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Module2
DirectingandControlling
DIRECTINGMEANING
Direction is a vital managerial function, performed by every manager. Whenever decision
istaken, it must be converted into action by proper implementation. Otherwise, it is of no
[Link] implementation of a decision is made possible by directions. Planning,
organizingand staffing are concerned only with the preparation for work performance and it is
thedirection which stimulates the organization and its staff to execute the plans. Hence, it is
alsocalled „management-in-action‟. Every manager gives direction to his subordinates as
superiorandreceivesdirectionsassubordinatefromhissuperior.
Direction may be defined as a function of management which is related with
instructing,guiding and inspiring human factor in the organization to achieve organizational
mission andobjectives.
“Directionisacomplexfunctionthatincludesallthoseactivitieswhicharedesigned to
encourage subordinates to work effectively and efficiently in both the shortandlong
term”.
“Directing consists of the process and techniques utilized in issuing instructions
andmakingcertainthatoperationscarriedonoforiginallyplanned”.

Theprocessofdirectingfunctioninvolvesthefollowingfourelements
1. Leading: It refers to an art of transferring facts, ideas, feeling, etc. from one person
[Link]
boutwhattodo,howtodo,andwhentodovariousthings.
2. Communicating:[Link]
[Link]
throughthisquality,amanagercaninculcatetrustandzealamonghissubordinates.
3. Motivating: It refers to that process which excites people to work for attainment of
thedesired objective. Among the various factors of production, it is only the human
factorwhichisdynamicandprovidesmobilitytootherphysicalresources.
4. Supervision: This refers to the guidance and control of subordinates in the performance
[Link]
ssuresthattheworkisbeingdoneinaccordancewiththeplansandinstructions.

NATUREORCHARACTERISTICSOFDIRECTION
1. It is a Dynamic Function: Directing is a dynamic and continuing function. A manager
hastocontinuouslydirect,guide,[Link]
anizationalrelationships,hewillhavetochangethemethodsandtechniquestodirection.
2. It Initiates Action: Directing initiates organized and planned action and ensures
[Link]
dedasthe essenceofmanagement-in-action.
3. It is a Universal Function: Directing is a universal function that is performed in
allorganizations and at all the levels of management. All managers have to guide,
motivate,lead, supervise and communicate with their subordinates, although more time is
spent ondirectingathigherlevelsofmanagement.
4. It Provides Necessary Link between Various Managerial Functions: Directing links
thevarious managerial functions of planning, organizing, staffing and controlling.
Withoutdirecting the function of controlling will never arise and the other preparatory
functions ofmanagementwillbecomemeaningless.

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5. It is concerned with Human Relationships: The direction function of management

dealswith relationship between people working in an organization. It creates cooperation
andharmony among the members of the group. It seeks to achieve orderly arrangement
ofgroupefforttoprovideunityofactioninthepursuitofcommonobjectives.

PrinciplesofDirecting
Whiledirectingamanagershouldunderstandtheneeds,motivesandattitudesofhissubordina
[Link].

1. Harmonyofobjectives:[Link]
[Link]
egratetheirobjectiveswithorganizationalobjectives.
2. Unity of direction or command: An employee should receive orders and instructions
onlyfrom one superior. If not so, there may be indiscipline and confusion among
subordinatesanddisorderwillensue.
3. Directsupervision:[Link]
face communication and personal touch with the subordinates will ensure
successfuldirection.
4. Effective communication: The superior must ensure that plans, policies,
responsibilitiesandordersarefullyunderstoodbythesubordinatesintheright direction.
5. Follow through: Direction is a continuous process. Mere issuing orders or instructions
[Link],sothemanagementshouldwatchwhethersubordinates
follow the orders and whether they face difficulties in carrying out the
ordersorinstructions.

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Module2
LeadershipandLeadershipStyles
LEADERSHIPANDLEADERSHIPSTYLES
Leadership
Leadership is generally defined as influence, the art of process of influencing people so
thatthey will strive willingly towards the achievement of group goals. A leader is one who
guidesand directs other people. Leadership is the ability to secure desirable actions from a
group orfollowers voluntarily without the use of coercion. A clear distinction can be made
between aleader and a manager. A leader emerges out from situations where as a manager is
put into hisposition by appointment. A leader has informal power and a manager has formal
power. Aleader seeks those very objectives which are the objectives of his subordinates
where as amangerseeksthoseobjectiveswhichhissubordinatesdonotregardtheirown.
Theleaderswhileinfluencingthesubordinatesperformthefollowingfunctions:
1. Taking initiative: A leader has to take all initiative to lead the business activities.
[Link]
erisinitiator.
2. Guide:Aleaderhastheprimarydutyofguidingothersbycommunicatinginstructionsandorders.
3. Representation:Aleaderisarepresentativeoftheorganization.
4. Encouragingothers:[Link]
[Link].
5. Arbitratorandmediator:[Link]
on,hehastosettledisputesarisingamongemployees.
6. Planner:Aleadermakesdecisionsconcerningthewaysandmeansbywhichtheorganizationalg
oalscanbeachieved.
7. Administratorofrewardsandpunishments:Leadersencourage,upgrade,promotedeservingp
eopleandreprove,transferandfineinefficientworkers.

