Coordination – The Essence of

Management | Concept, Features and

Importance
A manager needs to perform five managerial functions that are all
interdependent and overlapping. All these functions are not separate from
each other. Thus, when a manager links together all these functions, it is
known as coordination.
Coordination is the force that connects all managerial functions and ensures
the smooth and efficient functioning of an organization. All the activities of an
organization such as purchase, production, sales, and finance are connected
through this link of coordination, which enables and helps in the continuous
working of an organization. It is considered the soul of management, as it
helps in achieving the goal through harmony and discipline of both
individuals and groups. Though occasionally, coordination might not be
referred to as a managerial function, it is the essence of management.
Coordination: Essence of Management
1. Coordination is needed in all management functions: In planning,
coordination is needed between the plan of the enterprise and the plans of
the various departments. The enterprise should always have coordination
between the main objective and the resources available. During organizing,
coordination is required between the authority and responsibility of every
individual. In staffing, coordination is gained by assigning the employees,
the right job by seeing their skills and abilities. In directing, coordination is
needed among orders, instructions and suggestions, and between superiors
and subordinates. Whereas during controlling, coordination is achieved by
confirming that the results are close to the planned results.
2. Coordination is needed at all levels of management: The top-level
needs coordination so that all the activities are integrated. The middle level
needs coordination for integration efforts at different sections and sub-
sections, and the lower level needs coordination in various activities of
workers, and to ensure that plans are properly executed. So, coordination is
essential at all levels in order to achieve the goals on time,

Therefore, Coordination is the essence of management, which works

carrying along all the other functions and activities affecting an organization
to achieve the required goal.

Features of Coordination
Coordination consist of the following features:
 Coordination assimilates group efforts: Coordination combines diverse
business activities into a purposeful group activity, ensuring that all
people work in one direction to achieve organizational goals. It provides a
common focus to
group effort so that the performance is as it was planned and scheduled.

 Coordination assures unity of action: Coordination directs the activities of

different departments and employees towards achievements of common
goals and brings unity in individual efforts. It performs as the binding force
between
departments and assures that all action is aimed at achieving the
organizational goals. In an enterprise, the production department needs to
coordinate its work with the sales department so that production takes
place to the demand in the market.
 Coordination is a continuous process: Coordination is essential in every
stage of managerial functions. Stating right from the stage of planning, it
continues till controlling. It is a continuous process that is required at all
levels, in all the departments till the organization continues its operation.
In an enterprise, which makes shoes, first they need to come up with a
good plan. Then they have to make sure that there is an adequate
workforce and continuously monitor whether production is proceeding
according to plans. The marketing department also needs to prepare their
promotional and advertising campaigns so that they can increase their
sales.
 Coordination is an all-pervasive function: Coordination is in nature. It
integrates the activities of all levels and departments as they are
dependent on each other to maintain balance in the organization. To
achieve organizational objectives harmoniously, the purchase, production,
and sales departmental efforts have to be coordinated properly. For
example, in a textile company, the purchasing department is responsible
for procuring fabric. Then the production department performs their task
and finally, sales can take place. If the quality of fabric purchased is of
poor quality or is not according to the specifications of the production
department, further sales will also decline, which will lead to loss. In the
absence of coordination, there is a lot of chaos, delays, and duplication in
the organization.
 Coordination is the responsibility of all managers: In an organization,
every manager needs to perform the function of coordination. It is equally
important at all the three levels of management, i.e. top, middle and lower
levels. Top-level managers need to coordinate with their subordinates to
make sure that all the policies for the organization are carried out
properly. Middle-level management is the one that coordinates with both
the top level as well as the lower-level managers. The operational level or
the lower level management coordinates the activities of its workers to
ensure that work proceeds according to plans.
 Coordination is a deliberate function: Coordination is never by itself,
rather it is a conscious effort on the part of every manager. Even where
members of a department willingly cooperate and work, coordination
gives direction to that willing spirit. Compete ration is a voluntary effort of
employees to help one another. Effective coordination cannot be
achieved without the cooperation of group members. Cooperation in the
absence of coordination may lead to wasted effort, and coordination
without cooperation may lead to dissatisfaction among employees.
Importance of Coordination
Coordination is important as it assimilates the efforts of individuals,
departments and specialists. The primary reason for coordination is that
departments and individuals in the organization depend on each other for
information and resources to
perform their respective activities. Thus, managers need to reconcile
differences in approach, timing, effort, or interest. At the same time, there is
a need to harmonize individual goals and organizational goals.
 Growth in size: When there is an increase in the size of the organization,
the number of employees also rises. Sometimes, it becomes tough to
assimilate the efforts and activities of the worker. As we know, every
individual is different in their way, be it their habit of working, background,
approaches to situations, and relationships with others, etc. It becomes
very important to make sure that all individuals are working for a common
goal of the organization. Some employees have individual goals also.
Therefore, it becomes very important to harmonize individual goals and
work for organizational goals through coordination to achieve
organizational efficiency.
 Functional differentiation: In an organization, activities and functions
are frequently divided into departments, divisions, or sections. In an
organization, there may be separate departments of finance, production,
marketing, or human resources. All these departments have their
objectives and working style. But all these departments and sections
depend on each other. All the activities of all these departments should
focus on attaining the common goal of the organization. Coordination
helps to accumulate activities of this department, so that they can
proceed together in a single direction instead of working as independent
units.
 Specialization: Specialization is the result of the complexities of modern
technology and a variety of operations performed. Thus, there is a need
for the organization to recruit a plentiful of specialists. The specialists
qualify in a particular area and work accordingly. They analyze and take
decisions related to their specialization for the advancement of the
organization. Different specialists working in the same organization might
sometimes result in conflicts among one another. Therefore, coordination
is required to harmonize the conflicts and differences in way of thinking,
interests, and beliefs of the specialists.
What is the Systems Approach to Management?

