INTRODUCTION TO MANAGEMENT

Definition of management
 Providing a single, comprehensive, and universally accepted
definition of management is impossible.

 Management has various aspects, that all of which cannot be

represented by a single definition.

 The theorists who gave the definitions had different areas of

interest or training, and all defined management from their
perspective.

 There are several definitions of management given by

different authorities in the field. Among the many, some are;

 It is the art of getting things done through and with people in

a formally organized group.
 It is the art of knowing what you want to do in the best and cheapest
way.

 it is the process of planning, organizing, staffing, directing, and

controlling

 the use of a firm’s resources effectively and economically to attain

its objectives.

 It is the art of securing maximum results with a minimum of efforts

so as to secure maximum prosperity and happiness for both the
employer and employee and give the public the best possible
service.

 In short, management could be precisely defined as the process of

planning organizing, staffing, directing, and controlling to
accomplish organizational objectives through the coordinated use of
human and non human resources.
Meaning of management

It refers to a group of people who are responsible for

guiding and controlling the organization (managerial
personnel).

Management is the process of running an organization

(planning, organizing, staffing, directing, and
controlling).

Management is a body of knowledge, a discipline.

Management is a factor of production; economic

resources as land, labor, and capital.

Management as a discipline is young and there is a lack

of clarity of concepts and principles.
Characteristics of Management
Goal Oriented

Decision Making

Universal

A Continuous Process

Working with and through people

Multi – Disciplinary
 Basic Management Functions

1. Planning:
it is the first function that all managers engage in

 it lays the ground for all other functions.

It identifies the goals and alternatives.

Itmaps out courses of action that will commit

individuals, departments, and the entire
organization for days, months, and years to
come.
 The length of time and the scope of planning will vary
according to the level in the company
 Each manager’s plans are influenced by the plans of the
other managers

2. Organizing

 Assembling the resources necessary to achieve the

organization’s objectives

 Establishing the activity-authority relationships of the

organization.

 Planning has established the goals of the company and

how they are to be achieved; now, organizing develops
the structure to reach these goals.
 In organizing objectives are grouped into working
divisions, departments, or other identifiable units

 Each unit should have clearly defined authority,

or a clearly defined list of duties, and one person
to whom to report.

 changes that occur both within and outside the

organization will require new approaches, plans,
and organizational units.
3. Staffing
 It is concerned with alocating prospective employees to fill
the jobs created by the organizing process

 it involves the process of recruiting potential candidates for

a job, reviewing the applicants’ credentials, and trying to
match the job demands with the candidates’ abilities.

 It also involves orienting the new employee to the company

environment, training the new person for his or her
particular job, and keeping each employee qualified

 Many aspects of the staffing function are the responsibility

of the personnel department.
4. Directing/Leading

 Directingis aimed at getting the members of the

organization to move in the direction that will achieve its
objectives
 influence each individual behavior and action towards
achievements of common organizational goals

5. Controlling

 measuring performances against established standards

 dealing with deviations from established standards.

 Levels of Management and Types of Managers

Levels of Management
 Levelsare hierarchical arrangement of managerial
positions in an organization.

 The number of levels of management depends on

the size of the organization.

 Generally there are three level of management

 Top level management

 Middle level management
 First level(operating level) management
 Top level Management
 itincludes the board of directors, executive committee, and
chief executive, or president, or general manager, etc of an
organization.

Functions of top level management include:

 Establishing broad objectives

 Designing major objectives

 Outlining principal policies

 Providing effective organizational structure that insures

integration
 Providing overall leadership and direction

 Making overall control of the organization

 Dealing
with external parties such as the government,
community, business etc by representing the organization

 Analyzing the changes in the external environment and

respond to it.

Middle level Management

It includes heads of the different areas and their assistants,
divisional heads, department managers, section heads, plant
managers, branch managers, etc.
The function of middle level mangers is limited to a particular
area of operation
 The major functions are
 Acting as intermediary between top and operating level
management

 Translating long-term plans of top management into medium

range plans

 Developing specific targets in their areas of responsibility

 Develop specific schedules to guide actions and facilitate

control

 Coordinating inputs, productivity and outputs of operating

level managements
First level (Operating level) Management
 This is the last step of the ladder in the hierarchy of
management.
 The subordinates of operating level managers are non-
management workers.
 It includes section chief, office manager, foreman,
supervisor, etc
The function of operating level mangers include
 Planning daily and weekly activities and accomplishments
based on the monthly, quarterly, and yearly plans.
 Assigning operating employees to specific tasks
 Issuing instructions at the workplace, following-up,
motivating, and evaluating, workers and reporting to their
superiors.
 Types of Managers
 Based the scope activities they manage, mangers classified
into functional and general manger

 General Managers

 They are responsible for the overall operations of a more

complex unit, such as a company, or a division.

 General Managers hold functional managements

accountable for their specialized areas and usually
coordinate two or more departments.
 Functional Managers
 Functional managers supervise with specialized skills in a
single area of operation, such as accounting, personnel,
finance, marketing, and production.

 All these functions are necessary for the success of the

organization.

Managerial Roles and Skills

 Henry Mintzberg studied a variety of managerial jobs
and arrived at the ten most common roles of top
managers.
 The ten roles are classified into three categories:
interpersonal roles, informational roles, and decisional
roles.
Interpersonal Roles
1. Figurehead role: in this role , the manager represents the
organizations at ceremonial and symbolic functions.
 It’s the most basic and the simplest of all managerial
roles
2. Leadership role: it involves responsibility for directing
and coordinating the activities of subordinates in order to
accomplish objectives.
 it includes staffing: hiring, promoting and motivating etc

3. Liaison role: it refers to dealing with people outside the

organization. (clients, government officials, customers,
and suppliers)
 In this role the manager seeks support from people who
can affect the department’s and the organization’s
success.
Informational Roles
 Effective mangers networks of contacts for sharing
information

 Monitor role: the monitor role involves seeking out,

receiving, and screening information.
 Since much of the information received is oral, managers
must evaluate and decide whether to use this information.

 Disseminator role: The manager shares information with

subordinates and other members of the organization.
 The manager passes along special or “privileged”
information to certain subordinates
Spokesperson role: managers transmit information to
others, especially those outside the organization, as the
official position of the company
Decisional Roles
It is the most important role of managers

 Entrepreneurial role: this role involves designing and

initiating planned change in order to improve the
organization’s position.

 Managers play this role when they initiate new projects,

launch a survey, test a new market, or enter a new
business.
Disturbance handler role: managers play the
disturbance handler role when dealing with problems and
changes beyond their immediate control
 It include strikes by labor, bankruptcy of major suppliers,
or breaking of contracts by customers

Resource allocator role: this role involves choosing

among competing demands for money, equipment,
personnel, and other’s demands on manager’s time.

Negotiator role: In this role managers meet and discuss their

differences with individuals or groups for the purpose of
reaching an agreement
Managerial Skills
 Skill is ability to do something expertly and well.

