Functions of Management


7.1 Introduction
7.2 Planning
7.3 Organizing
7.4 staffing
7.5 Directing
7.6     Co-ordinating
7.7     Controlling
7.8     Distinguish Between
7.9     summary
7.10   Exercise

Hari and Gopakao are childhood friends, now they are about to become relatives. Hari's son Adirya and Gopalrao's daughter Mansi will be getting married soon. Both the friends have decided to jointly manage all the functions and programmes of the wedding. Family members discuss and plan about the various events of the wedding and the corresponding expenses to be incurred. After planning is done, Hall is booked and all the family members of both sides required for executing the roles during the wedding programme are called in for discussing about Catering, Decorating, Entertainers, etc. Now all the resources needed are organized. Most of the young family members are allotted with appropriate task i.e. Right Men for Right Job. Boys are given outside activities like catering, decoration, etc. whereas the girls are allotted with the arrangements within the household like sangeet, decoration of house, etc. Elders of the family give direction to everyone involved in wedding programme. Direction like giving invitation to all the people as per list prepared, no one should be missed, Pandit should be booked for the wedding day, etc. Handling such a difficult and sensitive task of wedding arrangement is not a single handed job. This requires co-ordination amongst all the people working for the function to make it a successful one. Both the family members work hand-in-hand to, make it a grand one. If there are any shortcomings to the plan, then controlling is done by taking corrective measures. A day before the wedding, it was found that the wedding dress of the groom was not ready so other alternatives were found and dress was made ready for the wedding day.
All the arrangements were properly executed and the event was a grand success, as it was planned well, organized in a proper way, proper staffing i.e. right people were allotted right jobs, proper direction was provided by the elders, there was good co-ordination between all the people working and it was well controlled by the elders of the family. This means that with proper application of all the functions of management, desired objectives can be achieved.


7.1.    INTRODUCTION
Management system is a dynamic, flexible, universal and continuous process. Management process consists of several functions and a distinction should be maintained between management functions (planning, organizing, staffing, directing, co-ordinating and controlling) and Organizational Functions (production, marketing, finance, etc.). Organizational functions differ from organization to organization depending on their nature, while the functions of managers are common to all.
Management functions are run by the managers functioning at all levels. Management is a process in which managers plan, organize, direct, motivate, co-ordinate and control to achieve well defined goals in an efficient and effective manner.
Different experts have classified functions of management in different ways. For theoretical purpose, it may be convenient to separate the functions of management but practically these functions are overlapping in nature i.e. they are highly inseparable in nature.

Definitions :
1.    George Terry : "There are four fundamental functions of management i.e. planning, organizing, actuating and controlling."
2.    Henry Fayol : "To manage is to forecast and plan, to organize, to command and to control."
3.    Luther Gullick : He has given a keyword "POSDCORB" where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for Reporting and B for Budgeting.

7.2.    PLANNING
7.2.1  Meaning :
Planning is the foremost, fundamental and important function of management. It is a process of setting goals and choosing the means to achieve these goals.
Planning is the starting point of management process and all other functions of management are related to and dependent on planning function. Planning is the key to success, stability and prosperity in business. It acts as a tool for solving the problems of a business unit. Planning plays a vital role in business management. It helps to visualise the future problems and keeps the management ready with possible solutions.
Planning involves selecting missions and objectives and the actions to achieve them, it requires decision making i.e. Choosing from available alternative future courses of action. Planning is necessary to ensure proper utilisation of human and non-human resources. It is a detailed programme regarding future courses of action. It is rightly said, "Well Plan is Half Done".

7.2.2  Definitions :
1.       Koontz and O'Donnell : "Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. Planning bridges the gap between where we are now and where we want to go. It makes possible things to occur which would not otherwise occur."
2.       George Terry : "Planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualisation and formulation of purposed activities believed necessary to achieve desired results."
3.       James Stoner : "Planning is the process of establishing goals and a suitable course of action for achieving those goals."

