INTRODUCTION TO MANAGEMENT

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

 Management has various aspects, that all of which

cannot be represented by a single definition.

 The theorists who gave the definitions had different

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

 There are several definitions of management given

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

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

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

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

directing, and controlling

 the use of a firm’s resources effectively and

economically to attain its objectives.

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

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

 In short, management could be precisely defined as the

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

It refers to a group of people who are

responsible for guiding and controlling the
organization (managerial personnel).

Management is the process of running an

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

Management is a body of knowledge, a

discipline.

Management is a factor of production;

economic resources as land, labor, and
capital.
Characteristics of Management
 Goal Oriented

 Decision Making

 Universal

A Continuous Process

 Working with and through people

 Multi – Disciplinary
 Basic Management Functions
1. Planning:
 it is the first function that all managers
engage in

 it lays the ground for all other functions.

 It identifies the goals and alternatives.

 It maps out courses of action that will

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

2. Organizing

 Assembling the resources necessary to achieve the

organization’s objectives

 Establishing the activity-authority relationships of the

organization.

 Planning has established the goals of the company and

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

 Each unit should have clearly defined authority,

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

 changes that occur both within and outside the

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

 itinvolves the process of recruiting potential candidates for

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

 Italso involves orienting the new employee to the company

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

 Many aspects of the staffing function are the responsibility

of the personnel department.
4. Directing/Leading

 Directingis aimed at getting the members of

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

5. Controlling

 measuring performances against established

standards

 dealing with deviations from established

standards.
 Levels of Management and Types of Managers

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

 The
number of levels of management
depends on the size of the organization.

 Generally
there are three level of
management

 Top level management

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

Functions of top level management include:

 Establishing broad objectives

 Designing major objectives

 Outlining principal policies

 Providing effective organizational structure that

insures integration
 Providing overall leadership and direction

 Making overall control of the organization

 Dealingwith external parties such as the

government, community, business etc by
representing the organization

 Analyzing
the changes in the external
environment and respond to it.

Middle level Management

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

 Translating long-term plans of top management into

medium range plans

 Developing specific targets in their areas of

responsibility

 Develop specific schedules to guide actions and

facilitate control

 Coordinating inputs, productivity and outputs of

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

 General Managers

 They are responsible for the overall operations

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

 General Managers hold functional

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

 All these functions are necessary for the success

of the organization.

Managerial Roles and Skills

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

3. Liaison role: it refers to dealing with people

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

 Monitor role: the monitor role involves

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

 Disseminator role: The manager shares

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

 Entrepreneurial role: this role involves

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

 Managers play this role when they initiate

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

Resource allocator role: this role involves

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

Negotiator role: In this role managers meet and

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

 It is meant ability related to performance that

is not necessarily in born but which can be
developed/ acquired

Technical Skills: involve the ability to apply

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

Managers interact and cooperate with

employees.

It is simply managers’ ability to work well with

people both individually and in a group.

It involves patience, trust and genuine

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

Conceptual Skills: it involves the ability to

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

 Manageruses conceptual skills to diagnose

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

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

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

 Management utilizes scientifically derived operational

principles. The principles of management are universal.

 Allmanagers operate in organizations with specific

objectives.

 Management in all organizations, helps to achieve

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

Since management has a structured body of

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

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

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

 It is the process of determining the goals

of organizations and specific course of
action for achieving those goals.

 Planning is mainly concerned with ends

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

 The goals set by planning may be long-

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

Nature and Importance of Planning

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

2. Planning leads to success:

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

4. Planning facilitate control

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

5. Planning lays ground for other managerial functions

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

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

 Planning concerns all managers

 Plans are arranged in a hierarchy

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

 Corporate plan are converted into divisional,

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

 Planning implies changes in organizational

objectives, policies, products, marketing
strategies

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

 effectiveness of a plan pertains to the degree

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

Classification of Plans Based on

Repetitiveness
Standing use plans
Single use plans

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

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

Mission represent the activity it self

( producing product, providing quality
service)

Objective related to end of the activity

( producing 500 products, making a profit)

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

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

 Policies channel the thinking of organization

members so that the members move consistently
with and contribute to an objective

Procedures: show the sequence of activities

 They are chronological sequences of required
actions
 It contains detailed guidelines for handling
organizational actions that occur regularly
 Methods
 is a more detailed description than procedure

 A method is only concerned with single operation while a

procedure shows a series of steps to be taken

 it tells exactly how one particular steps undertaken

 Rules

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

 The purpose of policies is to guide decision making in

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

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

 Single use plans include programs, projects and

budgets.