 Itis meant ability related to performance that is not

necessarily in born but which can be developed/ acquired

Technical Skills: involve the ability to apply specific

methods, procedures, and techniques in a specialized
field
 Interpersonal Skills/Human skill/communication skill
Human skill refers to the ability to interact effectively with
people.

Managers interact and cooperate with employees.

It is simply managers’ ability to work well with people both

individually and in a group.

It involves patience, trust and genuine involvement in

interpersonal relationships.
 Interpersonal or human skills include the ability to lead,
motivate, manage conflicts, and work with others. It
focus on working with people
 Technical skills emphasize working with things
(techniques or physical objects)

Conceptual Skills: it involves the ability to view the

organization as a whole and recognize its relationships
to the larger environment (business world)

 Manager uses conceptual skills to diagnose and assess

different types of management problems.
Universality of Management
Why is it universal?
 Managers in all levels of organizational hierarchy perform the
same basic managerial functions.

 Itis applicable for all human efforts; be it is business, non

business, governmental, private. It is useful from individual to
institutional efforts.

 Management utilizes scientifically derived operational principles.

The principles of management are universal.

 All managers operate in organizations with specific objectives.

 Management in all organizations, helps to achieve organizational

objectives
Management Science or Art ?
Science may be defined as a systematized knowledge derived
from observation, study, and experimentation carried on in
order to determine the nature and principles of the subject
under study.

Since management has a structured body of knowledge with

its own distinct concepts and principles that are developed
with reference to the general truths underlying the
management practice, management is a science

Management is an art. It is knowhow, it is the application of

knowledge, and it is doing things in light of the realities of
the situation.
 Therefore, management is both a science and an art.
THANK YOU!!!
 Chapter two
The Planning function
 It is the most fundamental function of management.

 It is the process of determining the goals of

organizations and specific course of action for
achieving those goals.

 Planning is mainly concerned with ends (what is to be

done) and with means (how it is to be done).

 The goals set by planning may be long-term and

short-term goals
 Planning answers six basic questions what (the goals),
when (timing), where (the place), who (people performing
essential activities), how (methods of reaching goals) and
how much (expenditure of resources).

Nature and Importance of Planning

Importance of Planning
1. Planning minimizes risk and uncertainty
 By providing a more rational and fact-based procedure for
making decisions.

2. Planning leads to success:

 Companies which plan enjoy more success than the non-
planners
 Planning doesn’t guarantee success
3. Planning focuses attention on organizational goals

4. Planning facilitate control

 Goals and plans become standards or benchmarks against
which performance can be measured.

5. Planning lays ground for other managerial functions

6.Promotes efficiency
 In the planning manager determine how many resources are
necessary to reach the goals, and how to use these resources.

Nature of Planning
 Planning is a primary management function:
• It provides direction and a common sense of purpose for the
organization
• It sets foundation for all the managerial functions to follow
 Planning is a continuous process
• It deals with the future and the future by it self is
uncertain
• This does not mean that the manager never completes
work on a specific plan. But it needs frequent revision in
response to changes.

 Planning concerns all managers

 Plans are arranged in a hierarchy

 Plans are first set for the entire organization called the corporate
plan

 Corporate plan are converted into divisional, departmental and

sectional, unit plans.
 Planning commits the organization into the future

 Planning implies changes in organizational objectives,

policies, products, marketing strategies

 Ability to adjust
 It allows managers the opportunity to adjust the
organization to the environment rather than to react to it

 effectiveness of a plan pertains to the degree to which it

achieves the purpose or objectives
Plans can be classified based on the following dimensions:
 Repetitiveness
 Time dimension and
 Scope

Classification of Plans Based on Repetitiveness

Standing use plans
Single use plans

 Standing Plans
 Standing plans are those plans that can be used again and
again
 it includes mission or purpose, goal or objective,
strategy, policy, procedure, method and rule.
Purposes or Missions
 it identifies the basic function or task that is performed
by the enterprise.
(The purpose of the court is interpretation of laws; the
purpose of university is teaching and research; the
purpose of business generally is the production and
distribution of goods and services.)

Objectives or Goals
 Objectives or goals are the ends toward which activity
is aimed
 They are the end point of planning, organizing, staffing,
leading and controlling
The basic difference b/n Mission and objective

Mission represent the activity it self

( producing product, providing quality service)

Objective related to end of the activity

( producing 500 products, making a profit)

Strategies
 They are ways and means to achieve the established
objectives
 A stated course of action to accomplish every objective
 Objective mainly answers what question where as strategy
answers the how question.

Policies
is a standing plan that establishes general guidelines for decision
making.

 Policies channel the thinking of organization members so that

the members move consistently with and contribute to an
objective

Procedures: show the sequence of activities

 They are chronological sequences of required actions
 It contains detailed guidelines for handling organizational
actions that occur regularly
Methods

 is a more detailed description than procedure

 A method is only concerned with single operation while a procedure

shows a series of steps to be taken

 it tells exactly how one particular steps undertaken

 Rules

They are usually the simplest type of plan that spells out specific
required actions or non-actions to be taken in a given situation,
allowing no discretion.

 The purpose of policies is to guide decision making in which

managers can use their discretion. Although rules also serve as guides,
they allow no discretion in their application.
Single Use Plans
 Single use plans are those plans that are not used once the
objective is accomplished

 They are used only once and not over and over again.

 Single use plans include programs, projects and budgets.

Programs
They are complex set of goals, policies, procedures, rules, task
assignments, steps to be taken, resources to be employed, and
other elements necessary to carry out a given course of action,
ordinarily supported by budgets

Ex: Expanding school or hospital

Budgets
 It is a financial plan outlining how funds will be spent in
a given period of time and how these funds will be
obtained.

 A budget may be expressed in financial terms, in terms

of labor hours, units of production, machine hours or in
any other numerically measurable term.

 Budget is a fundamental planning instrument in many

companies

 Budgets vary considerably in accuracy, detail and

purpose. There are three types of budgets.
 Variable or flexible budget: are budgets that vary according to the
organizations level of output.

 Program budget : identifies goals, develops detailed program to meet the

goals and estimate the cost of each program.

 Zero base budget: is a budget for programs that start from a scratch or
base of zero.

 Zero-based budgeting requires that the budget request be re-evaluated

thoroughly, starting from the zero-base; this involves preparation of a
fresh budget every year without reference to the past.

 Project

A project is part of a general program that can be planned and fulfilled as

a distinct project itself.
Classification of Plans Based on Time
1.Long-range
2.Intermediate range and
3.Short-range

Long-range planning
It has longer time horizon.

Itis not concerned with immediate future, but with

distant future.

They are mainly concerned with future direction of

the organization
Short-range Planning

 They are complementary of long-range plans and are not

prepared separately.

 They constitute the steps toward the implementation of long-

range plans.
 They are instrumental in implementing long-range plans .

 The period covered by short-range plans is generally 1 year;

sometimes it can go up to 2 years.
Intermediate range Planning

 This level of planning obviously ranges between long and

short range planning.
 It covers time range 1 up to 5 years

 In most cases range of plans depends on the size of the

organization and type of business of the organization.

