MODULE-2

ORGANIZING AND STAFFING

DIRECTING AND CONTROLLING
 Module-2
Organizing and Staffing Directing and Controlling
 Meaning  Meaning and Requirements of Effective
 Characteristics
Direction

 Process of Organizing  Giving Orders

 Motivation-Nature of Motivation
 Principles of Organizing
 Motivation Theories
 Span of Management (meaning and importance only)
 Maslow’s Need-Hierarchy Theory
 Departmentalization-Process and Purpose
 Herzberg’s Two Factor Theory
 Committees– Meaning and Types
 Communication – Meaning
 Staffing-Need and Importance
 Importance and Purposes of
 Recruitment and Selection Process Communication
 Module-2
Leadership-Meaning
 Characteristics
 Behavioral Approach of Leadership
Coordination-Meaning and Types
 Techniques of Coordination
Controlling – Meaning
 Need for Control System
 Benefits of Control
 Essentials of Effective Control System
 Steps in Control Process
 ORGNIZING
• The process of identifying and grouping of the work to be performed, defining
and delegating responsibility, authority and establishing relationships for the
purpose of enabling people to work more effectively together in accomplishing
their objectives.

MEANING OF ORGANIZING
• Koontz and O'Donnel "It is grouping of activities necessary to attain enterprise
objectives and the assignment of each grouping to a manager with authority
necessary to supervise it".
• Amitai Etizoni- “Organisation is social unit or human grouping deliberately
structured for the purpose of attaining specific goals”.
• Sehein- “Organization as the rational coordination of activities of a number of
people for the achievement of some common explicit purpose or goal, through
division of labour and function, and through a hierarchy of authority and
responsibility.
STEPS IN PROCESS OF ORGANIZING
• While organizing, a manager differentiates and integrates the activities of his organization.
• By differentiation is meant the process of departmentalization or segmentation of activities on the
basis of some homogeneity.
• Integration is the process of achieving unity of effort among various departments, segments or
subsystems.
STEPS IN ORGANIZING/PROCESS OF ORGANIZING For example, the total activities of
(1) Consideration of objectives: an enterprise may be divided into
major functions like production,
• The first step in organizing is to know the objectives of the enterprise. purchasing, marketing, finance etc,
• Objectives determine resources and the various activities which need to such function is further subdivided
be performed and the type of organization which needs to be built for into various jobs.
this purpose.
For example, in production
• Objectives also serve as guidelines for the management and workers. department separate sections may
• They bring about unity of direction in the organization. be created for research, industrial
engineering etc.
(2) Identification and grouping of activities:
• In order to achieve the objectives of the enterprise, certain activities
are necessary.
• The activities will depend upon the nature and size of the enterprise.
• Each job should be properly classified and grouped.
• This will enable the people to know what is expected of them
as members of the group and will help in avoiding duplication of efforts.
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 STEPS IN ORGANIZING/PROCESS OF ORGANIZING
(3) Assignment of duties:
• After classifying and grouping the activities into various jobs, they should be allotted to the individuals for
ensuring certainty of work performance.
• Each individual should be given a specific job to do according to his ability and made responsible for that.
(4) Delegation of authority
• Every individual is given the authority necessary to perform the assigned activity effectively.
• By authority we mean power to take decisions, issue instructions, guiding the subordinates, supervise and
control them.
(5) Coordinating activities
• The activities and efforts of different individuals are then synchronized.
• Such coordination is necessary to ensure effective performance of specialized functions.
• Interrelationship between different job and individuals are clearly defined so that everybody knows from
whom he has to take orders and to whom he is answerable.

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NATURE OF ORGANIZATION
(1) Organization is always related to certain objectives:
• Each organization has an objective.
• The operations are divided; authority and responsibility are determined to achieve predetermined
objectives.
• Common Goals – Everyone works toward shared objectives.
Example: Teachers and staff aim to educate students well.
(2) An organization is a group of people:
• Mc Farland has defined organization as “an identifiable group of people contributing their
efforts towards the attainment of goals. People form groups or organizations to accomplish
common objectives and pool their efforts by defining and dividing various activities,
responsibility and authority”.
• Group of People – Organization is made up of people working together.
Example: Developers, designers, and testers in a software firm.

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NATURE OF ORGANIZATION

(3) Communication is the nervous system of organization: The organizational

members are able to communicate with each other and may coordinate their
activities.
• No organization can survive without an efficient system of communication.
• Communication System – Information flows up and down.
Example: Customer feedback reaches managers via staff.
(4) Organizing is a basic function of management:
Organizing is done in relation to all other functions of management, namely
planning, staffing, directing and controlling and in all the areas of business namely
production, marketing, purchasing, personnel.
NATURE OF ORGANIZATION
(5) Organization is a continuous process:
• Managers are continuously engaged in organizing and reorganizing.
• Continuity – Organizations are ongoing, not temporary.
Example: A bank operates year after year.
(6) Organization is a structure of relationship:
• The structure of relationship deliberately created by the management is referred to as formal
organization.
• An organization may also have a network of social relationships that arise between people working
together. Such relationships are known as informal organization.
(7) Organization involves a network of authority and responsibility relationship:
• Various positions are created; specific tasks are assigned to them.
• To perform the task, each position is delegated adequate authority.
• Authority and responsibility relationships throughout the organization must be clearly defined to
achieve coordination and to avoid conflicts between individuals and departments.
• Hierarchy of Authority – Clear reporting structure exists.
Example: Employees → Team Leader → Manager → CEO. 11
PRINCIPLES OF ORGANIZATION
• In order to facilitate the achievement of objectives, management thinkers have laid down
certain principles of organization.
• The principles are guidelines for planning organization structure.