DifferencebetweenManagerandLeader:

Leader Manager
Amanagerisalwaysputintohispositionby
Apersonemergesasaleader.
appointment.
Aleadermayormaynothavepositionalpo Amanageralwayshassomepositionalpo
wer. wer.
Amangermayormaynothavepersonal
Aleaderalwayshassomepersonalpower.
power.
Thereismutualityofobjectivebetweenleader Theremaybeclashofobjectivebetween
andfollowers. managerandfollowers.
Aleaderisinnovativeandbelievesindoing Amanagerisbureaucraticandbelievesin
rightthings. doingthingsright.

CharacteristicsofLeadership
Someimportantcharacteristicsofleadershipareasfollows.
1. Leadership implies the existence of followers: We appraise the quality of a
person'sleadership in practice by studying his followers. We ask: How many and what
kind
offollowersdoesbehave?Howstrongistheircommitmentasaresultofhisleadership?Howlong
willtheircommitmentlast?Byansweringquestionsofthisnatureweget10knowthequality of
leadership. We must not, however, forget that leaders within organizations
[Link],whoworksforadivisionmanager,
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[Link],informalorganizationsof
several levels, a leader has 10 be able to wear both bats gracefully, to be able to
relatehimselfbothupwardanddownward.
2. Leadership involves a community of interest between its leader and follower:In
otherwords, the Objectives of both the leader and his men are one and the same. If the
leaderstrivesforonepurposeandhisteamofworkersforsomeotherpurpose,[Link]
the words of G.R. Terry, "Leadership is the activity of influencing people to
strivewillinglyformutualobjectives”.
3. Leadershipinvolvesunequaldistributionofauthorityamongtheleaderandgroupmembers:
Leaderscan direct some of the ac1ivities of group members: thaI is the groupmembers lite
compelled or lite willing to obey most of the leader's directions. The groupmembers
cannot similarly direct the leader's activities, though they will obviously
affectthoseactivitiesinanumber ofways.
4. Leadership implies that leaders can influence their followers or subordinators to
beingable to give their followers or subordinate legitimate directions: In other words,
leadersnot only tell their subordinates what to do by way of command but also influence
by theirbehaviour and conduct. The use of command by leaders succeeds only in bringing
about atemporary behavioural change in the followers. Permanent attitudinal change in
followerscomesthroughtheuseofinfluenceonly.

LeadershipStyles
Threeleadershipstyleswidelyused:
1. Traitsapproach
2. Behavioralapproach
3. Contingencyapproach

Traitsapproach:Traitisbasicallyacharacteranddealswithpersonalabilitiesandassumedtobe
God‟s gift and abilities Are identified as mental and physical energy, emotional
stability,knowledge of human relations, empathy, objectivity, personal motivation,
communicationskills,teachingability,socialskills,technicalcompetence,friendlinessandaffectio
n,integrityandfaith,intelligenceetc.
Traits approaches – Trait theories argue that leaders share a number of
commonpersonality traits and characteristics, and that leadership emerges from these traits.
Early traittheories promoted the idea that leadership is an innate, instinctive quality that you
either haveor don't have. Now we have moved on from this approach, and we're learning
more aboutwhat we can do as individuals to develop leadership qualities within ourselves and
[Link] are external behaviors that emerge from things going on within the leader's mind
– andit'stheseinternalbeliefsandprocessesthatareimportantforeffectiveleadership.

Behavioral approach: What does a good leader do? Behavioral theories focus on how
[Link]?Ordotheyinvolvethete
amindecisionstoencourageacceptanceandsupport.
Behaviouralapproachcanbeclassifiedas

1. Autocraticleadership:Anautocraticleaderisonewhodominatesanddriveshissubordinates
through coercion, command and the instilling of fear in his followers. Anautocratic leader
alone determines policies, plans and makes decisions. He demands strictobedience. Such
leaders love power and love to use it for promoting their own ends. Theynever like to
delegate their power for they fear that they may loose their authority. Themerits of this
type of leadership is that, it can increase efficiency, save time, and get
quickresultsunderemergencyconditions,[Link]
emeritsarepeoplearetreatedmachine-likecogswithouthumandignity,oneway

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communicationwithoutfeedbackandtheleaderreceiveslittleornoinputfromhissub-
ordinatesforhisdecision-makingwhichisdangerousinthecurrentdynamicenvironment.

2. Democratic leadership: This style of leadership is also known as participative

[Link] the name itself indicates, in this style, the entire group is involved in goal
setting andachieving it. A democratic leader follows the majority opinion as expressed by
his [Link] have considerable freedom of action. The leader shows greater
concern forhis people‟s interest, is friendly and helpful to them. He is always ready to
defend theirsubordinates individually and collectively. This type of leadership encourages
people
todevelopandgrow,receivesinformationandideasfromhissubordinatestomakedecisions,and
boosts the [Link] typeofleadershipare
(1) Some leaders may use this style as a way of avoiding responsibility, (2) Can
takeenormousamountoftimeformakingdecisions.