Classification of Plans Based on Scope or Breadth

1.Strategic Planning
2.Tactical Planning
3.Operational Planning
Strategic Planning


Instrategic planning, organization’s missions, objective,
major courses of action or strategy is analyzed and decided.


They are designed to meet organization’s broad objectives.


Itis usually done by the top level managers by taking into
account environmental threats and opportunities and internal
weaknesses and strengths.


Strategic plans are mostly long-range in their time frame.


They also provides general direction to the organization and
there by affects a wide range of organizational activities.
Tactical Planning
 Itrefers to the process of developing action plans through which strategies are
executed.

 Departmental managers/middle are often involved in tactical planning.

 Itis narrow scope than strategic plan and wider than operation plan; but more
detail than strategic plan and less detailed than operational plan.
 Usual time span is one year

Operational Planning

It is the most specific and is concerned with the day to day, week to week
activities of the organization.

Operational plans are mainly of short-range and more specific.

They have a narrow and more limited scope.

(production schedules, sales plans, lesson plans)

The Planning Process
1. Understanding of the existing situation
 understanding the internal and external environment
2. Forecasting
 “what will the future look like?”
3. Establishing Objectives
4. Determining Alternative Courses of Action
5. Evaluating the Alternative Courses of Action
6. Selecting a Course of Action
7. Formulating Derivative Plans( supportive plans)
8. Numbering Plans by Budgeting
9. Implementing the Plan
10. Controlling and Evaluating the Results
Principles of Effective Planning
1. Develop Accurate Forecasts

2. Gain Acceptance for the Plan

3. Be Objective

4. Set up Monitoring System

5. Revise your Plan on a Constant Basis

6. Fit the Plan to the Situation

Planning Techniques (individual assignment)
 Skills
required in planning are Forecasting & Decision
Making

Forecasting: it is the attempt to predict outcomes and future

trends that can serve as basis for planning.

►Qualitative Forecasting & Quantitative

Forecasting
THANK YOU!!!
 Chapter 3
Decision Making
Meaning of Decision Making

 Decision making is defined as a rational choice among alternatives.

 Options are the necessary conditions for decision making. If there are
no options to choose from, decision is not needed

 Decision making is universal, because

1. A manager makes decisions constantly while performing the
functions of Mgt
2. managers at all levels of the organization are engaged in decision
making
(top level management makes decision on dealing with mission of
organization and its strategies. Middle level management, focus on
implementing strategies, budgets and resource allocation. First level
management deals with repetitive day to day operations)
Decision Making Process
1) Define the Problem
 Accurate definition of a problem affects all the steps to follow
 To have correctly defined the problem is to move half to ward solving
it
2) Identifying the limiting or critical factors

Limiting factors are those constraints that rule out certain alternative
solutions
Time, resources, personnel, money, facilities and equipment are
common limiting factors.

3) Develop Potential Alternatives

These alternatives should eliminate, correct or neutralize the problem.

 Sources of alternatives are: experience, personal opinions and
judgments, group opinions, committees and the use of outside sources
including mangers in other organizations.
4) Analyze the Alternatives

Decide the relative merits of each of the alternatives

This means advantages and disadvantages, comparing the potential pay off and
possible consequences of each alternative solution.

5) Select the Best Alternative or Combination of best Alternatives

It is necessary to find the solution that appears to offer the fewest serious
disadvantages and the most advantages.

6) Implement the Solution

decision must be effectively implemented because good decision may be

harmed by poor implementation.

7) Establish a control and Evaluation System

 provide feedback on how decision was implemented what the result are
positive and negatives and what adjustments are necessary to get the results.
 Types of Decisions
Programmed Decisions

 Programmed decisions are the decisions managers make in

response to repetitive and routine situations.

 they are amendable to organizational established policies ,

procedures and rules.

 If a particular situation occurs too often, managers will

develop a routine procedure for handling it.

 Managers in this case have a repetitive and routine solution.

Non-programmed Decisions

 Non-programmed decisions are decisions for novel and

unstructured problems

 Non-programmed decisions require more time and effort

and involve more uncertainty than programmed decisions.

 Non-programmed decisions are usually handled

by general problem solving process, judgment,
intuition and creativity.
The Decision Making Environment
Decisions are made under the conditions of certainty, risk
and uncertainty.

 Decision making under conditions of certainty

(The manager has what is known as perfect knowledge. The

manager had these decisions to make before)

 Decision making under conditions of risk

The manager knows what the problem is, knows what the
alternatives are, but does not know how each alternative
will work out
Decision making under conditions of
uncertainty

 This is the most difficult decision making environment

for a manager

 The manager is not able to determine the exact odds

(probabilities) of the potential alternatives available.

 It deals with possible outcomes that are unknown

 Chapter Four
The Organizing Function
The concept of organizing and organization structure

 Organizing is the process of identifying and grouping tasks to be performed,

assigning responsibility and delegating authority, and establishing
relationships

 It is the process of defining essential relationship among people, tasks, and

activities

 It is examining how the managerial tasks defined in the planning stages can
be devise and reintegrated to achieve the organizational objectives.

 Organizing involves differentiation and integration

 Differentiation is the process of departmentalization or segmentation of

activities on the basis of homogeneity.
 Integration is the process of achieving unity of effort among the various
departments.
 Organizing has four distinct activities

 It determines what work activates have to be done to

accomplish organizational objectives

 It classify the type of work needed and groups the

work into manageable work unit

 It assigns the work to individuals and delegate the

appropriate authority

 It designs a hierarchy of decision making r/ship

 Managerial functions of planning and organizing
are intimately related

(Organizing begins with and is governed by plans,

and plans state where the organization is going and
how it will get there)

 Anorganization must be built, or an existing one

must be modified, to make sure that the plans are
executed and that their goals are reached

 Organizing result in organization structure

 Organizational structure
It
 is a formal framework that shows a set of tasks assigned to
individuals, departments, reporting relationship and the design of
systems to effectively coordinate employees across department

It is a tool of management to achieve plan

As plans change, the organization structure should be responsive

 Even when objectives are similar, what works for one

organization will not necessarily work for another for the
purpose.
 Formal and informal organizations

Formal organization: is an organization that is deliberately and

rationally designed and approved by management through the
organizing process in order to achieve the objectives of the firm .

Informal organization: refers to people in group association, but

this association is not specified in structure of formal organization.

It is natural grouping of people in the work situation based on their

behavioral pattern. Interest; beliefs, objectives and etc.

 No conscious attempt is made to create an informal organization.

