Unit 1

MANAGEMENT FUNCTIONS AND BEHAVIOR CORE

Concept of management:
Management is required in all kinds of organisations whether they are manufacturing computers or
handlooms, trading in consumer goods or providing saloon services and even in non-business
organisations. No matter what the organisation is or what its goals might be, they all have something in
common – management and managers. Successful organisations achieve their goals by following a
deliberate process called ‘management.

 According to Harold Koontz and Heinz Weihrich, Management is the process of designing and
maintaining an environment in which individuals, working together in groups, efficiently
accomplish selected aims.
 According to Robert L. Trewelly and M. Gene Newport, Management is defined as the process of
planning, organising, actuating and controlling an organisation’s operations in order to achieve
coordination of the human and material resources essential in the effective and efficient
attainment of objectives.
 According to Kreitner, “Management is the process of working with and through others to
effectively achieve organisational objectives by efficiently using limited resources in the changing
environment.
 According to George R Terry, Management consists of planning, organising, actuating and
controlling, performed to determine and accomplish the objectives by the use of people and
resources.

So Management can be defined as a process of getting things done with the aim of
achieving goals effectively and efficiently. Some important terms in this definition are:

 Process: Process means the primary functions or activities that management performs to get
things done. These functions are planning, organising, staffing, directing and controlling.
 Effectiveness: Effectiveness is concerned with the end result. It basically means finishing the given
task. Thus Effectiveness in management is concerned with doing the right task, completing
activities and achieving goals
 Efficient: Efficiency means doing the task correctly and with minimum cost. Management is
concerned with the efficient use of input resources which ultimately reduce costs and lead to
higher profits.

Significance of Management:
  Achieving Group Goals: Management encourages collaboration and coordination
amongst workers. A general control must be provided to the organisational and personal
objectives in order to favourably accomplish the aims.
 Increases Efficiency: Management improves productivity by managing resources in a
reliable conceivable way in order to decrease cost upscale potency.
 Creates Dynamic organisation: Management undertakes the conditions by assuring that
these variations are well accepted privately and that objection to change is controlled.
 Achieving personal objectives: Management promotes leadership and furnishes
motivation to the employees to operate effectively in order to accomplish their personal
aims while working towards the organisational goals.
 Development of Society: Management helps in the enhancement of community by
manufacturing reliable quality commodities, establishing employment chances and fostering
innovative technologies.

Management process:

1. Planning and Decision Making – – Determining Courses of Action,

2. Organizing – Coordinating Activities and Resources,
3. Leading – Managing, Motivating and Directing People,
4. Controlling – Monitoring and Evaluating activities.

1.Planning and Decision Making: 

Planning involves selecting missions and objectives and the actions to achieve them, it requires
decision-making or choosing future courses of action from among alternatives. Planning helps
maintain managerial effectiveness by guiding future activities.For a manager, planning and
decision-making require an ability to foresee, to visualize, and to look ahead purposefully.

2. Organizing – Coordinating Activities and Resources:

Organizing can be defined as the process by which the established plans are moved
closer to realization. Once a manager set goals and develops plans, his next managerial
function is organizing human resource and other resources that are identified as
necessary by the plan to reach the goal.Organizing involves determining how activities
and resources are to be assembled and coordinated.

3. Staffing:

Staffing is related to organizing and it involves filling and keeping filled, the positions in
the organization structure. This can be done by determining the positions to be filled,
identifying the requirement of manpower, filling the vacancies and training employees
so that the assigned tasks are accomplished effectively and efficiently. Staffing ensures
the placement of the right person in the right position.

4. Leading – Managing, Motivating and Directing People:

Leadership can simply be defined as the ability to influence others. Leadership is the
work that is done by the leader. leading involves several deferment processes and
activates.The functions of direction, motivation, communication, and coordination are
considered a part of the leading processor system.Coordinating is also essential in
leading.

5.Controlling:

Controlling is measuring, comparing, finding deviation and correcting the

organizational activities which are performed for achieving the goals or objectives.
Controlling consists of activities, like; measuring the performance, comparing with the
existing standard and finding the deviations, and correcting the deviations.

Management levels:
1. Administrative, Managerial, or Top Level of Management:
This level of management consists of an organization’s board of directors and the chief executive
or managing director. It is the ultimate source of power and authority, since it oversees the goals,
policies, and procedures of a company.Their main priority is on the strategic planning and
execution of the overall business success.

2. Executive or Middle Level of Management:

The branch and departmental managers form this middle management level. These people are directly
accountable to top management for the functioning of their respective departments, devoting more time to
organizational and directional functions. For smaller organizations, there is often only one layer of middle
management, but larger enterprises can see senior and junior levels within this middle section.

3. Supervisory, Operative, or Lower Level of Management:  

This level of management consists of supervisors, foremen, section officers, superintendents, and all other
executives whose work must do largely with HR oversight and the direction of operative employees. Simply
put, managers at the lower level are primarily concerned with the execution and coordination of day-to-day
workflow that ensure completion of projects and that deliverables are met.

Management skills:

1. Technical Skills
Technical skills involve skills that give the managers the ability and the knowledge to use a variety of
techniques to achieve their objectives. These skills not only involve operating machines and software,
production tools, and pieces of equipment but also the skills needed to boost sales, design different
types of products and services, and market the services and the products.

2. Conceptual Skills
These involve the skills managers present in terms of the knowledge and ability for abstract thinking
and formulating ideas. The manager is able to see an entire concept, analyze and diagnose a problem,
and find creative solutions. This helps the manager to effectively predict hurdles their department or
the business as a whole may face.

3. Human or Interpersonal Skills

The human or the interpersonal skills are the skills that present the managers’ ability to interact, work
or relate effectively with people. These skills enable the managers to make use of human potential in
the company and motivate the employees for better results.

Examples of Management Skills

There is a wide range of skills that management should possess to run an organization effectively and
efficiently. The following are six essential management skills that any manager ought to possess for
them to perform their duties:

1. Planning

Planning is a vital aspect within an organization. It refers to one’s ability to organize activities in line with set
guidelines while still remaining within the limits of the available resources such as time, money, and labor. It is
also the process of formulating a set of actions or one or more strategies to pursue and achieve certain goals or
objectives with the available resources.The planning process includes identifying and setting achievable goals,
developing necessary strategies, and outlining the tasks and schedules on how to achieve the set goals. Without
a good plan, little can be achieved.

2. Communication

Communication involves the flow of information within the organization, whether formal or informal, verbal or
written, vertical or horizontal, and it facilitates smooth functioning of the organization.  A manager with good
communication skills can relate well with the employees and thus, be able to achieve the company’s set goals
and objectives easily.

3. Decision-making

Another vital management skill is decision-making. Managers make numerous decisions, whether knowingly or
not, and making decisions is a key component in a manager’s success. Making proper and right decisions results
in the success of the organization, while poor or bad decisions may lead to failure or poor performance.

4. Delegation

Delegation is another key management skill. Delegation is the act of passing on work-related tasks
and/or authorities to other employees or subordinates. It involves the process of allowing your tasks
or those of your employees to be reassigned or reallocated to other employees depending on current
workloads.
5. Problem-solving

Problem-solving is another essential skill. A good manager must have the ability to tackle and solve
the frequent problems that can arise in a typical workday. Problem-solving in management involves
identifying a certain problem or situation and then finding the best way to handle the problem and get
the best solution.

6. Motivating

The ability to motivate is another important skill in an organization. Motivation helps bring forth a desired behavior
or response from the employees or certain stakeholders. There are numerous motivation tactics that managers can
use, and choosing the right ones can depend on characteristics such as company and team culture, team
personalities, and more.

Functional area of management:

1. Human resource management:

Human resource development or personnel management or manpower management is concerned
with obtaining and maintaining of a satisfactory and satisfied work force i.e., employees. It is a
specialized branch of management concerned with ‘man management’. The recruitment,
placement, induction, orientation, training, promotion, motivation, performance appraisal, wage
and salary, retirement, transfer, merit-rating, industrial relations, working conditions, trade
unions, safety and welfare schemes of employees are included in personnel management. The
object of personnel management is to create and promote team spirit among workers and
managers.
2. Production management:
Production management refers to planning, organization, direction, coordination and
control of the production function in such a way that desired goods and services could
be produced at the right time, in right quantity, and at the right cost.

3. Office management:
Office management can be defined as, the organization of an office in order to achieve a
specified purpose and to make the best use of the personnel by using the most
appropriate machines and equipment, the best possible methods of work and by
providing the most suitable environment. The main topics of office management are:
office accommodation, layout and environment, communication, handling
correspondence and mail, typing and duplicating, record management and filing,
indexing, forms and stationary, machines and equipments, O & M, office reporting, work
measurement and office supervision.

4.financial management

Financial management can be looked upon as the study of relationship

between the raising of funds and the deployment of funds. The subject matter
of financial management is: capital budgeting cost of capital, portfolio
management, dividend policy, short and long term sources of finance.

5. Marketing management:
Philip Kotler views marketing as a social and managerial process by which
individuals and group obtain what they need and want through creating and
exchanging products and values with others. The course content of marketing
management generally includes: marketing concept, consumer behaviour,
marketing mix, market segmentation, product and price decisions, promotion and
physical distribution, marketing research and information, international
marketing etc. Modern marketing management is bridging the gap of demand and
supply through de-marketing, remarketing, over-marketing and meta- marketing.
The main function of modern management is to organize human and physical
resources and direct them toward efficient performance and higher productivity
at the minimum costs.

TRENDS TOWARDS PROFESSIONALIZATION IN INDIA

The trend is now shifting from traditional family management to professional

management. Even the members of business families are acquiring formal management
education. Even if trained managers are employed, the decision making powers remain
with the members of the family.
The trend towards professionalization of management in India is rapidly increasing
because of following reasons

1. There is a rapid expansion of management education and training programs in

universities and management institutions. Some management institutes Ahmadabad,
Calcutta, Bangalore, and Lucknow are recognized world over for their high standards of
education.

2. There is a growing awareness of social responsibility and business ethics.

3. Management consultancy services are expanding and corporate sector is taking

advantages of such services.

4. The owners are employing management experts for higher managerial positions. The
family ties are now given less weightage for placing persons at higher positions. Some
companies have employed chief executive officers from outside the family circles.

5. There is a growing corporate demand for management experts in areas like planning,
management, information system, information technology, personnel, marketing,
nance, etc.

EVOLUTION OF MANAGEMENT THEORY

Management and organization are products of their historical and social times and places. Thus, we can
understand the evolution of Management theory in terms of how people have wrestled with matters of
relationships at particular times in history.

Different school of management thought

Early Management Theory include Scientific management theory school, classical organisation
theory school , the behavioural school, and management science school. Keep one important fact
in mind: The managers and Theorists who developed these assumption about human relationship.
The scientific Management school
Scientific Management theory arose in part of from the need to increase productivity. In the united
states especially ,skilled labour was short supply at the beginning of the twentieth century. To
increase the productivity was to increase efficiency of workers. There for ,Frederick W.Tylor, Henry
L.Gantt, and Frank and Lillian Gilbreth devised the body of principle know as scientific management
theory .

