Ch.7 Functions of Management and Coordination Flashcards
Classification of management functions
Managerial functions should be differentiated from the operative functions of business eg. purchasing, production, finance, personnel, marketing etc.
Henri Fayol has classified them into forecasting and planning, organising, commanding, coordinating and controlling.
George Terry has described management functions as planning, organising, actuating and controlling. Luther Gullick gave the keyword PODSCORB which stands for Planning, Organising, Directing, Staffing, Coordinating, Reporting and Budgeting.
Koontz and O’Donnell state that the managerial functions are: Planning, Organising, Staffing, Directing and Controlling.
Ernest Dale has mentioned that innovation and representation are managerial functions. Innovation implies creative thinking designed for change and improvement.
Representation implies acting as a spokesperson of the company.
Functions of management diagram
Planning definition, features, steps, advantages and disadvantages
According to Koontz and O’Donnell, “Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. Planning bridges the gap from where we are to where we want to go. It makes it possible for things to occur which would not otherwise happen”.
Features: i) It seeks to achieve certain objectives ii) It is future-oriented iii) It is a mental exercise
Steps: i) Defining objectives ii) Developing planning premises iii) Discovering alternative courses of action
Advantages: i) Planning focuses attention on desired objectives ii) Planning encourages innovation
Limitations: i) Lack of accurate information ii) Time-consuming
Organising definition, steps + diagram and importance
According to Henri Fayol, “To organise a business means to provide it with everything useful to its functioning - raw materials, tools, capital and personnel.”
Steps: i) Identifying the activities required for achieving the objectives ii) Classifying these activities into convenient groups iii) Assigning these groups of activities to appropriate persons
Diagram
Importance :i) Helps in communication and teamwork ii) Permits optimum use of human resources
Staffing definition, steps + diagram, nature, importance
According to Koontz and O’Donnell, “The managerial function of staffing involves manning the organisational structure through proper and effective selection, appraisal and development of personnel to fill the roles designed into the structure”.
Steps: i) Manpower planning ii) Recruitment iii) Training
Diagram
Nature: i) It is a function of management ii) It is a pervasive function
Importance: i) It improves the job satisfaction of the employees ii) It reduces cost of personnel
Directing definition, features, importance, elements
It is an action-oriented function.
It is also known as ‘commanding’ or ‘actuating’ or ‘management in action’.
According to Koontz and O’Donnell, “Direction is a complex function that includes all those activities which are designed to encourage subordinates to work efficiently and effectively”.
Features: i) It initiates action ii) It is the link between planning and control
Importance: i) improves efficiency ii) assists growth and expansion of the enterprise
Elements: i) Supervision ii) Communication iii) Motivation iv) Leadership
Diagram
Controlling definition, steps, importance
According to Koontz and O’Donnell, “Controlling is the measuring and correcting of activities of subordinates to ensure that events conform to plans.”
Steps: i) Setting standards of performance ii) Measuring actual performance
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Importance: i) It must be easy to understand ii) It must be economical and flexible
Coordination meaning, definition, elements, importance, principles
Coordination is not a separate function of management. It is the very essence of management because it is inherent in all managerial functions.
In planning, coordination is essential to ensure harmony between organisational goals and departmental plans.
In organising, coordination is required between authority and responsibility.
In staffing, coordination is important for matching talent of employees with the jobs assigned to them.
In directing, motivation and leadership ensure functional harmony.
In controlling, coordination is achieved by ensuring that actual results conform to desired results.
According to Mooney and Railey, “Coordination is the orderly arrangement of group efforts to provide unity of action in the pursuit of a common purpose”.
Elements: i) It is a continuous process ii) It is the responsibility of every manager
Importance: i) It becomes essential to harmonise their opinions, motives and efforts through coordination. It provides a balance between persons having different abilities and interests. Need for coordination has increased with the growing size and complexity of organisations, increasing specialisation and rapidly changing environment.
Principles: i) Coordination should be started at an early stage ii) It must be a dynamic process
Coordination vs Cooperation
Coordination is a wider term than cooperation. Cooperation implies the willingness of members of the organisation to help one another and is the result of voluntary efforts. However, coordination requires deliberate action on the part of management to secure unity of purpose and unified action towards the achievement of common objectives.
Coordination implies collective efforts by the persons working together in an enterprise voluntarily for achieving a common objective.
Distinction between coordination and cooperation
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Coordination as the essence of management
Coordination is not a separate function of management. It is the very essence of management because it is inherent in all managerial functions.
In planning, coordination is essential to ensure harmony between organisational goals and departmental plans.
In organising, coordination is required between authority and responsibility.
In staffing, coordination is important for matching talent of employees with the jobs assigned to them.
In directing, motivation and leadership ensure functional harmony.
In controlling, coordination is achieved by ensuring that actual results conform to desired results.
According to Mooney and Railey, “Coordination is the orderly arrangement of group efforts to provide unity of action in the pursuit of a common purpose”.
Like the thread in a garland, coordination has to be part of all managerial functions.
Just like the conductor of an orchestra, a manager has to create rhythm (balance) and unity among the activities of his subordinates.
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