 It appear in response to the social needs – the need of people to

associate with others

Informal organization has the following characteristics

Group norms: it is unwritten law that govern the behavior of the group
Group Cohesiveness: members stick together
 Group leadership: it has informal leader, the most active person in
the group
Communication network: the communication network of informal
organization is called Grapevine

informal organization is not established officially it exists and it is there

always in the formal organization
( it affect negatively and positively)

• thenegative impacts are: resistance to change, conflict, rumor,

• the positive impacts are: make the total system effective, provide support to
management, provides stability in the environment.
 Organization Chart
Organization chart is simply a diagram or chart of all the
positions in the organization and their formal relationship
to one another.
 An organization chart shows

 Who reports to whom – the chain of command

 How many subordinates work for each manager – the

span of control

 Formal channel of communication

 The hierarchy of decision making – where decision

maker for a problem is located
 The Organizing Process
1) Consider Plans and Goals

2) Determine the Work Activities Necessary to Accomplish

Objectives

3) Classify and Group Activities

• Identify the general nature of the activities
• Group the activities into the related areas
• Establish the basic department design for the organizational
structure

4) Assign work and Delegate Appropriate Authority

5) Design a Hierarchy of Relationships

( Vertical and horizontal operating relationship)
Vertical structure: it result in decision making
hierarchy showing who is in charge of each task, each
specialty area and organization as a whole
 Bottom to top level of management
 Create chain of command and hierarchy of decision
making

 Horizontal structure
 it defines the working relationships between operating
department
 It makes the final decision on the span of control
Principles of Organizing
1) Division of Work
 It is dividing large tasks into smaller packages of work to
be distributed among several people.

 it is also breaking down complex organizational tasks in to

a more simple, routine and well defined tasks.

 It facilitates the organizing process.

 It focus on making suitable grouping of activities and this

is the principle of specialization.
 2) Hierarchy (Scalar Chain)

 It represents a line of authority in an organization.

 It specifies the order of rank from top management to the

lowest level of the enterprise.

 It is seen as the end result of organizing process.

 Scalar chain is instrumental in applying both unity of

command and direction

 Unity of command: one supervisor to obey

 Unity of direction: one head for an activity that has the
same objective
3) Departmentalization

 It is the process of combining jobs (activities) into

groups.
 Groupings can be done on the basis of primary
function such as production, finance, sales,
personnel etc. or it can be done on derivate basis,
such as type of customers, geographical areas etc.
 Functional Departmentalization, Geographic,
product , customer etc
4) Span of Control/Span of Management/

 it is concerned with the number of subordinates each

mangers should have to direct

 it refers to the number of people and departments that

report directly to a particular manager

 It is an established fact that larger the number of

subordinates reporting directly to the executive, the more
difficult it tends to be for him to supervise and coordinate
them effectively
 The following factors determine span of control
As a general rule
◦ complexity and variety of the subordinates’ work

 The more complex subordinate’s job, the fewer the number of

subordinates that can be directed and controlled. ( narrow span of
control)
 The more routine the work of subordinates, the greater the number
of subordinates that can be effectively directed and controlled .
(wide span of control)

◦ The ability and training of the subordinates

 The more capable and experienced the subordinates are, the
greater should be the number of subordinates.( wider span of
control)
 The more trained the subordinates are, the greater should be the
number of subordinates.( wider span of control)
◦ The ability of the manager

 If the manager has high potential ability, the

number of subordinates can be made too many.

◦ Company’s philosophy for centralization and

decentralization
 companies that favor centralization usually has
narrow span of control
 companies that encourage decentralization usually
display wide span of control
 Wide span of management( control)
 itis a flat organizational structure characterized by an overall
broad span of controls, horizontal dispersion, and fewer
hierarchical levels.
 The manager manages large number of immediate
subordinates President

M M M M M M M

Merits: Demerits:
 Reduces over head costs - Less control and coordination

 Improved and fast communication

 Most suited to individuals desiring
Challenge, responsibility and autonomy
 Fast decision making
 Narrow span of management
 it is a tall organizational structure characterized by narrow
span of control and relatively large number of hierarchical
levels.
 The manager manages small number of immediate
subordinates.
President

VP VP

M M M M M M

s s s s s s
Merits
 Closer control
 Better coordination
 Closer supervision and fewer mistakes

Demerits
 Distorted Communication
 Slows down decision making
 Distance between top level and Workers level
 Increased administrative overheads
5) Chain of command

 It Is the plan that specifies who reports to whom

in an organization.

 each subordinates should have only supervisor

whose command he/she has to obey

6) Coordination
 It is the process of integrating the activities of
separate departments in order to pursue
organizational goals effectively
 The extent of co-ordination depends on the nature of the
tasks performed and the degree of interdependence of the
people in the various units performing them

Symptoms of lack of co-ordination in organization

 Loss of control.
 Excessive conflict.
 Separation of authority and competence.
 Neglected responsibilities in organization
 Departmentalization
 it is the process of combing jobs into groups

 It is the process of dividing and grouping activities,

jobs, processes, employees and resources of an
organization in to logical units to perform some
organizational task.

Basis/types/ of Departmentalization
1. Functional Departmentalization

 jobs are grouped according to functions of the

organization. Such as marketing or production
 It is perhaps the most logical and basic form of
departmentalization

 The type and number of functions would depend

on the type of the organization

 Business firm…. production, marketing, finance

 hospital consists….. surgery, psychiatry,
pharmacy, personnel and nursing.

 Advantage: it make use of the benefit of specialization

 Disadvantage: let the organizational objective back seat to
departmental objectives
2) Territorial(Geographic)Departmentalization:

 If an organization serves different geographical areas the

divisional structure may be based up on geographical
bases.

 The territorial basis frequently is used by firms whose

operations are similar from region to region

 All the activities in geographical area are assigned to a

particular manager

Adv: It enables the firm to develop a local market

Disadvantage: need of large no of managers

3) Product Departmentalization
 When an organization uses its different products as the basis
for divisions, it is using a product division structure.

 This structure is useful when firm’s goods and services are

specialized and require specific expertise for their
manufacture and sale.

President

V. President

Product Product Product Product

A B c D
 4) Customer Departmentalization
 It refers to grouping activities so that they reflect a primary interest in
customers

 Businesses and managers frequently arrange activities on the basis of

type of customers.

 it is address special and wide need of customer

 For example a bank my divide its loan section into a number of heads and
assign them to various departments.
- loan to businessmen
- loan to farmers
-loan to professionals, and so on.

5) Project Departmentalization
 It is a temporary organizational structure formed for specific projects for
a specific period of time and is dismantled, once the goal is achieved.
 Power and Authority
 Power is the potential ability to affect the behavior
of others while authority is power created and
granted by the organization

 legitimate power is authority

 Power is the ability to exert influence on other

people; power can be present in any relationship

 managers are not the only people who exert

influences, employees in the organization also have
such kind of influence
Authority and its Distribution
What is Authority
 It is the right to command resources of organizations or
the right to give orders within a given hierarchy to exact
obedience.

A manager derives authority by virtue of his position as

manager.

 The manager acquires the right to decide, to act and to

command the persons working under him.

 All organizational members have a responsibility to

carry out the best of their abilities, the duties that their
superiors assign to them and the functions of their
 Authority can be viewed from two perspectives.
Classical View of Authority (top-down theory of authority)
 Authority originates from a very high level then it is
lawfully passed down from level to level.
 At the top of the hierarchy may be God or the state.

Acceptance View of Authority (bottom-up theory of

authority)
 Basis of authority is the influenced rather than the
influencer.
 existence of authority is felt only in its acceptance by the
influenced and not otherwise.
 This view says authority of management is only to the
extent of which subordinates are willing to accept.
 Types of Authority
Line Authority
 it defines the relationship between superior and
subordinate.