Frederick w. Tylor (1856-1915)

Taylor’s famous work principle of scientific Management was published in 1911.The fundamental
principles that Taylor saw underlying the scientific approach to management are as follows:

 Replacing rules of thumb with science (organised knowledge)

 Obtaining the harmony, rather than discord, in group action .
 Achieving cooperation of human being, rather than restricted output.
 Working for maximum output, rather than restricted output.
 Developing all workers to the fullest extent possible for their own and their company’s highest
prosperity.
 His philosophy on four basic principal:
 The development of a true science of management, so that the best method for performing each
task could be determined.
 The scientific selection of workers, so that each workers would be given responsibility for the task for
his or her was best suited.
 The scientific education and development of the worker.

Administrative Theory by Fayol

The administrative theory of management is focused on principles that could be used by
managers to coordinate the internal activities of organizations. The most prominent of the
administrative theorists was Henri Fayol. Fayol observed a work stoppage and judged it
to be a management failure. He believed that organizational managerial practices are
important for driving predictability and efficiency in organizations.

The Behavioral School:

The Behavioral school emerged partly because the classical approach did not achieve sufficient
production efficiency and workplace harmony. To manager’s frustration, people did not always
follow predicted or expected patterns of behaviour. Thus there was increased interest in helping
managers deal more effectively with the “people side” of their organizations. The behavioural
school of management thought began late in the scientific management, but a achieve large scale
recognition in 1930’s.

The Human Relations Movement

Human relations management emerged in the 1920’s and deal with the human aspects of
organization .It is frequently used as a general term to describe the way in which managers interact
with their employees. When “employee management” stimulates more and better work,
organisation has effective human relationship; When morale and efficiency deteriorate, its human
relation are said to be ineffective.
 The Management science school
At the beginning of world War II ,Great Britain desperately needed to solve number of new
,complex problem in warfare. With survival at the sake ,the british were able to achieve significant
technological and tactical breakthroughs. 

New Industrial technologies were being put into use and transportation and communication were
becoming more complicated. These development brought with them a host of problem that could
not be solved easily by conventional mean. Over the years, OR procedures were formalized into
what is now more generally called The Management Science School.

Organizational Theory

The Organizational Theory refers to the set of interrelated concepts, definitions that

explain the behavior of individuals or groups or subgroups, who interacts with each
other to perform the activities intended towards the accomplishment of a common goal.

In other words, the organizational theory studies the effect of social relationships
between the individuals within the organization along with their actions on the
organization as a whole. Also, it studies the effects of internal and external business
environment such as political, legal, cultural, etc. on the organization.

some important organizational theories are:

1. Classical Theory
2. Scientific Management Theory
3. Administrative Theory
4. Bureaucratic Theory
5. Neo-Classical Theory
6. Modern Theory

Approaches to management
. 
Some of the approaches to management are:-

1.Quantitative Approach

2. IT Approach to Management

3. Systems Approach

4. Contingency or Situational Approach

5. Scientific Management approach

6. Management Process or Administrative Management Approach

7. Human Relations Approach

8. Behavioural Science Approach.

Management affecting people, technology, values and human wants has attracted the attention
of psychologists, anthropologists, sociologists, mathematicians, economists, politicians,
scientists, physicists, biologists, business administration scholars and even practising managers.
As a result, various schools of management thought, each employing certain beliefs, views and
disciplines, have come into existence.

1. The Empirical or Case Approach Management by Custom School:

This is based on the belief that, experience is the best guide to knowledge. This
approach analyses management by studying the case histories of successful managers.
A study of the successes and failures of outstanding managers is made. Whenever a
problem arises, the managers would seek guidance by referring to the experience of
those managers who would have solved similar problems. Thus, no new strategy is
evolved and little effort is made to blaze new trails. Further, it is forgotten that what fits
one enterprise may not fit another.

2. The Interpersonal Behaviour Approach (Behaviour School):

Since management involves getting things done through people, this approach
concentrates on the human aspects of management. This school believes that when
people work together to accomplish objectives, people should understand one
another. This seeks to solve problems by applying psychology to management. Thus,
this approach lays emphasis on the importance of leadership, motivation of people at
work and the influence of work environment.

3. The Group Behaviour Approach (Social School):

This approach is concerned primarily with the behaviour among individuals. Persons
belonging to a particular social group have common feelings and attitudes and they
form an informal organization. Problems created by them cannot be resolved by
authorities in the formal organization. This school of thought, therefore, attaches
importance to the need for cooperation and positive interaction among such groups
of people so that work flow will be smooth.

4. The Operational Approach (Management Process School):

This approach views management as an activity based on certain unique
management functions. Management is regarded as a process for getting things done
through the functions of planning, organizing, staffing, leading and controlling. It
involves coordination of human and material resources.

5. The Decision Theory Approach:

This approach concentrates on the decision making function of management.
According to this, the central focus of management is on decision making. The
decision of what to achieve, and how to achieve it are the real challenges before a
manager. It is concerned not only with making of decisions but also with everything
that precedes a decision and everything that follows it.

6. The Communication Centre Approach:

This approach views management as a centre receiving information, processing it
and disseminating it thus emphasizing the role of communication in management of
business.

7. Systems Approach to Management (Systems Management School):

This approach regards an enterprise as a system. A system is composed of related
and interdependent elements forming a unitary whole. Every system is made up of
several subsystems. Similarly an organization is also viewed as a system made up of
several parts in the form of departments while each department is independent and
accomplishes specific predetermined goals; all are coordinated by the top
management.

8. The Mathematical or ‘Management Science’ Approach:

This school believes that managing or planning or decision-making can be expressed
in mathematical symbols and relationship. Modern managers face problems arising
out of increase in the size and complexity of organizational structures. In the United
States of America and other industrially advanced countries, executives are turning
increasingly to computer applications for finding solution to their problems. The
scientific and technological advance has thus brought management and mathematics
closer to each other.

9. The Socio Technical Systems Approach (E.L. Trist):

This approach is based on the belief that personal attitudes and group behaviour are
influenced by the technical system in which people work. This approach thus lays
emphasis on production, office operations, etc. Change in the technical system is
called for, if the social and technical systems do not go hand in hand.

10. Contingency Approach:

The contingency approach is a management theory that suggests the most
appropriate style of management is dependent on the context of the situation and that
adopting a single, rigid style is inefficient in the long term.
 Unit 2
 Decision making is part of everyone’s life and all of us have to make decisions every moment.
Right from choosing what to wear to what to eat to where we live and work and extending to whom
we marry, decisions are an integral part of our lives. 
 In an organizational context, it is worthwhile to note that decision making needs the right kind of
information, the complete information and the ability to synthesize and make sense of the
information.
 Hence, successful CEO’s are those who can take into account the different viewpoints and
divergent perspectives and arrive at the right decision.
 The other aspect that relates to decision making in an organizational context is that there must be
complete and accurate information made available to the decision maker.
 In Economics, there is a term called “asymmetries of information” that indicates how incomplete and
insufficient information leads to poor decisions and wrong choices. What this concept means is that
having partial information or faulty information often leads to “analysis paralysis” which is another
term for poor decision making abilities.
 Finally, even with reliable and accurate information, the decision maker ought to have good problem
solving skills and astute decision making abilities to arrive at sound judgments regarding the
everyday problems and issues.
 The overriding rule in decision making is that the decision maker ought to have legitimacy and
authority over the people who he or she is deciding upon. In other words, decision makers succeed
only when their decisions are honored and followed by the people or groups that the decision
impacts. T
 he reason for mentioning this towards the end is that in many cases, the fragmented nature of the
organizations with different interests represented by factions often undermines the decision making
capabilities of the decision maker. Hence, it is worth mentioning that such authority must be vested
with the decision maker.

Decision making model

PROCESS OF MAKING DECISION
We will cover four decision-making approaches starting with the rational decision-making model, moving to
the bounded rationality decision-making model, the intuitive decision-making model, and ending with the
creative decision-making model.
Making Rational Decisions
The rational decision-making model describes a series of steps that decision makers should consider if their
goal is to maximize the quality of their outcomes. In other words, if you want to make sure you make the
best choice, going through the formal steps of the rational decision-making model may make sense.

Let’s imagine that your old, clunky car has broken down and you have enough money saved for a
substantial down payment on a new car. It is the first major purchase of your life, and you want to make the
right choice.
The rational decision-making model has important lessons for decision makers. First, when making a
decision you may want to make sure that you establish your decision criteria before you search for all
alternatives. This would prevent you from liking one option too much and setting your criteria accordingly.
For example, let’s say you started browsing for cars before you decided your decision criteria. 

Another advantage of the rational model is that it urges decision makers to generate all alternatives instead
of only a few. By generating a large number of alternatives that cover a wide range of possibilities, you are
likely to make a more effective decision in which you do not need to sacrifice one criterion for the sake of
another.

Making “Good Enough” Decisions

 The bounded rationality model of decision making recognizes the limitations of our decision-
making processes. According to this model, individuals knowingly limit their options to a
manageable set and choose the best alternative without conducting an exhaustive search
for alternatives. An important part of the bounded rationality approach is the tendency
to satisfice, which refers to accepting the first alternative that meets your minimum criteria.

 For example, many college graduates do not conduct a national or international search for
potential job openings; instead, they focus their search on a limited geographic area and
tend to accept the first offer in their chosen area, even if it may not be the ideal job situation.
Satisficing is similar to rational decision making, but it differs in that rather than choosing the
best choice and maximizing the potential outcome, the decision maker saves time and effort
by accepting the first alternative that meets the minimum threshold.

Making Intuitive Decisions

 The intuitive decision-making model has emerged as an important decision-making model.
It refers to arriving at decisions without conscious reasoning. Eighty-nine percent of
managers surveyed admitted to using intuition to make decisions at least sometimes, and
59% said they used intuition often. 

 When we recognize that managers often need to make decisions under challenging
circumstances with time pressures, constraints, a great deal of uncertainty, highly visible
and high-stakes outcomes, and within changing conditions, it makes sense that they would
not have the time to formally work through all the steps of the rational decision-making
model.
 Due to training, experience, and knowledge, these decision makers have an idea of how well a
given solution may work. If they run through the mental model and find that the solution will not
work, they alter the solution and retest it before setting it into action. If it still is not deemed a
workable solution, it is discarded as an option and a new idea is tested until a workable solution is
found. Once a viable course of action is identified, the decision maker puts the solution into motion.
The key point is that only one choice is considered at a time. 
Making Creative Decisions
In addition to the rational decision making, bounded rationality models, and intuitive decision
making, creative decision making is a vital part of being an effective decision maker. Creativity is
the generation of new, imaginative ideas. With the flattening of organizations and intense
competition among organizations, individuals and organizations are driven to be creative in
decisions ranging from cutting costs to creating new ways of doing business. 
The five steps to creative decision making are similar to the previous decision-making models in
some keys ways. All of the models include problem identification, which is the step in which the
need for problem solving becomes apparent. If you do not recognize that you have a problem, it is
impossible to solve it.
 A key to success in creative decision making is having or acquiring expertise in the area being
studied. Then, incubation occurs. During incubation, the individual sets the problem aside and
does not think about it for a while. At this time, the brain is actually working on the problem
unconsciously. Then comes illumination or the insight moment, when the solution to the problem
becomes apparent to the person, usually when it is least expected. 

