UNIT-3
ORGANIZING
Organizing involves defining jobs and working relationships, assigning different tasks in relation to plans, arranging and allocating resources, designing a structure which distinguishes duties, responsibilities and authorities, scheduling activities etc. in order to maintain smoothness and effectiveness in operations. It succeeds planning and coordinates human efforts, arranges resources and incorporates the two in such a way which helps in the achievement of objectives. It decides the ways and means with which the plans can be implemented. In short, with organizing, the manager brings order out of disorder, removes chaos and confusion with respect to work and responsibility and builds an ideal environment where all the members of the organization can work in harmony.
By nature, a business organization is a science as well as an art.
Business Organization as an art
T.L.Massie says, “In any activity that is classed as an art the emphasis is on applying skills and knowledge and accomplishing an end through deliberate effort.” According to G.R. Terry, art is “bringing about of a desired result through application of skills.”
Thus, art is concerned with application of skills and continuous effort for achieving certain goals. In this sense, business organization is an art as it has to apply skills and knowledge in dealing with various situations in order to achieve desired goals. Organization is a creative art as it involves getting things done through others by motivating them and coordinating their efforts.
Business Organization as a science
In the words of Keynes, “Science is a systematized body of knowledge which establishes relationship between cause and effect.” Organization is systematized body of knowledge acquired and developed by mankind through observation and experimentation, capable of verification. Thus, organization and its activities are, in a way, is science as it involves the use of systematized principles and philosophies developed by management thinkers and scientists over the years. Though it is not pure science like physics or chemistry but it may be called behavioral science as it mostly deals with human behavior.
Key Takeaways
Following are the main characteristics/features of organizing:
i. Division of Labour: Work is assigned to the employee who are experts specialised in that particular work.
ii. Coordination: Different members of the organization are assigned different tasks. When all the tasks are arranged logically and sequentially, the work becomes complete and it results in the desired manner. Thus, coordination is required.
iii. Objectives: Objectives of the organization need to be specifically defined so that their proper accomplishment becomes possible.
iv. Authority-Responsibility Structure: An organization is built with various positions arranged in a hierarchy with well defined authority and responsibility. For an effective authority responsibility structure, the position of each manager and subordinate is to be clearly stated.
v. Communication: The techniques, the flow and importance of communication must be known to all the members in the organization to avoid chaos and confusion.
Key Takeaways
Organizing is integral to management as it facilitates the smooth functioning of the enterprise. The importance of organizing is as under:
• Advantage of Specialization: Organizing helps in the classification of jobs systematically amongst the workforce, which helps in the reduction of workload, as well as improved productivity. This is because the organization will get the benefit of specialization wherein workers will perform specific work on a regular basis, according to their competency.
• Describes work relationships: The definition of work relationships describes the flow of communication and determine the superior-subordinate relationship. This removes confusion and chaos, in getting orders and instructions.
• Effective utilization of resources: Organizing function ensures the best possible utilization of resources whether it is human, material, financial or technical.
• Adaptation to change: Organizing process helps the organization to survive and adapt to the changes by making substantial changes in the strategies, hierarchy, relationships, etc.
• Development of personnel: Organising encourages creativity in executives. Delegation of authority reduces their work load and they get time to identify new methods to perform the work. It also enables them to explore new areas for their growth and development.
Key Takeaways
‘Departmentation’ or ‘Departmentalization’ is that the process of grouping the activities of an enterprise into several units for the aim of administration at all levels.
The administrative units so created could also be designated as departments, divisions, units, branches, sections, etc. The process of organising consists of dividing and grouping of the works to be wiped out an enterprise and assigning different duties and responsibilities to different people.
Dividing the work naturally means the identification of individual activities which need to be undertaken for the attainment of the organisational objectives. But once the varied activities are identified, it's necessary to group them together on some logical basis so that a team can be organised.
Departmentation can provide a necessary degree of specialisation of executive activity for efficient performance. It can simplify the tasks of management within a workable span. It also provides a basis on which the top managers can co-ordinate and control the activities of the departmental units.
The basic need for departmentation is to make the size of each departmental unit manageable and secure the benefits of specialisation. Grouping of activities and, consequently, of personnel, into departments makes it possible to expand an enterprise to any extent.
Approaches to Departments/ Types of Departmentation:
There are several bases of Departmentation. The more commonly used bases are—function, product, territory, process, customer, time etc.
These are explained below:
(A) Departmentation by Functions:
The enterprise could also be divided into departments on the basis of functions like production, purchasing, sales, financing, personnel etc. This is often the most popular basis of departmentation. If necessary, a major function could also be divided into sub-functions. For instance, the activities in the production department could also be classified into quality control, processing of materials, and repairs and maintenance.
The organisation chart supported functional departmentation is shown in Fig. 4.10:
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Advantages:
The advantages of functional departmentation include the following:
(a) it's the most logical and natural kind of departmentation.
(b) It ensures the performance of all activities necessary for achieving the organisational objectives.
(c) It provides occupational specialisation which makes optimum utilization of man-power.
(d) It facilitates delegation of authority.
(e) It enables the top managers to exercise effective control over a limited number of functions.
(f) It eliminates duplication of activities.
(g) It simplifies training because the managers are to be experts only during a narrow range of skills.
Disadvantages:
There are some problems related to functional departmentation. These are mentioned below:
(a) There could also be conflicts between departments.
(b) The scope for management development is limited. Functional managers don't get training for top management positions. The responsibility for results can't be fixed on anybody functional head.
(c) there's too much emphasis on specialisation.
(d) There could also be difficulties in coordinating the activities of various departments.
(e) There could also be inflexibility and complexity of operations.
(B) Departmentation by Products:
In product departmentation, every major product is organised as a separate department. Each department takes care of the production, sales and financing of 1 product. Product departmentation is beneficial when the expansion, diversification, manufacturing and marketing characteristics of every product are primarily significant.
It is generally used when the production line is complex and diverse requiring specialised knowledge and large capital is required for plant, equipment and other facilities like in automobile and electronic industries.
In fact, many large companies are diversifying in several fields and they prefer product departmentation. for instance, an enormous company with a diversified line may have three product divisions, one each for plastics, chemicals, and metals. Each division may be sub-divided into production, sales, financing, and personnel activities.
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Advantages:
Product departmentation provides several advantages which can be stated as follows:
(a) Product departmentation focuses individual attention to every product line which facilitates the expansion and diversification of the products.
(b) It ensures full use of specialized production facilities. Personal skill and specialised knowledge of the assembly managers are often fully utilised.
(c) The production managers are often held accountable for the profitability of every product. Each product division is semi-autonomous and contains different functions. So, product departmentation provides a superb training facility for the top managers.
(d) The performance of every product division and its contribution to total results are often easily evaluated.
(e) It is more flexible and adaptable to change.
Disadvantages:
Product departmentation presents some problems as follows:
(a) It creates the problem of effective control over the product divisions by the top managers.
