Directing an

d
Controlling
 Learning Objectives
0 Define the term directing.
0 Describe the nature of directing.
0 Define the term leadership.
0 Understand the importance of leadership.
0 Describe different leadership styles.
0 Define motivation
0 Understand importance of motivation.
0 Describe Maslaw’s theory of needs
0 Explain Herzberg’s theory
0 Understand theory X and Y
0 Compare different theories of motivation.
0 Define the term communication.
0 Describe the importance of communication in an organization's.
0 Understand different types of communication.
0 Understand the need of coordination.
0 Describe the importance of coordination.
0 Describe different techniques of coordination.
0 Define controlling
0 Understand the importance of controlling
0 Understand controlling process.
0 Describe essentials of controlling.
0 Describe methods of controlling.
 Introduction
0 Directing is important function of management.
Implementation of organizational plans starts from
this function.
0 Directing guides people and motivates them to
perform there work well.
0 Thus it is a managerial activity which requires
leadership skills to provide direction to the
subordinates and make them to work towards
realization of organizational goals.
 Definition of Directing
0 Directing is defined as telling people what to do and seeing
that they do it to the best of their ability.
0 Directing is that function through which managers gets the
work done from others.
0 Directing function consists of issuing orders and
instructions, guiding and helping subordinates to perform
tasks assigned to them , motivating them by designing a
good work environment and providing rewards in line with
their expectation and performance.
0 Directing involves three important components namely
communicating, leading and motivating.
 Leadership
0 It is the ability to influence people towards
accomplishment of goals.
0 It is the ability to influence behaviors of others and
direct them towards achievement of group or
organizational goals.
0 Thus most important features of leadership are:
0 Leaders possess great influential power.
0 Leaders have followers and they influence the behavior of
followers.
0 There is a reciprocal relationship between leaders and followers.
0 Leaders have a great vision for future.
0 Leaders create shared vision among followers and direct them to
work towards the achievement of common goals.
0 Leaders are sensitive towards the needs of followers and they
motivate followers.
0 situational and effectiveness of leaders is influenced by situational
variables like environment, interpersonal relationship, job content,
group relations, size of group, group norms etc.
 Importance of Leadership
0 Leadership is the most important component of
managing process.
0 A manager can be efficient and effective only if he is a
good leader.
0 Significance of leadership quality in managers can be
understood by the following discussions:
 Leaders guide and inspire
subordinates
0 Motivate their followers
0 Guide them to accomplishment of group goals which
inturn contributes to the accomplishment of
organizational goals
 Leaders build good work
environment
0 Create a work environment in which employees can
contribute by performing to the best of their abilities.
0 Creates a relationship based on trust.
 Leaders build confidence in
followers
0 Leaders recognize abilities of their followers and
encourage them to develop to their potential by
building confidence in them.
 Leaders secure cooperation
from the group
0 Influence the group members in a such a way that all
the members work collectively towards group
objectives
Leaders act as change agents
0 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 organization may be difficult.
0 It requires great leadership to reduce the resistance to
change and convince the employees to accept the
change.
0 Thus leaders acts as a change agents of the
organization and helps in implementing successful
positive changes in the organization.
Leaders are the representatives
of the followers
0 Always take personal interest in helping their
followers and protect the interests of followers while
taking any major organizational decisions.
Leaders develop great vision
0 Leaders are known for their great vision and they
develop the vision for building great organizations.
 Managers and leaders
managers leaders
0 Managers position is based on 0 Leaders position is based on
formal authority defined by their personality and it is not
organizational structure. formally defined.
0 Manager gets the things done by 0 Leaders inspire their followers
subordinated by exercising their and make them work towards
authority. common shared objectives.
0 Managers are rationale in their 0 Leaders are visionary
decisions 0 Leaders inspire followers
0 Managers execute plans articulate vision and motivates
implement them and produce them to achieve common
results. objectives.
0 Managers exercise positional 0 Leaders exercise personal
power. power.
 Types of leadership
0 Autocratic or Authoritarian Leadership
0 Democratic or Consultative Leadership.
0 Participative leadership.
0 Laissez Faire or Free Rein Leadership.
 Autocratic or Authoritarian
Leadership
0 Own decisions are made without consulting followers
0 Simply order the followers and this orders are to be obeyed
by followers.
0 Leaders make use of their authority to enforce discipline
and obedience among followers.