The Systems Approach to management theory, commonly viewed as the

foundation of organizational development, views the organization as an open
system made up of interrelated and inter-dependent parts that interact as sub-
systems.

Thus the organization comprises a unified singular system made up of these

subsystems. For example, a firm is a system that may be composed of sub-
systems such as production, marketing, finance, accounting and so on. As such,
the various sub-systems should be studied in their inter- relationships rather,
than in isolation from each other.

The system as a whole is affected by internal elements (aspects of the sub-units)

and external elements. It is responsive to forces from the external environment.

The system is considered open, as organizations receive varied forms of inputs

from other systems. For example, a company receives supplies, information,
raw materials, etc. These inputs are converted to outputs that affect other
systems.

Generally, the systems approach assesses the overall effectiveness of the system
rather than the effectiveness of the sub-systems. This allows for the application
of system concepts, across organizational levels in the organization - rather than
only focusing upon the objectives and performances of different departments
(subsystems).

Organizational success depends upon interaction and interdependence between

the subsystems, synergy between the sub-systems, and interaction between
internal components (closed system) and external components (internal
system).

The systems approach implies that decisions and actions in one organizational
area will affect other areas. For example, if the purchasing department does not
acquire the right quantity and quality of inputs, the production department wont
be able to do its job.

This approach recognizes that an organization relies on the environment for

essential inputs. Further, the environment serves an outlet for its outputs.
What are the primary Characteristics of an Organizational System?

The following are the chief characteristics of the System Approach to

Management:

 Sub-Systems - Each organization is a system made up of a combination

of many sub-systems. These sub-systems are inter-related.
 Holism - Each sub-system works together to make up a single whole
system. Decisions made in any subsystem affect the entire system.
 Synergy - The collective output of the whole system is greater than the
sum of output of its sub-systems.
 Closed and Open Systems - The whole organization is an open system
made up of a combination of open and closed sub-systems.
 System Boundary - The organization is separate from the external
environment made up of other systems.
What are the components of an Organizational System?

The system approach envisions the organization as made up five components:

 Inputs - Raw Materials, Human Resources, Capital, Information,

Technology
 A Transformational Process - Employee Work Activities, Management
Activities, Operations Methods
 Outputs - Products or Services, Financial Results, Information, Human
Results
 Feedback - Results from outputs influence inputs.
 The Environment - These components make up internal and external
factors that affect the system.
What are Closed and Open Management Systems?

An organization is made up of closed systems and open systems.

Closed systems are the internal sub-units of the organization that do not interact
with the external environment.

Open systems are internal sub-units that interact with other systems (or sub-
units within other systems) that are outside of the organization. In effect, all
organizations are open systems.
What are General and Specific Management Systems?

The general systems approach to management is mainly concerned with formal

organizations and the concepts are relating to technique of sociology,
psychology and philosophy.

The specific management system includes the analysis of organizational

structure, information, planning and control mechanism and job design, etc.

Advantages and Disadvantages of a Systems Approach

The advantages of the systems approach include:

 It assists in studying the functions of complex organizations

 It is probabilistic rather than deterministic.
 It has been utilized as the base for the new kinds of organizations like
project management organization.
 It is possible to bring out the inter-relations in various functions like
planning, organizing, directing and controlling.

Negative attributes of the systems approach include:

 This approach is somewhat abstract and vague.

 It can be difficult to apply to large and complex organizations.
 It does not provide any tool and technique for managers.
 It is not a prescriptive management theory, as it does not specify tools and
techniques for practicing managers
 It does not address power and social inequalities and their causes.
 It does not specify the nature of interactions and interdependencies.
Who are the Primary Contributors to Systems Theory?
 Chester Bernard introduced the concept of Cooperative Systems in his
book, Functions of an Executive (1938).
 Economist, Herbert Simon, introduced in his book, Administrative
Behavior (1947), the concept of systems process in decision-making
within organizations. Notably, he introduced concepts of bounded
rationality and satisfying.
 Biologist, Ludwig von Bertalanffy, introduced principles of General
Systems theory in 1950.
 Other contributors include: Lawrence J. Henderson, W.G. Scott, Deniel
Katz, Robert L. Kahn, W. Buckley and J.D. Thompson.