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

Ex: Expanding school or hospital

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

A budget may be expressed in financial terms,

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

 Budget is a fundamental planning instrument

in many companies

 Budgets vary considerably in accuracy, detail

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

 Program budget : identifies goals, develops detailed program

to meet the goals and estimate the cost of each program.

 Zero base budget: is a budget for programs that start from a

scratch or base of zero.

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

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

 Project
A project is part of a general program that can be planned
and fulfilled as a distinct project itself.
 Classification of Plans Based on Time
[Link]-range
[Link] range and
[Link]-range

Long-range planning
It has longer time horizon.

It is not concerned with immediate future,

but with distant future.

They are mainly concerned with future

direction of the organization


Short-range Planning

 They are complementary of long-range plans

and are not prepared separately.

 They constitute the steps toward the

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

 The period covered by short-range plans is

generally 1 year; sometimes it can go up to 2
years.
Intermediate range Planning

 This level of planning obviously ranges

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

 In most cases range of plans depends on the

size of the organization and type of business of
the organization.

Classification of Plans Based on Scope or

Breadth
[Link] Planning
[Link] Planning
[Link] Planning
Strategic Planning

 Instrategic planning, organization’s missions,

objective, major courses of action or strategy is
analyzed and decided.

 They are designed to meet organization’s broad

objectives.

 Itis usually done by the top level managers by taking

into account environmental threats and opportunities
and internal weaknesses and strengths.

 Strategic plans are mostly long-range in their time

frame.

 They also provides general direction to the

organization and there by affects a wide range of
organizational activities.
Tactical Planning
 It refers to the process of developing action plans through which
strategies are executed.

 Departmental managers/middle are often involved in tactical

planning.

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

Operational Planning

 It is the most specific and is concerned with the day to day,

week to week activities of the organization.

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

 They have a narrow and more limited scope.

(production schedules, sales plans, lesson plans)

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

2. Gain Acceptance for the Plan

3. Be Objective

4. Set up Monitoring System

5. Revise your Plan on a Constant Basis

6. Fit the Plan to the Situation

Planning Techniques
 Skillsrequired in planning are Forecasting &
Decision Making

Forecasting: it is the attempt to predict

outcomes and future trends that can serve as
basis for planning.

►Qualitative Forecasting &

Quantitative Forecasting (reading
assignment)
 Chapter 3
Decision Making
Meaning of Decision Making

 Decision making is defined as a rational choice among

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

 Decision making is universal, because

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

Limiting factors are those constraints that rule out certain

alternative solutions
Time, resources, personnel, money, facilities and equipment
are common limiting factors.

3) Develop Potential Alternatives

These alternatives should eliminate, correct or neutralize the

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

Decide the relative merits of each of the alternatives

This means advantages and disadvantages, comparing the

potential pay off and possible consequences of each alternative
solution.

5) Select the Best Alternative or Combination of best Alternatives

It is necessary to find the solution that appears to offer the fewest

serious disadvantages and the most advantages.

6) Implement the Solution

decision must be effectively implemented because good decision

may be harmed by poor implementation.

7) Establish a control and Evaluation System

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

 Programmed decisions are the decisions

managers make in response to repetitive and
routine situations.

 they are amendable to organizational

established policies , procedures and rules.

 If a particular situation occurs too often,

managers will develop a routine procedure for
handling it.

 Managers in this case have a repetitive and

routine solution.
Non-programmed Decisions

 Non-programmed decisions are decisions for

novel and unstructured problems

 Non-programmed decisions require more time

and effort and involve more uncertainty than
programmed decisions.

 Non-programmed decisions are usually

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

 Decision making under conditions of certainty

(The manager has what is known as perfect

knowledge. The manager had these decisions to
make before)

 Decision making under conditions of risk

The manager knows what the problem is, knows

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

 This is the most difficult decision making

environment for a manager

 The manager is not able to determine the

exact odds (probabilities) of the potential
alternatives available.

 It deals with possible outcomes that are

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

 Organizing is the process of identifying and grouping tasks to

be performed, assigning responsibility and delegating
authority, and establishing relationships

 It is the process of defining essential relationship among

people, tasks, and activities

 It is examining how the managerial tasks defined in the

planning stages can be devise and reintegrated to achieve the
organizational objectives.

