ORGANIZING AND STAFFING

DIRECT AND CONTROLLING

MODULE 2

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 ORGNISATION
The process of identifying and grouping of 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 their objectives.

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 MEANING OF ORGANIZING
 Koontz and O'Donnel "It is grouping of activities necessary to
attain enterprise objectives and the assignment of each grouping to
a manager with authority necessary to supervise it".

 Amitai Etizoni- ”Organisation is social unit or human grouping

deliberately structured for the purpose of attaining specific goals”.

 Sehein- “Orgainsation as the rational coordination of activities of

a number of people for the achievement of some common explicit
purpose or goal, through division of labour and function, and
through a hierarchy of authority and responsibility.

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 STEPS IN PROCESS OF
ORGANIZING

While organizing, a manager differentiates and

integrates the activities of his organization.
By differentiation is meant the process of
departmentalization or segmentation of activities on
the basis of some homogeneity.
Integration is the process of achieving unity of effort
among various departments, segments or subsystems.

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 STEPS IN ORGANIZING
(1) Consideration of objectives:
The first step in organizing is to know the objectives of
the enterprise.
Objectives determine resources and the various activities
which need to be performed and the type of organization
which needs to be built for this purpose.
Objectives also serve as guidelines for the management
and workers.
They bring about unity of direction in the organization.

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 STEPS IN ORGANIZING
(2) Identification and grouping of activities:
 In order to achieve the objectives of the enterprise, certain activities
are necessary.
 The activities will depend upon the nature and size of the enterprise.
 Each job should be properly classified and grouped.
 This will enable the people to know what is expected of them as
members of the group and will help in avoiding duplication of
efforts.
 For example, the total activities of an enterprise may be divided into
major functions like production, purchasing, marketing, finance etc.
 such function is further subdivided into various jobs.
 For example, in production department separate sections may be
created for research, industrial engineering etc.
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 STEPS IN ORGANIZING
3) Assignment of duties:

After classifying and grouping the activities into various

jobs, they should be allotted to the individuals for
ensuring certainty of work performance.

Each individual should be given a specific job to do

according to his ability and made responsible for that.

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 STEPS IN ORGANIZING
(4) Delegation of authority

Every individual is given the authority necessary to

perform the assigned activity effectively.
By authority we mean power to take decisions, issue
instructions, guiding the subordinates, supervise and
control them.

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 STEPS IN ORGANIZING
5) Coordinating activities

The activities and efforts of different individuals are then

synchronized.
Such coordination is necessary to ensure effective
performance of specialized functions.
Interrelationship between different job and individuals are
clearly defined so that everybody knows from whom he
has to take orders and to whom he is answerable.

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 PURPOSE OF ORGANIZATION
(1) To facilitate pattern of communication:
 Organization structure provide pattern of communication and
coordination.
 By grouping activities and people, structure facilitates
communication between people centered on their job activities.

(2) To allocate authority and responsibility:

 Organization structure allocates authority and responsibility.
 It specifies who is to direct whom and who is accountable for
what results.
 The structure helps the organization members to know what his
role is and how it relates to others role.
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 PURPOSE OF ORGANIZATION
(3) To locate decision centers:
 Organization structure determines the location of decision
making in the organization.

(4) To create proper balance:

 Organization structure creates the proper balance and emphasis
of activities.
 Those more critical to the enterprises success might be placed
higher in the organization.
 Activity of comparable importance might be placed at the
lower level.
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 PURPOSE OF ORGANIZATION
(5) To stimulate creativity:
 organization stimulates independent, creative thinking and initiative.

(6) To encourage growth:

 If the organization structure is flexible, it will help in meeting
challenges and creating opportunities for growth.

(7) To make use of technological improvements:

 organization structure which is adoptable to changes can make the best
possible use of latest technology.
 It can modify the existing pattern of authority-responsibility
relationships in the wake of technological improvements.

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 PRINCIPLES OF
ORGANIZATION
In order to facilitate the achievement of objectives,
management thinkers have laid down certain principles of
organization.
The principles are guidelines for planning organization
structure.