(b) Each production manager asserts his autonomy disregarding the interests of the organisation.
(c) The benefits of centralisation of certain activities like financing, and accounting aren't available.
(d) there's duplication of physical facilities and functions. Each product division maintains its own specialised personnel thanks to which operating costs could also be high.
(e) There could also be under-utilisation of plant capacity when the demand for a specific product isn't adequate.
(C) Departmentation by Territory:
Territorial or geographical departmentation is especially useful to large-scale enterprises whose activities are widely dispersed. Banks, insurance companies, transport companies, distribution agencies etc. are some samples of such enterprises, where all the activities of a given area of operations are grouped into zones, branches, divisions etc.
It is obviously impossible for one functional manager to manage efficiently such widely spread activities. This makes it necessary to appoint regional managers for various regions.
The organisation chart of territorial departmentation may take the subsequent form:
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Advantages:
Territorial departmentation offers certain facilities in operation. These are acknowledged below:
(a) Every regional manager can specialise himself within the peculiar problems of his region.
(b) It facilitates the expansion of business to varied regions.
(c) It helps in achieving the advantages of local operations. The local managers are more familiar with the local customs, preferences, styles, fashion, etc. The enterprise can gain intimate knowledge of the conditions within the local markets.
(d) It leads to savings in freight, rents, and labour costs. It also saves time.
(e) There is better co-ordination of activities during a locality through fixing regional divisions.
(f) It provides adequate autonomy to every regional manager and opportunity to train him as he takes care of the entire operation of a unit.
Disadvantages:
Territorial departmentation have the subsequent problems:
(a) There is the problem of communication.
(b) It requires more managers with general managerial abilities. Such managers might not be always available.
(c) There could also be conflict between the regional managers.
(d) Co-ordination and control of various branches from the head office become less effective.
(e) Due to duplication of physical facilities, costs of operation are usually high.
(f) There is multiplication of personnel, accounting and other services at the regional level.
(D) Departmentation by Customers:
In such method of departmentation, the activities are grouped consistent with the sort of customers. For instance, a large cloth store could also be divided into wholesale, retail, and export divisions. This sort of departmentation is beneficial for the enterprises which sell a product or service to variety of clearly defined customer groups. As an example, a large readymade garment store may have a separate department each for men, women, and children. A bank may have separate loan departments for large-scale and small- scale businessmen.
The organisation chart of customer-oriented departmentation may appear as follows:
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Advantages:
The important advantages of customer departmentation are the following:
(a) Special attention is often given to the particular tastes and preferences of each kind of customer.
(b) Differing types of consumers can be satisfied, easily through specialised staff. Customers’ satisfaction enhances the goodwill and sale of the enterprise.
(c) The advantages of specialisation are often gained.
(d) The enterprise may acquire intimate knowledge of the needs of each category of consumers.
Disadvantages:
This method of departmentation may have certain disadvantages, especially when it is followed very rigidly. These are as follows:
(a) Co-ordination between sales and other functions becomes difficult because this method is often followed only in marketing division.
(b) There could also be under-utilisation of facilities and manpower in some departments, particularly during the amount of low demand.
(c) It is going to lead to duplication of activities and heavy overheads.
(d) The managers of customer departments may put pressures for special benefits and facilities.
(E) Departmentation by Process or Equipment:
In such type or departmentation the activities are grouped on the basis of production processes involved or equipment used. This is often generally utilized in manufacturing and distribution enterprises and at lower levels of organisation. As an example, a textile mill could also be organised into ginning, spinning, weaving, dyeing and finishing departments. Similarly, a printing press may have composing, proof reading, printing and binding departments. Such departmentation can also be employed in engineering and oil industries.
The organisation chart of departmentation by process or equipment within the manufacturing department of a textile industry has been shown in Fig. 4.14:
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Advantages:
The basic object of such departmentation is to attain efficiency and economy of operations. The processes are set in such how that a series of operations is possible making operations economic. Efficiency is often achieved if departments are created for every process as each one has its peculiarities.
It provides the benefits of specialisation required at each level of the total processes. The maintenance of plant is often done in better way and manpower is often utilised effectively.
Disadvantages:
In such departmentation, there may be difficulty in coordinating the various process-departments, because the work of every process depends fully on the preceding process. So, there are chances of conflicts among the managers looking after the different processes. It cannot be used where manufacturing activity doesn't involve distinct processes.
(F) Departmentation by Time and Numbers:
Under this method of departmentation the activities are grouped on the basis of the time of their performance. As an example, a factory operating 24 hours may have three departments for 3 shifts—one for the morning, the second for the day, and therefore the third for the night.
In the case of departmentation by numbers, the activities are grouped on the basis of their performance by a certain number of persons. As an example, within the army, the soldiers are grouped into squads, companies, battalions, regiments and brigades on the basis of the amount prescribed for every unit.
Such sort of departmentation is beneficial where the work is repetitive, manpower is a crucial factor, group efforts are more significant than individual efforts, and group performance are often measured. it's used at the lowest level of organisation.
Key Takeaways
Line Organizational Structure:
It has only direct, vertical relationships between different levels in the firm. There are only line departments which are directly involved in accomplishing the primary goals of the organization. This type of structure is evident in Military Organization.
2. Staff or functional authority structure
In functional organization the task of management and direction of subordinates is divided according to the type of work involved. All activities are grouped together according to certain functions like production, marketing, finance, personnel etc. and are put under the charge of different persons, who are specialists in that particular field.
F.W. Taylor developed the concept of functional organization. He thought that one foreman could not handle all activities of production as he might not have knowledge about everything. He suggested the substitution of line authority by functional foremanship at the lower levels of the organization structure.
3. Line and Staff Organizational Structure:
Some organizations have direct, vertical relationships between different levels and also specialists responsible for advising and assisting line managers. Such organizations have both line and staff departments. Staff departments provide line people with advice and assistance in specialized areas. The jobs or positions in an organization are:
(i) Line position:
A position in the direct chain of command that is responsible for the achievement of an organization’s goals. The line employees are key persons of an organization who are solely responsible for their duties.
(ii) Staff position:
A position intended to provide expertise, advice and support for the line positions. The staff employees are employed only to assist the line members. They do not have any authority as regards decision making. They can only advice the line members, provide support as per their skills and knowledge.
Line and staff relationship
An organization structure which is composed of only line executives is termed as a line organization. An organization structure which is composed of both line executives and staff executives is termed as line and staff organization.
For running an organization properly both line and staff members’ contribution is required and their relationship must be well defined in the organizational structure. Much confusion has arisen among both scholars and managers as to what “line” and “staff’ mean. As a result, there is probably no area of management that causes more difficulties, more friction, arid more loss of time and effectiveness. Yet the line-and-staff relationships of the members of an organization must necessarily affect the operation of the enterprise.