Decision making techniques

1. Marginal Analysis:
This technique is used in decision-making to figure out how much extra output will result if one
more variable (e.g. raw material, machine, and worker) is added. In his book, ‘Economics’, Paul
Samuelson defines marginal analysis as the extra output that will result by adding one extra unit of
any input variable, other factors being held constant.Marginal analysis is particularly useful for
evaluating alternatives in the decision-making process.

2. Financial Analysis:
This decision-making tool is used to estimate the profitability of an investment, to calculate the
payback period (the period taken for the cash benefits to account for the original cost of an
investment), and to analyze cash inflows and cash outflows. investment alternatives can be
evaluated by discounting the cash inflows and cash outflows (discounting is the process of
determining the present value of a future amount, assuming that the decision-maker has an
opportunity to earn a certain return on his money).

3. Break-Even Analysis:
This tool enables a decision-maker to evaluate the available alternatives based on price, fixed cost
and variable cost per unit. Break-even analysis is a measure by which the level of sales necessary to
cover all fixed costs can be determined.Using this technique, the decision-maker can determine the
break-even point for the company as a whole, or for any of its products. At the break-even point,
total revenue equals total cost and the profit is nil.

4. Ratio Analysis:
It is an accounting tool for interpreting accounting information. Ratios define the
relationship between two variables. The basic financial ratios compare costs and
revenue for a particular period. The purpose of conducting a ratio analysis is to
interpret financial statements to determine the strengths and weaknesses of a firm, as
well as its historical performance and current financial condition.

5.Operations Research Techniques:

One of the most significant sets of tools available for decision-makers is operations
research. An operation research (OR) involves the practical application of quantitative
methods in the process of decision-making. When using these techniques, the decision-
maker makes use of scientific, logical or mathematical means to achieve realistic
solutions to problems. Several OR techniques have been developed over the years.
 6. Linear Programming:
Linear programming is a quantitative technique used in decision-making. It involves
making an optimum allocation of scarce or limited resources of an organization to
achieve a particular objective. The word ‘linear’ implies that the relationship among
different variables is proportionate..

7. Waiting-line Method:
This is an operations research method that uses a mathematical technique for balancing services
provided and waiting lines. Waiting lines (or queuing) occur whenever the demand for the service
exceeds the service facilities.Since a perfect balance between demand and supply cannot be
achieved, either customers will have to wait for the service (excess demand) or there may be no
customers for the organization to serve (excess supply).

8.Game Theory:
This is a systematic and sophisticated technique that enables competitors to select
rational strategies for attainment of goals. Game theory provides many useful
insights into situations involving competition. This decision-making technique
involves selecting the best strategy, taking into consideration one’s own actions and
those of one’s competitors.The primary aim of game theory is to develop rational
criteria for selecting a strategy. It is based on the assumption that every player (a
competitor) in the game (decision situation) is perfectly rational and seeks to win the
game.

9. Simulation:
This technique involves building a model that represents a real or an existing system. Simulation is
useful for solving complex problems that cannot be readily solved by other techniques. In recent
years, computers have been used extensively for simulation. The different variables and their inter-
relationships are put into the model.When the model is programmed through the computer, a set
of outputs is obtained. Simulation techniques are useful in evaluating various alternatives and
selecting the best one. Simulation can be used to develop price strategies, distribution strategies,
determining resource allocation, logistics, etc.

10.Decision Tree:
This is an interesting technique used for analysis of a decision. A decision tree is a sophisticated
mathematical tool that enables a decision-maker to consider various alternative courses of action
and select the best alternative. A decision tree is a graphical representation of alternative courses of
action and the possible outcomes and risks associated with each action. This technique, the
decision-maker traces the optimum path through the tree diagram. In the tree diagram the base,
known as the ‘decision point,’ is represented by a square. Two or more chance events follow from
the decision point. A chance event is represented by a circle and constitutes a branch of the
decision tree. Every chance event produces two or more possible outcomes leading to subsequent
decision points.

What is Management by Objectives (MBO)?

Management by Objectives (MBO) is a strategic approach to enhance the performance of
an organization. It is a process where the goals of the organization are defined and
conveyed by the management to the members of the organization with the intention to
achieve each objective. An important step in the MBO approach is the monitoring and
evaluation of the performance and progress of each employee against the established
objectives. Ideally, if the employees themselves are involved in setting goals and deciding
their course of action, they are more likely to fulfill their obligations.

Steps in Management by Objectives Process

1. Define organization goals

Setting objectives is not only critical to the success of any company, but it also serves a variety of purposes.
It needs to include several different types of managers in setting goals. The objectives set by the
supervisors are provisional, based on an interpretation and evaluation of what the company can and
should achieve within a specified time.

 2. Define employee objectives

Once the employees are briefed about the general objectives, plan, and the strategies to follow, the
managers can start working with their subordinates on establishing their personal objectives. This will be a
one-on-one discussion where the subordinates will let the managers know about their targets and which
goals they can accomplish within a specific time and with what resources. They can then share some
tentative thoughts about which goals the organization or department can find feasible.

 3. Continuous monitoring performance and progress

Though the management by objectives approach is necessary for increasing the

effectiveness of managers, it is equally essential for monitoring the performance and
progress of each employee in the organization.

 4. Performance evaluation

Within the MBO framework, the performance review is achieved by the participation of the managers
concerned.

 5. Providing feedback

In the management by objectives approach, the most essential step is the continuous feedback on the results
and objectives, as it enables the employees to track and make corrections to their actions. The ongoing feedback
is complemented by frequent formal evaluation meetings in which superiors and subordinates may discuss
progress towards objectives, leading to more feedback.

 6. Performance appraisal

Performance reviews are a routine review of the success of employees within MBO
organizations.
 

Unit-3
ORGANISATIONAL CLIMATE AND CHANGE
Organisational structure:
An organizational structure is defined as “a system used to define a hierarchy within an organization.
It identifies each job, its function and where it reports to within the organization.” A structure is then
developed to establish how the organization operates to execute its goals.
There are many types of organizational structures. There’s the more traditional functional structure,
the divisional structure, the matrix structure and the flatarchy structure.
Each organizational structure comes with different advantages and disadvantages and may only work
for companies or organizations in certain situations or at certain points in their life cycles.
4 Types of Organizational Structures:

1.Functional
 If you’ve had a job, you likely worked in a functional organizational structure.
 The functional structure is based on an organization being divided up into smaller groups
with specific tasks or roles. For example, a company could have a group working in
information technology, another in marketing and another in finance.
 Each department has a manager or director who answers to an executive a level up in the
hierarchy who may oversee multiple departments. One such example is a director of
marketing who supervises the marketing department and answers to a vice president who is
in charge of the marketing, finance and IT divisions.
 An advantage of this structure is employees are grouped by skill set and function, allowing
them to focus their collective energies on executing their roles as a department.
 One of the challenges this structure presents is a lack of inter-departmental communication,
with most issues and discussions taking place at the managerial level among individual
departments. For example, one department working with another on a project may have
different expectations or details for its specific job, which could lead to issues down the
road.
2.Divisional
 Larger companies that operate across several horizontal objectives sometimes use a
divisional organizational structure.
 This structure allows for much more autonomy among groups within the organization. One
example of this is a company like General Electric. GE has many different divisions
including aviation, transportation, currents, digital and renewable energy, among others.
 Under this structure, each division essentially operates as its own company, controlling its
own resources and how much money it spends on certain projects or aspects of the
division.

This type of structure offers greater flexibility to a large company with many divisions, allowing each one to
operate as its own company with one or two people reporting to the parent company’s chief executive
officer or upper management staff. Instead of having all programs approved at the very top levels, those
questions can be answered at the divisional level.

3.Matrix
A hybrid organizational structure, the matrix structure is a blend of the functional organizational
structure and the projectised organizational structure.

In the matrix structure, employees may report to two or more bosses depending on the situation or
project. For example, under normal functional circumstances, an engineer at a large engineering
firm could work for one boss, but a new project may arise where that engineer’s expertise is
needed. For the duration of that project, the employee would also report to that project’s manager,
as well as his or her boss for all other daily tasks.

The matrix structure is challenging because it can be tough reporting to multiple bosses and
knowing what to communicate to them. That’s why it’s very important for the employees to know
their roles, responsibilities and work priorities.

Advantages of this structure is that employees can share their knowledge across the different
functional divisions, allowing for better communication and understanding of each function’s role.
And by working across functions, employees can broaden their skills and knowledge, leading to
professional growth within the company.

On the other hand, reporting to multiple managers may add confusion and conflict between
managers over what should be reported. And if priorities are not clearly defined, employees, too,
may get confused about their roles.
4.Flatarchy
 While the previous three types of organizational structures may work for some
organizations, another hybrid organizational structure may be better for startups or small
companies.
 Blending a functional structure and a flat structure results in a flatarchy organizational
structure, which allows for more decision making among the levels of an organization and,
overall, flattens out the vertical appearance of a hierarchy.
 The best example of this structure within a company is if the organization has an internal
incubator or innovation program. Within this system, the company can operate in an existing
structure, but employees at any level are encouraged to suggest ideas and run with them,
potentially creating new flat teams.
 Google, Adobe, LinkedIn and many other companies have internal incubators where
employees are encouraged to be creative and innovative in order to promote the company’s
overall growth.

Managerial ethos:

MANAGERIAL VALUES AND ETHOS

Ethos refers to habitual character and values of individuals, groups, races, etc. Managerial ethos is
concerned with the character and values of managers as a professional group. Contemporary
managers hold some specific values which affect work and some of these are: autonomy, equity,
security and opportunity.

1. Autonomy: These managers tend to allow enough latitude to individual employees as long as the
use of this freedom does not violate basic norms of the organisation. In the last two decades, some
management practices have been innovated which are in keeping with this value of autonomy.

2. Equity: Equity refers to justice in rewarding performance. Modern managers strongly feel that a

person must get a reward proportionate to his input.

3. Security (providing security both economically and emotionally): Keeping a person on his

toes by making him feel insecure is slowly but steadily getting discredited as a management
philosophy. Even the societies which have practiced "hire and fire" policy are unmistakably shifting
towards providing security of job. 

4. Opportunity: Providing enough career advancement opportunities to employees is yet another

contemporary managerial value.

Besides these four values which affect a manager's work, the manager may have a strong "Work
Value". Work Value refers to the worth a person ascribes to the opportunity of work. If you have a
"strong" work value you are going to identify the worth or value of work to you in more ways than one.
You may view work as an opportunity to: (a) accept challenges, (b) serve others, (c) earn money, (d)
enjoy prestige and status, (e) be creative, or (f) be independent, etc.

MANAGERIAL ETHOS: ITS CHARACTERISTICS

Apart from these values, the managerial ethos requires below characteristics as well.