• (1) Objectives: (2) Specialization: (3) Span of control:

• (4) Exception: (5) Scalar principle: (6) Unity of command:
• (7) Delegation: (8) Responsibility: (9) Authority:
• (10) Efficiency: (11) Simplicity: (12) Flexibility:
• (13) Balance: (14) Unity of direction: (15) Personal abilities:

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PRINCIPLES OF ORGANIZATION
(1) Objectives:
• Objectives of the enterprise should be clearly defined.
• Every part of the organization and organization as a whole should be geared to the basic objective
determined by the enterprise.
• Example: A school organizes teachers and classes to achieve academic results.
(2) Specialization:
• Effective organization must promote specialization.
• The activities of the enterprise should be divided according to functions and assigned to persons
according to their specialization.
• Example: A hospital has specialized departments—Cardiology, Orthopedics, Pediatrics.
(3) Span of control:
• A manager can directly supervise only a limited number of executives.
• Hence, it is necessary to have a proper number of subordinates answerable to a manager.
• A maximum of six may be prescribed for this purpose.
• Example: A team leader supervises 6 employees instead of 20 for better control.

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PRINCIPLES OF ORGANIZATION
(4) Exception:
• This principle requires that organization structure should be so designed that managers are required to go
through the exceptional matters only.
• All the routine decisions should be taken by subordinates, where as problems involving unusual matters and
policy decision should be referred to higher levels.
• Example: A store manager steps in only for customer disputes beyond the cashier’s authority.
(5) Scalar principle:
• This is also known as chain of command. There must be clear lines of authority running from the top to the
bottom.
• Unbroken line of authority from top level to bottom level.
• Example: Worker → Supervisor → Manager → Director.
(6) Unity of command:
• Each subordinate should have only one supervisor whose command he has to obey.
• Dual subordination must be avoided, for it causes uneasiness, disorder, and indiscipline.
• Example: A sales executive reports only to the Sales Manager, not to multiple department heads.
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PRINCIPLES OF ORGANIZATION
(7) Delegation:
• Proper authority should be delegated at the lower levels of the organization also.
• The authority delegated must be equal to responsibility i.e., the manager should have enough authority to
accomplish the task assigned to him.
• Handle special problems ,coordinating and planning events.
• Example: A project manager assigns budgeting to the finance officer.
(8) Responsibility: accountability
• A superior should be held responsible for the acts of his subordinates.
• No superior should be allowed to avoid responsibility by delegating authority to his subordinates.
• Example: A class teacher is responsible for maintaining discipline in class.
(9) Authority: Right and power to act.
• The authority is the tool by which a manager is able to accomplish the desired objective.
• Hence, the authority of each manager must be clearly defined.
• The authority should be equal to responsibility.
• Example: An HR manager has the authority to hire employees.
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PRINCIPLES OF ORGANIZATION
(10) Efficiency:
• The organisation structure should enable the enterprise to function efficiency.
• The organization should be able to attain the mission and objectives at the minimum cost.
• Example: An assembly line producing 100 units/hour with the same labor cost.
(11) Simplicity:
• The organization structure should be as simple as possible with minimum number of levels.
• A large number of levels of organization means difficulty of effective communication and coordination.
• Example: A small startup has only two levels—Founder and Staff.
(12) Flexibility:
• The organization should be flexible, should be adaptable to changing circumstances.
• It should permit expansion and replacement without dislocation and disruption of the basic design.
• A organization must avoid complicated procedures and excessive complication of control so that it may adapt
itself easily and economically to business and technical changes.
• Example: A company reorganizes its teams to handle a sudden market demand. 16
PRINCIPLES OF ORGANIZATION
(13) Balance:
• There should be reasonable balance in the size of various departments, between
centralization and decentralization, between span of control and among all types of factors
such as human, Technical and financial.
• Example: A manager is given both the budget and authority needed to run a project.
(14) Unity of direction:
• There must be one objective and one plan for a group of activities having the same
objective.
• Unity of direction facilitates unification and coordination of activities at various levels.
• Example: The marketing team follows a single campaign strategy for all product launches.
15) Personal abilities:
• As organization is a formal group of people there is need for proper selection, placement
and training.
• Organization structure must ensure optimum use of human resources.
• Example: A tech employee is given software troubleshooting tasks.
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DEPARTMENTALISATION
• Horizontal differentiation of tasks or activities into discrete segments is called
departmentalisation.
• Departmentalisation is the process of dividing an organization's activities and tasks into
distinct units or departments, such as by function, product, process, location, or
customer.
• The aim is to take advantages of division of labour and specialization up to a certain
limit.
1) Departmentation by functions:
2) Departmentation by product:
3) Departmentation by customers:
4) Departmentation by territory:
5) Departmentation by Process:
6) Departmentation by time:
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1)Departmentation by functions:
• This is the simplest and most commonly used base for Departmentation.
• Each major function of the enterprise is grouped into a department.
• For example there may be production, finance, marketing and personnel department in an
organization .
• All functions related to production are grouped together to form production department,
similarly other departments are formed on the basis of function.