 Organizing involves differentiation and integration

 Differentiation is the process of departmentalization or

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

 It determines what work activates have to be done to

accomplish organizational objectives

 It classify the type of work needed and groups the

work into manageable work unit

 It assigns the work to individuals and delegate the

appropriate authority

 It designs a hierarchy of decision making r/ship

 Managerial functions of planning and
organizing are intimately related

(Organizing begins with and is governed by

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

 An organization must be built, or an existing

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

 Organizing result in organization structure

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

 It is a tool of management to achieve plan

 As plans change, the organization structure should

be responsive

 Even when objectives are similar, what works for

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

Formal organization: is an organization that is deliberately and

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

Informal organization: refers to people in group

association, but this association is not specified in structure
of formal organization.

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

their behavioral pattern. Interest; beliefs, objectives and etc.

 No conscious attempt is made to create an informal

organization.

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

people to associate with others
 Informal organization has the following characteristics

 Group norms: it is unwritten law that govern the

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

 informal organization is not established officially it exists

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

• the negative impacts are: resistance to change, conflict, rumor,

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

 Who reports to whom – the chain of

command

 How many subordinates work for each

manager – the span of control

 Formal channel of communication

 The hierarchy of decision making – where

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

2) Determine the Work Activities Necessary to

Accomplish Objectives

3) Classify and Group Activities

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

4) Assign work and Delegate Appropriate Authority

5) Design a Hierarchy of Relationships

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

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

 it is also breaking down complex

organizational tasks in to a more simple,
routine and well defined tasks.

 It facilitates the organizing process.

 It focus on making suitable grouping of

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

 It represents a line of authority in an organization.

 It specifies the order of rank from top

management to the lowest level of the enterprise.

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

 Scalar chain is instrumental in applying both unity

of command and direction

 Unity of command: one supervisor to obey

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

 It is the process of combining jobs

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

 it is concerned with the number of subordinates each

mangers should have to direct

 it refers to the number of people and departments that

report directly to a particular manager

 It is an established fact that larger the number of

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

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

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

◦ The ability and training of the subordinates

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

 If the manager has high potential ability, the number

of subordinates can be made too many.

◦ Company’s philosophy for centralization and

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

M M M M M M M

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

 Improved and fast communication

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

VP VP

M M M M M M

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

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

 ItIs the plan that specifies who reports

to whom in an organization.

 eachsubordinates should have only supervisors

whose command he/she has to obey

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

Symptoms of lack of co-ordination in organization

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

 It is the process of dividing and grouping

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

Basis/types/ of Departmentalization
1. Functional Departmentalization

 jobs are grouped according to functions of

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

 The type and number of functions would

depend on the type of the organization

 Business firm…. production, marketing,

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

 Advantage: it make use of the benefit of

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

 If an organization serves different geographical

areas the divisional structure may be based up
on geographical bases.

 The territorial basis frequently is used by firms

whose operations are similar from region to
region

 All the activities in geographical area are

assigned to a particular manager

Adv: It enables the firm to develop a local market

Disadvantage: need of large no of managers

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

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

specialized and require specific expertise for their
manufacture and sale.

President

V. President

Produc Produc Produc Produc

tA tB tc tD
 4) Customer Departmentalization
 It refers to grouping activities so that they reflect a primary
interest in customers

 Businesses and managers frequently arrange activities on

the basis of type of customers.

 it is address special and wide need of customer

 For example a bank my divide its loan section into a

number of heads and assign them to various departments.
- loan to businessmen
- loan to farmers
-loan to professionals, and so on.

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

 legitimate power is authority

 Power is the ability to exert influence on other

people; power can be present in any
relationship

 managers are not the only people who exert

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

 A manager derives authority by virtue of his

position as manager.

 The manager acquires the right to decide, to

act and to command the persons working under
him.

 All organizational members have a

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

Acceptance View of Authority (bottom-up

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

 It is direct supervisory relationship.

 it is represented by the standard chain

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

 Managers whose role is to provide

advice or technical assistance are
granted advisory authority.

 Staff authority is not providing any

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

 It is the right to control activities of other

departments as they relate to specific staff
responsibilities

 It is authority delegated to an individual or

department over specific activities
undertaken by personnel in other
departments

 Staff departments may be given functional

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

 Reward Power: - is based on one person

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

 Coercive power: - based on the

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

Referent Power: - is based on the

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

 It is the process of pushing down of authority from

superior to subordinates who possess specialized
skill to perform such job

 Delegation of authority is a pre requisite for the

existence and efficiently functioning of the
organization.