3. Free-rein: In this type of leadership, the leaders exercise absolutely no control. He

onlyprovides information, materials and facilities to his subordinates. This type of goals
andchart out the course of action. This type of leadership can be disaster if the leader does
notknow well the competence and integrity of his people and their ability to handle this
kindoffreedom.

Contingencyapproach:isasituationinfluencinggoodleadership.
Therealizationthatthereisn'tonecorrecttypeofleaderledtotheoriesthatthebestleadershipstyle is
contingent on, or depends on, the situation. These theories try topredict whichleadership style
is best in which circumstance. When a decision is needed fast, which style ispreferred? When
the leader needs the full support of the team, is there a better way to lead?Should a leader be
more people oriented or task oriented? These are all examples of
questionsthatcontingencyleadershiptheoriestryto address.

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Module 2
Motivation
MOTIVATION
A manager gets work done through others. Getting the work done depends mainly on
whethera person has been motivated to do it. Motivating an employee is to create a need and
a [Link]
responsibility and feeling of special interest in his work. Motivation concern itself with„will
to work‟. It is a behavioural concept by which a manager tries to understand why
peoplebehave as they do. Motivation is inspiring the subordinates to contribute with zeal
andenthusiasm towards organizational goals. Performance of an employee depends on
twofactors,[Link]
Performance=Ability×willingness
[Link]
anshowtheprocessofmotivationprocessbymeansofadiagram.

MotivationTheories

Therearesixofthemnamely
1) Maslow‟sneedhierarchytheory
2) Herzberg‟stwofactortheory
3) McClelland‟sachievementtheory
4) VictorVroom‟sExpectancytheory
5) Adamsequitytheory
6) Skinnersbehaviormodificationtheory

Maslow’sNeedHierarchyTheory
Every person has a variety of needs, some of these needs are satisfied and others
areunsatisfied. An unsatisfied need is the starting point in the motivation process. When a
personhas an unsatisfied need, he attempts to identify something that will satisfy the need.
This iscalled as goal. Once a goal has been identified, he takes action to reach that goal and
therebysatisfy the need. A.H. Maslow has identified five categories of need which are
arranged inhierarchyas shownin figure.

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1. Physiological needs: These are the basic needs for sustaining human life itself, such
asfood, water, shelter and sleep. Maslow took the position that until these needs are
satisfiedtothereasonabledegreenecessarytomaintainlife,otherneedswillnotmotivatepeople.
2. Security or safety needs: People want to be free of physical danger and of the fear
oflosingjob,propertyor shelter.
3. Socialneeds:Sincepeoplearesocialbeing,theyneedtobelong,tobeacceptedbyothers.
4. Esteem needs: Once people begin to satisfy their need to belonging, they tend to want
tobe held in esteem both by themselves and by others. This kind of need produces
suchsatisfactionaspower,prestigeandstatus.
5. Self-actualization needs: It is desire to become what one is capable of becoming
tomaximizeone‟spotentialandtoaccomplishsomething.

According to Maslow, people attempt to satisfy their physical need first. As long as
theneedsareunsatisfied,[Link],theyloosethe
irmotivationalpowerandthenextleveli.e.,securityneedsbecomesthedominantmotivationalforce.
Thisprocess continuesuptheneedhierarchy.

Merits:
1. Theoryhelpstoexplainwhyonemanbehavesdifferentlyfromanotherinasimilarsituation,andat
thesametimesuggestsomethingthatallmenhaveincommon.
2. The theory extendstoallareasof man‟slife insteadof being limited towork situationonly.

Demerits:
1. Thehierarchyofbasicneedsisnotalwaysfixed.
2. Itisdifficulttoknowabouttheneedsandmotivesofanindividualfromtheanalysisofbehavior.

Hertzberg’sTwoFactorsTheory
FredrickHertzbergandhisassociateshaveproposedatwofactorstheoryofmotivation. In
one group of needs are such things as company policy and administration,supervision,
working conditions, interpersonal relations, salary, job security and personal [Link] are
called as dis-satisfiers and not motivators. If they exist in a work environment,
[Link]-
satisfaction. Hertzberg called these factors as hygiene or maintenance factors. The
secondgroup he listed certain satisfiers and therefore motivators, which are related to job
[Link],recognition,challengingwork,advancementandgrowthinthejo
b.

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The first group of factors (the dissatisfies) will not motivate in the organization, yet they
mustbe present otherwise dissatisfaction will arise. The second group or the job content
factors arereal motivators because they have the potential of yielding a sense of satisfaction.
It meansmanagersmustgiveconsiderableattentiontoupgradingjobcontent.

