Chapter-1 Nature and Significance of Management 11

1.1
|Management Concept, Functions and Characteristics
-

Concept of Management
Management is an activiry which is necessary wherever there is a group of people working in an organisation.
People in organisationsare performing diverse tasks but they are all working towards the same goal. Management
aims at guiding their efforts towards achieving a common objective-a goal.
Thus, management has to see that tasks are completed and goals are achieved (i.e., effectiveness) with the least
amount of resources at a minimum cost (i.e.,
eficiency.
4gement is defined as a process ofgetting things done with the aim of achievings goals effictively and efBiciently.

DEFINITIONS OF MANAGEMENT
"Management is the process of working with and through others to etfectively achieve organisational
objectives by efficiently using limited resources in the changing environment. -Kreitner
Management is the process of designing and maintaining an environment in which individuals,
working together in groups, etficiently accomplish selectedaims -Harold Koontz and Heinz Weihrich
"Management is defined as the process of planning, organising, actuatingandcontrolling an organisation
operations in order to achieve coordination of the human and material resources essential in the effective
and efficient attainment of objectives. -Robert L. Trewelly and M. Gene Newport

There are certain terms in the above definition of management, which require elaboration. These are (a) process,
(b) effectively, and (c) efficiently.
1. Process
'Process in the definition of management means the primary functions or activities that management
performs to get things done.
These functions are planning, organising, stafting, directing andcontrolling
Management is described as the process of planning. organising, directing and controlling the efforts of
organisational members and of using organisational resources to achieve specific goals.

2. Effectiveness
Being effective or doing work effectively basically means finishing the given task.
Effectiveness in management is concerned with doing the right task, completing activities and achieving
goals. In other words, it is concerned with the end result.
3. Efficiency
It is not enough to just complete the tasks. There is another aspect also, i.e., being efficient or as we say doing
work efficiently.
Efficiency means doing the task correctly and with minimum cost.
There is a kind of cost-benefit analysis involved and the relationship berween inputs and outputs.
I f by using less resources (i.e., the inputs) more benefits are derived (i.e., the outputs) then efficiency has
increased.
Efficiency is also increased when for the same benetit or outputs, fewe resources are used and less costs are
incurred. Input resources are money, materials, equipment and persons required to do a particular task.
Obviously, management is concerned with the efficient use of these resources, because they reduce costs and
ultimately lead to higher profits.
 Business Studies XIl Part-A - by Subhash Dey

Efectiveness versus Efficiency

to bc both effective and
These two terms are ditterent but they are interrelated. For management, it is important
two aspects necd to be balanced.
two sides of the same coin. But these
efticient. Effectiveness and efficicncy arce

efficiency.
with For example, it is casier to be effective and
Management at times, has to compromise
the task but at a high cost. Suppose, a company's target production
ignore etticiency i.c., complete given
is 20,000 units in a year. To achieve this target the manager has to operate on double shifts due to power
failure most of the time. The manager is able to produce 20,000 units but at a higher production cost. In
this case, the manager was eftective but not so efficient, since for thc same output, more inputs (abour

cost, electricity costs) were used.

At times, a business may concentrate more on producing goods with fewer resources i.C., cutting down
cost but not achieving the target production. Consequently, the goods do not reach the market and
hence the demand for them declines and competitors enter the market. This is a case of being cfficient
but not effective since the goods did not reach the market.
Therefore, it is important for management to achieve goals (effectiveness) with minimum resources i.e., as
efficiently as possible while maintaining a balance between effectiveness and efficiency.

Top Tip
Usually high efficiency is associated with high effectiveness which is the aim of all managers. But undue emphasis on high
efficiency without being effective is also not desirable. Poor management is due to both inefficiency and ineffectiveness.