 Delegation is a two-sided affair by which the

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

It results in quick decisions.

Delegation gives executives more time for

strategic planning and policy making

Delegation is a Motivational Factor

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

 Delegation of authority

 Acceptance of responsibility

it is the obligation to carry out one’s

assigned duties to the best of one’s
ability.

 Creation of Obligation or Accountability

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

 Open Communication between managers

and employees

 Proper Selection and training

 Motivate Subordinates

 Establish adequate controls (feedback

system)
Decentralization vs.
Centralization

Centralization:- is the situation in which

authority for most decisions is concentrated
at the top of the managerial hierarchy
(selective concentration).

Decentralization:- requires the authority to

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

 Quality of the decisions is expected to be higher

 It results in optimal utilization of human and

physical resources.

 It can be highly motivating and moral-boosting

for executive

 Promotes greater standardization of

specialization
Disadvantages of Centralization

 Concentration of power among few people

 It hampers/hinders the development of lower

levels

 Complicated communication as decisions

affecting lower levels are made at the top.

 Superiors are over burdened with multiplicity

of tasks

 Time is wasted.
 Chapter Five
Staffing
 Staffing is the process of identifying human resource
needs, procuring the necessary employees, training,
utilization, and separation of those employees.

 It is attempt designed to attract, hire, train, develop,

reward, and retain the people needed to accomplish
an organization’s goals.

 It is a separate field by itself and known as human

resource management

 Its major objective is to enable an organization to

attract, maintain/retain and utilize efficient and
effective workforce.
Staffing has three main elements
 Acquisition (Procurement)
 Retention (Maintenance) and
 Separation (Exit)

Acquisition (Procurement)

 Procurement is concerned with determining

and obtaining the proper quality and quantity
of the workforce

 it contains elements of human resource

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

 Human resource planning translates the

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

 It is the process of determining and

preserving a firm’s human resource
recruitment of organization at its different
levels for achieving its goals.

 It is an essential part of corporate planning

Steps in human resource planning includes

1) Analyzing organizational objectives and plan.

 All organization plans entail need for human
resource

2) Determining over all human resource needs.

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

3) Taking inventory of existing personnel.

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

The difference b/n overall personnel requirement

with personnel inventory is net personnel
requirement

5) Developing action plans.

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

 elements of Acquisition (Procurement)

 It is the process of searching for prospective employees and

stimulating them to apply for jobs in the organization.

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

with people already employed in the firm.

These includes transfer, promotion, and recall from layoff.

Transfer: the movement of employee from one job to another

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

2. External recruitment: an effort to fill open

positions from sources outside the firm.

 It is searching for employees in the labor market,

educational institutions, employment agencies
and labor unions.

Advantages: wide option for selection, new outlook

comes in

Disadvantages: unfamiliar employees, more cost,

orientation needed
Selection

 elements of Acquisition (Procurement)

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

 It is also a process in which candidates for job

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

 It needs care and allows no discretion when

performed.
The selection process may include:
Preliminary screening

Application form filling

Reference letters

Employment interview

Employment tests

Physical examination
Induction (Orientation)

 elements of Acquisition (Procurement)

 ItIs given after the employee receive placement

letter

 it is the process where the selected candidates are

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

 Itis designing to provide new employees with

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

◦General information about the daily

work i.e. routine things.

◦A review of organizational history,

purpose, operations and products
and services.

◦A detailed presentation of the

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

 Is the second element of Staffing

 It is the process through which the selected employees are

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

It includes:
1. Training and development

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

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

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

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

2. To help employees to become capable of assuming other

responsibilities

3. To help employees to adopt to changing circumstances

E.g: new technologies

4. To reduce waste and to increase productivity

5. To minimize input use and maximize output

6. To relieve superiors from close supervision and get time

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

 It is training offered at present for up grading the

future performance of individuals at higher level
positions.

 Development programs seek to develop skills for

future jobs.

 Development includes training and it focuses at

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

 Is element of retention (Maintenance)

 Compensation is adequate and equitable remuneration of personnel for their

contributions to the achievement of organizational objectives.

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

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

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

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

needs and families

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

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

External factors

◦ Government wage controls and

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

 Is element of retention (Maintenance)

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

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

 It is a formal structured system designed to measure the

actual job performance of an employee with designed
performance standards.

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

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

 To bring better allocation of resources

 Tomaintain equitable and competitive pay

structure

 To supply information on training needs

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

 It is generally administered when an employee violates company

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

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

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

 Discipline refers to the taking of disciplinary actions for the

application of penalties to inhibit undesired behavior.