 It is direct supervisory relationship.

 itis represented by the standard chain of command

or it flows downward in an organization directly
from superior to subordinates
Staff Authority:
 It is advisory in nature.

 Managers whose role is to provide advice or

technical assistance are granted advisory
authority.

 Staff authority is not providing any basis for

direct control over the subordinates or activities
of other departments with whom they consult .
Line authority
Functional Authority

 It is the right to control activities of other departments

as they relate to specific staff responsibilities

 It is authority delegated to an individual or department

over specific activities undertaken by personnel in other
departments

 Staff departments may be given functional authority to

control their systems procedures in other departments
Ex: Audit department or personnel department
The Sources of Power

 Reward Power: - is based on one person (the

influencer) having the ability to reward another
person for carrying out orders or meeting
performance requirements.
 promotion, salary increase or interesting job
assignments

 Coercive power: - based on the influencer ability

to punish another individual for not meeting
requirements.

Legitimate power: - (formal authority) exists when
an employee or influenced acknowledges that the
influencer is entitled to exert influence within
certain bounds
 legitimate power is the power which is derived
from a person’s official position in an organization.
Expert Power : is based on the perception or belief
that the influencer has some relevant expertise or
special knowledge that the person being influenced
doesn't

Referent Power: - is based on the identification of an

individual with who is held in high esteem, admired,
and often imitated by the subordinates.
 Delegation of Authority
 Delegation is the assignment of authority and responsibility
to others in order to carry out certain assignments

 It is the process of pushing down of authority from superior

to subordinates who possess specialized skill to perform such
job

 Delegation of authority is a pre requisite for the existence

and efficiently functioning of the organization.

 Delegation is a two-sided affair by which the superior must

be willing to sacrifice a portion of his authority and the
subordinate must be willing to shoulder the additional
responsibility.
 Advantages of Delegation

It results in quick decisions.

Delegation gives executives more time for strategic

planning and policy making

Delegation is a Motivational Factor

Disadvantages of Delegation
Without proper communication and feedback channel,
the subordinate may make decisions and take actions
without the knowledge of the superior.
 The Process of Delegation
 Assignment of tasks to the Subordinates

 Delegation of authority

 Acceptance of responsibility

it is the obligation to carry out one’s assigned duties

to the best of one’s ability.

 Creation of Obligation or Accountability

Accountability is being answerable to someone for
his actions
Guidelines for Effective Delegation
 The management must be willing to give employees
freedom to accomplish delegated tasks

 Open Communication between managers and

employees

 Proper Selection and training

 Motivate Subordinates

 Establish adequate controls (feedback system)

Decentralization vs. Centralization

Centralization:- is the situation in which authority for

most decisions is concentrated at the top of the
managerial hierarchy.

Decentralization:- requires the authority to be dispersed

by extension and delegation through out all levels of
management. (Dispersion of authority)
 Advantages of Centralization
 Facilitates the adoption and enforcement of uniform policies
and co-ordination of activities, since all decisions are made
at one central point

 Quality of the decisions is expected to be higher

 It results in optimal utilization of human and physical

resources.

 It can be highly motivating and moral-boosting for

executive

 Promotes greater standardization of specialization

Disadvantages of Centralization

 Concentration of power among few people

 It hampers/hinders the development of lower levels

 Complicated communication as decisions affecting lower

levels are made at the top.

 Superiors are over burdened with multiplicity of tasks

 Time is wasted.
Chapter Five
Staffing has three main elements
 Acquisition (Procurement)
 Retention (Maintenance) and
 Separation (Exit)

Acquisition (Procurement)

 Procurement is concerned with determining and obtaining

the proper quality and quantity of the workforce

 it contains elements of human resource planning,

recruitment, selection and induction (orientation)
Human resource planning
elements of Acquisition (Procurement)

 Human resource planning translates the overall

organizational objectives, plans and programs to
achieve specific performance in to workforce needs

 It is the process of determining and preserving a firm’s

human resource recruitment of organization at its
different levels for achieving its goals.

 It is an essential part of corporate planning

Steps in human resource planning includes

1) Analyzing organizational objectives and plan.

 All organization plans entail need for human resource

2) Determining over all human resource needs.

 Study the demand and supply of the job( internal and
external)

3) Taking inventory of existing personnel.

 This is to identify to what extent the organization can
meet its personnel need from inside.
4) Determining net new personnel requirements.

The difference b/n overall personnel requirement with

personnel inventory is net personnel requirement

5) Developing action plans.

Surplus exists: internal supply greater than firms demand
( work force factors are:- Voluntary departure, leave of absence,
layoffs early retirement)
Shortage of HR: External source will be used
 Once the supply and demand of human resource are
estimated, adjustments may be needed.
 Generally part of action plans includes: recruitment,
retention, promotion, training, transfer, downsizing and so
on.
Recruitment

 elements of Acquisition (Procurement)

 It is the process of searching for prospective employees and stimulating

them to apply for jobs in the organization.

1. Internal requirement: - An effort to fill open positions with people

already employed in the firm.

These includes transfer, promotion, and recall from layoff.

Transfer: the movement of employee from one job to another on the same
occupational level, salary and other benefit
Promotion : an advancement of an employee to a better job, higher
responsibility, more prestige or status.
Advantages: familiar employees, less costly, less orientation
Disadvantages: narrows down selection options, organizational
breeding

2. External recruitment: an effort to fill open positions

from sources outside the firm.

 It is searching for employees in the labor market,

educational institutions, employment agencies and labor
unions.

Advantages: wide option for selection, new outlook comes

in

Disadvantages: unfamiliar employees, more cost,

orientation needed
Selection

 elements of Acquisition (Procurement)

 It is the process of evaluating and deciding the best and
qualified candidates out of the pool of applicants received
in the recruitment process for job opening based on their
abilities, skill and performance.

 It is also a process in which candidates for job pass through

succession of hurdles to ascertain whether the candidates
posses the appropriate qualifications for specific job.

 It needs care and allows no discretion when performed.

The selection process may include:
 Preliminary screening

 Application form filling

 Reference letters

 Employment interview

 Employment tests

 Physical examination
Induction (Orientation)

 elements of Acquisition (Procurement)

 It Is given after the employee receive placement letter

 it is the process where the selected candidates are

familiarized with the organization and it may be done
through oral communication, written Medias like manuals,
guidelines and others.

 It is designing to provide new employees with information

needed to function comfortably and effectively in the
organization.
Induction conveys three types of
information.

◦ General information about the daily work

i.e. routine things.

◦ A review of organizational history, purpose,

operations and products and services.

◦ A detailed presentation of the

organizational policies, work rules and
employee benefits.
Retention (Maintenance)

 Is the second element of Staffing

 It is the process through which the selected employees are

maintained or utilized and at the same time the process of
increasing the qualification of employees.

It includes:
1. Training and development

Training: is any process by which the aptitudes, skills and abilities of

employees to perform specific jobs are increased or it is the act of increasing
the knowledge and skills of employees for doing a particular job.
 Training programs are directed towards maintaining and improving current
job performance.