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

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

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 PRINCIPLES OF
ORGANIZATION

(1) Objectives:
Objectives of the enterprise should be clearly defined.
Every part of the organization and organization as a whole
should be geared to the basic objective determined by the
enterprise.

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 PRINCIPLES OF
ORGANIZATION

(2) Specialization:
Effective organization must promote specialization.
The activities of the enterprise should be divided
according to functions and assigned to persons according
to their specialization.

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 PRINCIPLES OF
ORGANIZATION
(3) Span of control:
A manager can directly supervise only a limited number
of executives.
Hence, it is necessary to have a proper number of
subordinates answerable to a manager.
A maximum of six may be prescribed for this purpose.

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 PRINCIPLES OF
ORGANIZATION
(4) Exception:
This principle requires that organization structure should
be so designed that managers are required to go through
the exceptional matters only.
All the routine decisions should be taken by subordinates,
where as problems involving unusual matters and policy
decision should be referred to higher levels.

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 PRINCIPLES OF
ORGANIZATION
(5) Scalar principle:
This is also known as chain of command. There must be
clear lines of authority running from the top to the bottom.

Unbroken line of authority from top level to bottom level.

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 PRINCIPLES OF
ORGANIZATION
(6) Unity of command:
Each subordinate should have only one supervisor whose
command he has to obey.
Dual subordination must be avoided, for it causes
uneasiness, disorder, and indiscipline.

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 PRINCIPLES OF
ORGANIZATION
(7) Delegation:
Proper authority should be delegated at the lower levels of
the organization also.

The authority delegated must be equal to responsibility

i.e., the manager should have enough authority to
accomplish the task assigned to him.
Handle special problems ,co ordinating and planning
evmts.

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 PRINCIPLES OF
ORGANIZATION
(8) Responsibility: accountability
A superior should be held responsible for the acts of his
subordinates.

 No superior should be allowed to avoid responsibility by

delegating authority to his subordinates.

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 PRINCIPLES OF
ORGANIZATION
(9) Authority:
Right and power to act.

The authority is the tool by which a manager is able to

accomplish the desired objective.
Hence, the authority of each manager must be clearly
defined.
The authority should be equal to responsibility.

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 PRINCIPLES OF
ORGANIZATION
(10) Efficiency:
The organisation structure should enable the enterprise to
function efficiency.

The organization should be able to attain the mission and

objectives at the minimum cost.

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 PRINCIPLES OF
ORGANIZATION
(11) Simplicity:
The organization structure should be as simple as possible
with minimum number of levels.
A large number of levels of organization means difficulty
of effective communication and coordination.

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 PRINCIPLES OF
ORGANIZATION
(12) Flexibility:
The organization should be flexible, should be adaptable
to changing circumstances.
It should permit expansion and replacement without
dislocation and disruption of the basic design.
A organization must avoid complicated procedures and
excessive complication of control so that it may adapt
itself easily and economically to business and technical
changes.

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 PRINCIPLES OF
ORGANIZATION
(13) Balance:
There should be reasonable balance in the size of various
departments, between centralization and decentralization,
between span of control and among all types of factors
such as human, Technical and financial.

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 PRINCIPLES OF
ORGANIZATION
(14) Unity of direction:
There must be one objective and one plan for a group of
activities having the same objective.

Unity of direction facilitates unification and coordination

of activities at various levels.

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 PRINCIPLES OF
ORGANIZATION
(15) Personal abilities:
As organization is a formal group of people there is need
for proper selection, placement and training.
Organization structure must ensure optimum use of
human resources.

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 SPAN OF CONTROL
 The span of control indicates the number of subordinates who
can be successfully directed by a supervisor.
 It is often referred to as span of management, span of
supervision, span of authority.
 Span of management is important because of two reasons.
 First is span of management affects the efficient utilization of
managers and the effective performance of the subordinates.
 If the span is too wide, managers are overburdened and
subordinates receive little guidance.
 If the span of management is too narrow, the managers are
under utilized and subordinates are over controlled.

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 SPAN OF CONTROL
A narrow span results in tall organization with many
levels of supervision between top management and lowest
organizational levels which creates more communication
and cost problems.
On the other hand, a wide span for the same number of
employees results in flat organization with fewer
management levels between top and bottom.