McClelland’sNeedTheory
According to McClelland, the three important needs are; the need for achievement,
theneed for affiliation and the need for power. The need for affiliation reflects a desire to
interactsocially with people. A person with high need for affiliation is concerned about the
quality ofan important personal relationship. A person, who has a high need for power,
concentrates onobtaining and exercising power and authority. The person is concerned with
influencing
[Link]
[Link] getting
them done by others. If the needs of the employees can be accurately measured,organizations
can improve the selection and placement process. For example, an employeewith high need
for affiliation could be placed in a position that would enable the person toachieve. Thus, it is
important to identify the behaviors required to perform a set of taskseffectively, and then to
determine what individual characteristics are most associated withthesebehaviors.

Vroom’sExpectancyTheory
According to Victor H. Vroom, people‟s motivation towards doing anything will
bedeterminedbythevaluetheyplaceontheoutcomeoftheireffortmultipliedbytheconfidencethey
have that their efforts will materially aid in achieving a goal. Motivation is a product
ofanticipated worth that an individual places on a goal and the chances he or she sees
[Link]‟stheorymaybestatedas
Force=Valence×Expectancy
Where force is the strength of a person‟s motivation, valance is the strength of
anindividual performance for an outcome and expectancy is the probability that a
particularaction will lead to a desired outcome. When a person is indifferent about achieving
a certaingoal, valance is zero. Valance is negative when the person do not achieve goal. In
either
[Link],thereisnomotivationtoachieveagoalifexpectancyiszeroor
negative. The force exerted to do something depends on both valance and expectancy.
Amotive to accomplish some action is determined by the desire to accomplish something
[Link] example, a person may be willing to work hard to get out a product for a valance in
theformofpayvalance.

Adam’sEquityTheory
This theory points out that people are motivated to maintain fair relationship
betweentheir performance and reward in comparison to others. For the comparison of his
[Link]‟ssubjective
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judgements about the fairness of the reward he or she gets. In this theory equity is defined of
as a ratiobetween the individuals job inputs (such as effort, skill, experience, education and
skill)comparedtotherewardsothersarereceivingforsimilarjobinputs.

Person'sReward=OthersRewardP
ersonInput OthersInput

Ifpeoplefeelthatmany areinequitably rewarded, they may bedissatisfied,reducethequantity and

quality of work or leave the organization. They also can ask for a greater [Link] people
perceive the reward as equitable, they probably will continue at the same level ofoutput. If
people think the rewards are greater than what is considered equitable, they
[Link] figure.
In practice many overestimate their own contributions and the rewards other receive.
Certaininequalities may be tolerated for some time by employees. But prolonged feelings of
inequitymayresultinstrongreactions.

Skinner’sReinforcementTheory
Psychologist B.F. Skinner has developed another approach for motivation called
aspositive reinforcement or behaviour modification theory. According to his theory
individualscanbemotivated
byproperdesignoftheirworkenvironmentandpraisefortheirperformanceand that punishment for
poor performance produces negative results. They analyze worksituations to determine what
causes workers to act the way they do and then they initiatechanges to eliminate troublesome
areas and obstructions to performance. Specific goals arethen set with workers participation
and assistance, prompt and regular feedback is madeavailable, and performance
improvements are rewarded with recognition and praise. Evenwhen performance does not
equal goals, way are found to help people and praise them forgood things they do. It has also
been found highly useful and motivating to give people fullinformation on a company‟s
problems, especially those in which they are involved. Thistheory emphasizes removal of
obstructions to performance, careful planning and
organizing,controlthroughfeedback,andtheexpansionofcommunication.

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Module 2
Controlling
CONTROLLING
Controlling is defined as measuring and correcting activities of the people to ensure
thatplansarebeingrealized.
„Control‟ is an important concept and process in management. In the past managers
believedthat the necessity of control arose only when something went wrong. Then, the object
ofcontrol was to find out the person responsible for these events and take actions against
[Link] is only negative view of control. In modern management, the primary object of
control isto bring to light the mistakes or variations as soon as they appear between
performance andstandard laid down and then to take steps to prevent such variations in
future. The control isaimedat resultsandnotpeopleas [Link]
[Link]
ontinuouscontrol(andnotoccasionalandemergencycontrol)canachievetheobjective.
According to E F L Brech, “Control is checking current performance
againstpredetermined standards contained in the plans, with the view to ensuring
adequateprogress and satisfactory performance”. In the words of George R. Terry,
“Controlling isdetermining what is being accomplished, that is, evaluating the
performance and
ifnecessaryapplyingcorrectivemeasuressothattheperformancetakesplaceaccordingtoplan
s”.Todrawananalogy,itislikeathermostatinanairconditioningsystemwhichensuresthatpredeterm
inedtemperatureismaintained.
The concept of control is often confused with lack of freedom. The opposite of
controlis not freedom but chaos or anarchy. Control is fully consistent with freedom. In fact
they areinterdependent. Without control freedom cannot be sustained for
[Link](freedom)andaccountabilityar
eembeddedintheconceptofcontrol.