 Training is mainly given to non-managers to improve their technical skills.

 Objectives of Training
1.To provide the knowledge, skills and attitudes for individuals to
undertake their current job more effectively.

2. To help employees to become capable of assuming other

responsibilities

3. To help employees to adopt to changing circumstances E.g: new

technologies

4. To reduce waste and to increase productivity

5. To minimize input use and maximize output

6. To relieve superiors from close supervision and get time for other
duties
 Training methods(reading assignment)
Development: it is the systematic process of education,
training and growing by which a person learns and applies
information, knowledge, skills, attitudes and perceptions as
to move a greater authority and responsibility. .

 It is training offered at present for up grading the future

performance of individuals at higher level positions.

 Development programs seek to develop skills for future jobs.

 Development includes training and it focuses at individual

growth through increasing the general knowledge and
understanding, not restricted to a particular job. In other
words, training complements development.
Compensation

 Is element of retention (Maintenance)

 Compensation is adequate and equitable remuneration of personnel for their

contributions to the achievement of organizational objectives.

 It is the reward that individuals receive in return for their labor from
organization

 It refers to all forms of financial returns and tangible services and benefits
employee receives as a part of an employment relationship

 It is the major means of attracting and retaining employees.

 For an employee, compensation is a means by which they support their needs

and families

 For the employer, compensation represents a lion share cost.

Different factors affect compensation decisions.
Internal factors
◦ The size and age of organizations
◦ labor budget

External factors

◦ Government wage controls and guidelines

◦ labor unions
◦ Economic conditions of the industry
Performance appraisal (PA)

 Is element of retention (Maintenance)

 PA is defined as a human resource activity that is used to

determine the extent to which an employee is performing
the job effectively.

 It is a formal structured system designed to measure the

actual job performance of an employee with designed
performance standards.

 It is the evaluation of an employee’s job performance by

his superiors.
Objectives of PA
 Toprovide information towards strengths and weaknesses
of employees

 To bring better allocation of resources

 To maintain equitable and competitive pay structure

 To supply information on training needs

 To prepare rewards
Discipline
 Is element of retention (Maintenance)

 It is generally administered when an employee violates company

policy or falls short of work expectations and managers must act to
remedy the situation.

 Discipline usually progresses through a series of steps- warning,

suspension, disciplinary transfer, demotion, and discharge- until the
problem is solved or eliminated.

 Discipline refers to the taking of disciplinary actions for the

application of penalties to inhibit undesired behavior.

 The main objective of disciplinary actions is to maintain desired

behavior within the organization through exemplary measures
Transfer, Promotion and Demotion

 Is element of retention (Maintenance)

 Transfer is the movement of an employee from one job to another

on the same occupational level and at the same level of wages
(salary) and other benefits. Transfer can be temporary or permanent.

 Promotion is the advancement of employee to a better job i.e.

better in terms of greater responsibility, more prestige or status,
greater skills and increased rate of pay.
 Merit and seniority are important factors in promotions.

 Demotion is the movement of an employee from higher

occupational level to a lower level(less pay and less responsibility,
status, prestige etc). It may be the result of disciplinary action.
Exit (separation)

 Is the third element of Staffing

 It refers to the termination of the relationship between the worker and

the organization due to one of the following reasons.

 Resignation refers to the termination at the instance of the

employee’s interest. An employee resigns when he or she secures a
better job elsewhere or the employee may quit for personal reasons or
when an employee suffers from ill health or some other reason.

 Dismissal: - When the employer initiates the termination of

employment. Some of the reasons, which lead to the dismissal of
employees, include excessive absenteeism, serious misconduct, theft
of organization’s property etc.

 Retirement: - The employee may also be separated from the

organization due to retirement- due to age and disability.
 CHAPTER SIX
LEADING/DIRECTING FUNCTION
Definition
 Different writers define leadership in different ways. Some are:
o Leading/directing is the art or process of influencing people so that they will strive
willingly towards achievement of organizational goals.

o It is the process of influencing a group or individual to set a goal or achieve a

goal.
o It is a process involving the leader, the led (group or individual), and a practical
goal or a situation. It is behavioral in nature and involves personal interaction.

o It is the ability to secure desirable actions from a group of followers voluntarily

without the use of coercion or force.

o To direct the behavior of individuals a manager requires three basic skills:

 Leadership Skills
 Motivational skills
 Communication skills
 Leadership
What is Leadership?
 It is the function of management involving the process of
influencing people so that they will contribute to organizational
and group goals

 It is getting people to do their work willingly, even when they

don’t really want to do it at all

 It is the activity of influencing people to strive willingly for

mutual objectives

 It is the art or process of influencing people so that they strive

willingly towards the accomplishment of group goals

 Leadership is the ability of managers to influence subordinates

to work with confidence and devotion
As one can see from the above definitions, leadership has three ingredients:
leader, led (follower) and organizational environment.

Leader– is the one with the ability/capacity to understand others’

motivation and to inspire them with the ability to create a climate for
motivation.

Follower (led) – the individuals being led or influenced.

Environment – the working environment in which the leader interacts with

the followers.

The need for leadership- organizations will never be successful unless

they have effective and efficient leaders.

Whatever amount of capital invested and technology an organization has,

without effective leadership the organization will not be successful.
The importance of the leading/directing function in the organization
can be presented as follows:

•Directing initiates actions by giving directives and guidance to

employees
.
•It integrates employees’ effort by coordinating actions of the members
and leading toward the objectives.

•It attempts to get the maximum output of individuals by providing ways

to fully utilize the potentials and capabilities of employees.

•It facilitates changes by incorporating (adopting) environmental and

internal changes into the organization.

•It provides stability by balancing the different parts of the organization

so that it exists for a long period and its parts work in a harmonious
ways.
Leadership theories: Trait theory, Behavioral theory and
Contingency/situational theory

Trait theory

 Trait are distinctive/personal qualities or characteristics of

an individual, such as physical (height, weight, appearance,
health, etc), personal (self-confidence, dominance,
adaptable, sociability, etc) and mental (intelligence,
creativity, knowledge, technical competence etc).

 Its basic assumption is that there exists some basic trait or set of
traits that differentiates leaders from non- leaders

 The theory believes in certain quality of leadership

 It believes that people are born as leaders or not made

Traits related to a leader
 Intelligence

 social maturity and breadth

Leaders are believed to emotionally mature, capable of handling
extreme situation

 Inner motivation and achievement drives

 Human relation attitude

They try to develop social understanding

 Honest, inspiring, forward looking, competent

 limitation of trait theory

◦ Leaders do not possess the same personality in every

situation.

◦ Although these characteristics are specified, they do not

tell how much of each trait a leader should have.

◦ Not all leaders possess the traits, and many non-leaders

may possess most or all of the traits.

◦ The traits that are set not even convincing

Behavioral theory
 In this approach the concern moved to what a person can do
rather than to what sort of person he or she is

 It doesn’t answer “who are effective leaders” but answers

“what do effective leaders do that ineffective ones do not
do”.

 effective leaders democratic rather than autocratic,

permissive rather than directive, people oriented rather than
task oriented, etc.
Contingency/situational theory

 The contingency approach reveals there is no one best way to lead.

