Module – 2

ORGANIZING AND STAFFING

An organizing is a social unit or human grouping deliberately structured for the purpose of attaining
specific goals.
Ex: Corporations, Armies, Schools, Hospitals, Churches, Prisons etc.

PURPOSE OF ORGANIZATION:
It is important to study organization for the following reasons.
1. A man is born in an organization (hospitals or clinics), educated in organizations (schools,
colleges and universities) and he works in organizations (offices or factories).
2. Organizations satisfy and frustrate different kinds of human needs. As pay masters they satisfy the
physiological needs of the employees. They satisfy various kinds of security, social and egoistic
needs of their people. On the other they cause people to feel robbed of their autonomy who are
engaged in monotonous jobs and who are unable to climb the promotional ladder leading to
frustration.
3. Knowledge of organizations helps manager to work effectively. They learn various things, such
as how to pro-act to environmental needs, how to motivate subordinates, how to manage conflict,
how to introduce change and so on.
4. To behavioral scientists, organizations serve as a natural lab. They provide an ideal setting for
the study of human behaviors. Research into and study of organizations leads to many important
discoveries vital for the continued wellbeing of our-society.

Q No: 1 PROCESS OF ORGANIZATION:

Organization is a process of defining and grouping the activities of enterprise and establishing the
authority relationships among them. This would be both differentiating and integrating. Differentiation and
integration is described in the six steps below:
1. Consideration of objectives: This is the first step in the process of organization because objectives
determine the various activities which need to be performed and the type of organization which
needs to be built for this purpose.
2. Grouping of activities into departments: The next step is to identify the activities necessary to
achieve them and to group the closely related and similar activities into divisions and
departments. This is called departmentalization.
3. Deciding which departments will be key departments: Key departments are those which are
rendering key activities, i.e. activities essential for the fulfilment of goals. Such key departments
demand key attention. Other departments exit merely to serve them. Key departments are placed
directly under higher management.
Which department needs to be emphasized how much will depend, of course, on the company's
objectives and the way it seeks to be distinctive.
For example, a company which believes that advertising is a primary key to success will set up a
separate advertising department that reports directly to the president. But another company which
considers it much less important way only create a separate section for it under its sales department.
4. Determining levels at which various types of decisions are to be made: Each firm must decide
for itself as to how much decentralization of authority and responsibility itwants to have.
Extreme decentralization may lead to loss of control and effective co- ordination as a result of
which the firm as a whole may fail to achieve its overall objectives.
 Extreme centralization, on the other hand, may lead to wrong decisions at wrong times and
complete breakdown of the morale employees.
5. Determining the span of management: The next step would be to design a structure to determine
the number of sub-ordinates who should report directly to each executive. The narrower the span,
taller the structure with several levels of management. This complicates communication and
increases payroll. Therefore flat structure is desirable.
6. Setting up a co-ordination mechanism: As individuals and departments carry out their specialized
activities, the overall goals of the organization may become submerged or conflicts among
organization member ay develop.
Coordinating mechanisms enable the members of the organization to keep sight of the organizations
goals and reduce inefficiency and conflicts.

Q. No: 2 PRINCIPLES OF ORGANIZING:

If there is to be a systematic approach to the formulation of organization structure, theremight to be a
body of accepted principles. The principles as follows:

1. Objectives 9. Authority
2. Specialization 10. Efficiency
3. Span of control 11. Simplicity
4. Exception 12. Flexibility
5. Scalar principle 13. Balance
6. Unity of command 14. Unity of direction
7. Delegation 15. Personal ability
8. Responsibility

1. Objectives: They should be firstly, clearly defined as they influence the organizationstructure.
2. Specialization: Activities of the enterprise should be divided and assigned to personsaccording to
their specialization.
3. Span of control: The number of persons to be supervised should be as far as possible, minimum.
Reasonable number of sub-ordinates is only six.
4. Exception: Exceptionally complex problems are to be referred to executives at higher levels as they
have limited time. Routine matters are to be deal with by sub-ordinates by lower levels. This enables
executives to denote their time to more important and crucial issues.
5. Scalar principle: Also called chain of command. Line of authority from chief executive at the top
to the first-line supervisor must be clearly defined.
6. Unity of command: Each subordinate to have only one superior whom he has to obey. Dual sub-
ordination to be avoided since it causes uneasiness, disorder, indiscipline, and undermining of
authority.
7. Delegation: Proper authority should be delegated at lower levels of organization also. The authority
delegated should be equal to responsibility i.e. each manager should have enough authority to
accomplish the task assigned to him.
8. Responsibility: The superior should be held responsible for the acts of his sub- ordinates. No
superior should be allowed to avoid responsibility by delegating authorityto his sub-ordinates.
9. Authority: Authority is the tool by which a manager is able to accomplish the desired objective.
 Authority to be clearly defined and equated to responsibility.
10. Efficiency: The organization structure should enable the enterprise to function efficiently and
accomplish its objectives with the lowest possible cost.
11. Simplicity: The organization structure should as simple as possible and the organization levels,
should as far as be minimum. A large number of levels of organization levels means difficulty of
effective communication and co-ordination.
12. Flexibility: Organization to be flexible. It should be adaptable to changing circumstances and
permit expansion and replacement without disruption of the basic design.
13. Balance: There should be a reasonable balance in the size of various departments, between
centralization and decentralization, between the principles of span of control and the short chain of
command, and among all types of factors such as human, technical and financial.
14. Unity of direction: Unity of direction facilitates unification and co-ordination of activities at
various levels.
15. Personal ability: As people constitute an organization there is need for proper selection, placement
and training of staff. The organization structure must ensure optimum use of human resources and
encourage management development programs.

[Link]. 3 Span of Management:

 The span of control or management indicates the number of subordinates who can be successfully
directed by a supervisor. It is often referred to as span of management, span of supervision, span of
authority.
 Management experts suggest that the ideal number of subordinates is four in case of higher level
management and eight to twelve in case of lower level management.

Span of management is important because of two reasons.

1) First, the span of management affects the efficient utilization of managers and the effective
performance of the subordinates.
If the span is too wide, managers are over burdened and subordinates receive little guidance.
If the span of management is too narrow, the managers are underutilized and subordinates are over
controlled.
2) The second reason is there is relationship between span of management and organization structure.
A narrow span results in tall organization with many levels of supervision between top management
and lowest organizational levels which creates more communication and cost problems.
On the other hand, a wide span for the same number of employees results in flat organization with
fewer management levels between top and bottom.
 Fig 1. Narrow and wide span of management.
1. Organization with narrow span:

fig.a. narrow span.