0 Discipline is enforced by using rewards and punishments.
0 Decision making is completely centralized and followers
cannot have any influence on decisions.
0 This type of leadership is also called as dictatorship.
Communication is only one way and it always flows in the
form of instructions and orders from leaders to followers or
subordinates.
 Merits and demerits
0 Merits
0 Quick decisions are made
0 Leaders get the work done by making use of fear of
punishment and rewarding power.
0 Leaders enforce strict discipline among the followers
0 Consistent decisions are made.
0 Suitable when subordinates are inexperienced and need
direction from leaders
0 Demerits
0 Low motivation among subordinates
0 No scope for development of subordinates as they are merely
allowed to work as per the instructions of the leaders
0 One way communication may result in misunderstanding.
0 Too much dependence on leadership
0 Subordinates may develop rebellion against leaders.
 Democratic Leadership or
consultative leadership
0 Consult their followers before making any decisions
0 Try to take decisions according to the interest of their
followers
0 Leaders do not completely dominate the group and
provides freedom to group members and thus it
results in two way communication.
 Merits and demerits
0 Merits:
0 Motivates people as they are consulted before decisions are
made.
0 Group members get an opportunity to express their ways.
0 Interests of followers are protected.
0 Better productivity.
0 Demerits:
0 Decision making is slow
0 Maintaining absolute discipline is difficult.
0 Suitable only when subordinates are more matured
0 Decisions may get diluted.
 Participative Leadership
0 Decisions are made jointly by followers and leaders.
0 Decisions are based on common interests of all the
parties involved.
0 Subordinates get an opportunity in decision making
and use of their expertise.
 Laissez Faire or Free Rein
Leadership
0 Free rein leaders do not lead the group but leaves the
followers with complete freedom.
0 Subordinates can set and develop their own plans.
0 The role of the leader is only to give advice when ever
it is necessary.
0 Leader do not exercise any control over followers
0 This type of leadership may not be suitable in all
situations and it requires subordinates who are
knowledgeable, well trained and highly self motivated.
0 Merits
Merits and demerits
0 Can bring high motivation among subordinates
0 Brings in innovation and creativity.
0 Highly flexible.
0 Open and direct communication
0 Develops managerial skills among subordinates
0 Demerits
0 Lack of control
0 Needs highly matured and knowledgeable subordinates.
0 Individuals goals may get more importance than the group
goals.
 Lickert’s System 4
management
0 Rensis Lickert developed four models of management
popularly known as systems of management and
these managements are based on management
philosophy of managers which identifies the
leadership style.
 System 1: Exploitative-
Autocratic
0 He exhibits autocratic style and unilaterally decides
everything and subordinates are to merely follow the
orders and instructions without questioning
0 It is also called carrot and stick approach- punishing
those who do not obey the orders, and rewarding
those work as per the instructions
 System 2- Benevolent
Autocratic
0 They allow some freedom to subordinates to work
within certain limits.
0 Decision making is centralized but while making
decisions manager is more responsive to the basic
needs of subordinates.
 System 3- consultative
0 Managers consult the followers and discuss with them
before decision making.
0 Two way communication is established
0 This style accepts the importance of human factor in
leading and thus treats employees as assets and all
decisions are made taking into consideration of all the
employee opinions.
 System 4- democratic
0 Managers are very friendly, create cordial relations
with their subordinates and subordinates are allowed
to make active role in goal setting and decision
making.
0 managers acts as guides and subordinates are
allowed to take greater responsibility.
 Qualities of good leaders
0 With respect to personality traits
0 Intelligence: leaders are expected to possess more intelligence than their
followers
0 Character: leaders must be known for their integrity and sincerity.
0 Inner drive: leaders must be self starters and they must have drive or initiative for
accomplishing the goals.
0 Will power: must have courage, confidence and strength to act even in difficult
situations
0 Judgment: a good leader must be capable of making sound judgment.
0 Sensitive towards followers: must be capable of understanding the needs of
followers and respond accordingly.
0 Energy: leaders must possess mental and physical energy and stamina to
withstand strain.
0 Emotional stability: leaders must possess capable of keeping their emotions
under control.
0 Knowledge and ability:
0 Education: a business leader should have educational background
related to his functional areas.
0 Technical competence: leader must be technically competent capable
of training his followers and capable of making right decisions.