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1)Departmentation by functions:
• Advantages
(1) It is simple and suitable for small organization which manufactures limited number of products.
(2) It promotes specialization.
(3) It leads to improve planning and control of key functions.
(4) Manpower and other resources of the company are effectively used.
• Drawbacks
(1) It fosters sub-goal loyalty. Department goal becomes important than organizational goal resulting into
interdepartmental conflicts.
(2) Difficult to set up specific accountability and profit centers within functional departments with the result
that performance cannot be accurately measured.
(3) It does not offer a good training for overall development of a manager.

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2)Departmentation by product:
• This form is suited for a large organization manufacturing verity of products.
• All activities related to a particular product line may be grouped together under the
direction of a semiautonomous division manager.
• Several companies such as Godrej, TATA have product based departments.

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2)Departmentation by products:
• Advantages
(1) It focuses individual attention on each product line.
(2) It leads to specialization of physical facilities on the basis of product which results in
economy.
(3) It is easier to evaluate and compare the performance of various product division and it
enables the top management to invest more in profitable product groups.
• Drawbacks
(1) This form results in duplication of staff.
(2) Extra expenditure is incurred in maintaining a sales force for each product.
(3) Employment of a large number of managerial personnel is required.

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3)Departmentation by customers:
• This is used in the enterprises engaged in providing specialized services to different
classes of customers.
• Management groups the activities on the basis of customers to cater to the requirements
of clearly defined customer groups.
• For example, an automobile service company may organize its departments as heavy
vehicles servicing division, car servicing division and scooter servicing division
• Similarly an educational institute may have departments for regular courses, evening
and corresponding courses etc.

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4)Departmentation by territory:
• Under this classification, the market area is broken up into sales territories and a responsible
executive is put in-charge of each territory.
• The territory may be known as district, division or region.
• The field salesmen under respective regions report to their corresponding sales supervisors.
• Banks, Railways and big manufacturing companies like petroleum companies are some example for
this.
• Advantages
1) Places responsibility at lower level.
2) Ensures a better coordination with in a region.
3) Provides region wise comparison of performance.
4) Takes advantage of economics of local operations.
• Disadvantage
1) Requires more person with general manager abilities.
2) Requires to maintain similar functional people at all region.
3) Difficult to control from top management.
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4)Departmentation by territory:

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5)Departmentation by Process:
• Departmentation here, is done on the basis of several discrete process or technologies
involved in the manufacture of a product.
• For example, a vegetable oil company may have separate departments for crushing,
refining and finishing.
• A textile mill may have departments for ginning, spinning, weaving and dyeing.
• Departmentation by process is useful when production or service delivery involves
sequential stages of work, ensuring efficiency and specialization, but it may create
coordination and flexibility issues.

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6)Departmentation by Time:
• One of oldest forms of departmentation, generally used at lower level of an organisation.
• It is grouping of activities on the basis of time.
• The use of shifts is common in some organistions due to economical or technological reasons.
• For service organisation like hospital, fire department, security round the clock work is essential.
• All these call for shift work is essential.
Advantages:
1) Service can be rendered, that goes beyond the normal 8 hour shift.
2) Facilities use of processes that cannot be stopped or interrupted.
3) Expensive capital equipment can be better utilized.
4) High and continuous production per day.
Disadvantages:
1) Lacks good and efficient supervision during night shift.
2) Lack of effective coordination and communication from people of one shift to next shift.
3) Inconvenient for people to work in night shifts and more difficult during shifts changes from
day to night.
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 Committee Organization
• Some of the administrative tasks cannot be performed by a single person alone.
• Such situation may call for two or more person to perform such tasks. This calls for a committee
organization.
• “A committee is a group of persons performing a group task with the object of solving certain
problems”.
• Committees help in taking corrective decision, coordinating the affairs of different departments and
meeting communication requirements in the organization.
• The committees may be of different types as follows.
1)Ad-hoc committee: It is a temporary committee formed for a short period to solve a minor
problem.
• For eg: a committee to decide the date and venue of annual general body meeting.
2)Standing or Permanent committee: Such committees is formed to solve problems which is
repetitive in nature.
• Eg: Disciplinary committee to solve discipline related issues of individual workers from time to
time.
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Committee Organization
3)Advisory committee: This committee studies the various aspects of a problem and
suggests courses of action to the management thus reducing its burden. An advisory
committee does not have power to act.
• For eg: a committee in a manufacturing industry studying the feasibility in going for
modernization of the plant.
4)Educational committee: This is a committee which guards the company policies and
procedures. They often educate and give an insight to the management about the goals of the
organization whenever there is confusion.
5)Executive Committee: An Executive Committee is a smaller group within a larger
organization, typically composed of senior leaders or board members, responsible for
making key decisions and ordering its execution. The committee ensures that strategies and
policies are implemented effectively and efficiently.

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Committee Organization
Characteristics of a committee
1. The number of members in a committee should be a minimum( 3 to 8).
2. An agenda has to be prepared by the chairman of the committee well in advance of
meeting and circulated among the members so that they get sufficient time to think over
the problem to be discussed.
3. The duties, authority and responsibility of the committee must be clearly defined.
4. The chairman must have enough authority to efficiently conduct the meeting.
5. Problems which can be solved by individuals should not be included in the agenda of the
committee.
6. Committee should draw members from all the departments that are likely to be affected.
7. Committee meeting should begin and end on fixed time.