Advantages:
• Close supervision
• Close control
• Fast communication between subordinates and superiors

Disadvantages:
• Superiors tend to get too involved in subordinates work
• Many levels of management
• High cost due to many levels of management
• Excessive distance between lower level and top level
• Complicates planning and control process

2. Organisation with wide span. Advantages:

1. There are less layers of management to pass a message through, so the message reaches more
employees faster.
 2. It requires less money to run a wider span because it doesn’t need as many managers.

Disadvantages:
1. The larger number of employees under one supervisor the more difficult it is to controlactivities.
2. The more time the manager spends in one to one contact rather than being proactive tohandle future
situations.
3. Managers may make snap decisions as they are looking after too many employees.
4. Manager’s time will be at a premium.
5. Managers will have less time for planning.
6. Subordinates may make decisions they are not trained to make. The number of
workers under one supervisor is at least 5.

fig. b. wide span.

[Link]. 4 : Factors Affecting the Span of Management:

• Ability of the manager: Some managers are more capable than others and hence can handle a large
number of subordinates.
• Ability of the employees: If employees are more competent, less attention from the managers is
required and a larger span of management can be used.
• Type of work: If employees are doing similar jobs, the span of management can be large. If their
jobs are quite different, a small span may be necessary.
• Geographic location: If all subordinates are located at the same place span of management can be
large. If subordinates are geographically distributed, a lower span is essential.
• Well-defined authority and responsibility: Clear-cut authority and responsibility helps Manager
to supervise large number of subordinates.
• Level of management: The span of management is narrow at higher level of management, and
span can be wider at lower levels.
• Economic considerations: Narrow the span, taller is the structure is more is the cost. On the other
hand, wider span reduces the number of levels and cost.
Q. No: 5 Departmenatalisation:
Horizontal differentiation of task or activities into discrete segments is calleddepartmenatalisation.
• Departmenatalisation is based on the following factors
1) Departmenatalisation based on products.
 2) Departmenatalisation based on functions.
3) Departmenatalisation based on time.
4) Departmenatalisation based on territory & geography.
5) Departmenatalisation based on simple numbers.
1. Departmenatalisation based on products:
• Suitable for large organization but manufactures a vast variety of products.
• Each department controlled by a manager. Each subgroup under department will have its own
facilities required for manufacture, purchase, marketing & accounting.
• Example: Godrej manufactures soaps, cosmetics, refrigerator machines.
Advantages:
• It focuses individual attention on each product line.
• It leads to specialization of physical facilities on the basis of product which results ineconomy.
Disadvantages:
• More managers are required.
• Separate work force is required in sales, marketing and finance resulting in extraexpenditure.
2. Departmenatalisation based on functions:
• Functions are Marketing, Engineering, Production, Finance, Personnel, and Purchasetc.
Advantages:
• Logical reflection of functions.
• Maintains power and prestige of major functions.
• Facilitates efficient utilization of people because it follows principle of occupational specifications.
• Simplifies training.
• Means of right control at top are provided.
Disadvantages:
• Deemphasizes overall company objectives.
• Leads to over specialization of people.
• Reduces coordination between functions.
• Slow adoption to change in environment.
• Limits development of general managers.
3. Departmenatalisation based on time:
• Oldest form of departmentalization used for lower levels of organizations. Use of shifts is common in
some organization due to economic and technological reasons.
• For service organizations like hospitals, fire departments, security, steel mills, chemical plants,
round the clock work is essential. All these call for 3 shift working of organization.
Advantages:
1. Service rendered beyond 8 hours shift.
 2. Facilitates use of processes that cannot be stopped or interrupted.
3. Expensive capital equipment can be properly utilized.
4. Provides part-time jobs for people who are otherwise busy during the day.
5. Higher and continuous production per day.
Disadvantages:
1. Lack good and efficient supervision during night shifts.
2. Inconvenient for people to work in night shifts and more difficult when shift changes from day to
night.
3. Lack of efficient coordination and communication from people of one shift to next shift.
4. Loss of product or service increase owing to higher payment during night shift.
4. Departmenatalisation based on territory and geography:
• The activities of an enterprise are divided into territories like western region, northern
region, eastern region, southern region etc. They may be further divided
into sub regions in main regions like Karnataka region, Kerala region, Andra Pradesh region etc.
within southern region.
Examples: Banks, Railways, Petroleum companies.
Advantages:
• Places responsibilities at lower levels.
• Places emphasis on local problems and market.
• Ensures a better coordination within a region.
• Facilitates direct communication within a region.
• Better involvement of people to achieve higher target.
• Provides a region - wise comparison of performance.
• Takes advantage of economics of local operations.
Disadvantages:
• Requires mere persons with General Manager’s abilities.
• Requires to maintaining similar functional people at all regions.
• Difficult to control from top Managers.
5. Departmenatalisation based on simple numbers:
• Tolling of the persons performing the same job and grouping them under onesupervision. This is
not in common use now.

2.6 Committees:
Question: Define committees. Explain the different types of committee
• A committee is a group of people who have been formally assigned some task or some problem for
their decision and implementation.
2.6.1 Principles of a committee:
 • The number of persons in a committee should depend upon need (about5to10 persons)
• Responsibility, authority, objectives, duties of the committee should be clearly defined.
• Agenda of the committee should be proposed to the committee at least a week before they meet
for discussions.
• Problems which can be taken care by an individual should not be included in the agendaof the
committee.
• Committee meeting should begin and end on pre fixed timings.
• The recommendations made by the committee should be published and circulated toconcerned
persons.
• The committee should be appraised, if the action is taken based upon its recommendation.
• A committee is dissolved after its purpose is over.
The linking pin function is shown by arrows in fig 2.6.1. A company thus organized. Linkert believes, could
avoid the major risks but reap full advantages of “authoritative” group decision making.

fig 2.6.1: The linking pin

2.6.2 Types of Committees:
1. Advisory committees: These committees are vested with staff authority. They only have a
recommendation role and cannot enforce implementation of their advice or recommendation.
Examples: Advisory committees formed in business enterprises are: works committees, sales
committees, finance committees etc.
2. Executive committees: They vested with the line of authority. They not only take decisions but
also enforce decisions and thus perform a double role of taking a decision and ordering its
execution.
Example: Board of directors is an example of an executive committee.
Executive committees are further classified as standing committees and ad-hoc ortemporary
committee.
(i) Standing committees: Are formed to deal with current organizational problem. Example: finance
committee in a company, loan approval committee in a bank etc.
Members of this committee are chosen because of their title or position, instead ofindividual
qualifications or skills.
(ii) Ad-hoc committees: Have a short duration, dissolved after the task is over, or theproblem is
solved and the members are chosen for their skills and experience.