0 Training ability: a good leader should also be a good trainer or good
teacher to train his followers
0 Skills:
0 Decision making skills: a good leader should possess decisiveness. He
must be capable of making right decisions at right time.
0 Problem solving skills: must be capable of understanding problems
analyzing them and finding right solutions.
0 Human relation skills: he must be capable of understanding human
behavior and developing good interpersonal relations.
0 Conceptual skills, administrative skills and communication
skills
 Leadership theories
0 Several management scientist and psychologists have
conducted investigations on successful leaders, to
identify the factors influencing success of a leader.
0 These investigations have resulted in proposal of
several theories on leadership.
0 Leadership theories can be broadly classified into
three categories:
0 Trait theories- personality traits
0 Behavioral theories-effective behavior of leaders
0 Situational or contingency theories- situational factors
 Trait theories
0 Based on personality traits of leaders
0 Personality traits are key for success for any leaders
0 Some of the leadership traits are listed below:
0 Intelligence
0 Vision
0 Initiative
0 Decisiveness
0 Integrity
0 Maturity
0 Need for achievement
0 Human relation skills
0 Broadmindedness
0 Environmental sensitivity
 Criticism of trait theory
0 Even though trait theory attempts to identify traits of
successful leaders, it fails to explain leadership
phenomenon, due to some limitations. These
limitations are:
0 There are many personality traits of leadership and all
these traits cannot be found in all successful leaders.
0 There are no universal traits which can make leaders
successful in any situations at any part of the world.
0 It is difficult to measure traits.
 Behavioral theories
0 Focused on behavior exhibited by leaders
0 It proposes that there are specific behaviors which
differentiate leaders from non leaders
0 These behaviors can be learned and hence leaders can
be developed through training.
0 Some of the popular behavioral theories are discussed
below:
 The Michigan studies
0 Researchers in University of Michigan conducted extensive
survey on American leaders to identify successful leader
behaviors.
0 Based on research two leadership styles where identified.
They are:
0 Production centered leaders:
0 these leaders believes that employees are just tools of production
process. They supervise employees very closely.
0 They use position power for influencing followers and also
rewards and punishment are used as tools for influence. They are
more oriented towards task and ignore anything which is not
related to task.
0 Employee centered leaders:
0 These leaders believe that it is necessary to create a
supportive work environment in order for workers to be
successful in helping the company meet its goals
0 The leader is concerned with giving employees an
opportunity for advancement and growth.
0 Leader is more concerned with developing better
interpersonal relations with subordinates and motivates
them to work towards organizational goals.
0 Employee well being is taken care by the leaders.
 The Ohio State University
Studies
0 Similar to Michigan state University studies, Ohio
State University studies identified two leadership
behaviors called initiating structure and
consideration.
0 Initiating Structure:
0 This component of leadership behavior focuses on
degree to which leader defines his own role and the
roles of subordinates in terms of achieving goals use of
job descriptions in telling employees what is expected
out of them, how they should do the job and so on.
0 Consideration:
0 This behavior focuses on interaction with followers.
0 The degree to which a leader builds mutual trust with
followers, respects their ideas and shows concerns for
their feelings
0 This style encourages friendship, mutual trust,
warmth between leaders and followers.
Fiedler’s Contingency theory
of leadership
0 Fred Fiedler developed popular contingency theory of
leadership.
0 According to Fiedler the success of a leader depends
on use of appropriate style suitable to the given
situation.
0 The theory is explained below in three steps:
Identifying leadership style
0 Fiedler used a concept called LPC- Least preferred coworker for
identifying style of a leader.
0 Least preferred coworker means a worker whose productivity is
very low and no manager would like to have him in his team.
0 Fiedler selected few such workers and asked managers to rate
them on few attributes.
0 The total score obtained for all the attributes is called LPC score.
0 Fiedler identified leadership style on the basis of total score given
by manager for least preferred coworkers.
0 If the score is high then manager is employee oriented as he is not
ready to give up even an under performer.
0 If the score is low then style is task oriented.
 Identifying situation
0 Fiedler defined three components to identify
leadership situations.
0 Three components are:
0 Leader member relations: refers to the relation
between leaders and followers
0 Task structure: refers to the extent to which task is
defined, clear defined procedures, clarity of responsibility.