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 SPAN OF CONTROL

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

Advantage of a wider span of control are

4. Organisation structure can be made simpler if more workers
come under each manager.
5. Saving salaries because less number of manager.
6. Absence of over-supervision of worker.

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

Disadvantage of a wider span of control are

4. Tendency of overloading superior to become decision bottle
necks
5. Danger of superior’s loss of control.
6. Requires managers with exceptional qualities.

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 DEPARTMENTATION
Horizontal differentiation of tasks or activities into
discrete segments is called departmentation.
Departmentation involves grouping of operating
tasks into jobs, combining of jobs into effective
work group and combining of groups into
divisions often termed as ‘departments’.
The aim is to take advantages of division of labour
and specialization up to a certain limit.

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 DEPARTMENTATION
1) Departmentation by functions:
2) Departmentation by product:
3) Departmentation by customers:
4) Departmentation by territory:
5) Departmentation by Process:
6) Departmentation by time:

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 1)Departmentation by functions:

This is the simplest and most commonly used base for

Departmentation.
Each major function of the enterprise is grouped into a
department.
For example there may be production, finance, marketing
and personnel department in an organization .
All functions related to production are grouped together to
form production department, similarly other departments
are formed on the basis of function.

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 1)Departmentation by functions:

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 1)Departmentation by functions:

Advantages
(1) It is simple and suitable for small organization which
manufactures limited number of products.
(2) It promotes specialization.
(3) It leads to improve planning and control of key
functions.
(4) Manpower and other resources of the company are
effectively used.

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 1)Departmentation by functions:

Drawbacks
(1) It fosters sub-goal loyalty. Department goal becomes
important than organizational goal resulting into
interdepartmental conflicts.
(2) Difficult to set up specific accountability and profit
centers within functional departments with the result that
performance cannot be accurately measured.
(3) It does not offer a good training for overall development
of a manager.

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 2)Departmentation by product:

This form is suited for a large organisation manufacturing

varity of products.
All activities related to a particular product line may be
grouped together under the direction of a semiautonomous
division manager.
Several companies such as Godrej, TATA have product
based departments.

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 2)Departmentation by product:

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 2)Departmentation by products:

Advantages
(1) It focuses individual attention on each product line.
(2) It leads to specialization of physical facilities on the
basis of product which results in economy.
(3) It is easier to evaluate and compare the performance of
various product division and it enables the top
management to invest more in profitable product groups.

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 2)Departmentation by products:
Drawbacks
(1) This form results in duplication of staff.
(2) Extra expenditure is incurred in maintaining a sales
force for each product.
(3) Employment of a large number of managerial
personnel is required.

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 3)Departmentation by customers:

This is used in the enterprises engaged in providing

specialized services to different classes of customers.
Management groups the activities on the basis of
customers to cater to the requirements of clearly defined
customer groups.
For example, an automobile service company may
organize its departments as heavy vehicles servicing
division, car servicing division and scooter servicing
division
 Similarly an educational institute may have departments
for regular courses, evening and corresponding courses
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etc. 07/13/2024
 4)Departmentation by territory:
Under this classification, the market area is broken up into
sales territories and a responsible executive is put in-
charge of each territory.
The territory may be known as district, division or region.
The field salesmen under respective regions report to their
corresponding sales supervisors.
Banks, Railways and big manufacturing companies like
petroleum companies are some example for this.

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 4)Departmentation by territory:
Advantages
1) Places responsibility at lower level.
2) Ensures a better coordination with in a region.
3) Provides region wise comparison of performance.
4) Takes advantage of economics of local operations.

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 4)Departmentation by territory:
Disadvantage
1) Requires more person with general manager abilities.
2) Requires to maintain similar functional people at all
region.
3) Difficult to control from top management.

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 4)Departmentation by territory:

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 5)Departmentation by Process:
Departmentation here, is done on the basis of several
discrete process or technologies involved in the
manufacture of a product.
For example, a vegetable oil company may have separate
departments for crushing, refining and finishing.
A textile mill may have departments for ginning, spinning,
weaving and dyeing.
A work that would otherwise be done in several different
locations in an enterprise is done in one place because of
special equipments used.