3) Joint Consultative committee: This committee consists representatives of labours and management.
 This promotes better relation between management and labour by discussing matters of common
interest.
2.6.3 Advantages of committee:
• Where committees consists of all departmental heads as members, people get an opportunity to
better understand each other’s problems and move towardsorganizational goals.
• Committees provide a forum for the pooling of knowledge and experience of many persons of
different skills, ages and backgrounds which helps in improving the quality of decisions.
• Committees provide an opportunity to many persons to participate decision-making process.
• Committees are excellent means of transmitting information and ideas, both upward and downward.
• By exposing members to different viewpoints, Committees contribute indirectly to their training

2.6.4 Disadvantages of committee:

1. Committee operations are slow and committees tend to hang on for a considerable time.

6. Decisions are generally arrived at on the basis of some compromise among the members. Hence they
are not the best decisions
7. As Committees Consists of large number of persons, difficult to maintain secrecy.
8. As the chairman of a committee often changes, influence accumulates in the hands of the permanent secretary
or some other persons.
Centralization Vs Decentralization:
a. Centralization refers to systematic reservation of authority at central points within the
organization.
b. Centralization means concentration of managerial authority in few key Managerialpositions i.e.,
at the top level.
c. Centralization reduces the subordinate’s role in decision making.
d. Decentralization means dispersal of decision-making power to lower levels of theorganization.
e. In decentralized organizations large number of decision, important decisions in largenumber of
areas are made consulting few people.
f. In the words of Henry Fayol, “Everything that goes to increase the importance of
Unit -2
2.7 Staffing:
It is a basic organizational function of filling and keeping filled the positions in theorganization
structure. It involves matching jobs to the capabilities of individuals.

2.7.1 NATURE OF STAFFING:

1. It is a basic function of management.
2. It is concerned with the human resources management of the organization.
3. It is a continuous function where a manager has to guide and train an employee and evaluate their
performance on a continuous basis.
4. It is aimed at making optimum utilization of human resources and provides satisfaction to the
employees.
5. It is performed by all managers. In large organizations a separate department deals with this function
and here too line managers are advised about the different aspects of human resources.
6. Staffing deals with human beings with needs, emotions and aspirations so it is different from other
managerial functions.

RESPONSIBILITIES OF STAFFING:
In small organizations the owner appoints appropriate number of executives for different functions.
In bigger organizations large number of people is required every year. The board of directors appoints a
chief executive who in turn appoints functional managers. Their main aim would be to achieve departmental
goals and also prepare juniors to succeed them at a later stage.
Staffing involves training, appraisal, and compensation.
2.7.2 PROCESS OF STAFFING;
1. Estimation of manpower needs: Assessing how many people would be required and when to recruit. It
depends on the size and type of organization.
2. Recruitment and selection of staff: Recruitment is searching for prospective employees and
persuading them to apply for the job. Selection is spotting the most suitable candidate out of those who
are interested to get employed in the enterprise.
3. Training and development: Training improves the skill and knowledge of employees. Development
helps in growth of individual in all respects and enhances the ability of manager to meet future
challenges.
4. Promotion and transfer: Employees are promoted to higher ranks depending on their merit and
seniority. Transfer involves sending of employees from one place to another depending on their ability
and competence.
5. Remuneration: It is the payment for the services of labor.
6. Performance appraisal: Employees performance and contribution to the organization is evaluated by
his senior and review by the seniors superior. This is in order to evaluate deficiencies and improve
performance.

2.7.3 NEED AND IMPORTANCE OF STAFFING:

2.8 RECRUITMENT:
 Recruitment is the process of identifying the sources for prospective candidates and to stimulate
them to apply for the jobs.
 Recruitment refers to the attempt of getting interested applicants and providing a pool of
prospective employees so that the management can select the right person for the right job from this
pool.
2.8.1 Source of Recruitments
The various sources of recruitment are divided into two categories:
(1) Internal Sources.
(2) External Sources.
Internal Sources
1. Internal sources involve transfer and promotion.
 2. Transfer involves the shifting of an employee from one job to another.
3. Many companies follow the practice of filling higher jobs by promoting employees who are
considered fit for such positions.
4. Filling higher positions by promotion motivates employees, boots employee’s morale.
External Sources
1. The External Sources of Recruitment mean hiring people from outside the organization.
2. In other words, seeking applicants from those who are external to the organization.
The more commonly used external sources are:
(1) Re-employing former employees: Former employees who have been laid – off or have left for
personal reasons may be Re-employed.
(2) Direct recruitment: An important source of recruitment is direct recruitment by placing a notice on the
notice board of the enterprise, by specifying the details of the jobs available. This is also known as
recruitment at factory gate.
(3) Unsolicited applications: Many qualified persons apply for employment to reputed companies on their
own initiative. Such applications are known as unsolicited applications.
(4) Advertising: Large enterprises particularly when the vacancy is for higher post or there are large number
of applications; this source is used where advertisements are made in local and national level newspapers.
(5) Employment agencies: This is the good source of recruitment for unskilled and semiskilled jobs. In some
cases, compulsory notification of vacancies of employment exchange is required by the law. The
employment exchanges bring job givers in contact with job seekers.
(6) Educational institutions: Many jobs in business and industries have become increasingly varied and
complex which need a degree in that particular area. Many big organizations maintain a close liaison with
the colleges, vocational institutes and management institutions for recruitment of various jobs.
(7) Labour contractor: Often unskilled and semiskilled workers are recruited through labour contractors.
(8) Recommendations: Applicants introduced by friends, relatives and employees of the organization may
prove to be a good source of recruitment. Many employers prefer to take such persons because something
about their back-ground is known.

PROCESS OF RECRUITMENT:
1. Finding out the sources of recruitment. For example; to recruit young engineers engineering colleges will
be the best source.
2. Developing techniques to attract suitable candidates. For example; the goodwill of the company in the
market, or publicity that the company is a good employer will stimulate candidates to apply.
3. Employing techniques to attract candidates: For example; offer of attractive salaries, proper facilities for
development, etc. Stimulating as many candidates to apply for the job in order to increase the selection
ratio.

FACTORS AFFECTING RECRUITMENT:

1. Size of the organization: A small enterprise will recruit only sometimes. A big enterprise recruits
frequently and so it will be in touch with the source. A big enterprise can afford to spend large amounts
of money in order to locate the prospective candidates.