1. Action goal orientation: Persons with high sense of adequacy have clear goals about their future
and are directed by these goals. They are action oriented to reach their clear goals

2. Pro-action/Pro-active: Proactive people do things on their own without having to be told by any

one. Such initiative taking behaviour leads to a high level of activity and experimentation.

3. Internal resources: Managers with high sense of adequacy are aware of their internal strength and
are guided by these strengths. They are aware of their weaknesses but this awareness does not deter
them from acting positively or to look for opportunities for continuous self-improvement. They are open
to feedback and ready to learn from experience.

4. Problem-solving attitude: A superior ethos requires that managers view themselves as problem
solvers, rather than problem-avoiders. These managers have a positive orientation to problem
situations and do not want to run away from problems. They tend to approach problem situations with
optimism because they have internal locus of control, i.e., a strong belief that they can change the
environment through their own efforts.

HOW CULTURE AND ETHOS ARE MAINTAINED

The process through which the people are trained to accept the tradition and maintain the
homogeneity of ethos and behaviors is termed as socialization.

Socialization is a process of adaptation by which `new' members come to understand the basic
values, norms and customs for becoming `accepted' members of an organization. Though the most
intense period of socialization is at the “fresher” stage of entry into an organization, the process
continues throughout one's entire career in the organization. The people who do not learn to adjust
to the culture of the organization become the targets of attack and are often rejected by the
organization.

Socialisation process has three stages: 

1. Pre-arrival
2. Encounter
3. Metamorphosis
1. Pre-arrival: This stage tries to ensure that prospective members arrive at an organization with a
certain set of values, attitudes and expectations. This is usually taken care of at the selection stage
itself. Selectors try to choose the "right type" of people, who they feel, will be able to "fit" the
requirements of an organization. Thus an organization, even before allowing an outsider to "join",
makes an attempt to ensure a proper match which contributes toward the creation of a uniform
culture within the organization.

2. Encounter: After gaining an entry into the organization a new member faces an encounter stage.
There is always a possibility of difference between his expectations of an organisation and the OC. If
the expected image and OC matches, then encounter stage passes off smoothly leading to confirmation
of the image. If the imbalance between the two is acute, the person has usually two choices open. 
1. First, he undergoes further socialization which detaches him from his previous expectations,
replaces these with another set of expectations and thus helps him get adjusted to the prevailing
system.
2. Second, he drops out due to disillusionment. In both the cases the final result is the same: the
status quo of traditions and customs are maintained.
3.Metamorphosis: People who had discovered an anomaly between their expectations and OC, but
decided not to drop out, enter into the metamorphosis stage. They must sort out their problems and go
through changes-hence this is called metamorphosis. When this metamorphosis is complete, the
members feel `comfortable' with the organisation and job. Successful metamorphosis results in
lowered propensity to leave the organisation.

Management of organisational conflicts

Conflict Resolution Strategy #1: Avoiding

Avoiding is when people just ignore or withdraw from the conflict. They choose this method when
the discomfort of confrontation exceeds the potential reward of resolution of the conflict. While
this might seem easy to accommodate for the facilitator, people aren’t really contributing anything
of value to the conversation and may be withholding worthwhile ideas. When conflict is avoided,
nothing is resolved.

Conflict Resolution Strategy #2: Competing

Competing is used by people who go into a conflict planning to win. They’re assertive and not
cooperative. This method is characterized by the assumption that one side wins and everyone else
loses. It doesn’t allow room for diverse perspectives into a well informed total picture. Competing
might work in sports or war, but it’s rarely a good strategy for group problem solving.

Debra wrote an illuminating article on how conflict resolution failure can lead to revolution. It’s
what can happen when people feel like they aren’t being listened to and start being assertive.
Conflict Resolution Strategy #3: Accommodating
Accommodating is a strategy where one party gives in to the wishes or demands of another.
They’re being cooperative but not assertive. This may appear to be a gracious way to give in when
one figures out s/he has been wrong about an argument. It’s less helpful when one party
accommodates another merely to preserve harmony or to avoid disruption. Like avoidance, it can
result in unresolved issues. Too much accommodation can result in groups where the most
assertive parties commandeer the process and take control of most conversations.
Conflict Resolution Strategy #4: Collaborating
Collaborating is the method used when people are both assertive and cooperative. A group may
learn to allow each participant to make a contribution with the possibility of co-creating a shared
solution that everyone can support.

A great way to collaborate and overcome conflict is to reach out and touch them.
Conflict Resolution Strategy #5: Compromising
Another strategy is compromising, where participants are partially assertive and cooperative. The
concept is that everyone gives up a little bit of what they want, and no one gets everything they
want. The perception of the best outcome when working by compromise is that which “splits the
difference.” Compromise is perceived as being fair, even if no one is particularly happy with the
final outcome.

Organisational structure and design

Defining Organizational Structure
 An organizational structure defines the basic functional logic of an organization. It defines how an
organization’s strategy and scope are translated into different activities to be performed by
different units, and how those units are linked and shaped to achieve a common goal.
 Described this way, an organizational structure is not the same as an org chart (although an org
chart typically carries information that we would include in a well-described organizational
structure).
 Organizational structures defined in this way do not have to be static entities. On the contrary,
dynamic structures may entail basic activities and practices (related to structuring and decision-
making) that allow the structure to evolve its units, links, and shapes. Models based on self-
management, like Sociocracy or Holacracy, are one case in point, but there are several other
approaches of different scopes and focuses to enable dynamic structuring.

Defining Organization Development

 Organization development builds the human and systemic capabilities, practices, and behaviors that
make organizations effective.
 It seeks to strengthen the informal organization beyond the organizational structure or the specifics of
the organization design.
 It is concerned with the performativity of actual organizational processes and how they promote or
impede formal business processes.
 A major dimension of organization development is “meta capabilities”, which, to a varying degree,
are key to almost any form of organizing understood as the division of work based on a joint goal.
 The development of leadership capabilities across the organization is one key field. Others include
communication and collaboration skills and networking skills, as well as coaching, feedback, and
tension-resolution skills. Quite often, organization development is directly linked to learning
capabilities, both on the individual and the organizational levels.
 Such development work can relate to specific arrangements within the organizational structure or the
organization design, for example, by promoting the understanding and practicing of activities that are
required by a certain design.
 Often, the organization development capacity is summoned to support change efforts. For example,
this is the case when a new strategy and the according reorganization require both new skills and
behaviors, as well as the internalization of a new organization.
 As such, the methodologies and practitioner insights that result from organization development
interventions generate key learnings for adaptations of the organizational structure and the
organization design.
 The organization design would be the muscles, cords, and tissue of the organization. Organization
development trains the functionality of the overall system and helps to regulate the steering of select
mechanisms and the information flow between its parts, akin to the body’s nervous system.

Managerial communication
Managerial communication is the process by which a manager in an organization shares ideas or
information with other managers or members of their team. Depending on how well it is done managerial
communication has a great impact on the staff morale, the achievement of company goals, and
organizational culture.

Managerial communication includes the process of interpersonal communication, communication methods,

hindrances ineffective communication, communication networks and their flow along with existing problems
and challenges with digital communication & information technology.

Nature of Managerial Communication

1. Communication is the way to transfer and understand the idea, messages and other information
through any media such as electronic media, telephonic media, or computer-based information
technology.

If there is not any transfer of ideas or information that happened, then there is zero or no
communication took place.

For effective managerial communication, the meaning and understanding of the conveyed
information or message must be acquired.

1. The agreement is not required for good communication to take place, only is the clear message
understanding.
2. Interpersonal Communication (the communication between two or more members) and
Organizational Communication (total systems, methods and networks of organizational
communication) jointly emphasis the Managerial Communications.
3. Interpersonal processes and communications are considered as important features of effective
organizations.
 4. For the achievement of common goals, the exchange of information or message or information is
called as Communication.
5. Two types of communication are used by managers in their work:

01- Verbal Communication: Words in the written format are used in this type of

communication.

 Letters, reports, manuals, memorandums and newsletters, etc are included in verbal communication
and it is termed to be an effective way of communication.
 Disadvantages of verbal communication are; it takes more time to spread messages along with the
additional time of documentation of that message and it is very difficult to terminate such a
message.

02- Nonverbal Communication: Information that is not coded into words, but is behavioral

and the elemental means of propagation is called Nonverbal Communication. Words are not
required to transfer information or message in such type of communication. Body language and
verbal intonation are two basic modes of nonverbal communication.

 Gestures, postures, facial expressions and other signals through body motion are used to convey
messages in the body language mode of nonverbal communication.
 Verbal intonation demonstrates to the spoken words or phrases for transmitting any information or
message.

The analysis of communication can be done through its basic features.

01- Initiator of the message has been always the Sender.

02- The conversion meaning of the message into the symbols is known as the Encoding process.

Gestures and words are considered as symbols.

Choice of symbols depends upon the sender,

1. Encoding skills of the sender.

2. Understanding the ability of receiver of the message
3. The judgment of the appropriation of the symbol.
4. Education and job status.
5. State of emotions while receiving messages.

03- The outcome of the encoding process is called as the message. Verbal & non-verbal symbols
developed to convey understanding to the receiver are included in a message.

 The method by which the message is transferred is called as a medium. A few the best examples of
the medium are formal reports, telephone, meeting, online computers, etc.
 Documentation, interpersonal dynamics, feedback mechanism, communication flow, intelligibility,
cost, convenience and speed are the factors for choosing the best medium for the recommended
communication.

04- The person who receives the messages or performs in the exchange of messages is called the
receiver.

The process of translating the symbolic message received is called a decoding process.

 The sender and receiver, if has acquired the similar meaning of the message, then the
communication has resulted as effective communication.
 The context of the message along with the medium is the consideration of the receiver.
Hindrance due to any cause, interrupting the general meaning of the message while exchanging is
called as the noise.

The response of the interpreted message from the receiver is termed as a feedback mechanism by
the receiver.

 During the feedback mechanism, the sender becomes the receiver of the message.
 It is considered to be a successful communication style when the feedback mechanism
takes place in the sender and receiver of the message while exchange.
 When the process of communication does not permit or allow for the feedback mechanism,
that communication is called as one-way communication.
 Two-way communication involves the feedback mechanism when the exchange of the
message takes place.

Barriers to Managerial Communication

Below are a few different sorts of barriers to managerial communication that can be seen freely in
the business organizations.

1. Filtering

It is the managing of messages or information for making it more feasible in front of the receiver.
In organizational levels, the information is communicated up, is created as condensed, and is
known to be condensing filtered communication recognizing the importance and interests of
personal perceptions.

The more the managers encourage the filtered communication in favor of managers, the more will
be organizational culture and rewards highlighted.

2. Selective Perceptions

It involves the interpretation of hearing and watching of the individuals on interest, experience,
and attitude & background basis.

3. Emotions

They influence the interpretation of the message by the receiver. When the message receiver is
upset, then it is better to avoid the response or reaction of the message delivered a due to change
of perception of the message by the receiver in emotions.

4. Overloaded Information

When the information exceeds the limit we work with, is called overloaded information such as
600 unread messages in the email inbox. Overloaded information causes the negligence, passing
over, avoiding and selecting out of the information. Or overtime is spent on the processing of the
information, until the load released and it comes to the normal level, is also the form of ineffective
communication.