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 6)Departmentation by Time:
One of oldest forms of departmentation, generally used at
lower level of an organisation.

It is grouping of activities on the basis of time.

The use of shifts is common in some organistions due to

economical or technological reasons.

For service organisation like hospital, fire department,

security round the clock work is essential.

50 All these call for shift work is essential. 07/13/2024

 6)Departmentation by Time:
Advantages:
1) Service can be rendered, that goes beyond the normal 8
hour shift.
2) Facilities use of processes that cannot be stopped or
interrupted.
3) Expensive capital equipment can be better utilized.
4) High and continuous production per day.

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 6)Departmentation by Time:
Disadvantages:
1) Lacks good and efficient supervision during night shift.

2) Lack of effective coordination and communication

from people of one shift to next shift.

3) Inconvenient for people to work in night shifts and

more difficult during shifts changes from day to night.

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 Committee Organization
• Some of the adminstarive tasks cannot be performed by a
single person alone.
• Such sitiuation may call for two or more person to perform
such tasks. This calls for a committee organisation.
 “A committee is a group of persons performing a group task
with the object of solving certain problems”.
 Committees help in taking corrective decision, coordinating the
affairs of different departments and meeting communication
requirements in the organization.

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 Committee:Types

 The committees may be of different types as follows.

1)Ad-hoc committee: It is a temporary committee formed for a
short period to solve a minor problem.
 For eg: a committee to decide the date and venue of annual
general body meeting.
2)Standing or Permanent committee: Such committees is
formed to solve problems which is repetitive in nature.
 Eg: Disciplinary committee to solve discipline related issues of
individual workers from time to time.

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 3)Advisory committee: This committee studies the various
aspects of a problem and suggests courses of action to the
management thus reducing its burden. An advisory committee
does not have power to act.
 For eg: a committee in a manufacturing industry studying the
feasibility in going for modernization of the plant.

4)Educational committee: this is a committee which guards the

company policies and procedures. They often educate and give
an insight to the management about the goals of the
organisation whenever there is confusion.

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 STAFFING
“Staffing is the process of attracting and devoloping
human resources to work for an organisation and also to
evaluate them in their work”.

It is now recognized as a separate management function.

Today the staffing function has assumed greater

importance because of rapid advancement of technology,
increasing the size of the organization and complex
behavior of human beings.
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 STAFFING
 The organization structure spells out various positions of the organization.
 Filling and keeping these positions with right people is the staffing phase of
the management function.
The staffing function performs the following sub functions:
 (1)Manpower planning.
 (2) Recruitment of employees.
 (3) Selection of the best qualified from those who seeks job
 (4) Training and Development.
 (5) Decision on remuneration packages.
 (6) Performance appraisal .
 (7) Promotion and transfer.

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 STAFFING
 In any organizations have separate department known as
personnel department or human resource (HR Dept.)
department to perform staffing function.

 They are all time involved in determining what personnel are

needed in what quantity and of what quality.

 Staffing is a development oriented function as it tries to

maintain and develop employees through appropriate training
and compensation program

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 STAFFING
 Nature or features of staffing
(1) Staffing is a continuous process:
Staffing is a continuous process because the employees leave
the organisation for a number of reasons. Also to meet the
need of an organisation, fresh recruitment has to be done from
time to time.
(2) Staffing involves people:
Staffing involves people and hence it is the most difficult job.
Russi Mody once admitted that among 5 M’s of the
management( men,money, material, machines and methods) ,
Men who are the most difficult to handle.
(3) Staffing is development oriented.
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It aims at developing and orienting people to the needs of the
07/13/2024
company through appropriate training programs.
 STAFFING
 Nature or features of staffing
(4) Staffing involves multidisciplinary knowledge.
Staffing as a function makes use of information drawn from
various branches of knowledge such as psychology, sociology,
economics etc.

(5) Staffing is step by step process.