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Committee Organization
• Advantages
(1) Committees provide a forum for the pooling of knowledge and experience of many
persons of different skills, ages and backgrounds.
(2) It helps in throwing up new ideas, innovation and new schemes.
(3) Committees are impersonal in action and hence their decisions are generally unbiased
and are based on facts.
(4) When departmental heads are members of committee, people get an opportunity to
understand each others problems and hence improve coordination.
• Disadvantages
1) Sometimes a committee may take a week or two to arrive at a decision.
2) In a committee, no individual can be held responsible for anything.
3) Final decision may not be fully acceptable to everyone on the committee.
4) Very often aggressive members in the committee may influence the final decision.
5) Committee meeting get postponed often when key members are absent.
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SPAN OF CONTROL
• The span of control 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.
• Span of management is important because of two reasons.
• First is span of management affects the efficient utilization of managers and the effective
performance of the subordinates.
• If the span is too wide, managers are overburdened and subordinates receive little guidance.
• If the span of management is too narrow, the managers are under utilized and subordinates are over
controlled.
• 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.
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SPAN OF CONTROL

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SPAN OF CONTROL
• Factors Affecting the Span of Management
(1) Ability of the manager: Some managers are more capable than others and hence can
handle a large number of subordinates.
(2) 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.
(3) 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.
(4)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.
(5) Well-defined authority and responsibility: Clear-cut authority and responsibility helps a
manager to supervise large number of subordinates.
(6) 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.

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SPAN OF CONTROL
• Advantage of a narrow span of control are
1. Tight control and close supervision of work are possible.
2. Personal attention can be given to the overall development of each worker.
3. Availability of time to think and act.

Advantage of a wider span of control are

1. Organization structure can be made simpler if more workers come under each manager.
2. Saving salaries because less number of manager.
3. Absence of over-supervision of worker.

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SPAN OF CONTROL
• Disadvantage of a narrow span of control are
1. Superior too much involved in subordinates work.
2. High cost due to many levels of management.
3. Excessive distance between lower level and top level.

Disadvantage of a wider span of control are

1. Tendency of overloading superior becomes decision bottle necks
2. Danger of superior’s loss of control.
3. Requires managers with exceptional qualities.

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STAFFING
• Staffing is wider, it includes recruitment plus training, development, appraisal, and maintaining employees.
• “Staffing is the process of attracting and developing human resources to work for an organization and also to
evaluate them in their work”.
• It is now recognized as a separate management function.
• Today the staffing function has assumed greater importance because of rapid advancement of technology,
increasing the size of the organization and complex behavior of human beings.
• The organization structure spells out various positions of the organization.
• Filling and keeping these positions with right people is the staffing phase of the management function.
• Steps in Staffing:
1. Manpower Planning – Estimating how many employees and what kind of skills are needed.
2. Recruitment – Attracting potential candidates.
3. Selection – Choosing the right person for the job.
4. Placement & Orientation – Giving the right position and introducing the employee to the organization.
5. Training & Development – Improving employee skills and knowledge.
6. Performance Appraisal – Evaluating employee performance.
7. Compensation – Deciding salaries, wages, incentives, and rewards.
8. Promotion & Transfer – Moving employees to higher or different positions.
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STAFFING
• In any organizations have separate department known as personnel department or human resource
(HR Dept.) department to perform staffing function.
• They are all time involved in determining what personnel are needed in what quantity and of what
quality.
• Staffing is a development oriented function as it tries to maintain and develop employees through
appropriate training and compensation program.
• Nature or features of staffing
(1) Staffing is a continuous process:
Staffing is a continuous process because the employees leave the organisation for a number of
reasons. Also to meet the need of an organisation, fresh recruitment has to be done from time to
time.
(2) Staffing involves people:
Staffing involves people and hence it is the most difficult job. Russi Mody once admitted that
among 5 M’s of the management( men,money, material, machines and methods) , Men who are
the most difficult to handle.
(3) Staffing is development oriented.
It aims at developing and orienting people to the needs of the company through appropriate
training programs.
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STAFFING
• Nature or features of staffing
(4) Staffing involves multidisciplinary knowledge.
Staffing as a function makes use of information drawn from various branches of
knowledge such as psychology, sociology, economics etc.
(5) Staffing is step by step process.
Staffing has to be done in step by step process in order to be meaningful. It takes time and
immense patience on the part of people involved in staffing.
Various steps involved in staffing are human resource planning, recruitment, selection,
placement, training, and development, remuneration, performance appraisal, promotion,
transfer, retirement etc

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RECRUITMENT
• “The word Recruitment means the process of finding, attracting, and selecting suitable
candidates to fill job positions in an organization.”.
• It is a linking activity that brings together those offering jobs and those seeking jobs.
• Recruitment enables management to select suitable employees for its different job.
• The various sources of recruitment are divided into two categories:
(1) Internal Sources.
(2) External Sources.