2. Employment conditions: If the supply of persons is more, then selection from large number becomes
easy. On the other hand, if employment conditions are easy then it will be difficult to locate suitable
 persons.

3. Salary structure and working conditions: If higher wages are paid the enterprise will not face any
difficulty in making recruitments. A concern offering low wages will face the problem of labor
turnover. If the working conditions like proper sanitation, lighting, ventilation, etc., are provided the
employees will have more job satisfaction and will not like to leave their present jobs.

4. Rate of growth: A company which expands will require new employees regularly to replace those who
have been promoted. A stagnant enterprise will recruit only when present incumbent vacates his position
on retirement.

RECRUITMENT POLICY:
A good recruitment policy must have the following objects:
1. Organizational objectives: A policy which is designed to employ the most suitable candidate helps in
reaching the organizational goals.
2. Identifying recruitment needs: The type and number of persons required must be identified
beforehand. Employed persons must be categorized as skilled, semi-skilled and unskilled. The
departments to which they will be deployed must also be decided beforehand.
3. Sources of recruitment: The source of recruitment may be internal, external or both.
4. Criterion for selection: There may be a policy of consulting trade unions before recruiting. There could
be government guidelines to be followed like reservation based on caste or reservation for minorities.
5. Cost factor: Recruiting through advertisement in the newspaper will be costlyand recruiting from an
employment exchange will be cheaper. The cost must be assessed before making the recruitment process
into a policy.

CONSTRAINTS ON RECRUITMENT:
An organization may not be able to recruit freely even though it offers better salaries and other amenities.
The reasons could be:
1. Image of the organization: An organization which has a bad reputation of undesirable attitude of
management, bad working conditions, etc., may not be able to attract sufficient number of personnel
even when salary offered would be high.
2. Unattractive jobs: If the job is boring, hazardous, tension ridden, lacking in opportunities for
advancements, very few persons will be available for such jobs.
3. Organizational policies: A policy of filling up the higher positions from an outside source instead
of recruiting from within will not attract competent persons to join sucha n organization.

4. Union requirements: Sometimes an agreement with the workers union to recruit through them may
hinder the management from recruiting on its own.
5. Government policies: Government legislation may require certain percentage from the weaker
sections of society or persons belonging to specific castes to be recruited.
 Legislation may require only the list of persons supplied by the government employment
exchange to be recruited. These conditions restrict management from recruitment of their choice.

2.9 SELECTION
 Selection of personnel for the organization is one of the most important managerial responsibilities.
 According to the requisition, a primary selection is done for the suitable candidates, to be called for
the interview.
 The final selection is done by the executives in the case of higher posts and for lower posts
recruitment, the personnel officer is present in all selections and keeps an eye on the recruitment
activities with an aim:
 To find out whether the candidate can be suitable employee. For this, the candidate should
be clearly told about the nature of the job, terms and conditions.
 To know the suitability for the particular jobs, he can be cross questioned and thus the
suitability can be judged.
 If the selection of the worker, admitted to the firm is not working skillfully then the result
will be, either there will be a poor level of work or there will be a high rate of labour
turnover. Both will be harmful to the firm in the long run. Therefore every effort should be
made to make proper selection.

Techniques of selection
1. Application Banks
2. Preliminary or Initial Interview
3. Interview
4. Group discussion
5. Employment tests.

1. Application Bank
 It is invariably used as one of the selection tools and can be helpful at the interview stage.
 It provides actual information needed for evaluating the candidate's suitably.
 It is also used as a basic record of his personnel data is about educational qualifications,
training, experience etc.
 Many large companies use such application forms which determine, whether the candidate
possesses the basic minimum requirement about the Qualifications, Knowledge and Skills or
not.
 Generally they seek information in the following areas:
 Personnel data such as age, sex, marital status.
 Family background, such as father's and mother'soccupation and earnings.
 Educational background including training.
 Employment record including details about previous employment if any and present
employment.
 Name and address of few persons usually other than relation to whom references can be
made.
 Membership of professional organization.
 Reason for seeking job in the organization.

2. Preliminary or Initial interview

 This interview is usually of short duration and is aimed at obtaining certain basic information
with a view of identifying the knowledge and other information not present in application.
 The candidate is asked about his educational skill, knowledge, job experience, minimum salary
acceptable etc. Sometimes he is also asked that why he is applying for job in that particular
organization.
 If the candidate seems to be possessing the basic minimum requirement for efficient
 performance, he is given an application form to fill in.

3. Interview
 It is one of the least reliable and valid selection techniques. It relies upon a considerable extent
in accepting or rejecting a candidate.
 The interview is left with the inevitable personality variables and for this he has nothing to
depend upon except his subjective judgment.
 The interview may follow a structural pattern or an unstructural pattern.
i. In structural pattern or directive pattern:
 In structural pattern of Interviewing, a list of questions based on job specification is
prepared in advance.
 The interview may be occasionally separated from the prepared list of questions and
put other questions.
 The candidate is supposed only to answer the questions and the interviewer can learn a
lot about the candidate's ability and knowledge, but this technique imposes serious
limitation in drawing out his personality.
 It is not very effective.
ii. Unstructural or non-directive or unpatterned:
 It is one of the most effective interviewing technique.
 The interviewer, instead of asking too many questions initiates the candidate to create a
kind of permissive atmosphere in which the candidates talks usually quite revealingly
about his experiences, aspirations, fear, weakness etc.
 This kind of interview requires a high degree of interviewing skill and it can therefore
be conducted by only trained interviewers.
 In some large organizations, the candidate has to go through a review of two or three
panel interviewers.
 After each panel interviewer some candidates are eliminated and only those candidates,
who succeed in the first interview are sent on to the second interviewing panel and so
on.

4. Group Discussion
 In this technique candidates are brought together in group of 6 or 8 persons for informal
discussion and the selectors observe them and evaluate them.
 There are two kinds of group discussions,
 a problem is given to a group to discuss and the individual member is free to choose
his own approach.
 each individual is given an initial position and supplied with supporting information to
defend his own position.