One widely held view of line and staff is that line functions are those that have a direct impact on the accomplishment of the objectives of the enterprise. On the other hand, Staff functions are those that help the line persons work most effectively in accomplishing the objectives.
The people who adhere to this view almost invariably classify production and sales (and sometimes finance) as line functions and accounting, personnel, plant maintenance, and quality control as staff functions.
A more precise and logically valid concept of line and staff is that they are simply a matter of relationships. Line authority gives a superior a line of authority over a subordinate. It exists in all organizations as an uninterrupted scale or series of steps. Hence, the scalar principle in the organization. The clearer the line of authority from the ultimate management position in an enterprise to every subordinate position is, the clearer will be the responsibility for decision-making and the more effective will be organization communication.
In many large enterprises, the steps are long and complex; but even in the smallest; the very fact of organization introduces the scalar principle. It, therefore, becomes apparent from the scalar principle that line authority is that relationship in which a superior exercise direct supervision over a subordinate authority relationship being in direct line or steps.
The nature of the staffing relationship is advisory. The function of people in a pure staff capacity is to investigate, research, and give advice to line managers.
Key Takeaway
It is a vital managerial practice of getting things done through others by sharing authority with them. In any typical organisation, the policy and strategic decisions are taken by Board of Directors and actual implementation of those is entrusted to the Chief Executive. However, the chief executive alone cannot do the whole work. He cannot even supervise the work of all individuals working in several departments. He can pass on some portions of his authority to different departmental managers and commit them to specific tasks of supervision and operation. This process is known as delegation of authority.
“Delegation means in short the passing on the opposite of a share within the four elements of the management.” —E. F. L. Brech.
“Delegation means assigning work to others and giving them authority to do it.” —F. G. Moore.
“Delegation means conferring authority from one executive or organisational unit to another so as to accomplish particular assignment.” —George R. Terry.
Importance of Delegation:
Delegation of authority is widely recognised as an art of getting best results. It reduces the burden on top executives by relieving them of the both elation of taking routine decisions. This may help them in concentrating on vital aspects of management.
Delegation enables quick decisions concerning various matters because the authority of decision making has been distributed to numerous people. Granting of authority to subordinates motivates the superiors to perform their duties well. Delegation helps in maintaining healthy relationship between the executives and his subordinates by clearly defining the authority and responsibility of subordinates.
In general, the importance of delegation are often summarized as:
(a) Delegation results in better decisions.
(b) Delegation relieves the manager from heavy work load.
(c) Delegation helps to boost the motivation and morale of subordinates.
(d) Delegation accelerates decision making.
(e) Delegation facilitates training of subordinates.
(f) Delegation creates a proper organisation structure.
Process of Delegation of Authority:
STEP-I: Assignment of Work:
The first step in delegation is that the assignment of work or duty to the subordinate i.e., delegation of authority. The superior asks his subordinate to perform a particular task during a given period of time. it's the outline of role assigned to the subordinate. Duties in terms of functions or tasks to be performed constitute the basis of delegation process.
STEP-II: Granting of Authority:
The grant of authority is Fig. 7.1 Process of delegation the second element of the dele authority to the subordinate in order that the assigned task is accomplished. The delegation of responsibility without authority is meaningless. The subordinate can only accomplish the work when he has authority required for completing that task. Authority comes from responsibility.
STEP-III: Creation of Accountability:
Accountability is that the obligation of a subordinate to perform the duty assigned to him. The delegation creates an obligation on the subordinate to accomplish the task assigned to him by the superior. When a work is assigned and authority is delegated then the accountability is that the by-product of this process.
The authority is transferred in order that a particular work is completed as desired. This suggests that delegator has got to ensure the completion of assigned work. Authority flows downward whereas accountability flows upward.
Key Takeaway
Decentralization is a systematic delegation of authority at all levels of management and in all of the organization. In a decentralization concern, authority in retained by the top management for taking major decisions and framing policies concerning the whole concern. Rest of the authority may be delegated to the middle level and lower level of management. The degree of centralization and decentralization will depend upon the amount of authority delegated to the lowest level.
According to Allen, “Decentralization refers to the systematic effort to delegate to the lowest level of authority except that which can be controlled and exercised at central points.”
Advantages of Decentralisation
1. Advancement of the Managerial Personnel: As the business develops in size, it requires the administrations of countless and here decentralization gives a preparation ground to the future supervisors. The supervisors learn by understanding inside the association concerned.
2. Successful Control and Supervision: Decentralization prompts compelling control and supervision. Since concerned chiefs appreciate full expert to make changes in work task, to take disciplinary activities, to change generation plans or to prescribe advancements, they are in a situation to oversee the subordinates’ exercises.
3. Enhancement of Management: Decentralization helps enhancement of administrative capacity which prompts an expansion in their spirit and this outcomes in a higher efficiency.
Disadvantages of Decentralisation
1. External Factors: Decentralization expands the issues of coordination among the different units.
2. Increase the administrative price: Now and again, decentralization may not be conceivable by any stretch of the imagination. Outer factors make this troublesome, for example, expansive strikes.
3. High Cost of operation: It builds the authoritative costs in light of the fact that generously compensated administrators must be selected.
Implications of Decentralization may be:
Differences between Decentralization and Delegation
Delegation | Decentralization |
Delegation is individualistic. It involves two persons, superiors and subordinates. | Decentralization is totalistic in nature. It involves delegation from top management to the department or divisional level. |
Delegation is a technique of management. | Decentralization is the philosophy of management. |
Control rests with the delegator or superior. | In this system, top management exercises minimum control. All powers are given to concerned departments or divisions. |
Delegation is essential to get things done by others. Unless otherwise authority is delegated it will be difficult to assign responsibility. | Decentralization is optional because it is the philosophy of management. Top management may or may not disperse authority. |
In delegation, responsibility remains with the delegator. He can delegate authority and not responsibility. | In decentralization, head of the department is responsible for all activities under him. He is required to show better performance of the whole department. |
Delegation creates superior-subordinate relationship. | Decentralization is a step towards creation of semi- autonomous units. |
Key Takeaways
A number of persons may come together to take a decision, decide a course of action, advise line officers on some matters, it is a committee form of organization. It is a method of collective thinking, corporate judgment and common decision. A committee may be assigned some managerial functions or some advisory or exploratory service may be expected from it. A committee is not a separated type of organization as such. But it is a method of attaching persons or groups to line departments for advice and guidance in business planning and execution. A group of competent and interested persons pool their thoughts for facilitating decision making process. Sometimes there is a need to get opinion of other persons for taking important decisions. The thinking of varied persons is pooled together through deliberations and discussions and common decisions are reached. Because of collective information and analysis, committees are more likely to come up with solutions to complex problems. With the growth of organization the need for committee is more.