STEPSINACONTROLPROCESS
Figure shows the steps in controlling. As mentioned earlier, there is a strong
relationshipbetween planning and controlling. The steps in controlling shown in figure are
thereforepreceded by two important steps of planning. Setting of objectives for managers,
units anddepartments is necessary to provide them clarity on the expectations from them. On
the basisof the objectives, standards or benchmarks are identified during the planning process.
Thesestandards are the specific objectives against which progress can be measured for
variousparameters.
Havingestablishedthestandards,weproceedwiththestepsofcontrolling:

Select suitable measuring instruments for various parameters. Measuring

instrumentshave to be selected keeping in view the characteristic of a parameter in the
standard to bemeasured. For example, if we are trying to measure the customer satisfaction
level, a surveyinstrument may have to be designed with appropriate questions in the
questionnaire. If we aregauging the number of defective integrated circuits (ICs) being
produced by a productionprocess, we would need suitable electronic instruments to test the
LCs coming out of theproduction process. In addition, we would need to decide if we would
like to test each andevery IC being produced or only a select few (a suitable sample) to assess
if the process isworkingfine.
Measure actual performance for a parameter. Using the measuring instrument
selectedearlier,[Link]
hemeasurementisdonewithaccuracyforauthenticityofthemeasurementdata.
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Compare actual performance with the benchmark. In this step, the data pertaining to
themeasurements of actual performance of a parameter is compared with the desired levels
ofperformancespecifiedinthestandard/benchmarkestablishedearlier.

Isthere a gap between actualand desired?This step is a decision point where it

isdetermined if a gap exists between the actual and the desired performance of the parameter
[Link],theprocessiscontinuedasitis.

Is the variation within acceptable limits? If a gap or variation does exist between the
actualandthedesiredperformance,itisascertainedifthisgapiswithinacceptablelimitsofvariation.
This is because some variation is natural due to inherent characteristics of theprocess. For
example, if the specification of the diameter of a shaft has been prescribed as 3ern ± 0.002
cm, any variation in the actual measurement of the diameter between 2.998 cmand 3.002 cm
would be acceptable. However, a value of the measurement exceeding theselimits (less than
2.998 cm or more than 3.002 cm) would indicate that the production processis out of control.
However, when the variation is between the prescribed limits, the process iscontinuedasitis.

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Is the standard valid and acceptable? Before taking any action on the variation detected,
[Link]
because the expectations from the process may increase by the passing time, and the
topmanagement may like to set higher performance standards. For example, the client
whosources shafts from a manufacturer may come up with a more stringent specification for
itsdiameteras3cm±0.001cm.
a. Revise the standard. If it is dear that the earlier standard is not valid or
acceptableanymore, it should be revised. In our example of the shah, it should be
revised asperthe client'srequestto3 cm±0.001 cm.
b. [Link],iftheearlierstandardisstillvalidand
acceptable, the assignable causes of variation are looked into. The
assignablecauses of variation may be due to wear and tear of the tools on the
machineproducing the item, lack of proper skills on part ofthe worker operating
themachine,or workerfatigue,etc.
[Link],correcti
ve action is taken to bring the process back in control. In our example, if it has beenfound that
the variation was due to lack of skills on pan of the worker operating the
machine,therectificationwouldinvolvethepropertrainingoftheworkertoimprovehisskills,especia
llyinrelationtothemistakescommittedbyhim.

After the cause for variation has been rectified, the control loop continues at step 2,
[Link] of the actual performance of the parameter, followed by further steps in
thecontrolloop.

ESSENTIALSOFASOUNDCONTROLSYSTEM
Understandable:Asoundcontrolsystemshouldbeeasilyunderstandablebyone [Link] very
complicated to understand in the first place, its implementation would obviously beflawed.

Accurate: A control system needs to have acceptable levels of accuracy. It should

accuratelydetermine the 'gap or variation existing between the desired and actual performance
of aparameter. If its accuracy is questionable, the whole control mechanism may collapse
duringimplementation.

Timely: The control system should be implemented in a timely manner. For example,
allorganizations are required to conduct an external financial audit at the end of a financial
[Link]
ear. Ifthesedeadlinesarenotmet,[Link], it is
imperative for organizations to conduct the financial audits well within
theprescribedtimedeadlines.

Costeffective:[Link] it
yields benefits which surpass the costs involved. For example, many
organizationsinvesthugeamountsofmoneyintrainingalltheiremployeesinqualitymanagementtec
hniques while implementing Six Sigma, which often serves as a cost effective
controlmechanismand yieldsstaggeringreturnsintheformofeliminationofwastes.

Flexible: Organizations today operate in a highly dynamic environment whichkeeps

onchanging. This warrants the control mechanisms to be flexible enough so that they can
bemodified easily to accommodate changes in the business environment. For example, if a
firmisstartingitsoperationsinaforeigncountry,itwouldbehelpfulifitsfinancialaudit

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procedures are flexible enough to be easily modified to fulfill the accounting standards of
thatcountry.

Reasonable and acceptable: The control mechanisms should not-set standards which are
[Link],thepeoplebeingsubjectedtosuchcontrolswouldfeelthreatened
and try to resort to illegal/unethical means to justify the achievement of such stiffstandards.
They will also feel de-motivated and disheartened if standards remain elusive tothem.
Therefore, control systems should be such that they push the employees to
stretchthemselvesforachievementofattainabletargets,stillkeepingthemmotivatedandinterested.