 The main objective of disciplinary actions is to maintain desired

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

 Is element of retention (Maintenance)

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

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

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

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

 Demotion is the movement of an employee from higher

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

 Is the third element of Staffing

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

the organization due to one of the following reasons.

 Resignation refers to the termination at the instance of the

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

 Dismissal: - When the employer initiates the termination of

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

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

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

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

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

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

without the use of coercion or force.

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

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

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

don’t really want to do it at all

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

mutual objectives

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

willingly towards the accomplishment of group goals

 Leadership is the ability of managers to influence subordinates

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

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

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

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

Environment – the working environment in which the

leader interacts with the followers.

The need for leadership- organizations will never be

successful unless they have effective and efficient leaders.

Whatever amount of capital invested and technology an

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

•Directing initiates actions by giving directives and guidance to

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

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

to fully utilize the potentials and capabilities of employees.

•It facilitates changes by incorporating (adopting) environmental and

internal changes into the organization.

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

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

Trait theory

 Trait are distinctive/personal qualities or characteristics of

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

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

 The theory believes in certain quality of leadership

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

Traits related to a leader
 Intelligence

 social maturity and breadth

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

 Inner motivation and achievement drives

 Human relation attitude

They try to develop social understanding

 Honest, inspiring, forward looking, competent

 limitation of trait theory

◦ Leaders do not possess the same personality

in every situation.

◦ Although these characteristics are specified,

they do not tell how much of each trait a
leader should have.

◦ Not all leaders possess the traits, and many

non-leaders may possess most or all of the
traits.

◦ The traits that are set not even convincing

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

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

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

 effective leaders democratic rather than

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

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

 Effective leadership depends upon the response to

environmental factors accurately.

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

situation

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

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

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

 it is the way in which the function of

leadership is carried out

 It is the way how leaders behave

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

 Task are assigned, facilities provided

and direction given without consultation
with employee carrying out work

 The authoritarian leader believe that

because of his position he can decide
best what should be done

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

 Demand compliance( expect the workers to

follow their order)

 Task oriented

 Exercise close supervision and rigid control

 Doesn’t permit participation in decision making

 Doesn't welcome suggestion from subordinates

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

 it emphasis in group interest and strives to

satisfy them

Features of democratic leadership style

 permits subordinates to participate in decision
making

 Permit subordinates to take initiatives and

exercise judgment

 Emphasis group effort

 Broad supervision

 objectively communicates criticisms

 employee centered

 High moral and positive attitude

two – way communications

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

The leader assume the role of just another

member of the group

The leader is just a figurehead and does not

give any direction

The leader depends completely on his

subordinates

 His main role is aiding/facilitating the

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

•It may make things out of control.

Advantages
•It gives quite freedom for subordinates.

•It gives much responsibility and self guidance for

subordinates.

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

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

 Effectiveness of a leader depend on the

situation

 The leadership style a manager chooses may

depend upon the following situations.

 Forces in the manager( his values, his

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

 Motivation is an internal force that energizes behavior.

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

course of action

 Motivation means stimulating people through different ways

 The study of motivation helps managers to understand what drives

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

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

goal

 motivation implies a drive toward an outcome

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

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

 The ultimate objective (motive) of any

individual is a reward.

 Rewards can be intrinsic or extrinsic

 Intrinsic reward: - is the satisfaction that a

person gets as a result of success.

 Extrinsic reward: - is the reward given by

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

 Analysis of the situation requiring motivation

 Preparing, selecting and applying a set of

motivational tools/the motivator

 Follow up ( evaluating feedback)

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

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

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

Safety/security needs

Safety needs include freedom from fear and anxiety,

job security, desires for retirement and insurance
programs and so on

Social needs

It focuses on relationships with others in order to fulfill

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

Esteem needs include the desire for both self-esteem (self

respect) and public esteem, prestige, status, appreciation and
recognition by others.

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

independence.

Self actualization

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

and the realization of person’s full potential.

For athlete, it may be breaking a world’s record; and for

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

A persons needs are arranged in a priority

order of importance

A person will at least minimally satisfy each

level of need before feeling the need at the
next level

 Ifneed satisfaction is not maintained at any

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

(Must be motivated by force or punishment, money

or praise).