7.2.3. NATURE OF PLANNING
1.       Primary Function : Planning is a primary and basic function of management. It acts as a base to other functions of organizing, staffing, directing, co-ordinating, controlling, etc. Proper planning leads to achievement of desired goals in a desired manner in a given period of time.
2.       Intellectual Process : Planning is an intellectual process. It involves intelligence, imagination and creative thinking. A manager can prepare a sound plan only if he has sound judgment, foresight and imagination. Planning is always based on goals, facts and considerate estimation.
3.       Goal Oriented : Planning is made to achieve desired objectives of business. Planning initiates the action that would lead to desired goals quickly and economically. It also provides the desired direction for achievement of goals. e.g. Maruti-Suzuki is trying to capture more of the Indian market by launching cars with diesel and eco-friendly (CNG) models. ,
4.       Future Oriented : Planning is always done by keeping in mind the future needs. Goals can be achieved only if planning is done with proper thinking. A Good Planner needs to think about future, analyse it and predict it.
5.       Continuous Process : Planning is a never ending function due to its dynamic nature. Plans are also prepared for specific period of time and at the. end of that period, plans are subject to revaluation and review in the light of new requirements and changing conditions. Planning can never come to an end till the business exists. If a particular goal is achieved, another targets are set and then again planning process
6.       Pervasive Function : Planning is required at all the levels of management and in all the departments of an organization. The scope of planning may differ from one level to another. The Top level may be more concerned about planning for the organization as a whole. The middle level may be more specific in departmental plans and the lower level plans for the implementation of the same.
7.       Dynamic Function : Planning is done for the future. Since future is unpredictable, planning must provide enough scope to cope with the changes in market demands, competition, government policies, etc. Under changed circumstances, the original plan of action must be revised and updated to make it more practical.
8.       Involves Options and Decision Making : Planning essentially involves options among various alternatives but there can be only one suitable option among the available alternatives. A manager has to take a decision and select the best option depending upon requirement and available resources in the organization. Decision making is an integral and inseparable part of planning.
9.       Designed for Efficiency : Planning leads to accomplishment of objectives at the minimum possible cost. It avoids wastages and ensures optimum utilisation of available resources like men, money, material, methods and machines. Good planning also saves time, efforts and money of an organization.
10.     Planning as the Basis of Control :
         Planning and control are two sides of the same coin. Both are closely related to each other. Without the basis of planning, controlling activities become baseless and without controlling, planning becomes a meaningless exercise. Planning precedes controlling and controlling succeeds planning. Both are inseparable from each other.
Prepare a plan for the annual day function of your college.
7.2.4  IMPORTANCE OF PLANNING
Planning is an important function of management. It acts as base for the achievements of organizational goals. Importance of planning is as follows.
1.       Provides direction : A proper plan always gives proper direction for the achievement towards the desired goals. A manager can give proper direction to his subordinates so that right work can be done at the right time so as to get the right results. Planning helps to perform all the activities in smooth and systematic manner.
2.       Reduces risks and uncertainties : Modern business world is full of risk and uncertainties. Planning helps to reduce these risks and uncertainties as it involves anticipation of future events and prepare for possible risks.
3.       Increases efficiency : Good planning leads to proper and efficient working of the employees in an organization. Planning helps to define the objectives of the organization with reference to available resources. Plans are efficient if they achieve their purpose at a reasonable cost, where cost is measured not only in terms of time or money or production but also in the degree of individual and group satisfaction.
4.       Integrated process : Planning is done for all the departments in the organization. All the departments are interconnected and hence their plans needs to be integrated with each other in order to achieve the desired results.
5.       Provide clear objectives : Planning begins with determination of objectives. It makes clear the purpose of objectives, in fact, it makes objectives more clear and specific. It helps employees in achieving their objectives or goals of the organisations.
6.       Improves morale of employees : Planning brings order and discipline in an organization. Employees know in advance as to what is expected of them and how to achieve that. This helps them to bring the best in their performances and also brings healthy attitude towards work, which in turn boost the confidence, morale and efficiency in them.
7.       Helps in optimum utilisation of resources : Effective planning leads to proper allocation of resources for various activities. It also facilitates optimum utilisation of resources which brings higher efficiency and better results.
8.       Encourage Innovation : In a planning process, manager gets, opportunities by providing suggestions for improving performances. Planning is basically a decision making process which involves creative thinking and imagination that ultimately leads to innovations and in turn growth and prosperity for the organization.
9.       Facilitates Controlling : An effective controlling is possible with well thought plans. Planning provides pre-determined goals against which actual performance is compared. Continuous monitoring is one on the performance so that immediate corrective action can be taken if anything goes wrong. In fact, Planning and Controlling are the two sides of the same coin. If planning is the root, controlling is the fruit.
10.     Facilitates Co-ordination : All managerial functions lead to co-ordination in the organization. Planning revolves around organizational goals. Integrated effects from various departments leads towards achieving organizational goals and it is possible only through co-ordination among various departments. It is truly said that co-ordination is essence of management and planning is the base for it.

7.3     ORGANISING
7.3.1  Meaning:
Organizing is next to planning. It is a process of identifying and bringing all the resources i.e. men, material, machines, money and methods together and use them properly for achieving the objectives. Organising brings together physical, financial and human resources and develop productive relationship amongst them.
Organizing is a process whereby one defines the activities and establishes the relationship amongst them to achieve organizational objectives. Organization is the form of process of organizing through which organizational structure is created:


7.3.2. Definitions :
1.       Theo Haimaan : "Organizing is the process of defining and grouping the activities of the enterprise and establishing the authority relationships among them."
2.       Louis Allen : "Organizing is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives."
3.       Mc Farland : "Organization is an identifiable group of people contributing their efforts towards the attainment of goals."
Prepare a plan to organize one day College Picnic.
7.3.3  NATURE OF ORGANIZING
The nature of Organizing functions are as follows.
1.       Organizing as a process : Organizing is a step-by-step process which consists of 8 steps, each step is an important tasks to be performed by the administrators working at the top level of management :
·         Fixes the common objectives.
·         Identify all the activities.
·         Grouping of related activities.
·         Defining the responsibilities.
·         Delegating authority to staff members.
·         Relationship between superior and subordinates.
·         Provision of requirements for achieving the objectives like money, machines, material, etc.
·         Co-ordination for achieving the common objectives of the organization.
2.       Division of Work : The working of an organization is centered on the concept of specialised division of work. The division of work is assigning responsibility for each organizational activity to a specific individual or group of people. It also increases the efficiency and effectiveness of employees in an organization.
3.       Co-ordination : Organization is a means of creating co-ordination among different departments. It creates good relationships among employees and ensures mutual co-operation among individuals. Co-ordination increases success rate and desired goals can be achieved.
4.       Goal Oriented : Every organization has its own objectives and goals. Organizing is the function employed to achieve the individual goals of the employees with overall objectives of the firm.
5.       Group of Individuals : Individuals form a group and the groups form an organization. Thus, organization is the composition of individuals and groups. Individuals are grouped into departments and their work is co-ordinated and directed towards achievement of organizational goals.
6.       Integration : The organization divides the entire work and assigns the tasks to individuals in order to achieve the organizational objectives. Each one has to perform a different task and tasks of one individual must be co-ordinated with the tasks of others. Collectively these tasks at the final stage is called Integration.
7.       Continuity : An Organization is a group of people in which they work together to achieve the goals of that organization. This relationship does not come to an end after completing the task. Organizing is a never ending process.
8.       Common Targets : Top level management set the overall goals for an organization. It is an integrated and collective efforts from all the employees towards the achievement of common targets or goals set­up by an organisation.
9.       Decision Making : Top management has a right and power to take decisions. It is a task of a manager to get the things done from the subordinates in the most efficient and effective manner.
10.     Authority and Responsibility : When a particular activity or group of activities is assigned to an individual, he becomes responsible for those activities. A manager can discharge his responsibility properly only when he has been given proper authority to take right decisions. There must be a proper balance between authority and responsibility.