Focus on strategic [Link] control systems should not try to measure

everypossibleparameterrelatedtoaprocess,asitmaybeveryexpensiveintermsoftime,cost,andeffor
t with little benefits. It is always a good idea to be selective in approach and focus onlyupon
those parameters which are most important. For example, in Six Sigma
organizations,thefocusisuponCriticaltoQuality(CTQ)characteristics,whicharedeterminedbysur
veyingthecustomersinthefirststep ofSixSigmaimplementation.

Difficult to manipulate: A sound control system should be designed in such a manner that
itbecomes almost impossible for anybody to play around with it. Appropriate
checkpointsshould be incorporated in the control system to verify any wrongdoings on part of
any personinvolvedintheprocessbeingmonitored.

Use multiple criteria: If a single criterion is used to measure the performance of a process
orperson, then the people concerned would attempt to "look good" on that criteria. However,
ifmore than one criterion is used to assess the performance, it is more likely that the
assessmentwould be more objective and difficult to manipulate. For example, the
performance of a salesexecutive should be gauged, not only by the monetary amount of cash
orders secured in
aquarter,butalsohowmanysuchordershaveresultedintoactualcashinflowfortheorganization.
Such dual criteria would motivate the sales executive, not only to secure
orders,butalsotoensurethattheordersarefulfilledandpaymentsareobtainedfromtheclients.

Emphasize on exception: A lot of effort and cost in controlling can be saved if the
controlsystems are based upon the approach of Management by Exception (MBE). In this
approach,managers avoid getting overwhelmed by excessive data generated by control
[Link],theemphasisistobringonlythoseexc
eptions to the notice of the manager in which the performance is exceedingly above
[Link],themanagercanfocusuponthoseprocesses/peoplerequiringrect
ificationsurgentlyratherthanwastingeffortonprocesseswhicharemoreor lessunder control. For
example, a manager can specify that it should be brought to his attention
iftheallocatedexpensebudget exceedsbymorethan5%.

Registerdeviationsquickly:Controlsystemsshouldregisterdeviationsintheactualperformance
of a process/person quickly. This will allow for prompt action to correct thecauses of
deviation. A significant delay in registering the deviation by a control system willobviously
lead to unnecessary costs of wastages. For example, if a control system deployed
tocontrolqualityofaproductregistersasignificantdeviationinaparameterafteronehourofitsoccurre
nce; all the units produced during that hour would be defective and may involve
thecostofreworkormayhavetobescrapped.

Indicate corrective action: A sound control system should not only capture the
deviations,butshouldalsoprovide guidance tocorrective
[Link]-
thenformat,[Link]
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duty for more than two consecutive days without informing his reporting manager, then
awarninglettershouldbeissued.

CONTROLMETHODS
Control methods are broadly classified into two types namely past-oriented
controlsandfutureorientedcontrols.
Past-oriented controls: Past-oriented control measure results after the process. These are
alsoknown as post action controls. They examine what has happened in the past for a
particularperiod. Examples of past-oriented controls are accounting records, school grade
reports [Link] controls are used to plan future behaviour in the light of post errors or
successes. Theycanalsobeusedforrewarding,disciplining,trainingorpromotingindividuals.
Future-orientedcontrols:[Link]
controls are designed to measure results during the process, so that action can be takenbefore
the job is done or the period is over. Feed-forward control serve as warning-postsprincipally
to direct attention rather than to evaluate examples of such controls are cash flowand funds
flow analysis, network planning etc which help managers to see that they will
haveproblemsinsuchareasofcashorontimedeliveryunlesstheytakeprioraction.

These two types of controls are not alternatives to each other. Organizations use both
thesetypes. Future-oriented controls are important because the information feedback in them
is atthe input side of the system, so that correction can be made before the system output
isaffected as shown in figure 4.6 even with the use of past-oriented controls, a manager
wouldstill want to measure final system output since nothing can be expected to work
perfectlyenoughtogivetheconfidencethatthefinaloutputwillalwaysbeexactlyasisdesired.

COMMUNICATION
Communicationmeanstheprocessofpassinginformationandunderstandingfromoneperso
n to another. It is defined as “the process of exchange of information, ideas
andopinionswhichbringaboutintegrationofinterestsaimsandeffortsamongthemembersof
a group organized for achievement of predetermined goals. Communication
ProcessCommunication process involves the sender, the transmission of a message through a
selectedchannelandthereceiveras showinfigure.

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The sender of the message: Communication begins with a sender, who has a thought or
ideawhich is then encoded in a way that can be understood by both the sender and the
receiver. Itis usual to think of encoding a message into the English language but there are
many otherwaysofencodingsuchastranslatingthoughtintocomputerlanguage.