5. Defensiveness

When individuals think of they are attacked or threatened, they start engaging defensiveness,
such as verbally attacking others, being overly judgmental, making ironic and objecting others.
 6. Language

Understanding of words is different towards different persons in accordance with factors involving
their illustration such as age, culture and education, etc. these factors can deeply influence the
meaning of words towards individuals. Special technology or technical language used for
communication within groups or within an organization is Jargon.

7. National Culture

If affects the method of choosing communication between managers.

Overcoming the Barriers

1. Usage of Feedback mechanism.
2. Simplification of language.
3. Active listening. Hearing is a passive method while listening is an active process. Active listening
requires complete attention and attraction of the interpreter. By placing oneself in the situations of
the message sender can enhance the hearing of the message by the receiver.
4. Actions more loudly speak than words, watching is more efficient than that of only hearing.

Formal and Informal Communication

1. Formal Communication

The communication that follows the command of the chain by official manner within an
organization is called as formal communication. It is required to fulfill someone’s job.

2. Informal Communication

The communication that does not demonstrate the structural chain of command of an organization
is called as informal communication. The social interactional needs of the employees are satisfied
through informal communication. Organizational performance can be improved by informal
communication by the creation of alternative, faster and effective channels of communication.

Directional flow of Communication

1. Downward Communication

Direction, information, coordination, or evaluation of managers towards employees or individuals

is termed as downward communication.

2. Upward Communication

The flow towards managers from employees or individuals is referred to as upward

communication. It can be done on behalf of information or awareness for managers about the
feeling of employees for their work, coworker, or general organizational issues.

The culture of organizations influences upward communication; it is encouraged in the sense of

trust, respect, or participative decision making. The strict and highly mechanistic organizational
environment restricts or limits the upward communication.

3. Lateral Communication
The communication between the employees of the same level within an organization is known to
be lateral communication.

4. Diagonal Communication

This flow of communication cuts all sites such as work areas and organizational levels. It is
facilitated through increased usage of emails. If the managers are not informed, then it can make
troubles by employees in the organization.

Unit-4
BEHAVIOURAL DYNAMICS
CONCEPT
A descriptive analysis of the internal behavior patterns which motivate or cause the overt,
external behavior. There is a dynamic relationship between behavior and environment. The
behavioral characteristics of an individual or a group do not operate alone, because these
are conditioned and affected by their environment.

behavioral dynamics: "to gain a better understanding of behavioral dynamics, one has to consider both
the individual and the environment."
The behavioral operating characteristics of individuals and groups in terms of how these people are co
nditioned by their working environments.The interactions between individuals or groups in the work
place.
Nature
Organizational Behavior Dynamics
The dynamics of organization behaviour reaches far beyond an organization's product or
service and its processes. The study of the dynamics of organization behaviour focuses on
aspects of human resources and includes the firm's cultural structure, how to motivate
employees in the organization, how to handle  conflict and how to lead change. Thus
organizational dynamics affects the necessary business functions, which can cause changes in
organizational dynamics. You need a positive environment in order to work truly and
profitably in your business. However, many business functions can affect the dynamics of
your business and bring out behaviors in employees that can be counter-productive. You
cannot end these tasks, but you can be aware of their potential effects on your company, and
see signs of change in your organization so that you can move quickly to re-establish positive
morale. Organizational dynamics is a central focus on people in major organizations and
applies to almost every industry. Employees gain marketing skills ranging from analysis of
personal relationships to overreaching management of the organization. Some key concepts
include in organization dynamics, which are  understanding the key organizational principles,
team dynamics, effective communication, interaction conflict management, cultural
competence, and data analytics. There are following organizational dynamics functions.

Organizational Foundations
Organizational Foundations focus on understanding the characteristics and qualities of human
behavior and how they interact to make organizations work. This will include analysis of
historical perspective as well as review of contemporary theories. The successful
organization's case studies will be used to demonstrate the application of theoretical concepts
of case studies for practical situations.

Organizational Theory And Practice

Organizational Theory and Practice gives an overview of how organizations work, including
theory, research, and applications. Employee will get understanding of organizational
structure, culture, communication, and strategic planning processes within internal and
external business environments. Current trends and cases will be discussed and students will
engage in experiential exercises to facilitate critical thinking and then apply the course
content to an organizational setting.

Team Dynamics
The focus of the Team Dynamics is to use of team spirit behavior in organizations. Employees
will gain a deep understanding of team structure, processes and performance reviews, team
roles, leadership and decision making. And create a self-directed work environment by using
the concepts and processes of team dynamics.
Negotiation/Conflict
This negotiation conflict skill focuses on managing disputes within organization. The
negotiation skills is used to analyze complex conflict and dispute situations, shape appropriate
processes to engage the right parties, creatively compromise, select arbitrators and
facilitators, and It emphasizes conflict management and resolution leadership.

Cultural Competence
Cultural Competence is designed to develop decision-making methods to solve problems and
to facilitate effective and appropriate cultural competence. Employees need human resource
management, supervision and staff development, team building, motivation for performance,
inter-organizational collaboration, organizational learning strategy, cultural competence is a
tool to effectively serving diverse and multicultural people in the organization. And by this
skills employee will learn aspects of program planning, strategic management and planning,
and strategies for major change efforts.
Organizational Leadership
The Organizational Leadership introduces leadership and management principles concepts. It
offers opportunity for the employees to apply these principles through case analysis and to
enhance personal skills development through self-assessment exercises. The organizational
leadership identifies present and as well as contemporary perspectives on ethics, networking
management, organizational culture, diversity, strategic learning leadership, and crisis
leadership.
Quality Control
You need quality control measures to ensure that your employees can produce the best work.
A quality control supervisor is required to investigate the work and identify problems with the
employees working. While quality-control measures can improve quality, but they can also
cause employees to become dissatisfied. Some may even get annoyed with checking their
work. Dynamics in your organization can change a climate of collaboration and teamwork.

Cost Controls
You have to control your expenses. One of those expenses is payroll. In fact, payroll may be
your biggest expense. If you start reducing overtime and cut the amount you are paying in
wages, these cost-control measures can create fear and anger through your organization.
Anger and fear can promote unproductive behavior such as rebellion and low productivity.
Productivity Improvements
If you want to maintaining maximum production, which can be big challenge for you as a
business owner. You can initiate a series of small production, then measures and closely
monitor production to detect the development of problems. Employees and supervisors can
resist your efforts and introduce a dynamic to your organization, which we find "versus
them". You should improve productivity as a way to work together as a team to avoid battling
reluctant employees.
Data Analytics
This data analysis examines the ways in which organizations can use data to gain insights and
make better decisions. Data analytics are implemented in operations, marketing, finance, and
strategic planning, among other functions. The ability to use data effectively to make rapid,
accurate, and profitable decisions has been an important strategic advantage for
organizations.
Staff And Professional Development
If you provide specialized training to improve skills in your workforce, you can think of the
effort as a positive step. However, employees may see additional skills as a burden that they
are not being paid to take. You should try to make it clear that skill-improvement is a
necessity to maintain profitability and current salary levels. You should also recognize that
many employee resistance can be based on fear of not being able to master new skills.
Assure your workforce that you are initiating employee development to make employee
functions more appropriate to the needs of the new company. To avoid the inefficiency, new
development is necessary.

Leadership style
A leadership style refers to a leader's characteristic behaviors when directing, motivating, guiding, and
managing groups of people. Great leaders can inspire political movements and social change. They can
also motivate others to perform, create, and innovate.

Leadership styles are on a continuum, ranging from autocratic at one end, to laissez-faire at the
other, with a variety of styles in between.

The seven primary leadership styles are:

1. Autocratic Style
The phrase most illustrative of an autocratic leadership style is "Do as I say." Generally, an
autocratic leader believes that he or she is the smartest person at the table and knows more than
others. They make all the decisions with little input from team members.

This command-and-control approach is typical of leadership styles of the past, but it doesn't hold
much water with today's talent.

That's not to say that the style may not be appropriate in certain situations. For example, you can
dip into an autocratic leadership style when crucial decisions need to be made on the spot, and
you have the most knowledge about the situation, or when you're dealing with inexperienced and
new team members and there's no time to wait for team members to gain familiarity with their
role.
2. Authoritative Style
The phrase most indicative of this style of leadership (also known as "visionary") is "Follow me."
The authoritative leadership style is the mark of confident leaders who map the way and set
expectations, while engaging and energizing followers along the way.

In a climate of uncertainty, these leaders lift the fog for people. They help them see where the
company is going and what's going to happen when they get there.

Unlike autocratic leaders, authoritative leaders take the time to explain their thinking: They don't
just issue orders. Most of all, they allow people choice and latitude on how to achieve common
goals.

3. Pacesetting Style
"Do as I do!" is the phrase most indicative of leaders who utilize the pacesetting style. This style
describes a very driven leader who sets the pace as in racing. Pacesetters set the bar high and
push their team members to run hard and fast to the finish line.

While the pacesetter style of leadership is effective in getting things done and driving for results,
it's a style that can hurt team members. For one thing, even the most driven employees may
become stressed working under this style of leadership in the long run.

4. Democratic Style
Democratic leaders are more likely to ask "What do you think?" They share information with
employees about anything that affects their work responsibilities. They also seek employees'
opinions before approving a final decision.

There are numerous benefits to this participative leadership style. It can engender trust and
promote team spirit and cooperation from employees. It allows for creativity and helps employees
grow and develop. A democratic leadership style gets people to do what you want to be done but
in a way that they want to do it.

5. Coaching Style
When you having a coaching leadership style, you tend to have a "Consider this" approach. A
leader who coaches views people as a reservoir of talent to be developed. The leader who uses a
coach approach seeks to unlock people's potential. Leaders who use a coaching style open their
hearts and doors for people. They believe that everyone has power within themselves. A coaching leader
gives people a little direction to help them tap into their ability to achieve all that they're capable of.

6. Affiliative Style
A phrase often used to describe this type of leadership is "People come first." Of all the leadership
styles, the affiliative leadership approach is one where the leader gets up close and personal with
people. A leader practicing this style pays attention to and supports the emotional needs of team
members. The leader strives to open up a pipeline that connects him or her to the team.

Ultimately, this style is all about encouraging harmony and forming collaborative relationships
within teams. It's particularly useful, for example, in smoothing conflicts among team members or
reassuring people during times of stress.

7. Laissez-Faire Style
The laissez-faire leadership style is at the opposite end of the autocratic style. Of all the leadership
styles, this one involves the least amount of oversight. You could say that the autocratic style
leader stands as firm as a rock on issues, while the laissez-faire leader lets people swim with the
current.

On the surface, a laissez-faire leader may appear to trust people to know what to do, but taken to
the extreme, an uninvolved leader may end up appearing aloof. While it's beneficial to give people
opportunities to spread their wings, with a total lack of direction, people may unwittingly drift in the
wrong direction—away from the critical goals of the organization.