 Effective leadership depends upon the response to

environmental factors accurately.

 It focus more on the behavior the leader should adopt in a given

situation

 leaders who are very effective at one place and time may become
unsuccessful in other place

 According to this theory, there are situational factors or dimensions which

are finite in number and vary according to the leader’s personality;
requirement of the task, the expectation, needs, attitudes of followers
and the environment
 Leadership style
 it implies the way in which the leader exercise
leadership

 it is the way in which the function of leadership

is carried out

 It is the way how leaders behave towards their

subordinates in the accomplishment of the work
1. Autocratic( Authoritarian) leadership style
 Believe that leadership is a right

 Task are assigned, facilities provided and

direction given without consultation with
employee carrying out work

 The authoritarian leader believe that because of

his position he can decide best what should be
done

 It is one way
Features of autocratic leadership style
 Gives definite instructions

 Demand compliance( expect the workers to follow their

order)

 Task oriented

 Exercise close supervision and rigid control

 Doesn’t permit participation in decision making

 Doesn't welcome suggestion from subordinates

 Use force
2. Democratic or participatory leadership style
 It is characterized by participation of the group and
utilization of opinions

 it emphasis in group interest and strives to satisfy

them

Features of democratic leadership style

 permits subordinates to participate in decision making

 Permit subordinates to take initiatives and exercise

judgment

 Emphasis group effort

 Broad supervision

 objectively communicates criticisms

 employee centered

 High moral and positive attitude

 two – way communications

 promote team sprit
3. Laissez-fair leadership style
leaders generally give the group complete freedom,
provide the necessary materials, participate only to answer
questions

The leader assume the role of just another member of the

group

The leader is just a figurehead and does not give any

direction

The leader depends completely on his subordinates

 His main role is aiding/facilitating the operations of

followers.
Limitations
•Group may drift aimlessly in the absence of direction from
leader.

•It may make things out of control.

Advantages
•It gives quite freedom for subordinates.

•It gives much responsibility and self guidance for

subordinates.

•It permits self-starters to do things as they see fit without

leader.
.
4. Situational leadership style
 It is now recognized that effectiveness of one or
the other leadership style depends on the situation.

 Effectiveness of a leader depend on the situation

 The leadership style a manager chooses may

depend upon the following situations.

 Forces in the manager( his values, his confidence)

 Forces in the subordinates( expectation)
 Forces in the situation
Motivation
 motivation represents “those psychological processes that cause stimulation.

 Motivation is an internal force that energizes behavior.

 it is the act of stimulating someone or oneself to take a desired course of

action

 Motivation means stimulating people through different ways

 The study of motivation helps managers to understand what drives people to

initiate an action, what influence their choice of action and what are persist
action over time

 Motivation is done in order to move the organization to reach its goal

 motivation implies a drive toward an outcome

 A motivator is something that influences an individual’s behavior.

 Reward is a means of motivating others or satisfying the
needs of others

 The ultimate objective (motive) of any individual is a

reward.

 Rewards can be intrinsic or extrinsic

 Intrinsic reward: - is the satisfaction that a person gets

as a result of success.

 Extrinsic reward: - is the reward given by another

(outsider) for the success or good performance
Process of motivation

 Analysis of the situation requiring motivation

 Preparing, selecting and applying a set of motivational

tools/the motivator

 Follow up ( evaluating feedback)

Theories of Motivation
1.The Carrot and the Stick Approach
 relates to the use of rewards and penalties in order to
induce desired behavior
 It comes from the old story that to make a donkey move
one must put a carrot in front of it and if it does not move
beat it with stick from behind.
 Carrot represents rewards (money, bonus, salary increase,
employment, promotion etc.) while stick implies penalty,
punishment, fear of loss of job, demotion, etc.
 Despite many new theories of motivation, reward and
punishment are still considered strong motivators
 Maslow’s hierarchy of needs theory
 Maslow saw human needs in the form of hierarchy,
ascending from the lowest to the highest, and he
concluded that when one set of needs is satisfied, this kind
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Physiological needs

These are the basic needs for sustaining human life itself, such as food, water,
air, shelter, sleep, etc.

Maslow took the position that until these needs are satisfied to the degree
necessary to maintain life, other needs will not motivate people.

Safety/security needs

Safety needs include freedom from fear and anxiety, job security,
desires for retirement and insurance programs and so on

Social needs

It focuses on relationships with others in order to fulfill

belongingness needs, which involve the desire to affiliate with and be
accepted by others, i.e. the need for friendship, companionship.
Esteem needs

Esteem needs include the desire for both self-esteem (self respect) and public
esteem, prestige, status, appreciation and recognition by others.

These needs are:- a need for competency, confidence and independence.

Self actualization

These are needs for personal growth, self-fulfillment, and the

realization of person’s full potential.

For athlete, it may be breaking a world’s record; and for the research
scientist, it may be finding a cure for HIV/AIDS.
Maslow’s theory is based on the following assumptions;
 Only unsatisfied need can influence behavior; a satisfied
need is not a motivator

 A personsneeds are arranged in a priority order of

importance

 A person will at least minimally satisfy each level of need

before feeling the need at the next level

 Ifneed satisfaction is not maintained at any level, the

unsatisfied need will become a priority once again
Mc Gregory’s theory of “x” and “y”
 Theory X: - The assumption that employees dislike work,
are lazy, dislike responsibility and must be forced to perform
a task.

(Must be motivated by force or punishment, money or praise).

 Theory Y: - the assumption that employees like work, are

creative, seek responsibility and can exercise self direction.
They are inherently motivated to work and do a good job.

 Theory ‘Y’ assumes that work is natural and human beings

by their nature without any force tend to accept the work.
But theory ‘X’ assumes human beings do not like work and
to make them work a leader must use some force
Hertzberg’s Motivation-Maintenance Theory (two factor
theory)
 A theory of motivation which is also called as the two-
factor theory. He divided the factors of the work
environment in to two:

 Hygiene or Maintenance Factors

 These factors avoid dissatisfaction if they exist sufficiently.
If they are absent they create dissatisfaction.

 This indicates that the existence of hygiene factors don’t

bring satisfaction, but prevent dissatisfaction and maintain
the statues.

 company policies, quality of supervision, salary,

interpersonal relationship, job security, working conditions,
Motivating or Satisfier Factors:
 These are factors that bring satisfaction if they exist. If they
are absent, there will be no satisfaction as well as no
dissatisfaction.

 These include factors like achievement, bonus, recognition,

advancement, creative etc

Hygiene factors (dissatisfiers) Motivation factors (satisfiers)

Exist: - no dissatisfaction - satisfaction
Absent: - dissatisfaction - no satisfaction (no
dissatisfaction)–neutral
 The roles of managers in this case are;
 Providing hygiene factors to prevent dissatisfaction
 Providing motivation factors to bring satisfaction
Vroom’s Expectancy Model
 Motivation is strongly determined by an individual’s
perception/ expectation that a certain type of behavior will
lead to a certain type of outcome and his personal
preference for that type of outcome.