Staffing has to be done in step by step process in order order to
be meaningful. It takes time and immense patience on the part of
people involved in staffing.
Various steps involved in staffing are human resource planning,
recruitment, selection, placement, training, and development,
remuneration, performance appraisal, promotion, transfer,
60 retirement etc 07/13/2024
 RECRUITMENT
“Recruitment is the process of identifying the sources for
prospective candidates and to stimulate them to apply for
the jobs”.
It is a linking activity that brings together those
offering jobs and those seeking jobs.
• Recruitment enables management to select suitable
employees for its different job.
• The various sources of recruitment are divided into two
categories:
(1) Internal Sources.
(2) External Sources.
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 RECRUITMENT
(1) Internal Sources.
 Internal sources involve transfer and promotion.
Transfer involves the shifting of an employee from one
job to another.
Many companies follow the practice of filling higher jobs
by promoting employees who are considered fit for such
positions.
Filling higher positions by promotion motivates
employees.

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 RECRUITMENT
Advantage of recruitment from Internal Sources.
1) It provide them to develop financially.
2)Employees from within the organisaton adjust to new
positions much faster than employees from outside.
3) This method is less time consuming and less expensive.
4) It encourages employees to work harder in order to
attract promotions and generates higher motivation levels.

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 RECRUITMENT
Disadvantage of recruitment from Internal Sources.
1) It may not be possible to find the required talent, skill
from within the organisation.

2) There may be a limited choice for promotion.

3) No chance for new ideas and talents to flow into the

organisation.

4) Employees who are not successful in getting promoted

get de motivated.
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 RECRUITMENT
(2) External Sources
(1) Direct recruitment: An important source of
recruitment is direct recruitment by placing a notice on the
notice board of the enterprise by specifying the details of
the jobs available. This is also known as recruitment at
factory gate.

(2) Voluntary or walk in applicant: Many qualified

persons apply for employment to reputed companies on
their own initiative.

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 RECRUITMENT
(2) External Sources
 (3) Advertising: Advertisement in newspapers, employment
news, trade and professional journals, internet etc., help to get
prospective employees having suitable skills and qualification.
 This helps in informing the candidates spread over different
parts of the country.
 The advertisement contains information about the company,
job description, and job specialization etc.

 (4) Labour unions: Labour unions also supply workers to the

factory for employment. This method of employment has also
lost its popularity.
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 RECRUITMENT
(2) External Sources

 (5) Employment agencies: Many organisations these days

entrust their manpower requirements to private agencies
devoted to recruitment thus saving vital time effort.
 (6) Recommendations: Applicants introduced by friends,
relatives and employees of the organization may prove to be a
good source of recruitment.
 Many employers prefer to take such persons because
something about their background is known.

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 RECRUITMENT
(2) External Sources

 (7) Campus interview: Many industries visit engineering

colleges, polytechnics and other institution to conduct campus
interviews in order to recruit fresh employees.

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 SELECTION
 Selection of candidates start after the completion of the
recruitment process.

 Selection is the process of picking out few suitable persons from

large number who have applied for the job and thus eliminating
the rest.

 The process of selection leads to employment of persons having

the ability and qualifications to perform the jobs which have
fallen vacant in an organization.

 In order to achieve this purpose, a well, organized selection

procedure involves many steps and at each step more and more
07/13/2024
69
information is obtained about the candidates.
 SELECTION
 Steps involved in selection procedure are
 (1) Receipt of applications:
 Whenever there is vacancy, it is advertised or enquires are
made from suitable sources and applications in standard form
are received from the candidates.
 The applications give preliminary idea of the candidates
 like family background , age , qualifications, experience etc.,
 Standard forms make the application processing very easy.
 Candidates who do not posses the required qualification are
eliminated and others are called for preliminary interview.

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 SELECTION
 Steps involved in selection procedure are
 (2) Preliminary interview
 The purpose of preliminary interview is to eliminate unfit,
unqualified and less qualified applicants.

 Preliminary interview are brief and give a general idea about

candidates education, experience, appearance, personality and
salary requirement of the candidate.

