Module 2

Planning, Organizing, Leading,

Controlling
 Definitions:

• “Planning is deciding in advance what to do, how to do,

when to do and who is to do it. Planning bridges a gap
between from where we are to where we want to go”
-Harold, Koontz and O’Donnel
• “Planning is selecting information and making
assumptions regarding the future to formulated
activities necessary to achieve organizational
objectives.” – Terry and Franklin.
• “‘Planning is deciding in advance what is to be done.’
-Theo Haimann
Types of Plans
 Benefits of Planning

1. Better Utilization of resources

2. Helps in achieving objectives
3. Minimizes future uncertainties
4. Improves competitive strength
5. Prevents hasty judgment
Process/Steps in Planning
What is Organizing?

 The grouping of activities necessary for attaining

objective.

 The process of creating an organization’s

Structure .

 A Process that initiates implementation of plans by

clarifying jobs and working relationship and effectively
deploying resources for attainment of identified and
desired results
Definition
Organizing is the process of identifying and
grouping the work to be performed, defining
and delegating responsibility and authority,
and establishing relationships for the
purpose of enabling people to work most
effectively together in accomplishing
objectives.
Louis Allen
 BASIC TYPES OF ORGANIZATIONAL
STRUCTURE
𝗈 The Functional Structure
𝗈 The Divisional Structure
Traditional Organization Structures
𝗈 The Matrix Structure

• Flat organization Structure

𝗈 The Line & Staff Structure

𝗈 The Project Structure

 THE FUNCTIONAL STRUCTURE

𝗈 Grouping by similar work specialties

THE DIVISIONAL STRUCTURE
(product, market, process, and location)
 THE MATRIX STRUCTURE

𝗈 A Grid of Functional & Divisional for Two

Chains of Command
 FLAT ORGANIZATION STRUCTURE

A flat organization structure will show few or no levels of

management between executives and all other employees.
This type of structure empowers self-management and
greater decision making ability for every employee.
THE LINE AND STAFF STRUCTURE
Project organizational structure
 Elements of Directing
Supervision
Supervision is directing efforts of
employees and other resources to
accomplish stated work outputs.
Supervision
Motivation
Motivation is something that moves
the person to action, and continues
him in the course of action already
initiated / about to be initiated.
Elements of
Communication Directing Motivation Leadership
Guiding, advising and helping sub-
ordinates towards accomplishment
of work.

Communication
Communication is the transfer of
information from one person to
Leadership another by transmitting ideas, facts,
thoughts, feelings & values. In its
absence, organisation would cease
to exist. 5
Leading/Leadership
Definitions
According to Livingston – ‘Leadership is the ability
to awaken the desire to follow a common objective’.
According to C.I. Bernard – ‘Leadership is the
quality of behaviour of the individuals whereby
they guide people or their activities in organised
efforts’.
According to Bernard Keys and Thomas –
‘Leadership is the process of influencing and
supporting others to work enthusiastically towards
achieving objectives’.
 Nature

groups

influence goals

Process

Leadership is a process where by an individual

influences a group of individuals to achieve a
common goal.
 APPROACHES TO LEADERSHIP

The qualities or traits approach

leadership as a behavioral category
Contingency approaches to Leadership
Transformational leadership
The Qualities or Traits approach
LEADERSHIP AS A BEHAVIOURAL
CATEGORY
Behavioral Approaches
 Contingency approaches to Leadership

Contingency theories are based on the belief that

there is no single style of leadership appropriate to
all situations. Major contingency models of
leadership include:
■ Favourability of leadership situation – Fiedler
■ Quality and acceptance of leader’s decision – Vroom
and Yetton, and Vroom and Jago
■ Path–goal theory – House, and House and Dessler
■ Maturity of followers – Hersey and Blanchard
 FIEDLER’S CONTINGENCY MODEL
 Fiedler concentrated on the relationship between leadership and
organisational performance.
 In order to measure the attitudes of the leader, Fiedler developed a
‘least preferred co-worker’ (LPC) scale.
 This measures the rating given by leaders about the person with
whom they could work least well.
 The questionnaire contains up to 20 items.
 Examples of items in the LPC scale are pleasant/unpleasant,
friendly/unfriendly, helpful/frustrating, distant/close, co-operative/
unco-operative, boring/interesting, self-assured/hesitant,
open/guarded.
 Each item is given a single ranking of between one and eight points,
with eight points indicating the most favourable rating. For example:
VROOM AND YETTON CONTINGENCY MODEL
THE VROOM AND JAGO REVISED DECISION
MODEL
 PATH–GOAL THEORY

 House identifies four main types of leadership behaviour.