7.3.4  IMPORTANCE OF ORGANIZING
Following are the points showing the importance of organizing function of an organization.
1.       Specialisation : In an organization, the work is divided into units and departments. This division of work helps in bringing specialisation in various activities of organization. It also helps to complete maximum work in a minimum possible time.
2.       Well defined jobs : Organizing helps in putting right individual on right job which can be done by selecting people from various departments according to their qualification, skill and experience. This helps in defining the jobs properly which clarifies the role of every individual.
3.       Proper Authority : Organizing clarifies the positions and powers of every managers. The way, they have to exercise their power should be clarified in order to avoid misuse of power.
4.       Responsibility : For smooth functioning of an organization, the co-ordination between authority and responsibility is very important. There should be co-ordination between different relationships. Clarity should be made for having an ultimate responsibility attached to every authority.
5.       Effective Administration : The organizational structure helps in defining the right job to the right individual. The role of each and every employee in an organization is well defined. This division of work leads to specialisation and finally leads to effective and efficient administration.
6.       Job Satisfaction : Organization clarifies the jobs/roles assigned to every manager and also their powers. Clarity of powers helps in increasing job and mental satisfaction and thereby sense of security in an organization.
7.       Dynamic Function : The roles and activities to be performed are clear and every manager gets independence in his working. This helps him to use his talents, knowledge and can take decisions, e.g. like to adopt new techniques of production, etc.
8.       Facilitates Growth : Growth of an organization depends on the efficiency of their employees. Efficiency is possible by clarifying the positions of the managers, co-ordination between authority and responsibility and concentrating on specialisation. All these leads to the path of progress and growth of an organization.
9.       Optimum Utilisation of Resources : Organizing function provides different jobs to every different employee. Specialisation of work is also possible. Not only manpower is used to the optimum but also machines and other resources are used to the maximum level so that desired results are achieved.
10.     Innovation : Division of work and specialisation brings the best out of the employees of an organization. They enjoy freedom of expression at work by contributing their innovative ideas and creative thinking. All this in turn leads to the path of bringing improvement in an organization.

7.4     STAFFING
7.4.1  Meaning :
Staffing is that part of the process of management which is concerned with acquiring, developing, employing, appraising, remunerating and retaining people, so that right type of people are available at right positions and at right time in the organization. The need of staffing arises in the initial period and also from time to time for replacement and also along with the expansion and diversification of business activities. Right man for the right job is the basic principle of staffing. In the simplest terms staffing is "putting right people to right jobs".

7.4.2  Definitions :        
1.       Theo Haiman :     "The staffing function pertains to the recruitment, selection, development, training and compensation of subordinate managers."
2.       McFarland : "Staffing is the function by which managers build an organization through the recruitment, selection and development of individuals as capable employees."
3.       S. Benjamin : "Staffing is the process involved in identifying, assessing, placing, evaluating and directing individuals at work."

7.4.3  NATURE OF STAFFING
The nature of staffing can be briefly explained as follows:
1.       Important Managerial Function : Staffing function is the most important managerial function along with planning, organizing, directing and controlling. The functioning of these four functions depends upon the manpower which is available through staffing function.
2.       Pervasive Activity : Staffing function is carried out by all the managers and in all types of organization where business activities are carried out. It relates from top level management to middle level managers and finally to the lower level subordinates.
3.       Continuous Activity : Staffing function continues throughout the life of an organization. It includes recruitments, transfers, promotions, etc. of the employees, in an organization. Certain trainings are also given to the employees from time to time so as to perform better and contribute towards overall development of the business.
Staffing is a continuous process – Discuss with your teacher
4.       Efficient Management of Personnel : Human resource can be efficiently managed by a system i.e. recruitment, selection, placement, training and development, providing remuneration, etc. All this provides a motivational force to the employee leading to the betterment of the organization as a whole.
5.       Right Men at the Right Job : In can be done effectively through proper recruitment procedures and then finally selecting the most suitable candidate as per the job requirements. Staffing aims at selecting the right men for the right job at a right time.
6.       Essential at all Levels : Staffing function is performed by all the managers depending upon the nature of business, size of the company, qualification and skills of managers, etc. In small organization, the top level management generally performs this function. In medium and large organization, it is performed specially by the Human Resource or Personnel department of that organization.
7.       Related with Human Resource Management : This is mainly related with the people and not like planning, organizing, etc. which is related with paper work. It is concerned with the managers and employees of the organization.
8.       Social Responsibility : This function is related with the recruitment, selection, training, etc. of the people so it becomes the social responsibility of the person or department concerned with all the activities that they have to be impartial in taking proper and correct decision.
9.       Result Oriented : Staffing function aims at right job for the right person. It is always advisable to recruit a specialised person for a specialised job. Certain training is also provided to employees so that they bring more excellent results for the organization.
10.     Motivation : Staffing function helps to provide constant motivation to the employees by providing them with timely trainings, promotion, etc. Performance of the employees are under continuous vigilance at the top level. Employees accomplish their targets in the given time may be rewarded with monetary or non-monetary incentives by the organization.