0 Position power: refers to the degree to which a leader
has authority over rewarding or punishing his
subordinates
Matching style and situation
0 Fiedler found that success of a leader depends on
matching correct style for a given situation. He found
that oriented leaders are successful in favorable
situations because everyone gets along, the task is
clear, leader has power and leader can take charge
and provide direction.
 Transactional and
transformation leaders
0 Transactional leaders 0 Transformational
leaders
0 Task control 0 Envision a new future
0 Focus on short tem 0 Long term objectives
goals 0 Empower employees
0 Highly practical 0 Model behavior
0 Look for tangible goals 0 Change agents
0 Set standard work 0 Independent
practices 0 inspirational
 motivation
0 The word motivation is derived from the word motive
which means any idea or need or force which puts an
individual into a specific action.
0 Motivation is the process of stimulating people to
action to accomplish desired goals.
0 Motivation represents inner drive within an
individual which directs him to behave in specific way
Relation between motivation
and needs
 Importance of motivation
0 Highly motivated workforce is absolutely essential for
any organization to achieve its objectives.
0 The importance of motivation can be appreciated by
understanding the following contributions:
0 Management basically aims at optimum utilization of
various resources of an organization. These resources
are human resources, financial resources and physical
resources. Only motivated employees can effectively
convert financial and physical resources into useful
products and services.
0 Motivation results in desirable behavior of employees.
These behaviors are essential for implementation of
organizational plans successfully.
0 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.
0 Managing human resource is very complex and
managers must maintain good interpersonal relations
with the employees. Employees must be provided with
attractive rewards, growth opportunities and good
work environment. All these factors are related to
motivation.
0 Organizations benefit from stable workforce as
experience gained by the employee will remain with
the organization. Motivation is an important factor
which contributes to employee retention and building a
stable workforce.
0 Motivation brings down number of employee
grievances and complaints.
0 Highly motivated workforce can produce best quality of
products and services.
 Theories of motivation
0 There are several theories of motivation. Each
theories of motivation describes how human beings
can be motivated and the factors influencing
motivation.
Maslow’s Hierarchy of needs
theory
0 Abraham Maslow developed the needs theory.
0 According to Maslow motivation of an individual
depends on his or her individual needs. These needs
operate along a hierarchy and once a lower level need
is satisfied, individuals would like to satisfy next
higher level need in the hierarchy.
0 Maslow identified five needs. These needs are
discussed below:
 Physiological needs
0 These are the basic needs which are required for
survival of an individual. These needs are basic needs
which are essential for human life and they include
needs like food, shelter, clothing, air, water etc. A job
with a salary can satisfy these needs.
 Safety and Security needs
0 After satisfying physiological needs people will look
for safety and security. These are needs related to
protection from any physical or emotional threat.
These needs can be satisfied by the secured jobs,
insurance, retirement benefits etc.
 Social needs
0 People would like to develop friendship with others,
being affectionate towards their friends and family
members etc . In an organizational context social
needs can be satisfied through friendly colleagues
informal work groups, unions etc.
 Esteem or status needs
0 Esteem needs are needs related to self-confidence,
recognition, appreciation, status in society. In
organizational context these needs are satisfied with
promotion to higher level, better job title, recognition
for achievements etc.
 Self-actualization needs
0 These are the needs related to realization of one’s
own potentials for continuous self development, and
reaching the position one aspiring for in his or her life.
0 According to Maslow the needs follow strict hierarchy.
0 Maslow called first two needs physiological and safety
needs as lower level needs or primary needs. The
next three needs are called secondary of higher order
needs.
0 Maslow advocates that to motivate individuals,
manager has to identify the current hierarchy level at
which an employee is operating and managers must
provide an opportunity for satisfying those needs.
 Limitations of Maslow’s
theory
0 It has been found that needs not be along the hierarchy as
proposed by Maslow. For example individuals who are not
able to satisfy their lower level needs may be already
operating on higher level needs.
0 It is also found that needs priority vary from country to
country. For example it is found that esteem needs are
more important for workers in Spain and Belgium than
security needs.
0 Individuals behaviors may be directed at multiplicity of
motives and thus Maslow’s argument that one need is
satisfied at a time is not valid.
Herzberg’s Hygiene Theory
0 These theory is also known as two factors theory.
0 He surveyed 200 executives in different companies
which included engineers and accountants.