This style can work if you're leading highly skilled, experienced employees who are self-starters
and motivated. To be most effective with this style, monitor team performance and provide regular
feedback.

Choosing Leadership Styles

Knowing which of the leadership styles works best for you is part of being a good leader.
Developing a signature style with the ability to stretch into other styles as the situation warrants
may help enhance your leadership effectiveness.

1. Know yourself.
Start by raising your awareness of your dominant leadership style. You can do this by asking
trusted colleagues to describe the strengths of your leadership style. You can also take a
leadership style assessment.

2. Understand the different styles.

Get familiar with the repertoire of leadership styles that can work best for a given situation. What
new skills do you need to develop?

3. Practice makes a leader.

Be genuine with any approach you use.Moving from a dominant leadership style to a different one
may be challenging at first. Practice the new behaviors until they become natural. In other words,
don't use a different leadership style as a "point-and-click" approach. People can smell a fake
leadership style a mile away—authenticity rules.

4. Develop your leadership agility.

Traditional leadership styles are still relevant in today's workplace, but they may need to be
combined with new approaches in line with how leadership is defined for the 21st century.
Today's business environments are fraught with challenges due to the changing demographics
and the employee expectations of a diverse workforce. This may call for a new breed of leader
who is an amalgam of most of the leadership styles discussed here.

As the Chinese proverb goes, the wise adapt themselves to circumstances, as water molds itself
to the pitcher. An agile leadership style may be the ultimate leadership style required for leading
today's talent.

Motivation theory and implications

Motivation Latin Word  Movere  To Move Definition : Motivation can be defined as an inner state that
activates, energizes or moves behaviour towards goal.

Motivation As the process that accounts for an individual’s intensity, direction and persistence of effort toward
attaining a goal.
Motivation
• Intensity : how hard a person tries. • Direction: intensity needs to be channeled in a direction favorable
to the organization for job satisfaction.. • Persistence : a measure of how long a person can maintain his or
her effort… Motivated individuals stay with a task long enough to achieve their goals.

Nature
• One motive may result in many different behaviors

• Motives are the energizing forces within us

• The same behavior may result from many different motives

• Motives may operate in harmony or in conflict

• Motives come and go

• Motives interact with environment

Importance Performance = Ability x Motivation

• Puts human resources into action

• Improves level of efficiency of employees

• Leads to achievement of organizational goals

• Leads to stability of work force

v
The theory states that although no need is ever fully gratified, a substantially satisfied need no longer
motivates. According to Maslow, if you want to motivate someone, you need to understand what level of
the hierarchy that person is currently on and focus on satisfying those needs at or above that level.
What is Interpersonal Relationship?
A strong bond between two or more people refers to interpersonal relationship.
Attraction between individuals brings them close to each other and eventually results in a
strong interpersonal relationship.

Must have in an Interpersonal Relationship

 Individuals in an interpersonal relationship must share common goals and objectives. They
should have more or less similar interests and think on the same lines. It is always better if
individuals come from similar backgrounds.
 Individuals in an interpersonal relationship must respect each other’s views and opinions. A
sense of trust is important.
 Individuals must be attached to each other for a healthy interpersonal relationship.
 Transparency plays a pivotal role in interpersonal relationship. It is important for an individual
to be honest and transparent.

An association between individuals working together in the same organization is called interpersonal
relationship. An individual spends around seven to eight hours at his workplace and it is practically
not possible for him to work all alone. One needs people to talk to and discuss various issues at the
workplace. Research says productivity increases manifold when individuals work in groups as
compared to an individual working alone.

Employees must get along well for a healthy ambience at the workplace.

Let us go through various ways of improving interpersonal relationships at workplace:

 Employees must communicate with each other effectively for a healthy relationship.

Remember a problem shared is a problem halved.
 Interact with your co-workers more often. Discussions must be on an open platform where
every individual has the liberty to express his/her views and opinions. Written mode of
communication is one of the effective ways of communicating at the workplace. Make sure your
emails are self explanatory and do mark a cc to all related employees. Ignoring any of your co-
workers might hurt him and spoil your relationship with the indivividual concerned. Avoid
hiding things from your fellow workers.
 Even employees from a different team can be your friends. Talk to them. Greet them with a
smile and a “Hi” whenever you meet them. An individual must not take things to heart at
workplace.
 Team leaders and supervisors should conduct morning meetings with their team
members. Do not make the meeting too formal. The employees should be allowed to bring
their coffee mugs. Let them interact with each other. Morning meetings go a long way in
breaking the ice among employees and improving interpersonal relationships at workplace.
 Do not favour any employee just because he is your relative or you know him personally.
Favouritism spoils the relationship between superiors and subordinates.
 Take your team out for lunch, picnics or get together once in a while. Let the employees
bring their families as well. Ask your team members to exchange contact numbers amongst
themselves for them to interact with each other even after work.
 Greet your colleagues on their birthdays or anniversaries. Send them a nice e-card and do
ask for a treat. Such small initiatives go a long way in strengthening the bond among fellow
workers. Important festivals must be celebrated at workplace for employees to come closer to
each other.
  Individuals should be motivated to work in teams. Work must be equally allocated to team
members to expect the best out of them. No employee should be overburdened. People working
in teams are friendlier and adjust with each other better.
 One needs to be a little more adjusting and compromising at the workplace. Don’t expect
everything to be done just the way you like it. You will have all types of people around. Avoid
fighting over petty things. Do not always look at the negative side of things. Accept people as
they are. It is essential to look at the positive side of an individual. Being flexible at work always
helps.
 Avoid being jealous. Leave your ego behind the moment you enter the workplace. Appreciate
if someone has performed exceptionally well. Remember only hard work and nothing else pays
in the long run.
 Stand by your colleagues when needed. It is only you who can create a healthy atmosphere at
the workplace.

factors affecting interpersonal relationship:

1. Compatibility

Two individuals in a relationship must be compatible with each other. There should be no scope of
conflicts and misunderstandings in a relationship. Individuals from similar backgrounds and similar goals
in life do extremely well in relationships. People with different aims, attitudes, thought processes find it
difficult to adjust and hence fail to carry the relationship to the next level.

2. Communication

Communication plays a pivotal role in all types of relationships whether it is personal or professional.
Feelings must be expressed and reciprocated in relationships. Individuals need to communicate with
each other effectively for better understanding. Do not stay mum as it leads to problems and
misunderstandings. Two people in love must interact with each other on a regular basis through various
modes of communication such as telephone, emails, letters (though exchanging letter is now considered
an outdated form of communication). Staying in touch is essential for the love to grow especially in long
distance relationships where individuals can’t meet quite often.

In professional relationships as well, colleagues must communicate well for a better bonding. Sit with
your co workers and discuss issues face to face to reach to a mutually acceptable solution.

The recipient must understand what the sender intends to communicate and vice a versa. Clarity of
thoughts is essential in relationships.

3. Honesty

Be honest in relationships. Do not lie or hide things from your partner. Remember every problem has a
solution. Think before you speak. Transparency is important in relationships.

4. Stay calm

Do not overreact on petty things in relationships. Stay calm. Be a little more adjusting. Be the first one to
say “Sorry”. It will solve half of your problems.

5. Forgiving

An individual needs to be a little more forgiving in relationships. Do not drag issues unnecessarily.
Fighting over small issues is foolish and makes the situation all the more worse.

6. Smile
 As they say “Smile is a curve that makes everything staright.” Flash your smile more often. It works. Take
care of your facial expressions while interacting with the other person.

7. Time

Time plays an important role in relationships. Individuals in love must spend adequate time to know
each other better. Frustrations arise when people do not have time to meet or interact with each other.
Even in organization, individuals must spend quality time with their co workers to strengthen the bond
amongst themselves. Married couples must take time out for each other for the charm to stay in
relationship forever.

Make the other person feel important. Appreciate your partner whenever he/she does something for you. Praise
him/her in front of others.Every relationship needs time and an individual’s effort to grow. Sit with your partner
and try to sort out the differences amicably. Don’t be too rigid.

Role of Communication in Interpersonal Relationship

Communication is said to be the basis of every interpersonal relationship. Infact
effective communication is the key to a healthy and long lasting relationship. If individuals do not
communicate with each other effectively, problems are bound to come.

Communication plays a pivotal role in reducing misunderstandings and eventually strengthens

the bond among individuals.

A relationship loses its charm if individuals do not express and reciprocate their feelings
through various modes of communication. A healthy interaction is essential for a healthy
relationship.

It is not always an individual needs to talk to express his /her feelings. Feelings can be expressed
through non verbal modes of communication as well. Your body movements, gestures, facial
expressions, hand movements communicate something or the other. Make sure you do not make
faces at anyone. You should look happy and contented for the other person to enjoy your presence.
Do not always look sad and irritated. Eye movements also have an important role to play in
relationships. One can make out whether you are angry, unhappy or frustrated through your eyes
only.

 Take care of your tone and pitch as well. Make sure you are not too loud or too soft. Being
loud might hurt the other person. Speak softly in a convincing way. The other person must be
able to understand what you intend to communicate.
 Choice of words is important in relationships. Think twice before you speak. Remember one
wrong word can change the meaning of an entire conversation. The other person might
misinterpret you and spoil the relationship. Be crisp. Express your feelings clearly. Do not try to
confuse the other person. Being straightforward helps you in relationships.
 An individual must interact with the other person regularly for the relationship to grow
and reach to the next level. Speaking over the phone. SMSing are ways of communicating
and staying in touch especially in long distance relationships where individuals hardly meet.
 Be polite. Never ever shout on your partner even if he has done something wrong. Discuss
issues and try to sort out your differences amicably. Abusing, fighting, criticizing spoil the
relationship and in adverse cases might end it as well. Being rude is a crime in relationships.
 Try to understand the other person’s point of view as well. Be a patient listener. Unless you
listen carefully, you will never be able to communicate effectively.
 Individuals can also communicate through emails. If you do not get the time to call your
partner regularly, drop him/her a mail. The other person would feel happy and important.
 Emails are also an effective mode of communication at workplace. For better relations at
workplace, try to communicate through written modes of communication. Be careful about the
mail body and make sure they are self explanatory. Using capital letters in emails is considered
to be rude and loud. Do not share any information with any of your fellow workers verbally.
Mark him a mail and do keep your Boss in the loop. All the related employees must be marked
a cc as well. If discussed orally, the other person might refuse later on, creating problems for
you.

Interpersonal Relationship Skills/Qualities

A strong association between individuals sharing similar interest and goal is called as interpersonal
relationship. It is important to have trustworthy colleagues around at the workplace.

One needs to know how to interact with fellow workers. Let us go through some
interpersonal skills an individual needs to inculcate for a healthy relationship with coworkers.