5. Employment tests
 Most of the large companies use one or other kind of employment tests. Before a company use
employment test it should take following points into account.
 Since the tests are aimed at predicting future success in a job situation, they should be
selected or designated on the basis of a sound job analysis programme.
 In deciding upon the test to be used as a selection tool, its specialty should be taken into
considerations.
 Tests should be valid. Before a test is selected for use as an employment, its validity
should be determined in relation to the specific job.
 Tests are only one of the techniques of selection. They are not fool proof and therefore instead
of using single test, often a batch of tests is used.
 A variety of tests are used as selection tools. The object of these scientific methods of
selection is to ensure that a person selected possesses those physical and mental qualities in
required degrees which are essential if he is to become an efficient and successful worker.
 1. Intelligence Test:
 It is a measure of an individual's capacity of reasoning and verbal comprehension.
 It is used in the selection and classification of workers for almost every kind of job
from the unskilled to the highly skilled, administrative and professional jobs.
2. Vocations Aptitude Test:
 Physical strength and general intelligence are not enough to enable a person to
perform a task efficiently. Besides, he must posses the ability for the performance
of that job.
 Infact from the point of view of future achievements, a person of high natural
ability is likely to prove more successful than one who through training and
experience has gained more knowledge but possesses less natural ability.
 If this is correct, then it makes it necessary to find out whether the applicant
possesses the necessary vocational aptitude or not.

3. Analytical Test:
 In this method, a job is analysed in terms of key qualities or abilities as speed and
quality of observations, ability to keep one's head and not get confused when a
quick decision is called for.
 A test or a combination of tests are then taken which measure the degree to which
these abilities are present or lacking in the candidate.

4. Synthetic Test:
 In case of jobs which are complex and for which the analytical tests can't be
performed, synthetic tests may be adopted.
It presents the candidate a complex situation more or less similar to the one normally present in actual task
and his success or failure in the test is accepted as the possession or absence of the
RECRUITMENT
 It is an important step in the employment of labour.
 Haphazard recruitment of labour brings in a measure of chances and uncertainty in an industry and
may result in inefficiency and loss of production. This means that systematic steps should be taken
to ensure that right type of persons are available to the concern in right number.
 The numbers of workers required by a concern depends on
 The scale of production.
 The degree of mechanization.
 Following are the various sources from where the personnel may be recruited
 Applications introduced by friends and relatives
 Consulting agencies
 Campus recruitment
 Casual callers
 Through advertisement
 Field trip and college recruitment
 Employment exchange
 Labour contractors

Applications Introduced by friends and relatives:

 Often the employees introduce their relative's application to find a good job for them.
 Many companies prefer to take such candidates because their background can be known.
 In this way a good worker can bring a good worker.
 However this may lead to nepotism and favoritism.
Consulting agencies:
 A consulting agency is commonly utilised to find specialised executive personnel.
 It either helps the personnel department by supplementing its efforts or work on its behalf. In such a
situation, the agency must understand and estimate correctly the client's past experiences, history
 and future projections.

Campus recruitment:
 As a large numbers of management institutes like IIM, XLRI, IIT etc., are engaged in giving the
professional training, many companies find it easier to pick up the best talent straight from the
institute to fill its managerial position.
 In fact these professional institutes have provided recruitment source to firms.

Casual callers:
 Sometimes on his own initiative, the applicant sends his application for the job.
 The personnel office keeps the record of applications and the suitable candidates can be selected
from the callers.

Through advertisements:
 Companies advertise in the newspaper for their vacancies.
 Generally the senior posts are filled by this method when they can't be filled by promotions.
 The advertisement gives a wide range of choice.
 It also depends upon the employers fame.
 If the name is not reputed one some of the good personnel do not apply.
Field trips and college recruitment:
 This method is being used for private industrial firms.
 These firms send their selecting teams to respective colleges and universities, interview the
candidates who are nearing completion of their studies and make selection.
 This is no doubt very expensive and time consuming but has the advantage of choosing the cream
from the lot.

Employment exchange:
 The recruitment is also done through the employment exchange of the persons who are enrolled in
the exchange.
 The main function of the exchange are:
 To supply information about persons in need of jobs and about jobs that are available.
 To direct persons to factories where suitable jobs exist.
 To develop job specification.
 To procure information about current wage rate.
 To introduce selected employees with personnel department and policies of the company.
 To follow up the new recruits for initial adjustments.
 To look-after the employee canceling and operating the system seriously.
 To keep records of employees, hired, resigned, discharged and transferred.

Labour Contractors:
 The casual vacancies may be filled up by the company through labour contractors.
 Usually unskilled candidates are appointed in this manner.

Unit 3
DIRECTING AND CONTROLLING

DIRECTING
MEANING AND NATURE OF DIRECTING
 Direction means issuing of orders, leading and motivating subordinates as they go about
executing orders.
 It is also defined as the process and techniques used for issuing instructions to carry out a job and
making sure that the operations are carried out as per the plan.
  Directing is the interpersonal aspect of managing by which subordinates are led to understand
and contribute effectively and efficiently to the attainment of enterprise objectives.
 The direction has two major activities namely
1. Giving orders to employees and
2. Leading and motivating them to accomplish the goals.

DEFINITION OF DIRECTION:
 "Directing is the interpersonal aspect of managing by which subordinates are led to understand
and contribute effectively to the attainment of enterprise objectives. (Harold D Koontz
&O’Donnell)
 "Directing consists of the processes and techniques utilized in issuing in-structions and making
certain that operations are carried on as originally planned". (Haimann)
 "Direction is telling people what to do and seeing that they do it to the best of their ability. It
includes making assignments, corresponding procedures, see-ing that mistakes are corrected,
providing on-the-job instruction and issuing orders". (Ernest Dole)
 "Directing is the guidance, the inspiration, the leadership of those men and women that constitute
the real core of the responsibilities of the management". (Urwick and Breach)

REQUIREMENTS OF DIRECTION:
The role of a manager is to understand the needs, motives and attitudes of his subordinates. He
should use appreciate strategies according to the people and situations.
The following are some of the principles of effective direction:
(i) Harmony of objectives:
 For an organization to function well, it the goals of company and goals of individuals are in
complete harmony.
 It is very uncommon for such a situation to exist in any organization. Individual goals may
differ from the goals of the organization.
 The manager should coordinate the individual goals to be in harmony with the goals of the
organization

(ii) Unit direction of command:

 This principle implies that an employee should receive orders and instructions only from
one supervisor or boss.
 Otherwise, there may be indiscipline and confusion leading to conflicting orders, divided
loyalties and reduced results.

(iii) Efficiency:
 If the superior consults with the subordinates in decision-making, then there would be a
sense of commitment. This makes the direction easy and improves the efficiency of
subordinates.

(iv) Direct supervision:

 Managers should have direct face-to-face contact with the subordinates.
 Personal touch with subordinates will ensure successful direction.
(v) Effective communication:
 The supervisor must have good communication skills.
 He must clearly communicate the plans, goals, policies, responsibilities and the duties to the
subordinates.
 In communication, comprehension is more important than the content.