0 Based on his research Herzberg found that job
satisfaction and job dissatisfaction are completely
different and distinct. He found that factors leading to
job satisfaction are different from factors leading to
job dissatisfaction and hence they are not related to
each other.
 Herzberg found two distinct
factors leading to job
satisfaction and dissatisfaction
0 Hygiene factor: related to job dissatisfaction. Presence
of these factors eliminates job dissatisfaction among
employees. But it does not mean that they are
satisfied and motivated.
0 But since employees are not dissatisfied they may
continue to work in the organization and hence
hygiene factors are also called as maintenance factors.
0 Hygiene factors include company policies,
relationship with supervisors, pay, job security etc.
0 Motivators: motivators are related to job satisfaction
and presence of motivation results in job satisfaction
and higher motivation which leads to productivity.
 Theory X and Y
0 Douglas McGregor Proposed theory X and Y.
0 According to Douglas managers hold two sets of
assumptions about their subordinates. Managers
assume that their subordinates belong to either of two
categories called category X and category Y.
 Theory X assumptions
0 Employee inherently dislike work and will try to avoid
it.
0 Since employees dislike work and try to avoid it they
must be threatened with punishment to get the work
done and they must be closely monitored and
controlled.
0 Employes do not like to take responsibilities and
always like to seek formal direction.
0 Employees place job security above all and display
very little ambition.
 Theory Y assumptions
0 Employees like work just like play and rest
0 People are capable of excersing self direction and self
control if they are committed to work.
0 Employees at all levels are capable of taking up any
responsibility.
0 Decision making ability is widely spread across
population and people at lower level are capable of
making creative decisions.
 Communication
0 Communication is the process of transmission of
information or message from person to another.
0 It involves exchange of facts, ideas, feelings etc.
between two or more individuals.
0 Communication is the most important component of
directing function.
Process of communication
 The source or sender or
communicator
0 Sender is the person who has an intended message to
convey to some one.
0 He has the purpose of communicating information or
message to one or more persons.
 Encoding
0 Encoding means putting message into a code.
0 Encoding is the process of translating message into a
form which can be understood by the receiver.
0 It can be in the form of oral, written or symbols.
 Medium or channel
0 Channel is carrier of communication.
0 For example air is the medium for oral
communication.
0 Message can be communicated through any media
like written form, telephone, TV etc.
 Decoding
0 It is the process of finding the meaning for the coded
message. It is the means of translating into a medium
which can be understood by the receiver.
 Receiver
0 Receiver is the person who decodes the message and
interprets it.
 Feedback
0 Feedback is the reaction of the receiver.
0 Feedback enables the communicator to know whether
the message is reached and understood by receiver.
0 It helps in checking the effectiveness of
communication and makes it a two way process.
 Types of Communication
0 Formal communication
0 Informal communication
 Formal communication
0 Formal communication is officially accepted
communication in the organization and it uses official
channel for transmitting messages.
0 It follows official route for flow of communication
between various people in the organization.
0 Commands, instructions, orders flowing from people
at different levels, requisitions from lower level to
higher level etc. represent formal communication.
0 Formal communication generally follows unit of
command.
 Informal Communication
0 Which is not officially accepted part of the
communication in an organization.
0 It does not adhere to organizational hierarchy.
0 Informal communication is based on the informal
relationship among the organizational members.
0 Managers can use informal networks to get valuable
information about what is going on in the organization
and also understand employees perceptions and
expectations.
0 Informal communication is popularly known an
grapevine.
0 Grapevine information spreads rapidly through personal
networks in the form of rumours and gossips.
 Difference between formal
and informal communication
0 Formal communication 0 Informal communication
0 Officially accepted 0 Official not accepted
0 Planned and systematic 0 Generally spontaneous
0 transmission is slow 0 No official channel and
0 Written communication is messages are quickly spread
widely used. 0 Oral communication is
0 Emphasis on organizational widely used
goals 0 Emphasis on social needs
0 Little chance for distortion. 0 More chance for distortion
 Oral and written
communication
0 Merits of oral communication
0 It is very quick and saves time
0 Direct contact establishes hence it is more effective
0 Message can be transmitted to large number of people at
the same time through speech
0 Easy to understand and scope for immediate feedback
0 Demerits
0 There is no recorded proof for oral message and hence
fixing responsibility for both sender and receiver is difficult.
0 Keeping attention of receiver is difficult when message are
lengthy.