Functions of Management
Management consists of a series of continuous, interrelated and inter-dependent functions, that are
performed by all managers. These functions are planning, organising, stafing, directing and controlling.
1. Planning
Planning is the function of determining in advance what is to be done and who is to do it. This implies seting
goals in advance and developing a way of achieving them efficiently and effectively
Planning is defined as setting objectives for a given time period, formulating various courses of action to achieve
them, and then selecting the best possible alternative from among the various courses of action available.
It must be noted that planning cannot
prevent problems, but it can predict them and prepare contingency plans
to deal with them if and when they occur.
2. Organising
Organising is the management function of assigning duties, grouping tasks, establishing authority and
allocating resources required to carry out a specific plan.
Once specific plan has been established for the
a

function examines the activities and resources

accomplishment of an organisational goal, the organising
activities and resources are
required to implement the plan. lt determines what
required. It decides who will do a particular task, where it will be done, and
when it will be done.
Organising involves the grouping of the required tasks into
the establishment of manageable departments or work units and
authority and reporting relationships within the organisational
3. Staftingg
hierarchy.
Staffing simply means-"finding the right people for the right job"
Staffing function of management is concerned with obtaining,
satisfied workforce. utilising and maintaining satisfactory and
a

A very important aspect of management is to make sure that the right

available at the right places and times to accomplish the people with the right qualifications arc
goals of the organisation. This is
also known as the human
resource function and it involves activities such as recruitment,
selection, placement and
training of personnel.
 13
Chapter-1 Nature and Significance of Management

. Directing
them.
Directing involves leading, influencing and motivating employees to perform the tasks assigned
to

This requires establishing an atmosphere that encourages employees to do their best,.

Direting has four elements i) Motivation (i) Lcadership (ii) Communication (iv) Supervision.
Motivation and leadership are two key components of direction.
Motivating
workers mcans sinmply ereating an environment that makes them want to work
Lcadership is intluencing orhers to do what the leader wants them to do. A good manager directs through
praise and criticism in such a way that it brings out the best in the employec.
Direvting also involves communicaing ctlcctively as well as supervising employees at work.

5. Controlling
Controlling is the management function of monitoring organisational performance towards the attainment
of onganisational goals.
The task of controlling involves establishing standarnds of performance, measuring current pertormance
comparing this with established standards and taking corrective action where any deviation is found. Here
how and where they can be
management must determine what activities and outputs are critical to success,

measured and who should have the authority to take corrective action.

Top Tip
The various functions of a manager are usually discussed in the order given above, suggesting that a manager first plans,
then organises, puts staff in position, then directs, and finally controls. In reality, managers are rarely able to carry out
these functions in isolation. The activities of a manager are interrelated and it is often difficult to pinpoint where one
ended and the other began.

Characteristics/Features of Management
1. Management is a goal-oriented process.
An organisation has a set of basic goals which are the basic reason for its existence. These should be simple
and clearly stated. Diflerent organisations have ditierent goals. For example. the goal of a retail store may be to
increase sales. but the goal of a school is to impart education to children.
Management unites the efiorts of difierent individuals in the organisation towards achieving onganisational goals
2. Management is a continuous process.
The process of management is a series of continuous, composite, but separate functions(planning,
organising, directing, staffing and controlling). These functions are simultaneously performed by all managers
allthe time. The time spernt by managers in different functions, however, is different. Managers at the top level
spend more time in planning and organising than managers at lower levels of the organisation.

3. Management is all pervasive.

Management is pervasive as it is required in all organisations, in all the departments and at all levels.
The activities involved in managing an enterprise are common to all organisations whether economic, social or
political. A petrol pump needs to be managed as much as a hospital or a school. What managers do in India,
the USA. Germany or Japan is the same. How they do it may be quite different. This difference is due to the
differences in culture. tradition and history.
4. Management is an intangible force.
Management is an intangible force that cannot be seen but its presence can be felt or its effect is noticeable
when targets are met according to plans, employees are happy and satisfied, and there is orderliness instead
of chaos.
 Business Studies XII Part-A - by Subhash Dey
14

5. Management is a group activity.

An organisation is a collection of diverse individuals
Together
with different Every member of the group has
needs. Everyone
a different purpose for joining the organisation but
as members of the organisation they work towards
fulfilling the common organisational goal. This
Achieves
requires team work and coordination of individual More
effort in a common direction. At the same time
management should enable all its members to grow
Individuals say 'T... Team says "We'
and develop as needs and opportunities change. TEAM A successful team beats with one heart.