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 SELECTION
 Steps involved in selection procedure are
 (3) Employment Tests
 Candidates who pass the preliminary interview are asked to appear for
selection tests.
 Tests are conduct to measure the skills and abilities of candidates in
detail.
(1) Proficiency tests: To measure the knowledge and proficiency in the
areas already claimed in the application form.
(2) Aptitude tests: Aptitude tests consists of
(a) Intelligence test
(b) Attitude test
(c) Interest test

(3) Personality test: To check candidates balance in thoughts, spontaneity,

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ability to meet stressful situation etc
 SELECTION
 Steps involved in selection procedure are
(4) Group Discussion
 In this test, candidates are assembled in small groups and
general topic of current interest is given for discussion.

 This test gives an idea about candidates communication skills,

general awareness, ability to contribute in team and ability to
command the attention of others and so on.

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 SELECTION
 Steps involved in selection procedure are
 (5) Final interview
 The employment tests do not provide the complete set of
information about the candidate.
 Interview may be used to secure more information about the
candidate.
 The main purpose of interview is to find out the suitability of
the candidate, to seek more information about the candidate, to
give an accurate picture of the job with details of terms and
conditions.
 In addition, interview help to check the information given by
the applicant in the application and to assess the capability and
personality of the applicant.
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 SELECTION
 Steps involved in selection procedure are
 (6) Checking references.
 This is one of the last steps before candidate is offered a job in
the organisation.

 An investigation is made on the reference given by candidates

regarding his past employment, education, character, personal
reputation etc

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 SELECTION
 Steps involved in selection procedure are
(7) Medical examination.
 A thorough medical check up of candidate is carried out prior
to placement.

(8)Final selection:
 After a candidate has cleared all the hurdles in the selection
procedure, he is formally appointed by issuing him an
appointment letter or by concluding with him a service
agreement.
 The appointment letter contains the terms and conditions of
employment, pay scale and other benefits associated with the
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 Directing and
Controlling
Unit 4

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 DEFINITION OF DIRECTING
Directing is defined as telling people what to do and
seeing that they do it for the best of their ability.
Directing is that function through which managers gets
the work done from others.
Thus directing function includes three important
components:
 communicating
 leading and
motivating.

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 LEADERSHIP
Thus most important features of leadership are:
 Leaders possess great influential power.
 Leaders, have followers and they influence the behaviour of
followers.
 There is a reciprocal relationship between leaders and followers.
 Leaders have a great vision for future.
 Leaders create a shared vision among followers and direct them
to work towards the achievement of common goals. .
 Leaders are sensitive towards the needs of followers and they
motivate followers.
 Leadership is situational and effectiveness of leaders is
influenced by situational
 variables like environment, interpersonal relationship, job
content, group relations, size of group, group norms etc.

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 Importance of Leadership
Leadership is the most important component of
managing process.
 A manager can be efficient and effective only if he is a
good leader.
a. Leaders guide and inspire subordinates:
Leaders motivate their followers and guide them
towards accomplishment of group goals which inturn
contributes to the accomplishment of organizational
goals.

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 Importance of Leadership
b. Leaders build good work environment: Leaders create
a work environment in which employees can contribute by
performing to the best of their abilities. The environment
creates a relationship based on trust.
e. Leaders build confidence in followers: Leaders
recognize abilities of their followers and encourage them to
develop to their potential by building confidence in them.
d. Leaders secure cooperation from the group:
Leaders influences the group members in such a way that
all the members work collectively towards group objectives
and thus instill cooperation among all members.

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 Importance of Leadership
e. Leaders act as change agents:
 organizations operate in an environment which is subjected
to continuous changes, and if the organizations do not
respond to these changes, then survival of the organizations
may be difficult.
 But organizational members resist any changes, as they are
accustomed to particular methods of work.
 It requires great leadership to reduce the resistance to change
and convince the employees to accept the change.
 Thus leaders act as change agents of the organization and
helps in implementing successful positive changes in the
organization.
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 Importance of Leadership
f. Leaders are representatives of the followers: On one
hand leaders direct the employees of the organization,
but on the other hand they are also representatives of
their followers. They always take personal interest in
helping their followers and protect the interests of the
followers while taking any major organizational
decisions.
g. Leaders develop great vision: Leaders are known for
their great vision and they develop the vision for
building great organizations.

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 MOTIVATION
Motivation is the process of stimulating people to
action to accomplish desired goals.
 Motivation represents inner drive within an
individual which directs him to behave in specific
way.
 Only highly motivated employees can achieve the
goals of an organization.

