivaloftheorganizationsmaybedifficult.
Butorganizationalmembersresistanychanges,as
theyareaccustomedtoparticularmethodsofwork.
Itrequiresgreatleadershiptoreducetheresistance
tochangeandconvincetheemployeestoaccept
thechange.
Thusleadersactaschangeagentsofthe
organizationandhelpsinimplementingsuccessful
positivechangesintheorganization.

83. Importance of Leadership
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f.Leadersarerepresentativesofthefollowers:
Ononehandleadersdirecttheemployeesofthe
organization,butontheotherhandtheyarealso
representativesoftheirfollowers.Theyalwaystake
personalinterestinhelpingtheirfollowersand
protecttheinterestsofthefollowerswhiletaking
anymajororganizationaldecisions.
g.Leadersdevelopgreatvision:Leadersare
knownfortheirgreatvisionandtheydevelopthe
visionforbuildinggreatorganizations.

84. MOTIVATION
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Motivationistheprocessofstimulatingpeople
toactiontoaccomplishdesiredgoals.
Motivationrepresentsinnerdrivewithinan
individualwhichdirectshimtobehavein
specificway.
Onlyhighlymotivatedemployeescan
achievethegoalsofanorganization.

85. MOTIVATION
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Motivationisalsodefinedastheonewhich
accountsfordirection,intensityandpersistenceof
effortstowardsachievementofgoal.
Directionreferstoqualityofefforts,andifeffortsare
notchannelizedinproperdirectiontheymaynot
yieldexpectedresults.
Intensityofeffortsreferstohowhardanindividual
putsefforts.
Persistencereferstosustenanceofeffortstillthe
achievementofgoals.
Motivatedindividualsputsameintensityofefforts
tilltheyachievethegoals.

86. Importance of Motivation
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Highlymotivatedworkforceisabsolutelyessentialfor
anyorganizationtoachieveitsobjectives.
Managementbasicallyaimsatoptimumutilizationof
variousresourcesoftheorganization.
Theseresourcesarehumanresources,financial
resources,andphysicalresourceslikematerials,tools,
machines,equipmentsetc.
Alltheseresourcesareverypreciousandtheycannot
bewasted.
Useoffinancialandphysicalresourcesalwaysdepends
onhumanresourcesandthusonlymotivatedemployees
caneffectivelyconvertfinancialandphysicaJresources
intousefulproductsandservices.

87. Importance of Motivation
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Motivationresultsindesirablebehaviourofemployees.
Thesebehavioursareessentialforimplementationof
organizationalplanssuccessfully.
Thussuccessfulachievementofgoalsnotonlydepends
ongoodplansbutalsoonmotivatedworkforce.
Individualsmaypossessabilitiesorskillstoperforma
taskeffectivelyandefficiently.Buttranslationofthese
abilitiesintoactualperformancewilldependontheir
willingnesstodothetask.Thisinturnwilldependonhis
orhermotivation.Motivationthusbridgesthegap
betweenabilitytoworkandwillingnesstoperform.
Hencemotivationisessentialforeffectivenessand
efficiency.

88. Importance of Motivation
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Motivationisanimportantfactorwhich
contributestoemployeeretentionandbuildinga
stableworkforce.
Motivationbringsdownnumberofemployee
grievancesandcomplaints.
Activeinvolvementofemployeesinwhatever
tasktheydowillalsobringsdownanychancesof
accidentsandlossesresultingoutofaccidents.
Highlymotivatedworkforcecanproducebest
qualityofproductsandservices.This

89. COMMUNICATION
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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.

90. Types of Communication
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FormalandInformalCommunication
Formalcommunicationisofficiallyaccepted
communicationintheorganizationandituses
officialchannelfortransmittingmessages.
Itfollowsofficialrouteforflowofcommunication
betweenvariouspeopleintheorganization.
Commands,instruction,ordersflowingfromtop
leveltolowerlevel,messagesforcoordination
betweenpeopleatsamelevel,suggestionsfrom
peopleatdifferentlevels,requisitionsfromlower
leveltohigherleveletcrepresentformal
communication.

91. Types of Communication
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FormalandInformalCommunication
Informalcommunicationisthatcommunication
whichisnotofficiallyacceptedpartofthe
communicationinanorganization.
Itdoesnotadheretotheorganizationalhierarchy.
Informalcommunicationisbasedontheinformal
relationshipamongtheorganizationalmembers.

92. Types of Communication
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Oral and Written Communication
Oralcommunicationisfacetofaceinterpersonal
communicationbetweenindividuals.
Messageisexchangedthroughwordofmouthi.e.it
isexchangedthroughspokenwords.
Writtencommunicationistransmittedthrough
writtendocumentintheformofletters,circulars,
memos,reports,manualsetc.
Itisthemostpopularmodeofformal
communicationanditisverywidelyused.
Itcreatesapermanentandverifiabledocument
whichservesasproofforcommunicationprocess.

93. Types of Communication
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Meritsoforalcommunication.
Itisveryquickandsavestime.
Directcontactestablishespersonaltouchandhenceitis
moreeffective.
Messagecanbetransmittedtolargenumberofpeople
atthesametime(throughspeech).
Easytounderstandandscopeforimmediatefeedback.
Chancesofmisinterpretationareminimum.
Demerits:
Thereisnorecordedproofformessageandhencefixing
responsibilityforbothsenderandreceiverisdifficult.
Keepingattentionofreceiverisdifficultwhenmessages
arelengthy..Requiresgoodoratoryskills.

94. Types of Communication
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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, etcto 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.

95. Types of Communication
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Vertical and Horizontal Communication
Communicationissaidbeverticalwhenmessages
flowfromonehierarchyleveltoanother.
Verticalcommunicationcanbedownwardor
upward.
Downward communicationstartsfromtop
managementandflowsdowntolowerlevelthrough
differenthierarchylevels.
Downwardcommunicationisusedtogiveorders,
instructions,ihformprocedures,informorganization
goalsetc.
Jobinstructionsheets,circulars,memos,orders,
etcareexamplesfordownwardcommunication.

96. Types of Communication
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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, suggestions etc.

97. Types of Communication
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Vertical and Horizontal Communication
Horizontalcommunicationreferstoexchangeof
informationbetweentwopeopleatsame
hierarchylevelorpeerlevel.
Forexampleinformationexchangedbetweentwo
departmentalheadsofanorganization,a
productionengineerinformingamaintenance
engineeraboutbreakdownofamachineetc.
Itisalsocalledaslateralcommunication.

98. CONTROLLING
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Controllingisdefinedastheprocessofmeasuring
theactualworkandcomparingitwitha
predeterminedstandardinordertodetermineany
deviationsothattimelycorrectiveactionsaretaken
andtasksarecompletedasperoriginalplans.
Controllingisdefinedasthecontinuousfunctionof
determiningwhatisbeingperformed,measuringits
actualresultsinrelationwithpredetermined
objectivesanddevisingsuchcorrectivemeasures
thatmaybenecessarytomaketheperformance
conformtotheoriginalplans.

99. Objectives of Controlling
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Toensureeffectivenessandefficiencyinall
managementfunctions.
Todeterminewhatishappeningintheorganization
andmeasureactualprogressfromtimetotime.
Toensureeffectivecommunicationbetweenvarious
unitsoforganization.
Tokeepacheckonresourceutilization.
Toreframeorganizationalplansinrelationto
changesintheenvironment.
Todetectanydeviationandtaketimelycorrective
actions.
Toensurethatalltheactivitiesareperformed
accordingtopredeterminedplans.