Need for Committees:
The main reason for committees is to secure common judgment on administrative matters. The committees are set up for the following reasons:
1. The committees provide a forum for exchanging ideas among organizational members.
2. The exchange of ideas among members may generate some suggestions and recommendations which may be useful for the organization.
3. There can be proper discussion on present problems and efforts are made to find solutions.
4. The committees may also be needed in establishing and developing organizational policies.
Types of Committees:
Different committees may be formed with different purposes. Some committees may be only advisory and some may perform managerial functions. There may be the following types of committees:
1. Formal and Informal Committees:
If a committees formed as a part of organization structure and is delegate some duties and authority, it is a formal committee and informal committee may be formed to tackle some problem, manager may call some experts to help him in analysing a problem and suggesting a suitable solution. The chief executive may call a meeting of departmental heads and some experts to find out a solution to some problem. In both the cases it is a case of an informal committee.
2. Advisory Committees:
These are the committees to advice line heads on certain issues. Line officers may refer some problems or issues to a committee for advice. The committee will collect information about the problem and recommend solution for the same. The line officers have the powers to accept, modify or reject the suggestions of advisory committees. These committees have no managerial powers and cannot exert their views on the line executives.
3. Line Committees:
There may be committees with managerial powers. Instead of giving work to one person it may be assigned to a number of executives. The committees having administrative powers are called line or plural committees. Line committees help in planning company policies and programmes and organizing efforts at fulfillment of these plans, etc. These committees also direct and control the activities of employees for achieving organizational goals.
Advantages of Committee Form of Organization:
The committee form of organization has the following advantages:
1. Pooling of Opinions: The members of committees come from different background and areas of expertise and have different viewpoints and values. When persons with varied abilities sit together and discuss a problem, various aspects of the case are highlighted and pros and cons are assessed. The pooled opinion will help in taking a realistic view of the problem.
2. Better Co-Ordination: Committee form of organization brings more co-ordination among different segments of the organization. When representatives of different departments sit together, they understand and appreciate the difficulties faced by others. This type of frank discussions help on fixing the targets of different departments and better co-ordination is achieved through this type of decision making.
3. Balancing of Views: This type of organization helps in balancing the views expressed by different persons. There is a tendency to over emphasize the aspects of one’s own department by ignoring the inter-dependent character of problems of different departments. A committee helps to bring out an agreed view of the problem by taking into account divergent views expressed in such meetings.
4. Motivation: The committees consist of managers as well as subordinates. The views of subordinates are given recognition and importance. It gives them encouragement and makes them feel as an integral part of decision making process. Such committees boost the morale of subordinates and motivate them to improve their performance.
5. Dispersion of Power: The concentration of power in few persons may lead to misuse of authority and wrong decisions. By spreading powers among committee members this problem can be solved.
6. Better Acceptance of Decisions: The decisions taken by committees are better accepted by subordinates. The decisions of an individual may be autocratic whereas committees decide in wider perspective of organization. Since various shades of people are represented in committees, these decisions are better accepted.
7. Better Communication: It is a better forum for discussing matters of mutual interest and reaching certain conclusions. These decisions can be properly communicated to subordinates through committee members. The members will transmit correct and authentic information and also convey the background of taking those decisions.
8. Executive Training: Committees provide a good forum for training executives. They learn the value of interaction, group dynamics and human relations. They are exposed to various view points and learn the art of reaching decisions and solving organizational problems.
Weakness of Committee Form of Organization:
This form of organization suffers from the following weaknesses:
1. Delay: The main drawback of committee form of organization is delay in taking decisions. A number of persons express their view-points in meetings and a lot of time is taken on reaching a decision. The fixing of committee meetings is also time-consuming. An agenda is issued and a convenience date is fixed for the meeting. The decision making process is very slow and many business opportunities may be lost due to delayed decisions.
2. Compromise: Generally, efforts are made to reach consensus decisions. The view point of the majority is taken as a unanimous decision of the committee. The thinking of the minority may be valid but it may not be pursued for singled out. They may accept less than an optimal solution, because of a fear that if their solution proves wrong then they will be blamed for it.
3. No Accountability: No individual accountability is fixed if these decisions are bad. Every member of the committee tries to defend himself by saying that he solves a different solution. If accountability is not fixed then it is the weakness of the organization.
4. Domination by Some Members: Some members try to dominate in the committee meetings. They try to thrust their view point on others. The aggressiveness of some members helps them to take majority with them and minority view is ignored. This type of decision making is not in the interest to the organization.
5. Strained Relations: Sometimes relations among committee members or with others become strained. If some members take divergent stands on certain issues, some may feel offended. In case some issue concerning other persons is discussed in a committee and members taking stand not liked by those persons may offend them. The discussions in the meetings are generally leaked to other employees. Some unpleasant decisions may not be liked by those who are adversely affected. It affects relations of employees not only on the job but at personal level also.
6. Lack of Effectiveness: The role of committees is not effective in all areas. The committees may be useful where grievance redressal or inter personal departmental matters are concerned. Committees may not be effective where policies are to be framed and quick decisions are required. Individual initiative will be more effective in these cases. So committees have a limited role to play.
Key Takeaways
Organizational effectiveness is determined by the employees’ satisfaction, customer satisfaction, stakeholders’ satisfaction and employees’ training and education. Thus, the determinants of effective organizing may be categorized as follows:
1. Employees’ Performance: Employees’ performance determines the effectiveness of an organization.
2. Employee Motivation: Motivated employees are satisfied employees, who have high spirit and contribute effectively towards the success of the organization.
3. Organizational Environment: It refers to the internal environment of an organization. It consists of those elements that exist within or inside the organization such as physical resources, financial resources, human resources, technological resources, organization’s goodwill, corporate culture and the like.
4. Organizational Competitiveness: Organizational competitiveness means the ability of an organization to be better than their competitors in satisfying the customers. The main factors of organizational competitiveness include: customer values, shareholder values and ability to act and react within a competitive environment.
Key Takeaway
In organizing, the manager determines as to what activities or jobs are required to achieve organizational goals. In staffing, the manager attempts to find out the right person for the right job. Infact, staffing is an important element of organizing.
Staffing function of management is concerned with the job of providing manpower with required skills for managing the organizational structure. It deals with recruitment, selection, placement, training, growth and development of the people working at various levels in the organization.
According to Theo Haiman, “The staffing function pertains to the recruitment, selection, development, training and compensation of subordinate managers.”
Nature and characteristics of staffing
The main characteristics of a staffing are as follows:
Importance of Staffing
Key Takeaway
Selection is a process of choosing right person for the right job. It is the process by which the best candidates are chosen from among the pool of applicants for a specific job. The selection process consists of a series of steps as follows:
The flow chart indicates major steps in selection process.
1. Job Analysis:
The first step in selection process is analysing the job. Job analysis consists of two parts:
Proper job analysis helps to advertise the job properly by clearly stating the duties, qualifications, experience, salary, etc. Accordingly, the right candidates may apply for the job, thus saving time and effort of the selectors.