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RECRUITMENT
Internal Sources.
• Internal sources involve transfer and promotion.
• Transfer involves the shifting of an employee from one job to another.
• Many companies follow the practice of filling higher jobs by promoting employees who are
considered fit for such positions.
• Filling higher positions by promotion motivates employees.
Advantage of recruitment from Internal Sources.
1) It provide them to develop financially.
2)Employees from within the organization adjust to new positions much faster than employees
from outside.
3) This method is less time consuming and less expensive.
4) It encourages employees to work harder in order to attract promotions and generates higher
motivation
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RECRUITMENT
Disadvantage of recruitment from Internal Sources.
1) It may not be possible to find the required talent, skill from within the
organization.
2) There may be a limited choice for promotion.
3) No chance for new ideas and talents to flow into the organisation.
4) Employees who are not successful in getting promoted get de motivated.

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RECRUITMENT
(2) External Sources
(1) 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.
(2) Voluntary or walk in applicant: Many qualified persons apply for employment to reputed
companies on their own initiative.
(3) Advertising: Advertisement in newspapers, employment news, trade and professional
journals, internet etc., help to get prospective employees having suitable skills and
qualification.
• This helps in informing the candidates spread over different parts of the country.
• The advertisement contains information about the company, job description, and job
specialization etc.
(4) Labour unions: Labour unions also supply workers to the factory for employment. This
method of employment has also lost its popularity.

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RECRUITMENT
(2) External Sources
(5) Employment agencies: Many organisations these days entrust their manpower requirements
to private agencies devoted to recruitment thus saving vital time effort.
(6)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 background is
known.
(7) Campus interview: Many industries visit engineering colleges, polytechnics and other
institution to conduct campus interviews in order to recruit fresh employees.

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SELECTION
• Selection is the process of evaluating and choosing the most suitable candidate from the
pool of applicants generated by recruitment.
• Selection of candidates start after the completion of the recruitment process.
• Selection is the process of picking out few suitable persons from large number who have
applied for the job and thus eliminating the rest.
• The process of selection leads to employment of persons having the ability and
qualifications to perform the jobs which have fallen vacant in an organization.
• In order to achieve this purpose, a well, organized selection procedure involves many steps
and at each step more and more information is obtained about the candidates.

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SELECTION
• Steps involved in selection procedure are
(1) Receipt of applications/Screening of applications:
• Whenever there is vacancy, it is advertised or enquires are made from suitable sources and applications in
standard form are received from the candidates.
• The applications give preliminary idea of the candidates like family background , age , qualifications,
experience etc.,
• Standard forms make the application processing very easy.
• Candidates who do not posses the required qualification are eliminated and others are called for preliminary
interview.
(2) Preliminary interview
• The purpose of preliminary interview is to eliminate unfit, unqualified and less qualified applicants.
• Preliminary interview are brief and give a general idea about candidates education, experience, appearance,
personality and salary requirement of the candidate.

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SELECTION
• Steps involved in selection procedure are
(3) Employment Tests/aptitude tests:
• Candidates who pass the preliminary interview are asked to appear for selection tests.
• Tests are conduct to measure the skills and abilities of candidates in detail.
(1) Proficiency tests: To measure the knowledge and proficiency in the areas already claimed in the application form.
(2) Aptitude tests: Aptitude tests consists of
(a) Intelligence test
(b) Attitude test
(c) Interest test
(3) Personality test: To check candidates balance in thoughts, spontaneity, ability to meet stressful situation etc
(4) Group Discussion
• In this test, candidates are assembled in small groups and general topic of current interest is given for discussion.
• This test gives an idea about candidates communication skills, general awareness, ability to contribute in team and
ability to command the attention of others and so on.

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SELECTION
(5) Final interview
The employment tests do not provide the complete set of information about the candidate.
• Interview may be used to secure more information about the candidate.
• The main purpose of interview is to find out the suitability of the candidate, to seek more information about the
candidate, to give an accurate picture of the job with details of terms and conditions.
• In addition, interview help to check the information given by the applicant in the application and to assess the
capability and personality of the applicant.
(6) Checking references.
• This is one of the last steps before candidate is offered a job in the organisation.
• An investigation is made on the reference given by candidates regarding his past employment, education, character,
personal reputation etc
(7) Medical examination.
• A thorough medical check up of candidate is carried out prior to placement.
(8)Final selection:
• After a candidate has cleared all the hurdles in the selection procedure, he is formally appointed by issuing him an
appointment letter or by concluding with him a service agreement.
• The appointment letter contains the terms and conditions of employment, pay scale and other benefits associated
with the job.
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 AUTHORITY AND RESPONSIBILITY
• Authority is the right to give orders, make decisions, and enforce obedience.
• It is the power formally granted to a manager or superior to direct the activities of
subordinates.
• According to Henri Fayol authority is defined as “The right to give order and compel his
subordinates to perform certain task”
• The term authority refers to the rights conferred on a person to order his subordinates.
• In an organisation, appropriate authority is given to a particular person on his position on
hierarchy.
• Each manager is given degree of authority in order to meet his responsibilities.
• Example: A production manager has the authority to assign work to machine
operators.