0 Requires good oratory skills.
0 Merits of written communication
0 There is a recorded document which serves as proof of
communication and hence responsibility can be easily
fixed.
0 Large amount of information can be transmitted.
0 Messages can be read any number of times and kept for
future references.
0 More time is available for reading and interpreting.
0 It can be used even when sender and receiver are
physically separated.
0 Demerits
0 More time is required for drafting messages
0 Good drafting skills are required for the sender
0 There is no personal touch
0 No immediate feedback.
Non verbal communication or
body language
0 Refers to messages sent through human actions and
behaviors rather than words.
0 We generally use body language in the form of facial
expressions, body positions, eye contact, posture,
silence etc. to convey different messages.
 Vertical and horizontal
communication
0 Vertical communication
0 It is said to be vertical when messages flow from one
hierarchy level to another
0 Vertical communication can be downward or upward.
0 Downward communication starts from top management and
flows down to lower level through different hierarchy levels.
0 Downward communication is used to give orders,
instructions, inform procedures, etc. job instruction sheets,
circulars, memos, orders etc. are examples for downward
communication
0 Upwards communication flows from lower level to top
management and it provides top management
information about what is happening at lower levels.
0 Examples of upward communication includes request,
applications, reports, suggestions etc.
0 Horizontal communication
0 Refers to exchange of information between two
people at same hierarchy level.
0 For example information exchanged between two
departmental heads of an organization.
0 A production engineer informing a maintenance
engineer about breakdown of a machine etc.
0 It is also called as lateral communication.
 Barriers in communication
0 Sender related barriers.
0 Lack of clarity in goals- clarity about purpose of
communication
0 Lack of communication skills- sender should possess good
communication skills
0 Lack of interpersonal sensitivity- harsh words and offensive
language
0 Lack of credibility- receiver should keep trust on senders
message
0 Fear- a person under fear while communicating
0 Filtering- filtering either deleting a part of message or inserting
negative information in a message.
0 Receiver related barriers
0 Lack of responsive feedback- if receiver fails to respond
0 Decoding barrier- if receiver does not possess good
communication skills then he may fail to decode
0 Poor listening or inattention- poor listening habits like fake
attention, distracting actions etc.
0 Judging in the basis of personality of sender- interpret the
message on the basis of personality traits of the sender rather
than actual message itself.
0 Situational barriers
0 Information overload- when volume of message exceeds a
person’s capacity
0 Time pressure- when huge information to be transmitted in a
very little time.
0 Noise- any form of disturbance during the communication
0 Communication climate- climate here relates to trust and
confidence among the sender and receiver.
 Coordination
0 Coordination is another important component of
directing.
0 Since individuals differences are inevitable in any
organization managers have to involve continuously in
coordinating with people and groups to reduce the
differences and increase harmony among them.
0 Coordination is the process of integration or
synchronization of the interdepartmental efforts of
individuals in order to attain common goals.
0 Coordination between various departments like
production, marketing, purchase, quality, human resource
management, finance etc. are very important form
smooth functioning of the organization
 Need of coordination
0 Coordination is very much essential due to following
reasons:
0 Organization's are made up of various units and departments
which are interdependent. For example market depends on
production, production depends on purchase for timely
availability of various supplies for manufacturing activities
and so on. Coordination function ensures that the
interdependence needs are met by ensuring good relations
among all departments
0 The splitting of work into smaller and smaller units through
division of work creates the need of coordination among
many individuals.
0 Good coordination ensures that people work towards
common good rather than their own personal interest.
 Requirements of good
coordination
0 Direct personal contact between individuals who are
responsible for task completion improves coordination
0 Mutual consultation and joint planning ensures better
support for each other and commitment for common goals.
0 Defining clear objectives ensures clarity of role and
responsibility among individuals results in better
coordination
0 Clear definition of authority and responsibility of individuals
eliminates any ambiguities among individuals.
0 Effective communication is very much essential for
coordination .
0 Effective leadership ensures coordination among groups and
individuals
Techniques of coordination
0 Creating hierarchy levels: creating a chain of command
through well defined hierarchy positions. Putting
interdependent tasks under one boss, ensures coordination
among individuals.
0 Defining policies, procedures and rules: policies ensures
that decisions are consistent and they are made within a
common framework. procedure defines specific way in which
a task to be performed and rule defines specific behavior.