6. Management is a dynamic function.

Management is a dynamic function and has to adapt itself to the changing environment.
An organisation interacts with its external environment which consists of various social, economic and political
factors. In order to be successful, an organisation must change itself and its goals according to the needs of the
environment. For example, McDonalds, the fast food giant made major changes in its menu to be able to survive
Indian market e.g. it offers Aloo Tikki burger.
,

7. Management is multi-dimensional.
Management is a complex activity that has three main dimensions. These are:
Management ofwork: All organisations exist for the performance of some work. In a factory, a product
is manufactured, in a garment store a customer's need is satisfied and in a hospital a patient is treated.
Management translates this work in terms of goals to be achieved and assigns the means to achieve it.
This is done in terms of problems to be solved, decisions to be made, plans to be established, budgets to
be prepared, responsibilities to be assigned and authority to be
delegated.
(i) Management of people: Human resources or people are an organisation's greatest asset. Despite all
developments in technology "getting work done through people" is still a major task for the manager.
Managing people has two dimensions:
dealing with employees as individuals with diverse needs and behaviour; and
dealing with employees as a group of people.
The task of a manager is to make people work towards the achievement of the
making their strengths effective and their weaknesses irrelevant.
organisational goals by
(iii) Management of operations: Every organisation has some basic
to survive. This
product or service to provide in order
requires production process transforming input material and the technology into
a of
the desired ourput for
consumption. This is interlinked with both the management of work and the
management of people.

RECAP

Concept of Management
Management is the process of getting things done with the aim of
achieving goals
Process in the definition means series of effectively and efficiently.
primary functions or activities that management performs to get things done, i.e.
planning, organising, staffing, directing and controlling.
Effectiveness' in management is concerned with doing the right task,
completing activities and achieving goals.
Efficiency means doing the task correctly and with minimum cost. Efficiency is increased if
by using less resources (i.e., the
inputs) more benefits are derived (i.e., the outputs).
For management, it is important to be both effective and
efficient, i.e. to achieve goals (efectiveness) with minimum resources
(efficiency).
 1.2 Objectives, Importance and Levels of Management
Objectives of Management
Management seeks ro achieve certain objectives which are the desired result of any activity. They must be derived
rom the a s e purose ot the business. In any organisation there are different objectives and management has to

achive all odjartives in an ettective and etticient manner.

Objrives can be dasitiad into organisational objectives, social
objectives and personal or individual objectives.
1. Onganisational Objectives
Management is responsible for setting and achieving objectives for the organisation. It has to achieve a
variery
ot objertives in all areas
considering the interest of all stakeholders including shareholders, employees, customers
and the government.
The main objective of
any organisation should be to utilise human and material resources to the maximum
possible advantage, i.e., to fultill the economic
objectives of a business. These are survival, profit and growth.
) Survival: The basic objectives of any business is survival.
of the
Management must strive to ensure the survival
organisation. In order to survive, an organisation must earn enough revenues to cover costs.
(i) Profit: Mere survival is enough for business. Management has to ensure that the organisation makes
not
a
profit. Profit provides
vital incentive for the continued successful
a
operation of the enterprise. Profit is
essential for covering costs and risks of the business.
(i) Growth: A business needs to add to its prospects in the long run, for this it is
(ii)
grow. To remain in the industry, management must exploit hully the
important for the business to
Growth of a business can be measured in terms of: growth potential of the organisation.
increase in sales volume,
increase in the number of
employees,
increase in the number of products, or
the increase in capital investment, etc.

2. Social objectives
It involves the creation of benefit for
society. As a part of
society, every organisation whether it is business or
non-business, has a social obligation to fulftill. This refers
constituents of society. This includes:
to
consistently creating economic value for various
using environmental friendly methods of production,
giving employment opportunities to the disadvantaged sections of
society, and
providing basic amenities like schools and crèches to
employees.
Chapter 1 Nature and Significance of Management 19

3. Personal objectives
Onganisations are madeup of people who have ditteent peronalitien, ba kgronnds, expertem es and objectives
They all bvme part ofthe onganisationn o satisty their diverse need. 1hese vary liom
financial needs such as vopetivive salaries and
perks.
social needs such as peer mugniviom, and
higher level necds such as personal grwth and developmen
NManagement has to munile personal goals with organisational vbjectives for harmony in the organisation

Top Tip
Personal objechives ot management aim at satistying the diverse needs of people In the organisatton who have different
personaiitdes, objectives, etc. Personal objectives of managenent should not be contused with fulhiling personal
objectives of employees.
Providing basic amenities like schools and creches to employees Is soclal objective of management, not personal
objechve since management of an organisation has to fultill its soclal responsibiltes towards varlous stakeholders,
including employees.