(vi) Effective control:

 The management should monitor the behavior and performance of subordinates to exercise
effective control over subordinates.
 (vii) Follow-through:
 Direction is a continuous process. Having given the directions may not ensure carrying out
them. Hence a manager should follow-through the performance of his subordinates.
 Follow up is very important function of direction.

GIVING ORDERS
The order is a devise employed by a line manager in directing his immediate subordinates to start
an activity, stop it and modify it. A staff executive does not issue orders. To some men the matter of
giving orders and having them obeyed seems a very simple affair but the fact is that it is surrounded by
many difficulties.
Mary Parker Follett lays down the following principles which should be followed in giving orders:
1. The attitude necessary for the carrying out of an order should be prepared in advance. People will
obey an order only if it appeals to their habit patterns. Therefore, before giving orders, it should be
considered how to form the habits which will ensure their execution.
2. Face-to-face suggestions are preferable to longdistance orders.
3. An order should be depersonalized and made an integral part of a given situation so that the
question of someone giving and someone receiving does not come up. Thus the task of the manager
is to make the subordinates perceive the need of the hour so that the situation communicates its own
message to them.

Chester Barnard lays down four conditions which make an order acceptable. These are:
1. Order should be clear and complete;
2. Order should be compatible with the purpose of the organization;
3. Order should be compatible with the employee's personal interest; and
4. Order should be operationally feasible.

Orders may be communicated verbally or in writing. Written orders are appropriate when
1. the subject is important;
2. many details are involved; and
3. there is geographical distance between the ordergiver and the recipient.

A manager may follow four types of methods to ensure compliance to his orders:
1. Force
2. Paternalism
3. Bargain, and
4. Harmony of objectives.

 The formula followed in "force" is: "Do what I say or else ... ", meaning thereby that an
employee will be punished if he does not follow orders. The results are frustration, restriction of
output, sabotage, militant unionism, etc.
 The formula followed in "paternalism" is: "Do what I say because I am good to you." The
result here is that the employees develop a feeling of gratitude and indebtedness toward the
manager which they do not like. Further, paternalism operates in violation of the law of effect.
Instead of increased rewards following increased compliance, the paternalistic manager provides
rewards first and expects the compliance to follow.
 The formula followed in "bargain" is: 'You do as I say in certain respects and I do as you say in
certain other respects.' The result of this method is that the manager's control is gradually
reduced. The formula followed in "harmony of objectives" is: "If we perform together each will
achieve his goal". This in fact is the best formula for ensuring compliance to order.

MOTIVATION
The success or failure of a business organization depends on the performance of people working for
 it. Generally, performance is determined by three factors ability, knowledge and motivation which are all
related by a widely acknowledged formula:
Performance = (Ability + Knowledge) X Motivation
Among the three factors which affect performance, we can see the multiplying effect motivation has on
ability and knowledge in determining performance. Therefore motivation is a very important factor
because it deals with human behavior.
Motivation is nothing but the task of making someone to act in the desired manner. Some definitions of
motivation
i. Motivation is a general term applying to the entire class of drives, desires, needs, wishes and similar
forces that induces an individual or a group of people to work'. - Koontz and O'Donnell
ii. 'Motivation is the process of attempting to influence others to do your work through the possibility
of gain or reward'. - Edwin B. Flippo
iii. 'Motivation means a process of stimulating people to action to accomplish desired goals' – Scott
Motivation process can be shown through the diagram

NATURE OF MOTIVATION
Motivation is not an easily observed phenomenon. We observe an individual's actions and then
interpret his observed behavior in terms of underlying motivation. This sometimes leaves a wide margin
of error. Our interpretation does not necessarily reveal the individual's true motivation.
The following points reveal the complexities involved in understanding true motivation:
1. Individuals differ in their motives.
 The viewpoint (called -monistic approach") that there is only one "economic drive" which
determines behavior is untenable.
 The goals to which individuals aspire differ and so do their motives.
 This is well illustrated by an oft-quoted story:
There were three men cutting stones near a cathedral about threefourths completed. A stranger came
along and said to the first man, "My friend, what are you doing?" The first man replied, "Me, what
am I doing? I am working for 10 shillings a day." He went to the next man and put to him the same
question. The second man said, "Me, what am I doing? 1 am squaring this stone, see. I have to
make its edge absolutely straight." The stranger walked on to the third man and repeated the same
question. The third man replied. "Me, what am I doing? You see that cathedral up there. I am
helping to build that. Is not it great?" In this story the major source of satisfaction to the first man
was the wages he earned. The job itself contributed very little. But job itself was the outstanding
source of satisfaction to the second man. The third man viewed the completion of his group goal—
the building of the cathedral—as his primary source of satisfaction. This means that there is no
single motive that determines how all workers will react to the same job and, therefore, there can be
no single strategy that will keep motivation and productivity high for everyone everywhere. The
manager has to deal with human diversity.
2. Sometimes the individual himself is unaware of his motive.
 Freud uncovered this phenomenon while analyzing his critical patients.
 He found that in many ways man is like an iceberg. Only a small part is conscious and
visible, the rest is beneath the surface. This belowthe-surface concept is unconscious
motive. The presence of this explains why man cannot always verbalize his motive to attain
certain goals or even tell what his goals are.
 An example can be drawn from the famous Hawthorne experiments. One girl-worker
complained to her counsellor about her foreman. Later on, it was found that the reason why
she disliked her foreman was that she had a step-father whom she feared and whose physical
appearance was very much like her foreman, with the result that she had unconsciously
transferred to her foreman the unfavorable characteristics of her step-father.

3. Motives change:
 Hierarchy of motives of each individual called "structure" is not fixed.
 It changes from time to time. An individual's primary motive today may not be primary
tomorrow, even though he may continue to behave in the same way.
 For example, a temporary worker may produce more in the beginning to become permanent.
When made permanent he may continue to produce more—this time to gain promotion, and
so on.

4. Motives are expressed differently.

 The ways in which motives are eventually translated into actions also vary considerably
between one individual and another.
 One individual with a strong security motive may play' it safe and avoid accepting
responsibility for fear of failing and being fired.
 Another individual with the same security motive may seek out responsibility for fear of
being fired for low performance.
 Even the same individual may express his motive differently at different times. Thus, an
employee who in the beginning works hard to get promotion may, when frustrated, indulge
in anti- management union activities for the same purpose.
 Different expressions completely mislead a manager because he does not know what the
employee's true motivation is.