Use of channel to transmit the message: The information is transmitted over a channel
thatlinks the sender and receiver. The message may be oral or written and it may be
transmittedthrough a memorandum, a computer, telephone, telegram or television. Television
of coursealso facilitates the transmission of gestures and visual clues. At times, two or more
channelsare used. In a telephone conversation, for instance, two persons may reach a basic
[Link] areavailable,eachwithadvantages
anddisadvantages,theproperselectionofthechannelisvitalforeffectivecommunication.

The receiver of the message: The receiver has to be ready for the message so that it can
bedecoded into thought. The next step in the process is decoding in which the receiver
convertsthe message into thought. Accurate communication can occur only when both the
sender andthe receiver attach the same or at least similar meanings to the symbols that
compose themessage. Thus, it is obvious that a message encoded into French required the
receiver
[Link],amessageintechnicalorprofessionaljargonrequiresarecipient
who understands such language. So communication is not complete unless it
[Link] thereceiver.

IMPORTANCEOFCOMMUNICATION
The purpose of communication is to effect change, to influence action towards the welfare
ofthe enterprise. Communication is essential because, it integrates the managerial
[Link] graphically shows not only communication facilities the managerial functions
but alsothat communication relates an enterprise to its external environment. It is through
informationexchangethatmanagerbecomeawareoftheneedsofthecustomer,theavailability
ofsuppliers, the claims of stakeholders etc. The communication is important because of
thefollowing:
1. Every aspect of manager‟s job may it be planning, organizing, staffing, directing
andcontrolling involves communication. Researches have shown that about 75 per cent of
themanager‟stimeisspentincommunication.
2. Nothing contributes so much to managerial effectiveness as effective
[Link]„things‟butwith„informationaboutthings‟.
3. However, the decision at the top are, they will serve no purpose unless the
managersuccessfully communicate the implications of these decisions to the subordinates
who aretoimplementthem.
4. Communicationisthe essence of [Link] basisof directionandleadership.
The managers have to communicate to give instructions, orders, to assign jobsandtofix
responsibility.
5. Communicationrendersthecomplexityofbusinessintelligibleandworkable.
6. Thebetterthecommunication,[Link]
not only obtains manager‟s effectiveness but organizational effectivenesstoo.

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TYPESOFCOMMUNICATION
Based on the direction of flow of information communications are classified as
upward,downwardandhorizontalcommunication.

Downward communication: Downward communication flows from people at higher level

[Link]
is to communicate policies, procedures, programs and objectives and to
issueordersandinstructionstosubordinates.

Upward communication: Upward communication travels from subordinates to

[Link] communication is generally nondirective. Typical means of upward
communicationsaresuggestionsystems,appealandgrievanceprocedures,complaintsystemsetc.

Horizontal communication: It refers to transmission of information among positions of

[Link].
The production foreman and the maintenance foreman communicate directlywithout going
through their managers. In this way horizontal communication avoids the
muchslowerprocedureofdirectingcommunicationthroughacommonsuperior.

FORMSOFCOMMUNICATION
Broadlyspeakingtherearethreeformsofcommunications:Oral,writtenandnonverbal.

Oral communication: In oral or verbal communication, information is given directly,

eitherface to face or through a telephone or intercom system. Generally in meeting,
lecturers,interviews, conferences etc., the communication is oral. The oral communication
saves timeand money, involves personal touch, doubt can be clarified immediately. The
demerits of oralcommunications are there is no permanent record of communication and is
not suitable forlengthycommunication.

Written communication: Written communication is always in black and white and may be
inthe form of a report, statement, circular, manual, handbook, letter or memo. The merits
ofwrittencommunicationare
(a) Itisapermanentrecord.
(b) Itissuitableforlengthycommunication.
(c) Ifthepartiesarefarawaybeyondtelephonicrange,writtencommunicationistheonlyway.

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Thedemeritsofwrittencommunicationsareitisnotflexibleandsecrecycannotbemaintainedandtim
econsuming.

Non-verbal communication: Non-verbal communication is expressed through the body –

thefacialexpression,posture,gesturesetc.

COORDINATION
Thebasicfunctionofcoordinationinanenterpriseisthesameasthatofanorchestraconductor who
directs the activities of the orchestra party in such a manner that it producesharmony in
music. Likewise the coordinator of an enterprise also directs the activities of thegroup in such
a manner that it brings harmonious and unified actions to achieve commonpurpose. Like the
orchestra conductor, a manager also performs the function of securing andmaintaining unity
of direction throughout the organization. The management of a
modernenterpriseisbasedontheprinciplesofdivisionoflaborandspecialization.
“Coordination deals with the task of blending efforts in order to ensure
[Link],organizingdirec
tingandcontrolling”.

CoordinationandCooperation
The terms “coordination” and “cooperation” cannot be used interchangeably because
theyhave got different meanings. Coordination is an orderly arrangement of groupefforts
toprovide unity of action in the pursuit of common objectives. It is a process of
deliberatelybringing together the efforts of various components of an enterprise in order to
give themunity of purpose. Cooperation denotes the collective efforts by the persons working
in theenterprise voluntarily for accomplishing a particular purpose. It is the willingness of
[Link],itisobviousthattheconceptofcoordinationisbroaderinscope
than that of cooperation. The differences between cooperation and coordination
aregivenbelow.