Importance of Management

1. Management helps in achieving group goals.

Management is required not for itself but for achieving the goals of the organisation. The task of a manager is to
give a common direction to the individual eftort in achieving the overall goal of the organisation.
2. Management increases efticiency.
The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing
stafting and controlling the activities of the organisation
3. Management creates a dynamic organisation.
All organisations have to function in an cnvironment which is constantly changing. It is generlly sen that
individuals in an organisation resist change as it often means moving from a familiar, secure cnvironment into a
newer and more challenging one.
Management helps people adapt to these changes so that the organisation is able to maintain its competitive

edge.
4. Management helps in achieving personal objectives.
A manager motivates and leads his team in such a manner that individual members are able to achieve personal
.goals while contributing to the overall organisational objective.

Top Tip
Through motivation and leadership the management helps individuals to develop team spirit, cooperatlon and
commitmenttogroup success.

5. Management helps in the development of society.

Management helps in the development of society by:
providing good quality products and services,
creating employment opportunities,
adopting new technology for the greater good of the people, and
leading the path towards growth and development.
 Business Studies
XII Part-A- by Subhash Dey
20

Levels of Management
functions
Managenment is a universal term used for certain
pertormed by individuals in an enterprise who are bound together
Manageen

in a hierarchy of relationships. Every individual in the hierarchy

To be
is responsible for completion of a particular task.
successful
of
able to fulfill that responsibility he is assigned a certain amount Middle
Management
authority or the right to take a decision.
The authority-responsibility relationship binds individuals
as

levels of
superiors and subordinates and gives rise to different
management in an organisation. Operational or Supervisory
hierarchy of
Generally speaking there are three levels in the
an Managenment

organisation:
(i) Top level management Levels of Management
(i) Middle level management
ii) Supervisory or operational management (i.e. lower level management).
1. Top Level Management
They consist of the senior-most executives of the organisation. For example:
Chief Operating Officer Chief Executive Officer (CEO)
Chief Marketing Officer (CMO) Chief Finance Officer (CFO)
Managing Director Chairman
President Vice-President
Functions
(i) Their basic task is to integrate diverse elements and coordinate the activities of different departments
according to the overall objectives of the organisation.
(ii) These top level managers are responsible for the welfare and survival of the organisation.
for the survival of the firm.
(ii) They analyse the business environment and its implications
formulate overall organisational goals and strategies for their achievement.
(iv) They
(vThey are responsible for all the activities of the business and for its impact on society.
Thus, the job of the top manager is complex and stressful, demanding long hours and commitment to the organisation.

Top Tip
management is a team
onsisting of managers from different functional levels, heading finance, marketing etc. For
Top
example chief finance officer, vice president (marketing). However, individually managers from different functional levels,
such as production manager or marketing manager will be acting as middle level managers.

2. Middle Level Management

lower level
Middle Management is the link berween top and managers.

They are subordinate to top managers and superior to the first line managers.
They are usually known as division heads. For example:
Production manager Marketing manager
Finance manager Human Resource (HR) manager

Top Tip
Middle level management
also includes the following:
Operations manager Plant Superintendent
Regional manager Divisional manager
 Chapter-1 Nature and Significance of Management 21

Middle management is responsible for implementing and controlling plans and strategies developed by top
management. At the same time they are responsible for all the activities of first line managers.

Functions
Their main task is to carry out the plans formulated by the top managers. For this they need to:
(i) interpret the policies framed by top management,
i) ensure that their department has the necessary personnel,
(iii) assign necessary duties and responsibilities to them,
(iv) motivate them to achieve desired objectives, and
(v) co-operate with other departments for smooth functioning of the organisation.
3. Supervisory or Operational Management
Foremen and supervisors comprise the lower level in the hierarchy of the organisation. Their authority and
responsibility is limited according to the plans drawn by the top management.
Functions
Supervisory management plays a very important role in che organisation because of the following main functions
they perform:
G) They interact with the actual workforce and pass on instructions of the middle management to the
workers.
i) Supervisors directly oversee the efforts of the workforce.
Cii) Through their efforts quality of output is maintained and wastage of materials is minimised.
iv) They ensure that safety standards are maintained.
The quality of workmanship and the quantiry of ourput depends on the hardwork, disciplincandloyaleyokthe
workers.