7.4.4  IMPORTANCE OF STAFFING
Importance of staffing can be explained with the help of following points :
1.       Effective Managerial Function : Staffing deals with human resource of an organization which is considered as the most vital assets, as it is the people who make other resources moving. They perform various activities in the organization in different functional areas like production, marketing, finance, etc.
2.       Builds Relationship : Staff function helps to build proper human relationships in the organisation. Smooth human relation is the key to better communication and co-ordination of managerial efforts in an organization.
3.       Human Resource Development : Skilled and experienced staff is the best asset of a business concern. Staffing helps to inculcate the corporate culture into the staff which in turn ensures smooth functioning of all the managerial aspects of the business.
4.       Long Term Effect : Staffing function has long term effects on the efficiency of an organization. Qualified, Efficient and well-motivated staff is an asset of the organization. Proper choice of employees can lead the organization towards the path of success.
5.       Essential Contribution : Staff selection should be based on the ability of the prospective employees to meet the future challenges that the organization is going to face. Therefore the contribution of the staff in their future roles should be taken into account in staff selection.
6.       Improves Efficiency : Staffing includes training and development programmes for the employees of an organization. It improves organizational productivity. Through proper selection the organization gets quality employees and through proper training the performance levels of the employees can be improved.
7.       Maintains Harmony : Through proper staffing, individuals are not just recruited and selected but their performance is regularly appraised and promotions are given on merit. For all these, certain rules are made and duly communicated to all concerned. This brings about peace and harmony in the organization.
8.       Provides job Satisfaction : It helps in providing job satisfaction to the employees keeping their morale high. With proper training and development programmes their efficiency improves and they feel assured of their better career.
9.       Better Performance : Staffing function helps in proper selection of employees in an organization. In order to perform better than the other employees, they develop competence and perform better to meet the challenges of their job.
10.     Optimum Utilisation of Human Resources : Staffing function tries to utilise human resources more efficiently and effectively. Training and development programme helps the employer to improve their performances as well as brings progress for their organisation.

7.5     DIRECTING
7.5.1  Meaning:
Directing is a process in which the managers instruct, guide, communicate, inspire, motivate and oversee the performance of the workers to achieve predetermined goals. Directing is said to be the heart of management process. Planning, Organizing, Staffing has no importance if Directing function does not take place. It is a continuous process initiated at top level and flows to the bottom through organizational hierarchy. Directing is the responsibility of managers at all levels. They have to work as leaders of their subordinates. A few philosophers call Direction as "Life Spark of an enterprise".

7.5.2  Definitions :
1.       Earnest Date : "Directing is what has to be done and in what manner through dictating the procedures and policies for accomplishing performance standards".
2.       Haimann : "Direction consists of the process and techniques utilising in issuing instructions and making certain that operations are carried out as planned."  
3.       Urwick and Brech : "Directing is the guidance, the inspiration, the leadership of those men and women that constitute the real case of responsibilities of management."

7.5.3  NATURE OF DIRECTING
Nature of Directing as a directing function as follows :
1.       Pervasive Function : Directing is required at all levels of an organization. Every manager provides guidance and information to his subordinates. It is a function related from top level of management to the lower level subordinate of the organization.
2.       Executive Function : Directing function is carried out by all managers and executives at all levels throughout the working of an organization. A subordinate always gets instructions from his superior only.
3.       Human Factor: Directing function is related with human beings unlike other four factors of production i.e. money, machines, material and methods. Since human factor is complex and behaviour is unpredictable, direction function becomes important.
4.       Continuous Activity : Direction is a continuous activity as it continues throughout the life of an organization. The manager has to give direction to his subordinates, but the process will not end with giving directions as he has to guide and motivate them continuously so that the desired goals can be achieved.
5.       Creative Activity : Directing function helps in converting plans into performance. A manager needs to have a creative and innovative thinking so that he can guide and motivate his subordinates with new ideas and innovative techniques and making their performance a better one.
6.       Delegate Function : Directing function deals with human behaviour. Human behaviour is unpredictable by nature and conditioning the people's behaviour towards the goals of an organization is what the manager does in the function.
7.       Flows from Top Level to Bottom Level : Directing function includes providing instructions which flows from top to bottom. It starts with top level management and ends with subordinates at the lower level.
8.       Facilitates Co-ordination : Co-ordination brings harmony among employees and balance between all the activities of an organization. Managers have to provide directions to their respective departments and subordinates accordingly follow the directions and work towards achievement of organizational objectives. This is possible through co-ordination only.
9.       Dual Objective : Direction helps to achieve dual objectives of an organization. On the one hand it aims at getting things done by the subordinates and on the other hand, it provides an opportunity for the managers to prove their leadership qualities and also helps subordinates to complete their task under his guidance.
10.     Psychological Factor : Directing function is directly related to an individual working in an organization. It deals with their feelings, emotions, etc. While giving direction to the subordinates, the manager has to take care that the feelings and emotions should not get hurt.
Proper Direction plays an important Role in the success of an organization – Discuss with your teacher.

7.5.4  IMPORTANCE OF DIRECTING
         Directing is vital managerial function:, Its importance is as follows :
1.       Initiates Action : Directing function is a point from where the action starts, subordinates understand their jobs and do according to the instructions given. Whatever plans are made can be implemented only when the actual work starts, the direction becomes beneficial.
2.       Integrated Efforts : The superiors are able to guide, inspire and instruct the subordinates to work. Efforts of every employee towards fulfilment of goals are required. It is through direction the efforts of every department can be related and integrated with others.
3.       Means of Motivation: A manager makes use of motivational techniques to improve the performance of subordinates by providing monetary and non-monetary incentives. Motivation is also helpful for the subordinates to give the best of their abilities which ultimately helps in growth.
4.       Provides Stability and Balance : Stability and balance in the organization becomes very important for long term survival. Effective leadership, communication, supervision and motivation provides stability and maintains balance in the different parts of the organization.
5.       Adopting Changes : Directing function helps in making changes in internal and external environment. It is the role of a manager to communicate the possible changes very clearly to the subordinates like new technology, production techniques, management policies, etc.
6.       Efficient Utilization of Resources : Directing helps to utilise all the resources to the. optimum level. Proper direction helps the employees, gives guidance and motivation in a right manner which reduces wastages and increased efficiency. This also helps in maximum possible utilisation of resources of men, machine, material, methods and money.
7.       Team Work : Proper Direction brings team spirit in an organization. It is a combined effort of all the employees that brings success for the organization. Managers play an important role, as they have to give not only direction to the employees but also guide and motivate them to achieve the targets set­up by the organization.
8.       Increase Efficiency : Sound direction leads to motivation and work efficiency among the employees which improves quality of work and reduces wastages. New techniques, methods, etc. can be adopted to give to employees for enhancing their efficiency.
9.       Exploring Potential of Individuals : Every individual in the organization has some potential and capability. Direction helps the individuals to utilise their abilities to their best by providing them proper motivation and encouragement. It is the duty of a good leader to utilise the capabilities to achieve organizational goals.
10.     Co-operation : Co-operation always exists between different departments and among the people within the department for the betterment of an organization. Co-operation is necessary from top level to the bottom level. Without proper co-operation, team work and efficiency to achieve organizational objectives cannot be possible.