2. Advertising the Job:
The next step is to advertise the job. The job can be advertised through various media such as newspapers, internet, etc. The right details about the job and the candidate requirements must be given in the advertisement.
3. Initial Screening:
The initial screening can be done of the applications and of the applicant. Usually, a junior executive does the screening work The executive may check on the experience, age, qualifications family background of the candidate. The candidate may be informed of salary, working conditions, etc.
4. Application Blank:
It is a company's format to obtain standard information of every candidate in respect of biographic, academic, references, work experience, etc. The application blank provides:
5. Tests:
Various tests are conducted to judge the ability and experience of the candidates. The type of tests depends upon the nature of job. An important advantage of tests is that large group of candidates can be tested at a time. The various tests are:
6. Interview:
It is face to face exchange of views, ideas and opinions between the candidate and interviewer(s). There are various types of interviews such as:
7. Reference Check:
Candidate may be asked to provide references to confirm about the applicant s past life, character and experience. Reference check helps to:
8. Medical Check:
Medical check of the candidates is undertaken to:
9. Final Interview:
Before making a job offer, the candidates may be subjected to one more oral interview to find out their interest in the job and their expectations. At this stage, salary and other perks may be negotiated.
10. Job Offer:
This is the most crucial and final step in selection process. A wrong selection of a candidate may make the company to suffer tor a good number of years. Company should make a very important decision to offer right job to the right person.
Key Takeaway
Development is viewed as a long term learning process by which managerial personnel acquire conceptual and theoretical knowledge and skills for enhancing general administrative abilities.
Executive/ management development focuses on manager’s personal growth. It basically aims at improving judgment, logical thinking of managers to take complex decisions and to take responsibility. Executive development is a planned, systematic and continuous process of learning and growth by which managers develop their conceptual and analytical abilities to manage. It is combination of both experience and skills. The participants should also have capacity and self-motivation to learn and develop them.
Executive development
1. A planned effort to improve executive’s ability to handle high-level responsibilities.
2. It is continuous, ongoing activity as it aims improving total personality, behaviour, attitude of managers which cannot be done overnight.
3. It is a long-term process, as managers take time to acquire and improve their capabilities.
4. It is proactive in nature as it focuses attention on the present as well as future requirements of both the organisation and the individuals.
Following are the primary or important objectives of Executive Development:
1. Knowledge to New Entrants – The objective of executive development is to impart basic knowledge and information to the new entrants in the organisation for the purpose increasing their overall knowledge and improving their conceptual and decision making skills.
2. Improving Performance – Executive development aims for the improvement of the performance of the managers at all levels in their present jobs by introducing them with the latest concepts, information, and techniques.
3. Preparing Managers for Future Positions – Executive development has the main purpose to build the second line of the competent officers and prepare them for their future responsible positions as part of their career progression.
4. Preventing Obsolescence – The aim of executive development is to prevent obsolescence of executives by making them aware of the latest techniques and concepts in their area of specialization.
5. Developing Latest Management Techniques – Executive development has its purpose to develop and implement the latest management techniques in place of the traditional systems for increasing the productivity of the managers and the organisation as the whole.
6. Opportunities to Executives – The objective executive development is to provide the new and better opportunities to the executives so that they can fulfil their career aspirations.
7. Optimum Utilization of Managerial Resources – The aim of executive development is to optimally utilize the managerial resources in the organisation.
8. Introducing Changes – Executive development aims for the introduction of the required changes by developing executives and broadening their perspectives so that they can work as the change agents.
Methods of Executive Development
The methods of executive development are broadly classified into two broad categories:
1. On the Job Techniques.
2. Off the Job Techniques.
1. On the Job Techniques:
On the job development of the managerial personnel is the most common form which involves learning while performing the work. On the job techniques are most useful when the objective is to improve on the job behaviour of the executives. This type of training is inexpensive and also less time consuming. The trainee without artificial support can size up his subordinates and demonstrate his leadership qualities.
The following methods are used under on the job training:
(i) Coaching: In this method the immediate superior guides and instructs his subordinates as a coach. It is learning through on the job experience because a manager can learn when he is put on a specific job. The immediate superior briefs the trainees what is expected from them and guides them how to effectively achieve them. The coach or immediate superior watches the performance of their trainees and directs them in correcting their mistakes.
Advantages of the Coaching Method:
(a) It is the process of learning by doing.
(b) Even if no executive development programme exists, the executives can coach their subordinates.
(c) Coaching facilitates periodic feedback and evaluation.
(d) Coaching is very useful for developing operative skill and for the orientation of the new executives.
Disadvantages of the Coaching Method:
(a) It requires that the superior should be a good teacher and the guide.
(b) Training atmosphere is not free from the problems and worries of the daily routine.
(c) Trainee may not get sufficient time for making mistakes and learn from the experience.
(ii) Under Study: The person who is designated as the heir apparent is known as an understudy. In this method the trainee is prepared for performing the work or filling the position of his superior. Therefore a fully trained person becomes capable to replace his superior during his long absence, illness, retirement, transfer, promotion, or death.
Advantages of Under Study Method:
(a) Continuous guidance is received by the trainee from his superior and gets the opportunity to see the total job.
(b) It is a time saving and a practical process.
(c) The superior and the subordinate come close to each other.
(d) Continuity is maintained when superior leaves his position.
Disadvantages of Under Study Method:
(a) The existing managerial practices are perpetuated in this method.
(b) The motivation of the personnel is affected as one subordinate is selected for the higher position in advance.
(c) The subordinate staff may ignore the under study.
(iii) Job Rotation:
Job rotation is a method of development which involves the movement of the manager from one position to another on the planned basis. This movement from one job to another is done according to the rotation schedule. It is also called position rotation.
Advantages of Job Rotation:
(a) By providing variety in work this method helps in reducing the monotony and the boredom.
(b) Inter departmental coordination and cooperation is enhanced through this method.
(c) By developing themselves into generalists, executives get a chance to move up to higher positions.
(d) Each executive’s skills are best utilized.
Disadvantages of Job Rotation:
(a) Disturbance in established operations is caused due to the job rotation.
(b) It becomes difficult for the trainee executive to adjust himself to frequent moves.
(c) Job rotation may demotivate intelligent and aggressive trainees who seek specific responsibility in their chosen responsibility.
(iv) Special Projects Assignment: In this method a trainee is assigned a project which is closely related to his job. Further sometimes the number of trainee executives is provided with the project assignment which is related to their functional area. This group of trainees is called the project team. The trainee studies the assigned problem and formulates the recommendations on it. These recommendations are submitted in the written form by the trainee to his superior.
Advantages of the Special Projects:
(a) The trainees learn the work procedures and techniques of budgeting.
(b) The trainees come to know the relationship between the accounts and other departments.
(c) It is a flexible training device due to temporary nature of assignments.