RECAP

Objectives of Management
1. Organisational or Economic Objectives: The main objective of any organization should be to utilize human and material
resources to the maximum possible advantage to fulfill the economic objectives ofa business.

Surviva-Management must strive to earn enough revenues to cover cost for the survival of the business.
 | 1.3 |Management as Art, Science and Profession
Management as an Art
Art is the skillful and personal application of existing knowledge to achieve desired results. t can be

acquired through study, observation and experience. The basic features of an art are as follows:
Existence ofthe
theoretical knowledge: Any art (literarure on dancing, public speaking, acting or music)
presupposes existence of certain theoretical knowledge.
(i) Personalised application: The use of this basic knowledge varies from individual to individual. Art is,
theretore, a personalised concept. For example, two dancers, two speakers, two actors, or two writers will
always differ in demonstrating their art.
(ii) Based on practice and creativity: All art is practical. Art involves creative practice of existing theoretical
knowledge. Since art is concerned with personal application of knowledge some kind of creativity is
required to practice the basic principles learnt. For example, a musician makes a
unique composition
based on seven basic notes.
Management can be said to be an art since it satisfies the following criteria:
1. Existence of theoretical
knowledge
As in art, in management too, there is a lot
of literature available in various areas of management (like finance,
marketing, human resource, etc.) which the manager has to specialise in. A successtul manager practices the art of
management in the day-to-day job of managing an enterprise based on study, observation and
experience.
2. Personalised application
Like in any art, in management too, a
manager DO
applies his acquired knowledge in a personalised and
unique manner. He is involved in the activities of the
organi_aiion, studies critical situations and formulates The best managers are committed
and dedicated individuals
his own theories for use in a given situation. This gives highly trained and educated, with personal
ambition, self-motivation, creativity and qualities such as
rise to different styles of management. for development of the self imagination, a desire
and the organisation
they
3. Based on practice and creativity to. All
management practices are based on the sane belong
satisfies this criteria as manager gains
principles; what distinguishes a successful nanager from set of
a less
Management sccessful one is the ability to put these
experience and achieves perfection after long practice. principles into practice.
AOdmanagerworks through a comDination or practice, creativity, imagination, initiative and
innovation.
Chapter-1 Nature and Significance of Management 27

Management as a Science
Science is a systematised body of
knowledge that explains certain general truths or the operation of generallaw
The basic features of science are as follows:
) Systematised body of knowledge: Science is a systematic body of knowledge. Its principlesare based on
a cause and effect relationship. For example, the phenomenon of an apple falling from a tree towards the
ground is explained by the law of gravity.
(i) Principles based on experimentation: Scientific principles are first developed through observation and
then tested through repeated
experimentation under controlled conditions.
(ii) Universal validity: Scientific principles have universal validity and application.
Based on the above features, we can say that management is a science but not an exact science or a social science.
It is neither as precise nor as comprehensive as the pure science like Physics or Chemistry. The following points
clearly prove this:

1. Systematised body of knowledge

Like science, management is a systematic body of knowledge with its own theory, vocabulary of terms, concepts
and principles that have developed over a period of time.
So, this feature of science is present in management.
2. Principles based on observation and experimentation
Like science, the principles of management are derived over a period of time through observation and repeated
experimentation. However, since management deals with human beings and human behaviour, the outcomes of these
experiments are not capable of being accurately predicted. Therefore, management can be called an inexact science.
So, this feature ofscience is not fiuly present in management.

3. Universal validity
The principles of management provide managers with certain standardised rechniques that an be used in
different situations. These principles are also used for training and development of managers.
However, the principles of management are not as exactas the principles of science. Their application anduseis
not universal. They have to be modified according to a given situation. - d
So, this feature of science is not fully present in management.

Top Tip
Management is both an art and a science.
Management has features of both art and science.
T h e practice of management is an art.
However, managers can work better if their practice is based on the principles of management. These principles
constitute the science of management.
Management as an art and a science are therefore not mutually exclusive, but complement each other.