■ Directive leadership involves letting subordinates know exactly what
is expected of them and giving specific directions. Subordinates are
expected to follow rules and regulations. This type of behaviour is similar to
‘initiating structure’ in the Ohio State Leadership Studies.
■ Supportive leadership involves a friendly and approachable manner
and displaying concern for the needs and welfare of subordinates. This type
of behaviour is similar to ‘consideration’ in the Ohio State Leadership
Studies.
■ Participative leadership involves consulting with subordinates and
the evaluation of their opinions and suggestions before the manager makes
the decision.
■ Achievement-oriented leadership involves setting challenging goals
for subordinates, seeking improvement in their performance and showing
confidence in subordinates’ ability to perform well.
 READINESS OF THE FOLLOWERS OR GROUP

This view is developed by Hersey and Blanchard who

present a form of situational leadership based on the
‘readiness’ level of the people the leader is attempting to
influence.
Readiness is the extent to which followers have the
ability and willingness to accomplish a specific task. It is
not a personal characteristic of the individual, but how
ready the individual is to perform a particular task.
Readiness (R) is divided into a continuum of four levels:
R1 (low), R2 and R3 (moderate), and R4 (high).
 R1 – low follower readiness – refers to followers who are
both unable and unwilling, and who lack commitment
and motivation; or who are unable and insecure.
 R2 – low to moderate follower readiness – refers to
followers who are unable but willing, and who lack
ability but are motivated to make an effort; or who are
unable but confident
 R3 – moderate to high follower readiness – refers to
followers who are able but unwilling, and who have the
ability to perform but are unwilling to apply their
ability; or who are able but insecure.
 R4 – high follower readiness – refers to followers who
are both able and willing, and who have the ability and
commitment to perform; or who are able and confident.
 TRANSFORMATIONAL LEADERSHIP DEFINED

 The term transformational leadership was first coined by Downton

(1973);
 however, its emergence as an important approach to leadership
began with a classic work by political sociologist James Mac Gregor
Burns titled Leadership
 Burns distinguished between two types of leadership: transactional
and transformational.
 Transactional leadership refers to the bulk of leadership models,
which focus on the exchanges that occur between leaders and their
followers
 In contrast to transactional leadership. Transformational leadership is
the process where by a person engages with others and creates a
connection that raises the level of motivation and morality in both the
leader and the follower.
 TRANSFORMATIONAL LEADERSHIP

Transformational leadership is comprised of four basic

components:
■ idealized influence – the charisma of the leader, and the
respect and admiration of the followers;
■ inspirational motivation – the behaviour of the leader which
provides meaning and challenge to the work of the followers;
■ intellectual stimulation – leaders who solicit new and novel
approaches for the performance of work and creative problem
solutions from followers; and
■ individualized consideration – leaders who listen and give
special concern to the growth and developmental needs of the
followers.
 Controlling
42

Control consists in verifying whether everything occurs in

conformity with the plans, instructions and principles
established. – Henry
Fayol

Control is checking current performance against pre-

determined standards contained in the plans, in order to
ensure adequate progress and satisfactory performance.
– E F L Brech
Importance/Need for Controlling
43

1. Accomplishing Organizational Goals

2. Judging Accuracy of Standards
3. Making Efficient Use of Resources
4. Improving Employee Motivation
5. Ensuring Order and Discipline
6. Facilitating Coordination in Action
Steps in Controlling

4
 Three Types of Control

Conversion
Conversion
Inputs
Inputs Outputs
Outputs
Process
Process

Feedforward Concurrent
Concurrent Feedback
Feedback
Feedforward
Control Control
Control Control
Control
Control (manage
(anticipate
(anticipate
(manage
(manageproblems
problems (manageproblems
problems
problems) as
asthey
theyoccur)
occur) after
afterthey
theyoccur)
occur)
problems)
 Control Types

 Feedforward: use in the input stage of the process.

 Managers anticipate problems before they arise.
 Managers can give rigorous specifications to
suppliers to avoid quality
 Concurrent: gives immediate feedback on how inputs are
converted into outputs.
 Allowsmanagers to correct problems as they arise.
 Managers can see that a machine is becoming out of
alignment and fix it.
 Feedback: provides after the fact information managers can use
in the future.
 Customer reaction to products are used to take
corrective action in the future.