 Stay positive at the workplace. Do not crib over small things. No individual on this
earth is perfect. Do not always find mistakes in others.
 Respect your colleagues. It is unprofessional to misbehave with fellow workers. An
employee must behave in an acceptable way at the workplace. Maintain the decorum
of the workplace.
 Being rude to fellow workers spoils the relationship among employees. Remember the
way you behave speaks a lot about your education, upbringing and family background.
Be polite to everyone irrespective of his/her designation and income.
 An individual needs to have effective communication skills (both oral as well as written)
for a healthy interpersonal relationship at workplace. One must be careful about the
pitch and tone of his voice. Never be too loud or too soft. Being loud sometimes is
considered rude and being too soft signifies lack of interest in the other person. Choice
of words is also equally important. Never say anything which you yourself would not
like to listen. Avoid using slangs and foul words at the workplace. Communicate more
through emails as they are considered to be more reliable as compared to verbal
communication.
 Be cheerful at the workplace. Smile more often. It works.
 Make your fellow workers feel important. Show how much you care for them. If
they have done something for you, do remember to thank them. The good work of
employees must be acknowledged and appreciated in front of all. Being jealous does
not help and in turn spoils your relationship with your fellow workers.
 Stand by your colleagues at the times of crisis. Lend a sympathetic ear to their
troubles and help them whenever required.
 Who says you can’t have friends at the workplace? After all you spend maximum part of
your day here. Wish your colleagues on their birthdays, anniversaries and important
festivals. They would feel special.
 Be honest to others. If any of your colleagues is doing something wrong, tell him on
his face. It is better to be straight forward than spreading unnecessary rumours about
someone. Criticizing and making fun of fellow workers spoil relationships and
eventually turn friends into foes.
  Be a patient listener. Listen to what the other person has to say. Understand the
other person’s point of view as well before jumping to conclusions. Wrong perceptions
of people lead to unnecessary confusion and misunderstandings.
 Being trustworthy helps you gain confidence of fellow workers. Learn to keep things to
yourself.
 An individual’s personal interest ought to take a backseat at workplace. Your office has
nothing to do with your personal life and personal problems. You have no right to
shout on your co workers. Learn to keep a control on your emotions.
 Be a little more understanding and compromising to avoid unnecessary conflicts at the
workplace. Put yourself in your colleague’s shoes before taking any crucial decisions.
 Be nice and kind to everyone. Make sure you are not labeled as “brat”. Be a source of
inspiration for others. Remember it is you and only you who can make a difference to
the organization. Behave as a thorough professional.

What is Group Dynamics?

Group dynamics deals with the attitudes and behavioral patterns of a group.
Group dynamics concern how groups are formed, what is their structure and
which processes are followed in their functioning. Thus, it is concerned with
the interactions and forces operating between groups.

Group dynamics is relevant to groups of all kinds – both formal and informal.
If the UPA government has set up Group of Ministers for every governance
issue, the Supreme Court of India has 27 Group of Judges committees
overseeing all manner of non-judicial work in the apex court. In an
organizational setting, the term groups are a very common and the study of
groups and group dynamics is an important area of study.

What is A Group?
Every organization is a group unto itself. A group refers to two or more people
who share a common meaning and evaluation of themselves and come together
to achieve common goals. In other words, a group is a collection of people who
interact with one another; accept rights and obligations as members and who
share a common identity.

Process/Stages of Group Development/Evolution:

Group Development is a dynamic process. How do groups evolve? There is a
process of five stages through which groups pass through. The process includes
the five stages: forming, storming, forming, performing, and adjourning.
Forming:
The first stage in the life of a group is concerned with forming a group. This
stage is characterized by members seeking either a work assignment (in a
formal group) or other benefit, like status, affiliation, power, etc. (in an
informal group). Members at this stage either engage in busy type of activity or
show apathy.

Storming:
The next stage in this group is marked by the formation of dyads and triads.
Members seek out familiar or similar individuals and begin a deeper sharing of
self. Continued attention to the subgroup creates a differentiation in the group
and tensions across the dyads / triads may appear. Pairing is a common
phenomenon. There will be conflict about controlling the group.

Norming:
The third stage of group development is marked by a more serious concern
about task performance. The dyads/triads begin to open up and seek out other
members in the group. Efforts are made to establish various norms for task
performance.

Members begin to take greater responsibility for their own group and
relationship while the authority figure becomes relaxed. Once this stage is
complete, a clear picture will emerge about hierarchy of leadership. The
norming stage is over with the solidification of the group structure and a sense
of group identity and camaraderie.

Performing:
This is a stage of a fully functional group where members see themselves as a
group and get involved in the task. Each person makes a contribution and the
authority figure is also seen as a part of the group. Group norms are followed
and collective pressure is exerted to ensure the Process of Group effectiveness
of the group.
The group may redefine its goals Development in the light of information from
the outside environment and show an autonomous will to pursue those goals.
The long-term viability of the group is established and nurtured.

Adjourning:
In the case of temporary groups, like project team, task force, or any other such
group, which have a limited task at hand, also have a fifth stage, This is known
as adjourning.

The group decides to disband. Some members may feel happy over the
performance, and some may be unhappy over the stoppage of meeting with
group members. Adjourning may also be referred to as mourning, i.e.
mourning the adjournment of the group.

The readers must note that the four stages of group development mentioned
above for permanent groups are merely suggestive. In reality, several stages
may go on simultaneously.
 Eight Cs for Team Building:
To show business results and profitability, ways are explored by the executives
to improve their productivity.

Successful team building, that creates effective, focused work teams, requires

attention to each of the following:

1. Clear Expectations:

The managers must clearly tell the team members of the expected performance and the team

members must understand the reason for its creation. For it the organization must support the

team with resources of people, time and money.

2. Commitment:

Team members must participate in the team, feel that the team mission is important, and show

commitment to accomplishing the team mission and expected outcomes. Commitment will come if

team members perceive their service as valuable to the organization and to their own careers.

3. Competence:

Team members must have the knowledge, skill and capabilities, the resources, strategies and

support needed to accomplish its mission to address the issues for which the team was formed.

4. Control:

The team must have not only enough freedom and empowerment to feel the ownership necessary

to accomplish its charter, but also the accountability. There has to be a defined review process.
 5. Collaboration:

The team should understand group processes and work effectively and cooperatively with other

members of the team. For it they have to understand the roles and responsibilities of team

members, team leaders, and team recorders.

6. Communication:

To make team members clear about the priority of their tasks, and receive regular feedback, team

members must clearly and honestly with each other. Diverse opinions be welcome and conflicts be

taken up positively.

7. Creativity:

The team should value creative thinking, unique solutions, and new ideas; and reward members

who take reasonable risks to make improvements. If necessary, it should provide the training,

education, access to books and films, and field trips to stimulate new thinking.

The creative development of new products, new technologies, new services, or new organizational

structures is possible because teams may have variety of skills needed for successful innovation.

Team members can uncover each other’s flaws and balance each other’s strengths and weaknesses.

Managers should empower the team and make it accountable for the innovation process.

8. Coordination:

Teams should understand the concept of internal customer to whom they provide a product or a

service. Team efforts need to be coordinated by a central leadership team that assists the groups to

obtain what they need for success.

The cross- functional and multi-department teams must work together effectively. The

organization should develop a customer-focused and process-focused orientation and move away

from traditional departmental thinking.

Spend time and attention on each of these eight tips to ensure your work teams contribute most

effectively to your business success. Your team members would love you, your business will see

new heights, and empowered people will “own” and be responsible to their work processes

UNIT-5 COORDINATING AND CONTROLLING

Nature of Coordination

Coordination is the harmonization and integration of activities, responsibilities, and

command and manage structures to ensure that the resources of an organization.

The definitions given above highlight the following features of coordination:

(i) Coordination integrates group efforts: Coordination unifies unrelated or diverse

interests into purposeful work activity. It gives a common focus to group effort to ensure
that performance is as it was planned and scheduled.

(ii) Coordination ensures unity of action: The purpose of coordination is to secure unity

of action in the realization of a common purpose. It acts as the binding force between
departments and ensures that all action is aimed at achieving the goals of the organization.
 Coordination is a continuous process: Coordination is not a one-time function but a
continuous process. It begins at the planning stage and continues till controlling.

Coordination is an all pervasive function: Coordination is required at all levels of

management due to the interdependent nature of activities of various departments. It
integrates the efforts of different departments and different levels.

Coordination is the responsibility of all managers: Coordination is the function of every

manager in the organization. Top level managers need to coordinate with their
subordinates to ensure that the overall policies for the organization are duly carried out.
Middle level management coordinates with both the top level and first line managers.

Need for Coordination

We all are aware of the fact that there are several departments in an organization, such
as Finance, Purchase, Production, Sales, Human Resource, Marketing, Research and
Development etc. and the work of all the departments are interlinked and
interdependent. Further, there are three levels in organizational hierarchy, wherein:

1. Top-level: Comprises of the Board of Directors, Chief Executives, Managing

Directors, etc.
2. Middle-Level: Comprises of departmental heads and managers.
3. Lowest-Level: Comprises of supervisors, first-line managers and foreman.
 Coordination is a process, which ensures that various departments, units and levels of the
organization work smoothly and continuously in tandem, i.e. in the same direction, towards the
accomplishment of organizational goals, while effectively utilizing the resources.

It aims at involving all the elements of the company, in the plan, strategy or task, to get input from
everyone and attain best results.

CHARACTERISTICS OF COORDINATION
The salient features of coordination are given as under:

 Integrates efforts of employees: Coordination integrates the efforts of the employees, to

translate it into a determined activity. It aims at giving a specific direction to the group, to make sure
that the results obtained are according to the plans.
 Unity of Action: There must be a unity of action in the accomplishment of organization’s
objectives. It is that implicit force which binds various departments, divisions and units of the concern,
and ensures that they work with a single focus.
 Ongoing process: Coordination begins at the very first stage of planning, thereafter
organizational hierarchy is defined keeping the company’s plans in mind. Then, the staff is hired
according to the company’s plans and hierarchy, and work is assigned to them accordingly.Thereafter,
the direction is given to the employees as per the company’s plans and policies. Lastly, if there are any
discrepancies from the plans, they are corrected, at the controlling stage.So, we can say that
coordination is implied in all the functions of the management, which keeps on continuing.
 Pervasive Function: Coordination is a must for all the three levels of the management as are
interlinked and interdependent with respect to the functions performed by these levels.
 Deliberate activity: Various activities and efforts of the organization are to be coordinated in a
thoughtful and careful manner.
 If there is no coordination among the various activities, then the efforts of the employees are wasted
even if they cooperate. Further, in the absence of cooperation, coordination may not work effectively
and leads to dissatisfaction. So, cooperation and coordination should go hand in hand.

Importance of Coordination

1. Growth of organization: As time passes, organization grows in size, resulting in an increased

volume of work. There will be numerous employees to handle the work, which are hired for different
departments. At times, the departmental goals are considered more important by them, as compared
to the overall goal of the concern.So, coordination of activities, is useful in unifying all the people
together, to focus on just one ultimate goal.
2. Locational differences: Big corporations are located at different locations, even in different
countries, which does not allow people to meet and communicate frequently. In the absence of it,
coordination helps in keeping all the units and offices, together, to work in sync.
3. Diversification of business: When a company decides to diversify its business, by entering
into new markets with a new product, the company starts new divisions or ventures, to undertake the
activities. Then also coordination plays a critical role, in reconciling the goals of the organization.
4. Specialisation: In specialization, tasks are assigned to the employees as per their expertise or
specialization in the specific field. Coordination helps in bringing together all the talented and
experienced employees together, to maintain a harmonious relationship between various groups.
5. Synergy: It is a universal fact that the combined effort of two people is always greater than
those working separately. So, coordination combines the efforts of the firm which helps in achieving
synergy.
Coordination keeps a balance in all the activities by ensuring the appropriate allocation of tasks to
suitable persons, to realize the organization’s objectives successfully.