(v) Committee Assignment: In this method the special committee is constituted and is assigned the problem to discuss and to provide the recommendations. This method is similar to the special project assignment. All the trainees participate in the deliberations of the committee. Trainees get acquainted with different viewpoints and alternative methods of problem solving through the deliberations and discussions in the committee. Interpersonal skills of the trainees are also developed.
(vi) Multiple Management: This method involves the constitution of the junior board of the young executives. This junior board evaluates the major problems and makes the recommendations to the Board of Directors. The junior board learns the decision making skills and the vacancies in the Board of Directors are filled from the members of the junior board who have sufficient exposure to the problem solving.
(vii) Selective Readings: Under this method the executives read the journal, books, article, magazines, and notes and exchange the news with others. This is done under the planned reading programmes organized by some companies. Reading of the current management literature helps to avoid obsolescence. This method keeps the manager updated with the new developments in the field.
2. Off the Job Training Programme:
The main methods under off the job training programme are:
(i) Special Courses: Under this method the executives attend the special courses organized by the organisation with the help of the experts from the education field. The employers also sponsor their executives to attend the courses organized by the management institutes. This method is becoming more popular these days but it is more used by the large and big corporate organisations.
(ii) Case Studies: This method was developed by Harvard Law professor Christopher C. Langdell. In this method a problem or case is presented in writing to a group i.e. a real or hypothetical problem demanding solution is presented in writing to the trainees.
Trainees are required to analyze and study the problem, evaluate and suggest the alternative courses of action and choose the most appropriate solution. Therefore in this method the trainees are provided with the opportunity to apply their skills in the solution of the realistic problems.
(iii) Role Playing: In role playing the conflicting situation is created and two or more trainees are assigned different roles to play on the spot. They are provided with the written or oral description of the situation and roles to play. The trainees are then provided with the sufficient time, they have to perform their assigned roles spontaneously before the class. This technique is generally used for human relations and the leadership training. This method is used as a supplement to other methods.
(iv) Lectures and Conferences: In this method the efforts are made to expose the participants to concepts, basic principles, and theories in any particular area. Lecture method emphasizes on the one way communication and conference method emphasizes on two way communication. Through this method the trainee actively participates and his interest is maintained.
(v) Syndicate Method: Syndicate refers to the group of trainees and involves the analysis of the problem by different groups. Thus in this method, 5 or 6 groups consisting of 10 members are formed. Each group works on the problem on the basis of the briefs and the backgrounds provided by the resource persons. Each group presents their view on the involved issues along with the other groups. After the presentation these views are evaluated by the resource persons along with the group members. Such exercise is repeated to help the members to look into the right perspective of the problem. This method helps in the development of the analytical and the interpersonal skills of the managers.
(vi) Management Games: A management game is a classroom exercise, in which teams of students compete against each other to achieve certain common objectives. Since, the trainees are often divided into teams as competing companies; experience is obtained in team work. In development programmes, the management games are used with varying degrees of success. These games are the representatives of the real life situations.
(vii) Brainstorming: It is a technique to stimulate idea generation for decision making. Brainstorming is concerned with using the brain for storming the problem. It is a conference techniques by which group of people attempt to find the solution for a specific problem by amazing all the ideas spontaneously contributed by the members of the group. In this technique the group of 10 to 15 members is constituted. The members are expected to put their ideas for problem solution without taking into consideration any type of limitations.
Performance Appraisal of Managers
Performance appraisal is a process of evaluating work performance of employees. The purpose of appraisal is to improve individual and organisational effectiveness.
In the words of Wayne Cascio, "Performance appraisal is the systematic description of an employee's job relevant strengths and weaknesses."
Michael Crino, defines "Performance appraisal is the process of assessing quantitative and qualitative aspects of an employee's job performance."
Uses of Performance Appraisal
Performance appraisal serves a two-fold purpose. The purpose could be either for evaluation of performance or for development of employees. In general, performance appraisal serves the following purposes:
1. Performance Feedback: Performance appraisal provides performance feedback to the employees. Employees can come to know about their job related strengths and weaknesses. Such feedback enables the employees to correct their weaknesses and improve on their strengths.
2. Training and Development: Performance appraisal information may be used to determine whether or not an employee or a group of employees requires additional training and development. Deficiencies in performance may be attributable to inadequate knowledge or skills. Accordingly, the organisation may decide to provide additional training to the employees.
3. Motivation: Performance appraisal facilitates motivation of the employees. The high performing employees are given higher ratings in performance appraisal. They may be rewarded with monetary and non-monetary incentives.
4. Promotion: Performance appraisal gives management a means of identifying employees for promotion. Past appraisals together with other background data enable the management to promote the right employees to higher posts.
5. Transfers: Performance appraisal is useful in transfer decisions of employees. Effective transfer of employees is possible through the reports of performance appraisal.
6. Human Resource Planning: The appraisal process aids in human resource planning. Accurate appraisal data regarding employees may provide management with important information to base decisions for future employment.
Without the knowledge of who is capable of being promoted, transferred and terminated; management is at a severe disadvantage with respect to framing various future employment plans.
7. Management-Labour Relations: Performance appraisal helps to maintain good labour relations between the management and the labour. This is because; performance appraisal creates a healthy atmosphere in the organisation.
The employees are motivated to perform more effectively and the ineffective employees are encouraged to do away with their weaknesses or limitations.
8. Documentary Evidence: Performance appraisal reports can be used as an important documentary evidence in case of disciplinary action taken against some ineffective employees. This is especially true in the case of organisations having a strong employees union.
9. Effective Communication: Appraisal interviews and reports can be effective means of communication to the employee and can result in improved performance.
10. Career Development: Performance an appraisal enables managers to coach, counsel and assist employees in their career development.
Limitations of performance appraisal.
The limitations of performance appraisal are discussed below:
1. Halo Effect: The performance appraisal may be based on one positive factor of the rate. Several work related factors may not be considered for evaluation.
For example: if the rate is found to be highly punctual in reporting to duty, he may be also given higher scores for quality of work, discipline, etc., without conducting appraisal of such factors.
2. Horn Effect: The performance appraisal may be based on one negative factor of the rate. The rater may not evaluate several other job relevant factors.
For example: the rate may frequently report late to work and therefore, the rater may give him low scores for quality of performance, speed of work, etc., without conducting appraisal of such factors.
3. Central Tendency: Some raters may follow central tendency approach in rating the ratees. The main aspects of central tendency are:
Average scores are given to all ratees. Those who perform well are given average scores and those who do not perform tell are also given average scores.
Central tendency may be due to lack of information of the ratees performance.
Rater may be unfamiliar with the ratees, and if forced to evaluate, the ratee may play it safe by neither condemning nor praising.
4. Cost Factor: Performance appraisal s an expensive activity. At times, experts may be appointed to conduct performance appraisal. Therefore, the organisation may have to pay good amount of fees to performance raters.