0 Committees: joint decisions making through committees is
another popular technique of coordination.
0 Incentives: motivate people to work with each other for
timely completion of tasks.
 Controlling
0 The last but the most important function of
management is controlling.
0 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
0 Controlling is defined as continuous functions 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.
Relation between controlling
and planning
0 The controlling process ensures that plans are being
implemented properly
0 In the functions of management cycle- planning, organizing,
directing and controlling- Planning moves forward into all the
other functions and controlling reaches back.
0 Controlling is the final link in the functional chain of
management activities and brings the functions of management
cycle to full circle.
0 Since supervisors are ultimately held accountable for their
employees performance, timely feedback on employees activity
is necessary.
0 Thus planning and controlling are said to be two sides of the
same coin.
 Objectives of controlling
0 To ensure effectiveness and efficiency in all management
functions.
0 To determine what is happening in the organization and
measure actual progress from time to time.
0 To ensure effective communication between various units
of organization.
0 To keep a check on resource utilization.
0 To reframe organizational plans in relation to changes in
the environment.
0 To detect any deviation and take timely corrective actions.
0 To ensure that all the activities are performed according to
predetermined plans.
Control process
 Establishing performance
standards
0 Standards are created when objectives are set during
the planning process.
0 It is a precise, explicit statement of expected results
from a product, service, machine, individual or
organizational unit.
0 Standard must be well defined and they must be
expressed as far as possible in quantitative terms.
0 Standards used in an organization are explained
below:
0 Physical standards: standards such as labor hours
per unit of output, units of production per machine
hour etc. are called physical standards.
0 Cost standards: standards related to cost like direct
and indirect material cost per product, direct and
indirect labor cost per unit, selling cost per unit, etc.
are called cost standards.
0 Revenue standards: standards related to revenue
generation like revenue per salesman, sales per
territory etc. are known as revenue standards.
0 Time standards: they relates to deadline and time
constraints.
0 and so on
 Measuring actual work
0 Measurement of performance is measured by several
methods like personal observation, getting reports in
the form of figures, charts, graphs etc.
0 Quick measurement is very essential for timely
determination of possible deviations
 Comparing measured
performance against established
standards
0 The actual performance is compared with
predetermined standards so that any deviations can
be quickly determined.
0 Managers ability to determine quickly the deviations
is very much essential for controlling to be effective.
 Taking corrective actions
0 Managers must find the cause of deviation.
0 Then he/she must take actions to remove or minimize
the cause.
0 If the source of variation in work performance is from
a deficit in activity then a manager can take
immediate corrective action and get performance
back on track.
 Types of control
0 Feed forward controls- focus on operations before
they begin.
0 Concurrent control- enact while work is being
performed include any type of steering or guiding
mechanism.
0 Feed back control- focus on the results of operations.
They guide future planning, inputs and process
designs.
 Control techniques
0 Many techniques are used to make controlling
effective and to ensure that organizational objectives
are achieved
0 Some of the important techniques are discussed
below:
 Budgetary controls
0 A budget is a statement of anticipated estimates of requirements
to cover the activities of an enterprise spread over a time.
0 Budget defines anticipated expenditures and results expressed in
financial and non financial terms.
0 Sales budget gives the details of potential sales like quantity of
sales, value, product wise etc.
0 Production budget is based on sales budget. It is an estimate of
various types of products to be manufactured during a time
period.
0 Cash budget gives an estimate of anticipated cash receipts and
payments during a period.
0 Master budget is summary of all functional budgets like
productions, sales, cash etc.
 Break even analysis
0 Control device which is very widely used in
organizations.
0 It is a technique used to determine the relationship
between sales and cost involved in product in such a
way that as to show what sales volume revenue can
cover exactly all the expenses
 Inventory control
0 Inventory control helps managers in controlling stock
of various items like raw materials, semi finished
items, spares and finished goods so that investments
on stock is optimum and materials are better utilized.
 PERT and CPM
0 Programme Evaluation and Review Technique(PERT)
is a technique used in controlling complex
programmes or projects and it helps managers in
estimating time required for completion of project.
0 Critical Path Method(CPM) shows the sequence of
events and activities within a programme evaluation
and review technique network that requires longest
period of time to complete.
 Linear programming
0 Primarily used in problems related resource
allocation in controlling process, and it helps in
predicting outcome of the results.