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 MOTIVATION
Motivation is also defined as the one which accounts for
direction, intensity and persistence of efforts towards
achievement of goal.
Direction refers to quality of efforts, and if efforts are not
channelized in proper direction they may not yield expected
results.
 Intensity of efforts refers to how hard an individual puts
efforts.
 Persistence refers to sustenance of efforts till the
achievement of goals.
 Motivated individuals put same intensity of efforts till they
achieve the goals.
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 Importance of Motivation
 Highly motivated workforce is absolutely essential for any
organization to achieve its objectives.
 Management basically aims at optimum utilization of various
resources of the organization.
 These resources are human resources, financial resources, and
physical resources like materials, tools, machines, equipments
etc.
 All these resources are very precious and they cannot be wasted.
 Use of financial and physical resources always depends on
human resources and thus only motivated employees can
effectively convert financial and physicaJ resources into useful
products and services.

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 Importance of Motivation
 Motivation results in desirable behaviour of employees.
 These behaviours are essential for implementation of
organizational plans successfully.
 Thus successful achievement of goals not only depends on good
plans but also on motivated workforce.

 Individuals may possess abilities or skills to perform a task

effectively and efficiently. But translation of these abilities into
actual performance will depend on their willingness to do the task.
This inturn will depend on his or her motivation. Motivation thus
bridges the gap between ability to work and willingness to
perform. Hence motivation is essential for effectiveness and
efficiency.

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 Importance of Motivation
Motivation is an important factor which contributes to
employee retention and building a stable workforce.
Motivation brings down number of employee
grievances and complaints.
 Active involvement of employees in whatever task
they do will also brings down any chances of accidents
and losses resulting out of accidents.
 Highly motivated workforce can produce best quality
of products and services. This

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 COMMUNICATION
The source or sender or communicator:
Communication process starts with sender. Sender is
the person who has an intended message to convey to
some one. He has the purpose of communicating
information or message to one or more persons.
Encoding: Encoding means putting message into a
code. Encoding is the process of translating message
into a form which can be understood by the receiver. It
can be in the form of oral, written or symbols.

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 Types of Communication
Formal and Informal Communication
Formal communication is officially accepted
communication in the organization and it uses official
channel for transmitting messages.
It follows official route for flow of communication
between various people in the organization.
 Commands, instruction, orders flowing from top level
to lower level, messages for coordination between
people at same level, suggestions from people at
different levels, requisitions from lower level to higher
level etc represent formal communication.
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 Types of Communication
Formal and Informal Communication
Informal communication is that communication which
is not officially accepted part of the communication in
an organization.
It does not adhere to the organizational hierarchy.
Informal communication is based on the informal
relationship among the organizational members.

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

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 Types of Communication
Vertical and Horizontal Communication
Upwards communication flows from lower level to top
management and it provides top management
information about what is happening at lower levels.
 But upward communication is used more when
managers use open door policy and encourage
subordinates to share information.
Examples for upward communication include requests,
applications, reports, suggestions etc.

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 Types of Communication
Vertical and Horizontal Communication
Horizontal communication refers to exchange of
information between two people at same hierarchy
level or peer level.
For example information exchanged between two
departmental heads of an organization, a production
engineer informing a maintenance engineer about
breakdown of a machine etc.
 It is also called as lateral communication.

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 CONTROLLING
Controlling is defined as the process of measuring the
actual work and comparing it with a predetermined
standard in order to determine any deviation so that
timely corrective actions are taken and tasks are
completed as per original plans.
Controlling is defined as the continuous function of
determining what is being performed, measuring its
actual results in relation with predetermined objectives
and devising such corrective measures that may be
necessary to make the performance conform to the
original plans.

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 Objectives of Controlling
To ensure effectiveness and efficiency in all management
functions.
To determine what is happening in the organization and
measure actual progress from time to time.
To ensure effective communication between various units
of organization.
To keep a check on resource utilization.
To reframe organizational plans in relation to changes in
the environment.
To detect any deviation and take timely corrective actions.
To ensure that all the activities are performed according to
predetermined plans.
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