Basis Coordination cooperation

Itisvoluntaryattitudeof
Definition Itisadeliberateeffortbyamanager
organizationmembers
Itdenotescollectiveeffortsofth
Itisanorderlyarrangementofgroupeffortstopro
e group
Purpose vide unity of action in pursuit of
contributedvoluntarilytoacco
commonobjectives
mplisha
particularobjective.
Itisachievedthroughbybothformalandinformalrelat Cooperationarisesoutofi
Relations
ions nformalrelations
Coordinationseekswholeheartedsupportof Cooperationwithout
Results
employeesanddepartment. coordinationisfruitless.

IMPORTANCEOFCOORDINATION
An organization is a consciously coordinated system of cooperative human
endeavorfocused towards achievement of certain goals. The need of cooperation arises
because
„whatonecando,twocan,whatonecando,twocandobetter‟.Theneedforcoordinationarisesdueto
differential perceptions, orientation, interests and attitudes of individual members of
[Link],membersarelikelytopullindifferentdirections;ther
e may also be destructive conflict of interests and goals. Coordination is intended
tochannelize cooperative efforts and behaviour of people along organizationally
determinedlinesandtocontainthepossibilitiesofconflictwithintolerablelimits.
An organization represents a pooling of diverse resources and facilities, adopted of
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diverseskills,techniques,processesandpracticesdeterminationandachievementofdiversegoalsan
[Link]
[Link]
function of coordinator, strives for desired degree of unity, without destroyingdiversity.
Apartfromdifferentiationofactivitiesandauthority,organizationgoalsaredifferentiatedintosub
goals among various units and levels of organization. Organizational goalsare
alsooperationalised into strategies, policies, plans and programmes. There is a meansend
chain inthe organization. At every level goals are operationalised into means of achieving
[Link]
compatibility among the various elements in the meansends chain. Sub-goals are tocontribute
to the overall goals. Means are to match ends. Short term goals are to mesh in withlong-term
goals. The coordination is important to achieve correlation between means andends.

TECHNIQUESOFCOORDINATION
Managers can use a number of techniques to enlist coordination. Some of the techniques
ofcoordinationarediscussed below:

1. Clearly Defined Objectives: Each and every organization has its own objectives.
Theseobjectiveswouldbeclearly [Link]
employeesofalltheorganizationshouldunderstand the objectives of the organization well.
Unity of purpose is a must for achievingpropercoordination.

2. Effective Chain of Command: There is a line of authority in every enterprise

whichindicates as to who is accountable to whom. The line of authority and responsibility
should beclearly defined to achieve coordination. Clear cut authority relationship help in
reducingconflicts among different positions, particularly line and staff which is essential for
soundcoordination.

3. PreciseandComprehensiveProgrammesandPolicies:Layingdownwelldefinedprogramm
es and policies is another measure for achieving effective coordination. This
bringsuniformityofactionsbecauseeverybodyunderstandstheprogrammesandpoliciesinthesame
sense.

4. Planning: Planning ensures coordinated efforts. Under planning, target of each

departmentdovetailwiththetargetsofallotherdepartments.Forexamplefixingthetargetof50,000u
nitsofadditionalproductionandsaleforproductionandsalesdepartmentrespectively,theheadofthe
organization can be fairly sure that the work of the two departments would be
coordinatedsincetheirtargetssodemand.

5. Cooperation:Cooperationistheresultofbetterrelationsamongemployeesoftheorganization.
Cooperation can be brought about by keeping harmonious relations among
thepeopleintheorganizationbyencouraginginformalcontactstosupplementformalcommunicatio
nandusingcommitteesforexchangeofideasandviewsatthetoplevel.

6. Liaison of Officers/Departments: A person who acts as a link between two persons

[Link]
largeorganizationsdependonthisofficertomaintaincordialrelationswithgovernmentandoutsiders
. In some cases, where there is a large volume of contact between two departments, aliaison
department evolves to handle the transactions. This typically occurs between sales
[Link],apackagingcompanythatisprocessingalargeorderofcon
tainers might have a liaison department to make sure that the production department
ismeetingtheclientsspecificationsandthatthedeliverywilltakeplaceontime.

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7. Induction: Inducting the new employee into the new social setting of his work is
also acoordinating mechanism. This device familiarizes the new employee with the
organization‟srules and regulations, its dominant norms of behavior, values and beliefs
and integrates hispersonnelgoalswiththeorganizationalgoals.

8. Incentives:Incentivesmaybeintheformofincrementsinthescaleofpay,bonus,profitshar
[Link]
[Link],profitsharingpromotesteamspiritandbettercooperation
between superiors and subordinates, between employees and
[Link].

9. Workflow
Aworkflowisthesequenceofstepsbywhichtheorganizationacquiresinputsandtransformst
hem into outputs and exports these to the environment. It is largely shaped by
technological,economicandsocialconsiderationsandhelpsincoordination.