7.6.    CO-ORDINATING
7.6.1  Meaning :
Co-ordination is an integration of different activities that are essential for the working of an organization. It is a process to establish harmony among different activities of an organization so that the desired objectives can be achieved.
Co-ordination is rightly treated as the essence of management. It is essential at all the levels of management. It improves the performance of the organization by avoiding misdirection and wastages and brings unity of action in the organization. Co-ordination will not come automatically or on its own. Special efforts are necessary on the part of managers for achieving such co-ordination.
Co-ordination is the unification, integration, synchronization of the efforts of group members so as to provide unity of action for achievement of common goals. It is a hidden force which binds all other functions of management.

7.6.2  Definitions
1.       Mooney and Reelay : "Co-ordination is orderly arrangement of group efforts to provide unity of action in the pursuit of common goals."
2.       Henry Fayol : "Co-ordination is an act to harmonise all the activities of a concern so as to facilitate . its working and its success."
3.       Koontz and O'Donnell : "Co-ordination is the essence of management for the achievement of harmony of individual efforts towards the accomplishment of group goals."
Co-ordination means proper harmony and balance between the activities : Discuss with your teacher.

7.6.3  NATURE OF CO-ORDINATING
Nature of Co-ordinating can be explained with the help of following points :
1.       Team Work : Co-ordination is a group effort and not individual effort. An individual working in isolation does not affect functioning of others and no need of co-ordination arises. To achieve the common objectives, all have to work in a team and this is possible through co-ordination.
2.       Continuous Activity : It is a continuous process and not a one time job. Co-ordination among employees is needed at each and every step from planning function to controlling function of management.
3.       Dynamic Process : In every organization, co-ordination plays an important role in success of any business. It is dynamic because functions themselves are dynamic and may change over a period of time. These changes are implemented immediately, if required, so as to achieve the desired target in a given period of time.
4.       Integration : Co-ordination itself relates to group effort but not to an individual. There is always a need of integrated efforts from all the employees to perform various functions in an organization. Integrated efforts lead towards the success of an organization.
5.       Pervasive Function : Co-ordination is required at all the levels of management and in all the departments of an organization. The nature of co-ordination is such that it is applicable to all from the superiors at the top levels to the subordinates at the lower level.
6.       Responsibility : All the activities performed at different levels are important. It is the responsibility of all the managers to make the needs efforts at all the levels to have co-ordination among themselves as well as with the other employees of an organization.
7.       Synchronization of Efforts : Co-ordination is a responsibility of every manager in the organization, as he tries to synchronise the efforts of his subordinates with each other for achieving organizational goals. Managers through their various functions try to achieve this synchronisation so that each effort contributes positively towards the organizational goals.
8.       Co-ordination is different from Co-operation : The concept of co-ordination is much broader than co-operation. The basic objective of co-ordination is the synchronization of efforts of individuals in a work group so that no effort goes in waste. On the other hand, the basic objective of co-operation is to protect the interest of members of a group specially from the threats and helping each other.
9.       Common Objectives : The common objective of the employees in an organization is to achieve the targets within the given time. Through co-ordination between all the departments and employees of a department the common objective of the organization can be accomplished. A timely completion of task is possible through proper co-ordination.
10.     Essence of Management: Co-ordination is required in every function of the management. It is an essence of management. It is the basic responsibility of the manager to co-ordinate with the subordinates for the achievement of organizational objectives. Co-ordination between top level management to the middle level managers and then from middle level managers to the lower level employees is very essential at every point of time.

7.6.4  IMPORTANCE OF CO-ORDINATING
Importance of Co-ordinating is as follows :
1.       Integrated Group Effort : Co-ordination is related to integrated group effort. It is only a team work under the guidance, direction and motivation of the manager which encourages the subordinates for the achievement of the organizational goals. This reduces the conflicts between the employees and increases their team spirit.
2.       Creative Force : It is a group effort of all employees and not individual effort in an organization that helps to co-ordinate with each other and forms a creative force, as to achieve the desired results. Combined efforts of all the employees can help an organization to overcome its limitations and achieving organizational objectives.
3.       Unity of Direction : All the departments in the organization perform different activities. Co-ordination brings together these activities for achieving common goals and objectives of the organization. Thus co-ordinating gives proper direction to all the departments of the organization.
4.       Facilitates Motivation : Co-ordination gives an opportunity to the employees to take initiative, bring creativity in work and perform better. This motivates the employees and in turn they get monetary and non-monetary incentives from the organization. Employees also get job satisfaction and encouragement to give their best performance for achievement of organizational objective and self­satisfaction.
5.       Optimum Utilization of Resources : Co-ordination helps to bring together all the resources of the organization. It helps to make the optimum utilisation of available resources i.e. human and non­human while achieving the objectives of the organization. co-ordinations also helps to minimise the wastage of resources in the organization.
6.       Achievement of Objectives : Co-ordination helps to reduce wastage, delays and other organizational problem to a great extent. Co-ordination ensures smooth working of the organization in the process of achieving the objectives of the organization.
7.       Improve Relations : Co-ordination develops good relations between top level, middle level and lower level employees of an organisation. There is always dependence of one person with other like production department has to depend on purchase department, sales department has to depend on production department and so on. So co-ordination not only helps the employees to achieve their targets but also helps to improve their relations with each other.
8.       Higher Efficiency : Efficiency can be measured in terms of Returns and Costs. Higher efficiency is a result of high returns and low costs due to optimum utilization of resources. So co-ordination leads to high efficiency.
9.       Improves Goodwill: Higher efficiency means low costs and higher sales leading to higher returns. This leads to better prices of shares in the market. Better return also helps the organization to build a good image and a goodwill for the organization in the market and corporate world.
10.     Specialisation : All the departments of the organization are headed by specialised professionals in their respective fields. Co-ordination among these specialised professionals can lead the organization towards achieving the targets as planned.