5. Problem of Leniency: Some raters are very lenient in performance appraisal. They give high scores to everyone, irrespective of their performance. Those who perform well are given high scores and those who do not perform well are also given high scores. Such situation arises, when the rater wants to maintain good relations, especially with average or poor performers.
6. Latest Behaviour Effect: Rating is influenced by the most recent behaviour ignoring the commonly demonstrated behaviour during the entire appraisal period. If the latest behaviour is good, the rate will get high scores and vice-versa.
7. Problem of Strictness: Some raters are strict in their appraisal. They tend to give low scores to all the rates irrespective of their performance. Those who perform well are given lower scores and those who do not perform well are also given lower scores. This situation may arise when the rater has high expectation of ratees' performance.
8. Spillover Effect: In this case, the present performance appraisal is greatly influenced by past performance. " A person who has not done good work in the past is considered to be bad at work in the present as well."
9. Personal Bias: The way an appraiser personally feels about a ratee may drastically affect the appraiser's objectivity. Also, if the rater has good relations or connections with the ratee, he may always tend to give higher scores to the ratee, even though the rate does not deserve such high scores. Thus, personal bias may lead to favored treatment for some employees.
10. Paper Work: Some supervisors complain that performance appraisal is pointless paper work. They complain so, because many-a-times, performance appraisal reports are found only in the files rather than serving any practical use.
Methods of performance appraisal
There are several methods or techniques of performance appraisal. The most common methods can be broadly divided into two groups as follows:
1. Check List: A list is prepared containing various work related statements
Such as:
Against the list, the employees are rated. The rater marks against the Yes or No squares to various statements. The main advantages are its simplicity, convenience, less time consuming and less expensive.
2. Confidential Reports:
This is an old and traditional method of appraising employees. A confidential report is a report on the subordinate s strengths and weaknesses. The confidential report is used for a variety of personnel decisions such as transfers, promotions, etc. This is a poor method of performance appraisal, as it does not provide proper feedback to the employees.
3. Critical Incident Method:
In this method, the rater records important incidents involving the ratee. If the ratee performs well in such incidents, then he is given high scores and vice-versa. For instance, in a particular incident in which a salesman convinces an argumentative customer to buy the product, then the salesman's performance may be given higher score.
4. Ranking Methods:
There are various ranking methods which are commonly used to evaluate the performance of the employees. Ranking methods offer convenience to evaluate the performance and they are less time consuming. The ranking methods used are:
5. Graphic Rating Scale:
In this method, the raters use a graphic scale to appraise certain specific factors such as quality of work, quantity of work dependability, etc. The following is an example of graphic scale:
The graphic scale method is simple to understand, easy to conduct and less time consuming. However, there is lot of paper work and there are chances of rater bias.
6. Narrative Essay:
The simplest method is the narrative essay. In this, the rater describes in detail an employee's strengths and weaknesses and potentials, together with suggestions for improvement. If essays are written well, they can give detailed feedback to the subordinates in respect of their performance.
7. Role Analysis:
Role analysis is a process of analyzing the role of a manager in relation to roles of other managers who are affected by his performance. The role set members can conduct performance appraisal of the focal role. The focal role can make necessary changes to improve his performance.
8. Assessment Center:
This technique is used for performance appraisal as well as selection and training. Some firms use this technique of performance appraisal, especially at the time of promoting managers to higher levels. The ratees are subject to various psychological tests, management games, oral presentations and such other various exercises.
9. Management by Objectives (MBO):
This technique can be used to measure the performance of subordinates or lower level managers. In MBO, the process involved is as follows:
10. Bell-Shaped Curve Methods:
Nowadays, professional firms adopt Bell-shaped Curve method to appraise the performance of its employees. The performances of the employees are plotted against a bell-shaped curve. Based on the performance, the employees are categorized into groups:
The high performers are motivated with monetary and non-monetary incentives. The average performers may be provided with training. The poor performers may be terminated of transferred or asked to opt for Compulsory Retirement Scheme (CRS). At times, training may also be provided to poor performers to improve their performance.
11. 360 Degree Appraisal:
This method is used by large professional firms to appraise the performance of the employees, especially that of managerial personnel. Performance appraisal is conducted by various parties such as superiors, subordinates, clients, colleagues, pane of experts, etc.
This technique provides a balanced performance appraisal of the ratee. All the raters try to be as objective as possible in their rating.
12. Human Resource Accounting (HRA):
HRA deals with cost and contribution of human resources to the organisation.
Key Takeaway
Co-ordination can be defined as the orderly arrangement of group efforts to provide unity of action in the pursuit of common objectives. It is the integration or synchronization of activities or action. The activities of individuals and departments are linked with each other, so that they work most effectively together in accomplishing goals of the organization. Co-ordination is the essence of management as in order to coordinate the activities of his subordinates, a manager has to perform all the other functions of management, viz., planning, organizing, staffing, directing and controlling.
Theo Haimann states that, “Co-ordination is the orderly synchronizing of efforts of the subordinates to provide the proper amount, timing and quality of execution so that their efforts lead to the stated objective, namely the common purpose of the enterprise.”
There is a need for coordination in every function of management. It is a process of integration of the activities of the members of an organization to accomplish organizational goals. There is a need to have proper coordination throughout the organization.
(i) The top level managers co-ordinate the activities of the middle level managers.
(ii) The middle level managers coordinate the activities of the lower level managers.
(iii)The lower level managers co-ordinate the activities of their subordinates.
Co-ordination refers to inter-linking of actions. There is a need for co-ordination throughout the organization and at all levels.
Need and Importance of Co-ordination
Coordination is needed in the organisation for the following reasons:
1) Large number of employees: In the corporate sector, the number of employees is large and it becomes necessary to co-ordinate the activities of the individual to attain common enterprise goal.
2) Team spirit: Co-ordination develops team spirit in the organization. Superiors coordinate the activities of their subordinates for the purpose of achieving group objectives. For this purpose, managers need to develop team spirit among their subordinates.
3) Unity of action ensured: The departmental goals are set towards achievements of overall objectives and co-ordination helps in integrating the efforts of all the individuals towards a common goal.
4) Reduced conflict of interest: Co-ordination blends the interest of all departments into one common objective thereby reducing conflicts of interest of each department.
5) Interdependence of Departments: One department cannot do work alone. The performance of one department is the input of other department. This link is necessary to integrate jobs in all the departments for maximum returns, and this is done by the function of co-ordination.
6) Encourage Initiative: Effective co-ordination encourages subordinates to make use of initiative. Employees may come up with new ideas, and they may provide effective suggestions.
7) Corporate image: Co-ordination develops a better image for the Organization. Co-ordination enables the Organization to achieve its goals. There can be better quality of goods and services. This enables the firm to earn name and goodwill for the Organization.
8) Optimum use of resources: Co-ordination facilitates optimum use of resources. There is optimum use of both physical and human resources. The resources of the Organization are put to best possible use by the members of the Organization.