Techniques of coordination

1. Start before the Plan:

Coordination should start even before the plans are formulated and finalized. The plans should be

coordinated with the environmental factors.

2. End after Control:

Coordination ends only after the control function. Control function has to be coordinated with the

planning function in order to ensure that the plans are achieved.

3. Continuous Process:

Coordination is a continuous process. The organizational activities are to be networked and the

network should continue uninterruptedly so as to ensure continuous workflow.

4. Dynamism:

Coordination should be dynamic in order to foresee the environmental changes and infuse their

consequences into the network of organizational activities before the competitors adopt it. Therefore

coordination should be dynamic.

5. Direct Personal Contact:

Coordination can be effective, if the superior establishes and maintains direct personal contact and

direction with his subordinates.

6. Effective Communication:

Communication without distortions, gaps etc. make the coordination perfect.

7. Flat Organisation Structure:

Flat organisation structure allows the employees to interact and communicate freely and frequently

with their superiors. Further the superiors also interact with his/her subordinates with an open mind,

which in turn make the coordination effective.

8. Leadership:

Democratic and participative leadership allow the employees and leader to communicate with each

other frequently. Further, they encourage the subordinates to express their ideas, view-points etc.

regarding their activities. Thus, they enable the coordination effective.

Controlling:
Controlling is an important function of management. It is a process of guiding and
measuring current performance. In controlling, we compare actual performance to
standard performance. After planning, organizing, staffing and directing, the final
managerial task of determining whether planned activities are being carried out.

Nature of controlling:
Continuous process: Control is not a one-time process, it is a continuous process. As
long as a business or organization continues, the process of control will continue. In
any organization or business, control is required at all times. We can also say that
control is a never-ending process.

Control is a dynamic process: Controlling can be flexible and dynamic. Flexible, this

means it can be changed according to the situation. As we know the future is uncertain,
and we do not know what will happen in the future. We can also say that control is a
very dynamic activity. This includes a continuous review of performance standards and
the outcome of corrective action, which may lead to changes in other management
functions.

Future-oriented: Control is a future-oriented process as it is always done for the future.

Control involves a comparison between actual and standards. So corrective action is
designed to improve performance in the future. But every mistake made in the past is
also taken into consideration, and those mistakes are tried to be rectified in the future.

Control is a function of management: Control is a follow-up to other tasks of

management performed by managers to control the activities assigned to them in
the organization.

Planning Based: Control and planning are very closely related to each other. The plan
sets the course in the organization and the control ensures action according to the
chosen course of action in the organization. Control refers to the existence of plans or
standards in the organization. Planning without control is useless. Therefore, always
controlling based on planning.

Controlling Control Progress: The control process measures progress towards

achieving the goals of the organization. Controls include verifying whether everything
complies with the adopted plan, issued instructions and established principles. Since
the sailor constantly takes readings to find out where he is relative to a planned course,
the manager takes readings to see if his enterprise or department is on a charted and
pre-determined course.

Control is a function of management: Control is a basic or primary function of

management. Each manager must control the performance of subordinates, no
manager can function without a process of control. Once a plan is put in place, follow-
up actions are needed to measure progress, highlight deficiencies and take corrective
action.

Delegation is the key to control: Managers delegate authority to subordinates, with little

to no responsibility towards their own superiors. The only way managers can determine
whether their subordinates are performing the tasks assigned to them is by
implementing a control system. Without such a system, managers would not be able to
check on the progress of subordinates, and therefore would not be able to take
corrective action until failure occurred.

The essence of control is action: Performance of control is achieved only when

corrective action is taken based on reactive information. It is simply action, which
adjusts the performance of predefined parameters whenever there is a deviation. A
good system of control is timely action so that there is minimal waste of time and
energy.

Control relates to result: Controlling is related to the final result. First, we create a

roadmap to achieve the result. Then we follow the control process to achieve our actual
results. With the help of a good control system, we can get a good result.

Controlling in Management – 11 Most Important Areas of

Controlling

1. Control over Policies:

The success of any business organization to a large extent depends upon that how far its policies
are implemented. Hence, the need of control over policies is self- evident, in many enterprises;
policies are controlled through policy manuals.
2. Control over Organization:
Control over organization is accomplished through the development of organization chart and
organization manual. Organization manual attempts at solving organizational problems and
conflicts. Making long – range organization planning possible, enabling rationalization of
organization structure, helping in proper designing of organization and departments.
3. Control over Personnel:
The statement that management is getting the work done through people, underlines sufficiently
the importance of control of personnel. All employed working at different levels must perform their
assigned duties well and direction of their efforts and controlling their behaviour is the process of
control over personnel. Personnel director or personnel manager prepares – control plan for
having control over personnel.
5. Control over Costs:
Cost control is experienced by the cost accountant by setting cost standards for material, labour
and over-heads and making comparison of actual cost data with standard cost. Cost control is
supplemented by budgetary control system.
6. Control over Methods:
Control over methods is accomplished by conducting periodic analysis of activities of each
department. The functions performed, method adopted and time devoted by every employee is
studied with a view to eliminate nonessential motions, functions and methods.
7. Control over Capital Expenditure:
It is exercised through a system or evaluation of projects, ranking of projects in terms of their
ranking power and appropriating capital to various projects. A capital budgeting committee
reviews the projects proposed and approves the projects of advantages to the firm, capital
budgeting, project analysis, break even analysis, study of cost of capital, etc., are same popular
techniques of control over capital expenditures.
8. Control over Production:
Control over production is effected through studies about market needs, attitude of customers and
revision in product lines. Efforts are made of simplify and rationalize the line of products. Such
efforts serve as control measures. Routing, scheduling, dispatching, follow up, inventory control
inspection and quality control are some popular techniques of production control.
9. Control over Research and Development:
Such activities are highly technical in nature so no direct control is possible over them. By
improving the ability and judgment of research staff through training programmes and other
devices, an indirect control is exercised on them. Control is also exercised by having a research
budget in the business.
10. Control over External Relations:
Public relations department is responsible for controlling the external relations of the enterprise. It
may prescribe certain measures for other operating departments which are instrumental in
improving external relations.
11. Overall Control:
It is effected through budgetary control Master Plan is prepared for overall control and all the
departments are made involved in this procedure. For effective control through the master plan,
active support of top-management is essential.

Controlling in Management – Tools of Controlling Available to

Modern Management

The tools of control available to modern management are as follows:

1. Budgetary Control.
2. Cost Control.
3. Statistical Control.
4. Work Measurement and Production Control.
5. Quality Control.
6. Financial Control, and
7. Documentation.
Single line notes on each are given here:
1. Budgetary control supplies quantitative data for various sections.
2. Cost control will permit you to determine the limits of expenditure and to see that they are not
exceeded.
3. Statistical control ensures that the figures are supplied at the right time.
4. Work measurement and Production control enables you to check work values.
5. Quality control ensures that standards will be maintained.
6. Financial control will keep tight grip on money.
7. Documentation makes sure that you have the information as and when you want it and in usable
form.
In conclusion it may be repeated that control function is performed by all levels of managers and
supervisors. Management control reinforces the executive whom it serves. 

Modern techniques of control system

Following are the modern techniques of control which are commonly

used present:

I. Return on Investment (ROI):

Profits are the measure of overall efficiency of a business to the capital employed in a business

efficiency is an important control device. If the rate of return on investment (shareholders funds) is

quite satisfactory, it will be taken as a yard-stick of good performance.

The return on investment can be compared over a period of time as well as with that of other

similar concerns. This comparison will show the present performance in relation to earlier periods

and also the level of achievement of the concern in comparison to other concerns. The return on

investment is computed by dividing the operating net profit (before interest and tax) by the capital

employed in the concern.

The following formula is used for this purpose:

(i)Return on Investment
(ii)Net Profit before interest and tax

(iii)Capital employed

ROI is used to measure the overall efficiency of a concern. It reveals how well the resources of a

concern are used, higher return better are the results. An important drawback of this method is the

determination of capital employed in a concern as this concept is open to conflicting

interpretations. Generally capital employed includes equity share capital, preference share capital,

free reserves and long-term loans. It means that total assets less current liabilities will form the

capital employed.

II. Programme Evaluation and Review Technique (PERT):

Programme evaluation and review technique (PERT) was first developed as a management tool for

co-ordination and early completion of Polaris Ballistic Missile Project in USA resulting in a

reduction of 30 per cent time in project execution. A contemporary of PERT is CPM (Critical Path

Method) and was developed in connection with maintenance and construction work.

PERT is useful at several stages of project management starting from early planning stages when

various alternative programmes are being considered to the scheduling phase, when time and

resources schedules are laid out, to final stage in operation, when used as control device to

measure actual versus planned progress. PERT uses “network’ as the basic tool of project

management and is helpful in completing a project on schedule by coordinating different jobs

involved in its completion.

III. Management Information System (MIS):

Management information system (MIS) is an approach of providing timely, adequate and accurate

information to the right person in the organization which helps in taking right decisions. So MIS is

a planned and organized approach to the transferring of intelligence within an organization for

better management. The information is furnished into useful quantum’s of knowledge in the form

of reports. An effective system of MIS collects data from all possible sources. The information is

properly processed and stored for use in future.

MIS is of two types:

(i) Management operating system meant for meeting the information needs of lower and middle

level managements. The information supplied generally relates to operations of the business,
(ii) Management reporting system which supplies information to top level management for

decision-making. The information is presented in a way which enables management to take quick

decisions. An MIS should be so designed which helps management in exercising effective control

over all aspects of the organization.

IV. Management Audit:

Management audit is an investigation by an independent organization to find out whether the

management is carried performance out most effectively or not. In case there are drawbacks at any

level then recommendations should be given to improve managerial efficiency. In the words of

Leslie R. Howard, “Management audit is an investigation of a business from the highest level

downward in order to ascertain whether sound management prevails throughout, thus facilitating

the most effective relationship with the outside world and the most efficient organization and

smooth running internally.”

Objectives: Management audit has the following objectives:

(i) To see whether the work at all levels is undertaken efficiently or not.

(ii) If the management is not done effectively then suitable recommendations are m(iii) Whether

the plans and programmes are executed properly or not.

(iv) Suggesting ways and means of increasing managerial efficiency.

(v) It also aims to help management at all levels in the effective and efficient discharge of duties

and responsibilities.

(vi) The organizational structure is also reviewed to assess whether it can achieve ove(vii) Whether

the enterprise’s share in the market is increasing or declining and how it stands in comparison to

competitors.

Management audit assesses every aspect of managerial performance. In case the management is

not able to achieve its objectives then this point is brought to the notice of shareholders or owners.

This review will enable the taking up of corrective measures so that the working of the business is

improved.