7.7     CONTROLLING
7.7.1  Meaning :
Control is indispensable function of management. Management function starts with planning and ends with controlling.
Controlling is one of the managerial functions like planning, organizing, staffing and directing. It is an important function as it ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in corrective actions.
According to modern concepts, control is foreseeing action whereas earlier concept of control was used when errors were detected. Control in management means setting standards, measuring actual performance and taking corrective action. There are various steps in control process which are necessary for its relationship with planning which are as follows :

7.7.2  Definitions :
1.       Donnell : "Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on right course."
2.       Philip Kotler : "Control is the process of taking steps to bring actual results and desired results closer together."
3.       Harold Koontz : "Controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished."

7.7.3  NATURE OF CONTROLLING
The nature of controlling is explained as follows :
1.       Planning is a basis of Controlling : Controlling is said to be checking the performance as per the planning. So planning precedes controlling and sets the standards and target of performance. Without planning, control is not possible.
2.       Continuous Process : Controlling is a dynamic function of management. It involves continuous review of performance and is not a one time job. The period of control normally depends upon the nature of work and policies of management. Controlling is needed at each and every stage so as to compare the performance with standards.
3.       Pervasive Function : Control is exercised at all the levels of management and is done is every functional area and in each department. Thus, control is all pervasive.
4.       Action Oriented Process : Action is the essence of control. The purpose of control is to take corrective action for improvement of performance. If there is any actual deviation in comparison with the plans, then corrective measures should be taken to bring improvements towards achievement of desired objectives.
5.       Future Oriented : Control is futuristic in nature. It measures current performance and provides guidelines for the corrective action. This ensures future performance as per plans so that same mistake should not be repeated in future.
6.       End Function : Controlling is an end function which comes once the performance is made in accordance to the plan. If all the desired objectives are achieved as per the planned activities, then the control function brings an end to the task assigned.
7.       Tools of Management : Management adopts various techniques to control organizational activities like
·         Financial Control (Budgetary control, control through costing, break-event analysis, responsibility accounting, internal audit)
·         Operating Control (Quality control, techniques for quality control, quality control through quality circle)
·         Inventory Control (ABC analysis, economic order quantity, time-event network analysis, PERT/CPM).
8.       Delegation of Authority : Control action can be taken only by managers who are responsible for performance and have the authority to get the things done. A manager gets authority through delegation. He can take corrective action if there is any deviation in actual and planned activity, as it is his responsibility to achieve the desired results.
9.       Creativity : Managers should adopt new and modern controlling techniques for the achievement of objectives. They have to be creative and innovative in their thinking.
10.     Acts as a Guide : Control action is guided by adequate information from the beginning to the end. The information system is designed on the basis of control system. Every manager has information about his performance standards and the achievement of organizational objectives. This system provides guidance in case of any deviation so as to achieve desired objectives.
Controlling helps to maintain standards and to achieve the desired goals efficiently and effectively - Discuss

7.7.4  IMPORTANCE OF CONTROLLING
Importance of Controlling is as follows :
1.       Fulfilling Organizational Goals : Controlling function helps to measure the progress towards the organizational goals and points out the deviations, if any and then suggests the corrective action towards the fulfilment of the organizational goals. In this way controlling helps to achieve the goals of the organization.
2.       Accuracy of Standards : A good control system helps management to verify the standards set are accurate or not. An efficient control system keeps a careful check on the changes taking place in the organization and helps to review the standards in light of such changes.
3.       Efficient Use of Resources : By using control techniques, a manager helps to reduce wastage and spoilage of resources. This ensures that resources are used in the most efficient and effective manner so as to achieve organisational objectives.
4.       Improving Employee Motivation : A good control system ensures that employees knows well in advance what they are expected to do and what are the standards of performance. Once the organizational objectives are achieved then they are rewarded with monetary and non-monetary incentives. This motivation helps the employees to perform more better in future.
5.       Ensures Order and Discipline : Controlling function brings about order and discipline in an organization. It helps to reduce the bad behaviour on the part of the employees. Under this system, regular checking is done by the authorities concerned and preventive actions are taken to avoid any deviations in already set targets.
6.       Facilitates Co-ordination : Control systems are designed in such a way that they focus not only on operating responsibilities of a manager but also on his ultimate responsibility. All the departments in the organization are 'interdependent on each other. There is always a possibility of having a good relationship between all the department managers. Co-ordination between the heads of departments can help to find out any deviations- in their respective departments and use the remedial measure so that desired results can be achieved.
7.       Psychological Pressure : Control pressure puts a psychological pressure on the individuals to perform better. Their performance is evaluated with the targets set for them. Everyone is likely to put on their best performance as they are aware that it will be evaluated. They may also have a pressure to achieve the results according to the standards fixed for them.
8.       Organizational Efficiency and Effectiveness : Proper control ensures organizational efficiency and effectiveness. Factors of control like making managers responsible, motivating them for higher performance and achieving co-ordination in their performance ensures that the organisation works efficiently. An organization is effective if it is able to achieve its desired objectives.
9.       Corporate Image : Controlling function helps to improve the overall performance of the organization. Progress in the business is measured in terms of planned standards and actual performance, if there is any deviation then corrective measures are applied and desired results can be achieved. This builds a good corporate image and brings goodwill for the business.
10.        Managerial Responsibility : Managerial responsibility is created through assignment of activities to various individuals. This process starts at the top level and goes to the lower level. A manager assigns some activities to his subordinates and controls them.