5. Motives are complex.

 It is difficult to explain and predict the behavior of workers.
 The introduction of an apparently favorable motivational device may not necessarily
achieve the desired ends if it brings opposing motives into play.
 In a factory, when blue-green lighting was introduced to reduce eye strain, the output of
men workers increased but that of women workers decreased. On investigation it was found
that the latter disliked the change in lighting because they felt that the new type of lighting
had made them look 'simply ghastly'.

6. Multiple motives make the choice of goals difficult for an individual

We have been referring to examples of motivations as if they exist one at a time. This is hardly
the case. The fact is that multiple motivations operate simultaneously to influence an individual's
behavior. Furthermore, some of these motivations are incompatible with one another. This results in
the following three types of motivational conflicts which make the person's choice of goal difficult:
i. Approach approach conflict
 The person desires to do two things which he likes equally well, but it is possible to do only
one.
 For example, there is the person who has the choice of either remaining at his present place
of posting with the present salary, or going to a new place with a hike in salary. In such
situations, two different behaviors are aroused in him which block each other.
 ii. Avoidance avoidance conflict
 The person is forced to choose between two alternatives, both of which are considered
equally undesirable by him.
 For example, there is the person who, being dissatisfied with his present job, wants to
leave it but also wants to avoid unemployment.
iii. Approach avoidance conflict
 The person is attracted to the positive characteristics of his choice, but wants to avoid its
negative characteristics.
 For example, a person may be motivated to work overtime for extra pay but may not like
to be scolded by his wife for reaching home late.

MOTIVATION THEORIES
There is no shortage of motivation theories. We can classify them under three broad- heads:
1. Content theories: The content theories tell us what motivates an individual. They throw light on
the various needs and incentives which cause behavior.
2. Process theories: The process theories, on the other hand, answer the question how behavior is
caused.
3. Reinforcement theory: Reinforcement theory explains the ways in which behavior is learned,
shaped or modified.

THEORIES OF HUMAN MOTIVATION

There are several theories of motivation based on different structures of human needs and
expectations. Some of them are
1. Maslow's Hierarchy of Needs Theory
2. Herzberg's Motivation - Hygiene Theory

1. MASLOW'S HIERARCHY OF NEEDS THEORY

 Abraham Maslow's Need-Hierarchy theory, published in 1943, is one of the most popular
theories of motivation.
 According to him, the behavior of an individual is determined by his strongest need at a
particular moment.
 Needs that are not satisfied influence his behavior. But the needs once satisfied do not serve as a
motivator.
 According to Maslow, all human needs can be arranged in an order of priority.
 In other words, human needs have an hierarchy and they have to be satisfied from the lowest
level moving in the ascending order.
 Figure Shows Maslow's hierarchy of needs as five ascending levels.

I. Physiological Needs: Includes food, shelter, clothing, water, sleep, sex and other bodily needs.
 The physiological needs are the basic needs in life. These are essential for everybody to remain
alive. These needs motivate the person to work and earn sufficient amount of money to fulfill them.
II. Safety Needs: Includes security and protection from physical, emotional and economical harm.
Once the physiological needs are satisfied, the safety needs or security needs become
predominant. Physical safety may be protection from fire and accidents. Economical security may
be in terms of job security, health and insurance programme, retirement plan etc., Emotional needs
may be the necessity to be happy and be free from mental disturbances.
III. Social Needs: Includes affection, belongingness, acceptance and friendship. Social needs come
into the picture when the primary needs are taken care of. Since man is a social animal, he has to
interact with the society, and live with respect in society. He desires to love and be loved; accept
others and be accepted; show affection and be shown affection an so on. Social needs make his
work enjoyable.
IV. Esteem Needs: Includes self-respect, autonomy, status, recognition, responsibility, attention,
achievement, prestige, etc., Esteem needs represent an individual's concern for feeling important
and be respected by others. These needs are primarily satisfied by the individuals themselves.
However, the management may create a proper climate to help individuals to fulfill these needs.
V. Self-Actualization Needs: Includes Self-advancement, self-fulfillment, self-development, self-
realization etc., Self-actualization is the highest level need in Maslow's hierarchy. It is the desire to
become what is one is capable of becoming. It is the desire to realize one's own potential. In an
organization, a person attempting to satisfy these needs seeks challenging work and looks for
opportunities for personal growth.
i. According to Maslow, if a lower level need is satisfied, a higher level need emerges. This goes on
till the highest level needs are satisfied. This theory of human motivation by Maslow has been a
landmark is the field of Management. However, it has been also criticized on the following
grounds:
(i) Needs of every person may not follow Maslow's hierarchy.
(ii) Most of the human needs are recurring and are never satisfied fully indeed.
(iii) Most of the needs co-exist and there is no such hierarchy whatsoever.
(iv) Boundaries between different levels of needs may be hazy and overlapping.
(v) Although behavior depends on need, or the lack of it, it may not be fully dependent.
(vi) The concept of self-actualization is theoretical and academic. No person can ever know
his maximum or best potentials

2. HERZBERG'S MOTIVATION-HYGIENE THEORY OR THE TWO-FACTOR THEORY

 The Motivation-Hygiene theory or the Two-Factor theory was proposed by Frederick
Herzberg in the year 1959.
 He carried out a survey on the experiences and feelings of a group of 200 engineers and
accountants working in a few industries in Pittsburgh, USA.
 He concluded that people had two categories of needs which are independent of each other
and affect behaviour in different ways.
 He said that satisfaction or dissatisfaction in work arise from these two different sets of
factors. They were: Hygiene factors and Motivators.

I. Hygiene-Factors
 He found that certain factors did not motivate the employee when present on the job but their
absence caused dissatisfaction.
 These factors were called Hygiene factors because they primarily prevented dissatisfaction just
like hygiene conditions prevent sickness. These factors are:
a. Company policy and administration
b. Supervision
c. Working conditions
d. Salary and status
e. Security in job and personal life
f. Interpersonal relationship with superiors, peers and sub-ordinates.
 Technological Management & Entrepreneurship Development 21EC51

 Herzberg said that the opposite of satisfaction was not dissatisfaction but 'No
satisfaction' and likewise the opposite of dissatisfaction was not satisfaction but it
was No dissatisfaction'.
 Hygiene factors are also known as maintenance factors or Dissatisfiers and
are necessary tosustain a reasonable level of 'No dissatisfaction' among
employees.