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RESPONSIBILITY
• Just an authority is the right of a superior to issue commands; responsibility is the obligation of a
subordinate to obey those commands.
• When a superior assigns some work to subordinates, it becomes his responsibility to perform it.
• Responsibility is divided into two parts namely operating responsibility and ultimate responsibility.
• The subordinates assumes only operating responsibility and superior retains ultimate responsibility.
• If the subordinate fails to perform the job (operating responsibilities) the superior is held responsible for
this failure (Ultimate responsibility)
• Responsibility may be specific or continuing.
• It is specific when on being discharged by a subordinate, it does not arise again.
• The responsibility of a foreman is continuing nature.
• The more authority a person gets, the more responsibility he will have to carry.
• Authority should equal responsibility.
• Example: If a worker is assigned to complete 50 units in a day, he is responsible for fulfilling that
task.
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DELEGATION OF AUTHORITY
• Delegation of authority means entrusting part of a manager’s authority to subordinates, while still
being accountable for the overall result.
• A manager in an enterprise cannot do all the tasks necessary for the accomplishment of group
goals.
• He therefore assigns same part of his work to his subordinates and grants them necessary authority
to make decisions.
• This downward pushing of authority to make decisions is known as “delegation of authority”.
• The delegating manager always retains the overall authority which was assigned to him to perform
his functions.
• Advantages of delegation of authority.
(1) It relieves the manager of his heavy work load.
(2) It leads to better decision. This is because, the subordinates are closest to the situation and have
the best view of the facts, are in better positions to make decision.
(3) It speeds up decision-making.
(4) It helps to train the subordinates and builds moral.

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 Authority Responsibility

Authority refers to the power to command Responsibility refers to accountability for

actions.

Authority comes with the position in Responsibility matches the authority

organisation. conferred on any position

Authority can be delegated Responsibility can never be delegated.

Authority is the right to give order and Responsibility may be defined as the
power to take obedience. obligation to perform assigned duties.

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CENTRALIZATION AND DECENTRALIZATION
• Centralization means decision-making authority is concentrated at the top levels of management.
• Lower-level managers and employees have little freedom to take decisions.
• Example: In a small family business, all major decisions (purchases, hiring, budgeting) are
taken only by the owner.
• Decentralization means decision-making authority is distributed to lower levels of management.
• Subordinates get more freedom and responsibility to act.
• Example: In large companies like Tata or Infosys, department heads and branch managers
make many independent decisions.
• In decentralized setup, ultimate authority to command and ultimate responsibility for the results is
localized as far down in the organization.
• According to Allen “Decentralization refers to the systematic effort to delegate to the lower levels
all authority except that which can only be exercised at central points”.

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CENTRALIZATION AND DECENTRALIZATION
• Advantages in decentralization:
(1) It eases the burden of top level managers.
(2) Decentralization permits quicker and better decision making.
(3) With decentralization capable managers can be developed
(4) Promotes participation in decision making and improves morale and motivation.
• Disadvantages of decentralization:
(1) It increases administrative expenses.
(2) It may create problems in bringing coordination among various units.
(3) It may bring about inconsistencies in the company, because uniform procedures may
not be followed for the same type of work in various divisions.

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Centralization De centralization

1)Centralization is preferred if Decentralization is preferred if

experience is concentrated at the top experience is spread over the hierarchy.
level

2)This is more stable in simple and This is more appropriate in complex and
stable organisation uncertain organisation

3)This is preferred if the lower level This is preferred if the lower level
managers are not competent enough to managers are competent to take decision.
take decision.
4)Centralization is needed if the decision It is better if the decisions taken are
to be taken are significant insignificant and relatively minor ones.

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Centralization De centralization

5)Organisation tends to be centralized Organisation tend to be de centralized

if the environment is threatening and if environment is free and friendly
distrustful

6)Centralization is better in single Decentralization is better in multi

location facilities. location facilities.

7)If the minds of top management is If the minds of top management is

more autocratic, it leads to more more democratic, it leads to more
centralization. decentralization.

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 Questions
[Link] the departmentalisation based on functions with its and demerits. (6marks), dec/jan 2015
2. Explain the advantages of delegation of authority. (6marks), dec/jan 2015
3. Explain the various sources of recruitment. (8marks), dec/jan 2015
[Link] does organization mean? Explain any four types of organizations. (10marks), june/july 2014
5. Discuss the meaning, importance and factors governing the span of management. (10marks), june/july 2014
6. Briefly explain the principles of organization. (10Marks)
7. Determine the process of selection and recruitment process. (10Marks)
8. Briefly Explain the Departmentation. (10Marks)
9. Classify the types of organization. (10Marks)
10. Explain the Following (10Marks)
i) Centralization Vs Decentralization
ii) Span of control

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DIRECTING AND CONTROLLING
DEFINITION OF DIRECTING
• Directing is the managerial function of instructing, guiding, inspiring, and overseeing
employees to ensure that the organization’s objectives are achieved effectively and
efficiently.
• Directing is defined as telling people what to do and seeing that they do it for the best of
their ability.
• Directing is that function through which managers gets the work done from others.
• Elements of Directing
• Supervision – Overseeing subordinates to ensure they perform as expected.
• Motivation – Encouraging employees through financial and non-financial incentives.
• Leadership – Influencing people and creating enthusiasm to work towards common goals.
• Communication – Exchanging information effectively between managers and employees.

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LEADERSHIP
Leadership is the art of influencing and guiding individuals or groups to achieve common
goals. It is not limited to giving orders but involves motivating, inspiring, and directing
people toward success.
Leadership = Guiding + Motivating + Influencing people toward goals.

Thus most important features of leadership are:

Influence-based – Leadership relies on influence, not authority alone.
Goal-oriented – Directs efforts toward achieving objectives.
Interpersonal process – Involves interaction between leader and followers.
Continuous process – Leadership is ongoing, not one-time.
Situational – Different situations call for different leadership styles.