9) Higher Efficiency: Efficiency can be measured in terms of returns and costs. Higher efficiency is a result of high returns and low costs due to optimum utilizations of resources. So co-ordination leads to high efficiency.
Difficulties in Establishing Coordination
The following factors are responsible within the way of effective coordination:
i. Lack of Administrative Talent: Selection of inefficient personnel leads to ineffective coordination.
ii. Clash of Interests: Often individuals are pursuing narrow personal interests by sacrificing organizational interests. Sometimes, individuals fail to know how the achievement of organizational goals will satisfy their own goals. As a result, there exists a conflict between individual goals and organizational goals.
iii. Differences in Attitudes and dealing Styles: Every individual has his own way of handling problems. Moreover, there are differences in attitudes of people to achieve a selected goal. Above all, the capacity and talent of individuals differ widely. This leads to ineffective coordination.
iv. Complexity of Operations: In a big organization, an outsized number of individuals process the work on various levels. It is going to be difficult to speak the policies, orders, and managerial actions on a face-to-face basis. If the operations of a corporation are diversified and sophisticated, then the necessity for coordination is felt everywhere. The large size of an operation brings about problems of coordination.
v. Specialization: Specialists lookout of varied specialized functions (such as purchasing, production, finance, marketing, etc.). They are more curious about developing their own departments. They pursue their own special interests at the value of organizational goals. This leads to ineffective coordination.
Techniques in Establishing Coordination
The following measures or techniques need to be adopted in practice as tools for securing better co-ordination in the working of an organisation:
1. Simplified Organisation: In large organisations, there is a tendency towards over- specialisation. The organisation gets divided into an entire series of units all of which concentrates just on its own task. In fact, each unit tends to be bureaucratic and its activities become ends in themselves instead of being means to the general ends of the organisation. This creates problems of co-ordination. The remedy for this lies in placing the closely-related functions and operations under the charge of an executive who functions as a coordinator. Re-arrangement of departments can also be considered to cause a greater deal of harmony among the varied wings of the organisation.
Furthermore, clear-cut organisation structure and procedures that are well-known to all concerned will ensure co-ordination. Organisational procedures should cover all activities and every person must tend to understand what he's liable for and how his work is said thereto of other individuals.
2. Harmonized Programmes and Policies: The ideal time to cause co-ordination is at the planning stage. The plans prepared by different individuals or divisions should be checked up to make sure that they all fit together into an integrated and balanced whole. The coordinating executive must make sure that all the plans add up to a unified programme. Moreover, co-ordinated activities must not only be according to each other, but even be performed at the right time.
3. Well-designed Methods of Communication: Good communication brings about proper co-ordination and helps the members of a business organisation to work together. Flow of communication will facilitate co-ordination and smooth working of the enterprise. The utilization of formal tools like orders, reports and dealing papers, and informal devices just like the grapevine will provide adequate information to all or any concerned. Continuous, clear and meaningful communication provides every member with a clear understanding of the character and scope of his work also as that of other persons whose responsibilities are associated with him. This aids the executives in coordinating the efforts of the members of their teams.
4. Special Coordinators: Generally, in big organisations, special coordinators are appointed. They normally add staff capacity to facilitate the working of the main managers. A co-ordination cell can also be created. The basic responsibility of the cell is to gather the relevant information and to send this to varied heads of sections or departments in order that inter-departmental work and relationship are co-ordinated.
5. Co-ordination by Committees: Co-ordination in management by committees is achieved through meetings and conferences. Sometimes different committees are appointed to look after different areas of management, namely, Purchase Committee, Production Committee, Sales Committee, finance committee, etc. These committees take the group decision by exchanging their views and ideas then it is coordinating elements.
6. Group Discussion: Group discussion is another tool for co-ordination. It provides opportunities for free and opens exchange of views and interchange of ideas, problems, proposals and solutions. Face-to-face communication enables the members to achieve improved understanding of organisation-wide matters and results in better co-ordination.
7. Voluntary Co-ordination: In ideal conditions, co-ordination should happen through voluntary co-operation of the members. Each department or section or individual affects others and is additionally affected by others. Therefore, if those departments, sections or individuals apply a way of working which facilitates others, voluntary co-ordination is achieved. This will be done by horizontal communication.
8. Co-ordination through Supervision: The supervising executives have a vital part to play in coordinating the work of their subordinates. Where the work-load of an executive is so heavy that he cannot find adequate time for co-ordination, staff assistants could also be employed. They will recommend to the senior official the action that he may take for ensuring co-ordination.
The cardinal principle involved in co-ordination is that the balancing and keeping together the various activities for a well-knit aggregate function, and its effectiveness depends upon satisfactory delegation of authority, sharing of responsibilities and accountability, and proper supervision—keeping in sight the oneness of the organisation.
Key Takeaways
It is important to measure the effectiveness and performance of managers in order to find out whether the resources of the organization are being used efficiently or not. The goal of measures is to improve the people of the organization and not the other way around. The management processes should inspire employees to perform at the best with motivation and dedication towards the company goal. Management performance and effectiveness is measured by the following:
1. Amount of Profit or Surplus: Measure Management Performance and Effectiveness with profit and surplus. The sole objective of a business is to create a surplus. An effective manager creates a surplus in an efficient way. The amount of profit or surplus is a base for measuring the effectiveness of management and manager.
2. Rate of Productivity: Measure Management Performance and Effectiveness and productivity. Productivity or production rate is also a way of identifying the effectiveness of a manager. An efficient manager will increase the productivity without hampering the quality of the product. And he will do it in an efficient way.
3. Quality of Techniques: Measure Management Performance and Effectiveness for quality. Used what technologies the manager is using for the accomplishment of a goal, also indicates the effectiveness of a manager. A good manager always finds ways to use the most advanced technology in the production and operation process within the budget of the organization it.
4. Response Rate of Managers to the Feedbacks: Measure Management Performance and Effectiveness with feedback. A manager receives feedbacks by monitoring and controlling the operations. But receiving feedback is not the end of the hob of management. Management needs to respond to the feedback depending on this nature; good or bad. “The faster, the better” is not always the case. Management must response to feedbacks quickly and efficiently.
5. Working Environment of Organization: The working environment is also an indicator of the effectiveness of management. The Better and suitable the work environment is, the effective the Management will be.
6. Labor-Management Relationship: Measure Management Performance and Effectiveness by labor management relationship. Labor-Management Relationship is a base for measuring the effectiveness of management. A good labor-management relationship is necessary for management for attaining goals. Quality of labor-management relationship has to be maintained is well manner fashion as it has effects on the productivity and working environment of an organization.
Measuring the effectiveness of management and its actions is a tricky task. Before this one needs to consider several things such as; the economic situation of the organization, resources availability, economic condition of the country.
Key Takeaway
References