Communication

 It is the transfers of information from the sender to

the receiver, with the information being understood
by the receiver.

 It is the transfer of information and understanding

from one person to another person
 Interpersonal communication is fundamental to all
managerial activities.

 Communication is more important for leading function of

management
The communication process
 Sender: sender/source of the message is the one who has
certain ideas, message, information, feelings, attitudes,
etc. to be shared with the receiver.

 The sender is the party who initiates the communication

process
Encoding:
 After being stimulated and motivated to communicate, the
sender must decide how best to convey a message

 Encoding is the process of putting a message into a form

which is to be transferred

 The objective of encoding is to select the best medium

through which to communicate the planned message.

 The media include speaking, writing, signalizing,

gesturing, etc.
Channel or medium of communication determined by:
 The need for an immediate feedback

 Degree of importance of the message

 Need for a permanent record

 Need for formality

 Required degree of accuracy

 Cost of medium etc…

Receiver: is the person to whom the message is sent.
It is simply includes the physical reception of the
message, hearing, seeing, sensing etc

Decoding: It refers to understanding the message.

 This is a process by which the receiver assigns

meaning to the symbols transmitted by the sender.

 It’s a process of transmitting a message into an idea.

 This is affected by many factors like perception of the

receiver, past experience by the receiver of similar
communication, interpretation of the body language etc
Feedback: it is the reaction that the receiver has
to a message
 It is the determination whether the message was
clearly understood and the required action
undertaken

Noise: it refers to anything that interferes with the

communication process and distorts and blocks
the message

 It can be external such as phone ringing, talk of

people etc. or internal such as receiver’s mental
and physical conditions.
Types of communication
1. Based on the media used
a.Verbal communication (oral vs. written)
Oral communication: it is the face to face communication
between individuals.

 It can be face-to-face meeting of people, speech,

interview, conferences, seminars and communication over
telephone

Advantage: - it is possible to elaborate and to get feedback

soon, it is direct, simple and time saving.
 It conveys personal relationship, friendliness and develops
a sense of belongingness.
Disadvantages

 There is no formal record of the communication held.

 There is a possibility of distortion of message if the

oral message is passed on a long hierarchical chain of
command.

 It may carry less weight and being informal.

 It can also be misunderstood and more or less

different meanings might be conveyed by the manner
of speaking.
Written communication: it occurs through a variety of
means such as business letters, report, memos, instructions,
rules and regulations, policy manuals, information bulletins
etc and any printed material of any sort.

 It ensures that everyone concerned has the same

information and it provides a permanent record for future
references.
Advantages:
 It makes possible to get precisely the same information to
many individuals

 provides references for further times.

 It is the easy method of providing detailed information.

 It is reliable for transmitting lengthy statistical data.

Disadvantages
It does not provide opportunity for immediate
response.

Itfails to convey personal feelings & hence does

not create cooperative spirit.

 It leads to excessive formality.

b. Non verbal communication (symbols, gestures,
postures, smell &touch, etc)

We communicate in many different ways what we

say can be reinforced (or contradiction) by non-
verbal communication such as facial expression
and body gestures.

Its main purpose may be to support the verbal one

2. Based on the organizational r/ships (channels)
a. Formal communication
 Formal or official channel of communication is
established by the management and formally shown in
the chart of organizations.

 Formal channels are the communication chains and

networks that determine the direction and flow of
official message among the members of the
organization.

 The directive information flows down ward and

information about performance passes from bottom to
upward.
Upward communication
 This supports communication of information for
decision making.

 Subordinates pass information about progress and

problems to superiors so that superiors can decide what
to do.

Down ward communication:

 when vertical communication of flows from

higher level to one or more lower levels in the
organizations.
.
 Thissupports information often related to
directing and controlling performance.

 Superiors also provide information about

rules, policies, benefits and other matters
Horizontal or lateral communication:
 it is lateral or diagonal message exchange either
within the same work unit or departments (lateral)

 It is communication with persons of equal status

working in other departments of the organization .

Diagonal communication:
 It refers to contacts with persons of higher or lower status
in other departments in the organization.
Advantages:
 Formal channels follow unity of command

 Effective control can be exercised on subordinates.

Disadvantages:

 It is a slow process and takes a lot of time to

communicate in a formal way.
b. Informal communication (Grapevine)

 It is a communication that takes place without regard to

hierarchical or task requirement.

 Informal communication grows out of the social

interactions among people working together.

 The informal communication channel consisting of the

informal communication chains and networks within the
work environment is known as grapevine
 It can be considered as a beneficial safety value capable of
carrying important information quickly and accurately.

 It can also be considered as destructive, to spread rumors,

destroy morale, misinform and create interpersonal
problems.

Barriers to effective communication

 External factor
(noise, poor timing, incomplete, inadequate or unclear
information, poor choice of channels of transmission of
information )

 Perception : a person view of reality.

 Language differences
Using Jargons/ technical words related to specific
fields

Inconsistent
verbal and Non-verbal
communication

Information overload

Feedback barriers

Cultural barriers
Guidelines for effective communication

 The ideas and messages should be clear, brief and precise.

 Sense of timing

 Integrity

(The communication must pass through the proper channels

to reach the intended receiver)

 Consult
with others who are involved in planning the
communication process

 Follow up and feed back

 Chapter Seven
The Controlling Function

 Controlling is defined as the process of measuring the actual performance to know

whether it is consistent with the plan/standard or not and taking corrective action if
there is a deviation.

 It is the process of regulating organizational activities

 It is checking current performance against predetermined standards contained in the

plans.

The Control Process

 Determine Areas to control

 Establishing standards

 Measure current performance

 Compare performance against Standards

 Take Corrective action(on time)

Types of Controls

 Prevention Controls (Preliminary screening controls)

 takes place before the operation begins. It focuses on prevention in order to later
serious difficulties in the production process

( capital budgeting techniques, locks on windows and doors, training safety equipment,
employee selection procedures

 Steering Controls (concurrent controls/ Yes-No/ Checking Control)

 It involves the regulation of ongoing activities that are part of the transformational process
to ensure that they conform to organizational standards.
 It is designed to detects and anticipate deviations from standards at various points
throughout the process

 Post action Control (feedback controls)

 controls and focus on the end results of the process.
 They are called feedback controls because the information they provide is feedback
in to the process or to the controller who then must take any necessary adjustment.
Characteristics of Effective Controls
Effective controls have the following characteristics
 Focus on critical points

(the operations that directly affect the survival of an

organization and the success of its most essential
activities.)

 Integration
(all control systems should work in harmony with one
another)

 Acceptability
(controlling system should be accepted by all members of
the organization.)
 Economic feasibility
( control costs must be measured against the benefits they
provided)
 Timeliness
(measurements provided through controls reach the proper
decision makers at the time they are needed)

 Accuracy
(information is useful if it’s accurate)

 Comprehensibility
(a control is comprehensive when people understand
everything they need in relation to that control)
The End