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Importance of Leadership
• Leadership is the most important component of managing process.
• A manager can be efficient and effective only if he is a good leader.
a. Leaders guide and inspire subordinates:
Leaders motivate their followers and guide them towards accomplishment of group goals
which inturn contributes to the accomplishment of organizational goals.
b. Leaders build good work environment: Leaders create a work environment in which
employees can contribute by performing to the best of their abilities. The environment creates a
relationship based on trust.
e. Leaders build confidence in followers: Leaders recognize abilities of their followers and
encourage them to develop to their potential by building confidence in them.
d. Leaders secure cooperation from the group:
Leaders influences the group members in such a way that all the members work collectively
towards group objectives and thus instill cooperation among all members.
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Importance of Leadership
e. Leaders act as change agents:
Organizations operate in an environment which is subjected to continuous changes, and if
the organizations do not respond to these changes, then survival of the organizations may be
difficult.
But organizational members resist any changes, as they are accustomed to particular
methods of work.
It requires great leadership to reduce the resistance to change and convince the employees
to accept the change.
 Thus leaders act as change agents of the organization and helps in implementing successful
positive changes in the organization.
f. Leaders are representatives of the followers: On one hand leaders direct the employees
of the organization, but on the other hand they are also representatives of their followers.
They always take personal interest in helping their followers and protect the interests of the
followers while taking any major organizational decisions.
g. Leaders develop great vision: Leaders are known for their great vision and they develop
the vision for building great organizations.

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Styles of Leadership
There are three basic styles of leadership:
• Autocratic
• Participative
• Free rein

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 Autocratic Leadership
• Autocratic leaders assume people don’t like to work, that they avoid responsibility, and
that they have to be watched all the time.
• Autocratic leaders usually control their workers through fear and intimidation.
• The biggest problem with autocratic leaders is that people don’t like to work for them.
• An autocratic leader is useful in situations where it’s important to obey orders without
question.
• An autocratic style rarely works in a business setting.

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Participative Leadership
• Participative leadership means that managers and employees work together
to make decisions.
• A participative leader assumes that people are not lazy and want to work.
• By showing your workers you have confidence in them, they are more likely
to have confidence in you.
• The reasons for a leader to delegate are:
• You don’t have the time to run everything yourself.
• You can focus on more important work.

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Free-Rein Leadership
Free-rein leadership requires the leader to set goals for managers and employees and then
leave them alone to get the job done.
Another name for this type of leadership style is hands-off leadership.
Giving managers and employees the power to run things and make decisions is called
delegating.
The reasons for a leader to delegate are:
• You don’t have the time to run everything yourself.
• You can focus on more important work.
• It gets your employees more involved.
• It gives your employees a chance to develop their own potential.

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MOTIVATION
• Motivation is the process of stimulating people to action to accomplish desired goals.
• Motivation represents inner drive within an individual which directs him to behave in specific
way.
• Only highly motivated employees can achieve the goals of an organization.
• Motivation is also defined as the one which accounts for direction, intensity and persistence of
efforts towards achievement of goal.
• Direction refers to quality of efforts, and if efforts are not channelized in proper direction they
may not yield expected results.
• Intensity of efforts refers to how hard an individual puts efforts.
• Persistence refers to sustenance of efforts till the achievement of goals.
• Motivated individuals put same intensity of efforts till they achieve the goals.

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MASLOW’S NEED-HIERARCHY THEORY

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• Herzberg’s two-factor theory
• A model that divides motivational forces into satisfiers (“motivators”) and
dissatisfiers (“hygiene factors”)

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Importance of Motivation
• Highly motivated workforce is absolutely essential for any organization to achieve its
objectives.
• Management basically aims at optimum utilization of various resources of the
organization.
• These resources are human resources, financial resources, and physical resources like
materials, tools, machines, equipment's etc.
• All these resources are very precious and they cannot be wasted.
• Use of financial and physical resources always depends on human resources and thus
only motivated employees can effectively convert financial and physical resources into
useful products and services.
• Motivation results in desirable behaviour of employees.
• These behaviours are essential for implementation of organizational plans successfully.

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 COMMUNICATION
• Communication is the process of exchanging ideas, thoughts, information, or messages
between individuals or groups to achieve mutual understanding.
• It can be verbal, non-verbal, written, or visual.
• Derived from the Latin word “communicare” meaning “to share”.
COMMUNICATION
• Types of Communication
• Formal Communication
• Formal communication is officially accepted communication in the organization and it uses
official channel for transmitting messages.
• It follows official route for flow of communication between various people in the organization.
• Commands, instruction, orders flowing from top level to lower level, messages for coordination
between people at same level, suggestions from people at different levels, requisitions from
lower level to higher level etc represent formal communication.
• Informal Communication
• Informal communication is that communication which is not officially accepted part of the
communication in an organization.
• It does not adhere to the organizational hierarchy. Informal communication is based on the
informal relationship among the organizational members.