II. Motivators

According to Herzberg, Motivational factors are essential to provide job
satisfaction and to maintain high job performance.
 Motivators act as stimuli to make people work hard voluntarily and be happy
in theorganization.
 Motivators or `Satisfiers' include the following factors :
i. Challenging work
ii. Responsibility
iii. Recognition
iv. Promotion opportunities
v. Achievement
vi. Job content.
Herzberg said that these factors helped in increasing job satisfaction. However a decrease in
these factors would lead to satisfaction' and not dissatisfaction. Motivators generally help
attaining higher output by the employees.
Herzberg's Theory in a nut shell can be :
1. Hygiene Factors:
 When absent - increase dissatisfaction.
 When present - prevent dissatisfaction.
2. Motivators:
 When absent - prevent satisfaction.
 When present - increases satisfaction.

Criticisms of Herzberg's theory

(i) People may not be accurate in reporting their satisfying or dissatisfying experiences.
(ii) A factor that causes dissatisfaction is one person may bring satisfaction to another.
(iii) People are biased and they tend to credit themselves for successful events while
blaming outsideevents for their failures.
(iv) The theory does not measure the levels of satisfaction and dissatisfaction.

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 Technological Management & Entrepreneurship Development 21EC51

Comparison of Theories of Maslow and Herzberg

 Both theories concentrate on the factors which motivate employee's behavior to

achieve higheroutput. Which Maslow formulated the theory in terms of needs,
Herzberg in terms of goals.
 While Maslow gave a hierarchy to his needs, Herzberg divided them into two
groups but without hierarchy.
 While Maslow said that all needs are motivators, Herzberg said only higher order
needs are motivators.
 Actually the first three ascending levels of needs according to Maslow correspond
to the Hygiene factors of Herzberg and the last two higher levels of needs of
Maslow correspond to Motivatorsas per Herzberg

COMMUNICATION
MEANING
 Communication has been variously defined by a number of writers.
 According to Newman and summer, it is an exchange of facts, ideas, opinions or
emotions by two or more persons.
 Allen Louise defines it as the sum of all the things one person does when he wants
to create understanding in the minds of another.
 Simply stated, communication means the process of passing information and
understanding from one person to another.
 A proper understanding of information is one very important aspect of
communication. If the information is not understood by the receiver in the same
meaning in which its sender wants him to understand it, the purpose of
communication is defeated.
 This may result in confusion, chaos and organizational inefficiency, leading to non-
fulfillment of business goals.
 In short, communication is not merely transmission of information from one
person to another but also correct interpretation and understanding of the
information.
 It is not to get something off the mind of the person transmitting it, but to get
something into the mind and actions of the person receiving it.

IMPORTANCE OF COMMUNICATION
The importance of communication can be elaborated as under:
1. Communication is fundamental to accomplish work
 In any organization, a manager spends most of his time communicating i.e.,
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Technological Management & Entrepreneurship Development 21EC51

reading, writing'Speaking or listening.

 Communication is the means by which he persuades, informs, motivates and
leads his employees towards organizational goals through communication that
there is a transmission of information among employ
 It is without communication no work can get accomplished.
2. Communication facilities planning
 Planning, the most important function of management requires extensive
communication among the rank and file of the organization.
 Planning is done after inputs from key executives and other personnel.
3. Communication helps in decision-making
 Managers rely heavily on the quality and quantity of information that is
available in order to take decisions.
 It is communications which provides the right type of information to a
manager and enables him to consider the pros and cons thoroughly before
taking a decision.
4. Communication is the basis of co-ordination
 If all the departments and divisions of an organization have to co-ordinate
their efforts toachieve the common goals, communication is highly essential.
 A good communication system is the basis of all inter-dependent activities.
 It is the foundation of all group activity.
 It is only through communication that people can attain a common view point
and thereforeco-operate with each other to achieve organizational objectives.
 According to Hick, When communication stops, organized action comes to an
end.
5. Communication improves relationships between employees.
 Communication builds bridges of relationships between employees.
 It binds individuals to a common purpose. A good communication system
helps exchange offacts. ideas, feelings and sentiments among the employees.
 Apart from work-related information.
 This results in in a better understanding among the employees which is what
an organizationexactly wants.
6. Communication improves morale and motivation
 When manager listens carefully to employees grievances and take necessary
action, it improves morale and motivation of the workers.
 Without communication, it is impossible to understand others and make them
understand.
 Good communication helps in addressing workers problems and therefore
keeps their morale and motivation high.
7. Communication is key to managerial-efficiency
 Good communication skills are a must for modern-day managers.
 The growth success or the growth of a manager largely depends on his
communicationskills.

PURPOSES OF COMMUNICATION
Some important purposes which communication servers are as under:
1. Communication is needed in the recruitment process to persuade potential
employees of the merits of working for the enterprise. The recruits are told about
the company's organization structure, its policies and practices.

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Technological Management & Entrepreneurship Development 21EC51

2. Communication is needed in the area of orientation to make people acquainted

with peers, superiors and with company's rules and regulations.
3. Communication is needed to enable employees to perform their functions
effectively. Employees need to know their job's relationship and importance to the
overall operation.
4. Communication is needed to acquaint the subordinates with the evaluation of their
contribution to enterprise activity. It is a matter of some motivational importance
for the subordinates to know from their superior how they stand and what the future
may hold for them.
5. Communication is needed to teach employees about personal safety on the job.
This is essential to accidents, to lower compensation and legal costs and to
decrease recruitment and training tor replacements.
6. Communication is of vital importance in projecting the image of an enterprise in
the society. The amount of support which an enterprise receives from its social
environment is affected by the information which elite groups and the wider public
have acquired about its goals, activities and accomplishments.
7. Communication helps the manager in his decision process. There is a spate of
varied informationproduced in an enterprise. The manager must make a choice of
useful and essential information which should reach him.
8. Communication helps in achieving coordination. In a large organization, working
on the basis of division of labour and specialization, there is need for coordination
among its component parts. This can be achieved only through communication
9. Communication promotes cooperation and industrial peace. Most of the disputes in
an enterprise take place because of either lack of communication or improper
communication. Communicationhelps the management to tell the subordinates
about the objectives of the business and how they can help in achieving them.
10. Communication increases managerial efficiency. It is said that the world of modem
management is the world of communication and the success of a manager in the
performance of his duties depends on his ability to communicate.

In summary, it can be said that the purposes of communication are:

1. To provide the information and understanding necessary for group effort (i.e., the skill to
work); and
2. To provide the attitudes necessary for motivation, cooperation and job satisfaction
(i.e., the will to work).

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