7.8 DISTINGUISH BETWEEN
Planning
Organizing
Staffing
Directing
Co-ordinating
Controlling
1. Meaning
Planning is deciding in advance what to do, how to do it, when to do it and who is to do it.
Organizing is the process of defining and grouping the activities of the organization.
Staffing is the process of recruitment, selection, development, training, promotion etc.
Directing is a process to instruct, guide, communicate, inspire and motivate employees to achieve organizational objective
Co-ordinating is a process to establish communicate, inspire and motivate employees to achieve organizational objectives.
Controlling measures the deviation of actual performance from the standard performance and takes corrective actions.
2. Objective
The main object is to set goals and choosing the means to achieve these goals.
The main objective is to identify and bring together all the resource.
The main objective is to appoint right type of people at the right positions and at the right time.
The main objective of giving direction to the subordinates is to get the things done in the right manner.
The main objective is ensure unity of efforts of the employees and smooth functioning of the organization.
The main objective is to ensure that the targets must be achieved as per the plans.
3. Area of Function
It includes Setting objectives Identifying alternate course of action Select the best plan
It includes Identification of the activities Grouping of related activities.
It includes Recruitment Training Promotion Transfers, etc.
It includes Guiding Instruction Inspiring Motivating Communicating
It includes Top Level Management Middle Level Management Lower Level Management
It includes Fixation of standards Measurement of actual performance.


Planning
Organizing
Staffing
Directing
Co-ordinating
Controlling
4. Factors
Internal as well as external factors are considered while setting targets
internal and external factors are considered for making arrangement of resources
Staffing is mostly concerned with Internal factors.
Directing is also concerned directly with Internal (human) factors.
It is concerned with Internal factor
It takes care of Internal as well as external factor for taking corrective action
5. Order
It is the starting point of management Other functions depends of Planning
It following planning, resources are organized as per the Planning
Human Resources are needed for the organization so it follows Organizing.
Direction is always needed. It follows organizing and staffing.
It is an important element of organizing It follows Planning.
It follows all other functions. It is an end function of management process.
6. Resources
Planning is done as per the resources required for achieving the targets.
All the resources needed are arranged i.e. men, machine, methods, material and money.
It is related with Human Resources.
It gives direction to the employees and regarding use of other resources.
It is related with Human Resources. It is an integrated effort.
It is related with all the resources as it helps to achieve targets
7. Targets
The targets set are analysed and then selected.
Al the resources are arranged to achieve targets.
It includes proper allocation of human resources to achieve better results.
Proper direction to the employees is needed to achieve the targets.
Internal Co-ordination among employees is must to achieve the desired results.
Actual Performance is compared with standard performance are taken to achieve targets.


Planning
Organizing
Staffing
Directing
Co-ordinating
Controlling
8. Nature
It is continuous in nature. Planning will never come to an end till the organization exists.
It takes place till the time all the resources are collected
It is a continuous process as it deals with human beings.
It is a continuous process as directing is needed till the targets are achieved.
It is a process where only people are concerned so continuity is needed.
It is a process which starts once the actual target is achieved.
9. Levels of Management
To level management is with related planning of activities.
Top level management and middle level managers are related with organizing of resources.
Middle level management are related with recruitment, training, promotion, etc.
Middle level manager provides direction to the employees for achieving targets.
All the level i.e. top to middle to the lower co-ordination is required to achieve targets.
Top level management and middle level managers are responsible for proper controlling of activities.




7.9 SUMMARY
Management function plays a very important role in the success of any organization. The main functions are Planning, Organizing, Staffing, Directing, Co-ordinating and Controlling. When all these functions are applied properly in an organization, then it gives a great possibility of achieving the desired organizational objectives. All the functions have got their own 'importance like Planning acts as a base selects the mission for achieving the objectives, Organizing identifies and brings together all the resources i.e. men, money, machines, method and material together and use them properly for achieving the organizational objectives, Staffing is concerned with recruitment, selection, development; training, etc. of individuals, in short, it provides right job to right people, Directing helps the managers to instruct, guide, motivate, inspire and communicate with his subordinates so as to achieve the targets; Co-ordinating is an essence of management, essential at all levels of management and it harmonises the efforts to increase efficiency, Controlling is a foreseen action to control the errors and to take corrective action so as to achieve the desired organizational objectives.