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Types of Communication
Oral and Written Communication
• Oral communication is face to face interpersonal communication between individuals.
• Message is exchanged through word of mouth i.e. it is exchanged through spoken words.
• Written communication is transmitted through written document in the form of letters, circulars, memos, reports,
manuals etc.
• It is the most popular mode of formal communication and it is very widely used.
• It creates a permanent and verifiable document which serves as proof for communication process.
Merits of oral communication .
• It is very quick and saves time.
• Direct contact establishes personal touch and hence it is more effective.
• Message can be transmitted to large number of people at the same time (through speech).
• Easy to understand and scope for immediate feedback.
• Chances of misinterpretation are minimum.
Demerits :
There is no recorded proof for message and hence fixing responsibility for both sender and receiver is
difficult.
Keeping attention of receiver is difficult when messages are lengthy. . Requires good oratory skills.
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 Types of Communication
• Non Verbal Communication or Body Language
• Non verbal communication refers to messages sent through human actions and behaviours rather than
words.
• We generally use body language in the form of facial expressions,
• Body positions, gestures, eye contact, posture, silence, etc to convey different messages.
• Body language is also a very powerful in conveying messages.
• Research has proved that non verbal cues are more impact on message interpretation than actual
spoken words.
• Vertical and Horizontal Communication
• Communication is said be vertical when messages flow from one hierarchy level to another.
• Vertical communication can be downward or upward.
• Downward communication starts from top management and flows down to lower level through
different hierarchy levels.
• Downward communication is used to give orders, instructions, inform procedures, inform
organization goals etc.
• Job instruction sheets, circulars, memos, orders, etc are examples for downward communication.

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Types of Communication
• Vertical and Horizontal Communication
• Upwards communication flows from lower level to top management and it provides top management
information about what is happening at lower levels.
• But upward communication is used more when managers use open door policy and encourage
subordinates to share information.
• Examples for upward communication include requests, applications, reports, suggestions etc.
• Horizontal communication refers to exchange of information between two people at same hierarchy level
or peer level.
• For example information exchanged between two departmental heads of an organization, a production
engineer informing a maintenance engineer about breakdown of a machine etc.
• It is also called as lateral communication.

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COORDINATION
• Definition: Coordination is the process of integrating the activities of different
departments, people, and resources to achieve the common organizational goal smoothly.
• It ensures unity of action.
• Coordination is the process of integration or synchronization of the interdepartmental
efforts of individuals in order to attain common goals.
• For example coordination between various departments like production, marketing,
purchase, quality, human resource management, finance etc are very important for smooth
functioning of the organization.
• Coordination helps in unifying efforts of all these departments and achieving the common
organizational objectives.
• Need of Coordination
• Organizations 'are made up of various units and departments, which are interdependent.
• The splitting of work into smaller and smaller units through division of work creates the
need for coordination among many individuals who need to complete the full task.

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Requirements of Good Coordination
Good coordination requires the following important prerequisites.
• Direct personal contact between individuals who are responsible for task completion improves
coordination.
• Direct personal contact eliminates any misunderstanding among individuals.
• Mutual consultation and joint planning ensures better support for each other and commitment for
common goals.
• Defining clear objectives ensures clarity of role and responsibility among individuals resulting in better
coordination.
• Clear definition of authority and responsibility of individuals eliminates any ambiguities among
individuals.
• Effective communication ensures harmonious among different departments.
• Effective leadership ensures coordination among groups and individuals since an effective leader
creates a sense of shared vision among them.

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• Features
[Link] group efforts – Brings different activities together.
[Link] unity of action – Everyone works toward the same goal.
[Link] process – Needed at every level and stage.
[Link] – Exists at all levels (top, middle, lower).
[Link] of manager – Every manager ensures coordination.
CONTROLLING
• Controlling is defined as the process of measuring the actual work and comparing it with a
predetermined standard in order to determine any deviation so that timely corrective actions are taken
and tasks are completed as per original plans.
• Controlling is defined as the continuous function of determining what is being performed, measuring its
actual results in relation with predetermined objectives and devising such corrective measures that may
be necessary to make the performance conform to the original plans.
• Need for Control System
• To ensure effectiveness and efficiency in all management functions.
• To determine what is happening in the organization and measure actual progress from time to time.
• To ensure effective communication between various units of organization.
• To keep a check on resource utilization.
• To reframe organizational plans in relation to changes in the environment.
• To detect any deviation and take timely corrective actions.
• To ensure that all the activities are performed according to predetermined plans.

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Benefits of Control

• Improves efficiency and effectiveness

• Enhances decision-making through timely information
• Reduces risks and uncertainties
• Promotes accountability and transparency
• Aids in goal achievement by aligning individual efforts with
organizational goals
 Essentials of an Effective Control System

1. Accuracy – Information must be correct and reliable

2. Timeliness – Control should be quick to detect deviations
3. Flexibility – Adaptable to changing circumstances
4. Objectivity – Based on clear standards and facts
5. Simplicity – Easy to understand and operate
6. Cost-effectiveness – Control should not be more expensive than the benefits it
provides
Questions:
1. What is leadership? Explain. 4marks, june/july 2014
2. Discuss the characteristics of motivation. 6marks, june/july 2014
3. Define co-ordination .what are its characteristics?
5marks, june/july 2014
4. Differentiate between coordination and co-operation.5marks, june/july 2014
5. Describe the Maslow’s need- hierarchy theory of motivation.
8marks, dec/jan 2015
6. Explain any three techniques of co-ordiantion. 6marks, dec/jan 2015
7. Describe any three essential factors of effective control system.
6marks, dec/jan 2015

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