 TheoryY: - the assumption that employees like

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

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

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

 Hygiene or Maintenance Factors

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

 This indicates that the existence of hygiene factors

don’t bring satisfaction, but prevent dissatisfaction
and maintain the statues.

 company policies, quality of supervision, salary,

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

 These include factors like achievement, bonus,

recognition, advancement, creative etc

Hygiene factors (dissatisfies) Motivation factors

(satisfiers)
Exist: - no dissatisfaction - satisfaction
Absent: - dissatisfaction - no satisfaction (no
dissatisfaction)–neutral

 The roles of managers in this case are;

 Providing hygiene factors to prevent dissatisfaction
 Providing motivation factors to bring satisfaction
(motivation)
Vroom’s Expectancy Model
 Motivation is strongly determined by an
individual’s perception/ expectation that a certain
type of behavior will lead to a certain type of
outcome and his personal preference for that type
of outcome.

Communication

 It is the transfers of information from the

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

 It is the transfer of information and

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

 Communication is more important for leading

function of management

The communication process

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

 The sender is the party who initiates the

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

 Encoding is the process of putting a message

into a form which is to be transferred

 The objective of encoding is to select the

best medium through which to communicate
the planned message.

 The media include speaking, writing,

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

 Degree of importance of the message

 Need for a permanent record

 Need for formality

 Required degree of accuracy

 Cost of medium etc…

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

Decoding: It refers to understanding the message.

 This is a process by which the receiver assigns

meaning to the symbols transmitted by the sender.

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

 This is affected by many factors like perception of the

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

Noise: it refers to anything that interferes with the

communication process and distorts and blocks
the message

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

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

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

interview, conferences, seminars and communication over
telephone

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

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

 There is no formal record of the communication held.

 There is a possibility of distortion of message if the

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

 It may carry less weight and being informal.

 It can also be misunderstood and more or less

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

 It ensures that everyone concerned has the same

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

 provides references for further times.

 It is the easy method of providing detailed information.

 It is reliable for transmitting lengthy statistical data.

Disadvantages
It does not provide opportunity for immediate
response.

Itfails to convey personal feelings & hence does

not create cooperative spirit.

 It leads to excessive formality.

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

We communicate in many different ways what we

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

Its main purpose may be to support the verbal one

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

 Formal channels are the communication chains and

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

 The directive information flows down ward and

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

 Subordinates pass information about

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

Down ward communication:

 when vertical communication of flows

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

 Superiorsalso provide information

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

 It is communication with persons of equal

status working in other departments of the
organization.

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

 Effective control can be exercised on

subordinates.

Disadvantages:

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

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

 It is a communication that takes place without

regard to hierarchical or task requirement.

 Informal communication grows out of the social

interactions among people working together.

 The informal communication channel consisting

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

 It can also be considered as destructive, to spread

rumors, destroy morale, misinform and create
interpersonal problems.

Barriers to effective communication

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

 Perception : a person view of reality.

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

Inconsistent
verbal and Non-verbal
communication

Information overload

Feedback barriers

Cultural barriers
Guidelines for effective communication

 Theideas and messages should be clear, brief and

precise.

 Sense of timing

 Integrity

(The communication must pass through the proper

channels to reach the intended receiver)

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

 Follow up and feed back

 Chapter Seven
The Controlling Function

 Controlling is defined as the process of measuring the actual

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

 It is the process of regulating organizational activities

 It is checking current performance against predetermined standards

contained in the plans.

The Control Process

 Determine Areas to control

 Establishing standards

 Measure current performance

 Compare performance against Standards

 Take Corrective action(on time)

Types of Controls

 Prevention Controls (Preliminary screening controls)

 lakes place before the operation begins. It focuses on prevention in order to

later serious difficulties in the production process

( capital budgeting techniques, locks on windows and doors, training safety

equipment, employee selection procedures

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

Control)

 It involves the regulation of ongoing activities that are part of the

transformational process to ensure that they conform to organizational
standards.
 It is designed to detects and anticipate deviations from standards at various
points throughout the process

 Post action Control (feedback controls)

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

(the operations that directly affect the survival

of an organization and the success of its most
essential activities.)

 Integration

(all control systems should work in harmony

with one another)

 Acceptability

(controlling system should be accepted by all

members of the organization.)
 Economic feasibility
( control costs must be measured against the
benefits they provided)
 Timeliness

(measurements provided through controls reach

the proper decision makers at the time they
are needed)

 Accuracy

(information is useful if it’s accurate)

 Comprehensibility

(a control is comprehensive when people

understand everything they need in relation to
that control)
The End