7.10 Exercise
Q.1 (A) Select the proper option from the options given below and rewrite the complete sentences .
1.       Planning is ....................
         a) Advanced Function b) Basic Function c) End Function
2.       Division of work is involved in at ................... function.
         a) Planning b) Organizing c) Directing
3.       Directing is initiated ................. level.
         a) Top b) Middle c) Lower
4.       Staffing function is a .......................... activity.
         a) Basic b) Continuous c) Neutral
5.       A process to establish harmony among different activities to achieve desired results is ............
         a) Controlling b) Co-ordinating c) Co-operation
6.       The last function in managerial process is ...................
         a) Co-ordinating b) Controlling c) Motivating
7.       Unification, integration and synchronization of the efforts of group members so as to achieve common goals is a ................. function.
         a) Planning b) Organizing c) Co-ordinating
8.       Staffing is concerned with...........
         a) Physical factor b) Financial factor c) Human factor
9.       Controlling measures the .................................. of actual performance from the standard performance and helps in correction action.
         a) Action b) Deviation c) Objective
10.     Directing is a responsibility of .................. at all levels.
         a) Manager b) Worker c) People
11.     Physical, financial and human resources to develop productive relationship is a ............ function.
         a) Organizing b) Directing c) Staffing                                              ,
12.     Deciding in advance as what is to be done, when it is to be done and who is to do it is .......... function of management
a) Planning b) Organizing c) Controlling
(B)     Match the correct pairs
Group 'A'
Group 'B'
a.    Planning
b.    Organizing
c.     Staffing
d.    Directing
e.    Controlling
1.     Individual Taste.
2.     Directly related to Human Beings.
3.     Bridges the gap between where we are now and where we want to go
4.     All the people are employed.
5.     Not directly related to Human Beings.
6.     Identify and Grouping the work to be performed
7.     Corrective Action taking.
8.     Right People at Right, Jobs.
9      Taking action against employees.
10.   Aims only at Organizational Goals.
(C)     Write a word or a phrase or a term which can substitute each one of the following :
1.       One of the functions of management is considered as a base for all functions.
2.       The function of management, which identifies and divides the work of the organization.
3.       A function of management that ensures that actual activities match up to the planned activities.
4.       A function where right people are given right jobs.
5.       A function where recruitment, selection, training, development, etc. is done for the people.
6.       A process where managers instruct, guide and communicate with employees.
7.       A function rightly treated as the essence of management.
8.       A process where standards are set, actual performance is measured and corrective action is taken.
9.       An end function where the performance is evaluated in accordance with plan.
10.     A function of management that brings physical, financial and human resources together for better productivity.
11.     A function without which planning is meaningless.
12.     A management function which is decided in advance as to what to do, how to do it, when to do it and who is to do it.
13.     A function directly related to human beings.
14.     A management function concerned with ascertaining whether the activities are carried out as per plan and take corrective action.
15.     An orderly arrangement of group efforts to provide unity of action to achieve common goals.
16.     A process of taking steps to bringing actual results and desired results closer together.
17.     A function which provides instructions from top level management to the lower level.
Q.2    Distinguish Between the following
1.       Planning & Organizing.                             6.     Staffing & Directing.
2.       Co-ordination & Controlling.                     7.     Planning & Staffing.
3.       Planning & Controlling.                            8.     Organizing & Directing.
4.       Organizing & Staffing.                              9.     Planning & Co-ordinating.
5.       Planning & Directing.                               10.   Organizing & Co-ordinating.
Q.3 Write Short Notes on the following :
1.     Importance of Controlling.                        7.     Nature of Controlling.
2.     Nature of Directing.                                  8.     Importance of Organizing
3.     Nature of Planning.                                  9.     Importance of Planning.
4.     Importance of Co-ordinating.                    10.   Nature of Staffing.
5.     Nature of Organizing.                               11.   Importance of Staffing.
6.     Importance of Directing.                           12.   Nature of Co-ordinating.

Q.4    State with reasons whether the following statements are TRUE or FALSE.
1.       Planning is an intellectual process.
2.       Every action in the organization is initiated through directing.
3.       Staffing is just to determine the number of people required in the organization.
4.       Controlling is the indispensable function of management.     w
5.       Co-ordination is the essence of management.
6.       Planning function alone can help to achieve organizational objectives.
7.       Staffing is one-time process as people have to be appointed once.
8.       Planning and controlling are interdependent and interlinked activities.
9.       Co-ordination is same as co-operation.
10.     Corrective action is not possible through controlling.
11.     Planning is of vital importance in the management process.
12.     Staffing includes human resource management.
13.     Directing is not required at all in management of the organization.
14.     Organizing is the process of defining and grouping the activities of the organization.
15.     Co-ordination is needed at all the levels of management.
15.     Directing function is not directly related with human factor.
17.     Division of work is not required in organizing function.
18.     Functions of management has no role to play in success or failure of an organization.

Q.5    Write short answer of the following :
1.       Write a note on importance of planning.
2.       Write in brief about nature of Organizing.
3.       Why is Staffing considered an important function in all types of management?
4.       Why is Directing an important function of Management?
5.       Write a note on Importance of co-ordination.
6.       Write about the nature of Controlling.                                   .
7.       State the nature of Directing function.
8.       Discuss the meaning and nature of co-ordination.
9.       State the importance of controlling.
10.     What is the nature of staffing function?
11.     State the nature of Planning.
12.     Why is Organizing considered an important function of management?

Q.6    Answer the following Questions :
1.       What do you understand by the term "Planning" and give its importance?
2.       Define Organizing. And explain its importance as management function.
3.       What do you mean by Staffing and give its importance?
4.       Define Directing and explain its importance as management function?
5.       Why is Co-ordinating function important as a management function?
6.       Define Control and give its importance.
7.       What is Directing? Explain the nature of Directing.
8.       Define and explain the nature of Staffing.
9.       What do you mean by Controlling and explain its nature?
10.     Define Co-ordination and explain its nature.
11.     Define Planning and explain its nature.
12.     What is Organizing? Explain the nature of Organizing.






 ORGANISATION OF COMMERCE AND MANAGEMENT NOTES





Write the features of the following.


DISTINGUISH BETWEEN


WHAT ARE THE TYPES OF



WRITE SHORT NOTES ON


ADVANTAGES AND DISADVANTAGES


SOCIAL RESPONSIBILITY OF COMMERCIAL ORGANISATION TOWARDS  


MERITS AND DEMERITS OF



ANSWER IN DETAIL

























State Whether The Following Statement Are True Or False (Give Reason)