Management as a Professioon
A profession has the following characteristics:
Well-defined body of knowledge: All professions are based on a well-defined body of knowiedge that
can be acquired through instruction.
() Restricted entry: The entry to a profesion is restricted through an examination or through acquiring
an educational degree. For example, to become a chartered accountant in India a candidate has to cleara
specified examination conducted by the Institute of Chartered Accountants of India.
 XII Part-A
-

by Subhash Dey
28 Business Studies

which regulates entry

(ii) Profession All professions are affiliated to a
professional association
association: of conduct. To be able
to practice in
certiticate of practice and formulatcs and enforces a code
ants India which regulates
and controls their
have to become members of the Bar Council of
yers
activities.
which guides the behaviour
iv) of conduct: All professions are bound by a code of conduct
ode at the time they enter the
Ots members. All doctors, for example, take the oath of ethical practice
profession.
(Service motive: The basic motive of a profession is to serve their client's interests by rendering dedicated
and committed service. The task of a lawyer is to ensure that his client gets justice

Management is profession but

a full fledged profession like legal, accounting
not a medical professions since it
or
does not meet the exact criteria of a true profession. The following points clearly prove this.

1. Well-defined body of knowledge

LIKe a profession, management too is based on a systematic body of knowledge comprising well-defined
principles. This knowledge can be acquired at different colleges and professional institutes and through a number
of books and journals.
ne subject of management is taught at different institutions such as the Indian Institutes of Management
(IIMs) to provide management education.
So, this feature of profession is in
present management.
2. Restricted entry
Entry to management institutes such as the Indian Institutes of Management (IIMs) is usually through an
examination.
However, there isrestriction on anyone being designated or
no
appointed as manager in any business enterprise.
Anyone can be called a manager irrespective of the educational qualifications possessed.
Unlike professions such as medicine or law which require a
practicing doctor or lawyer to possess valid degrees,
nowhere in the world is it mandatory for a manager to possess any such
specific
knowledge and training is considered to be a desirable qualification, since there is greaterdegree.
But professional
demand for those who
possess degrees or diplomas from reputed institutions.
So. presently this feasure of profesion
is not present in management.

3. Professional Association
There are several associations of practicing managers in India, like All India
Management Association (AIMA)
that has laid down a code of conduct to regulate the activities ot their members. There
is, however, no
compulsion
for managers to be members of such an association.
So, presenty this feature ofprofession is not present in management

4. Ethical code of conduct

AIMA has devised a code of conduct for Indian managers but there is
So. presenthy this feature of profession is not present in management.
no
statutory backing for this code.

5. Service motive
The basic purpose of management to help the
organisation achieve its goals by
at reasonable prices, thereby serving the sociery is being increasingly recognised providing good quality products
So. presently this feature of profession is not fuly present in management.
 XIl Part-A by Subhash Dev
Business Studies
32

1.4 Coordination Concept, Characteristics and Importance

Concept of Coordination
departments of different is known as
coordination.
he process by which manager synchronises the activities
a
It is the common thread that run
is the force that binds all the other functions of management.
nation continuity in the working of the
rougn all activities such as purchase, production, sales, and finance to ensure

organisation.
that a manager ensures the orderly arrangement
of individual and
the process ot coordination therefore involves
Coordination
group efforts to ensure unity of action in the realisation of common objectives.
synchronisation of the different actions or efforts of the various units of an organisation. This provides the
requisite amount, qualitry, timing and sequence of effors which ensures that planned objectives are achieved with
a minimum of conflict.
Coordination is important as it integrates the efforts of individuals, departments and specialists. The primary
reason tor coordination is that departments and individuals in the organisation are interdependent, i.e. they
depend on each other for information and resources to perform their respective activities. Thus, managers need
to reconcile difterences in approach, timing, effort or interest. At the same time, there is a need to harmonise
individual goals and organisational goals.

DEFINITIONS OF CoORDINATION
Coordination is the orderly synchronising of etforts ot subordinates to provide proper amount, timing
and quality of execution so that their united efforts lead to the stated
objectives, namely, the common
purpose ot the enterprise.
Theo Haimann
Coordination is the process whereby a n executive develops an orderly pattern of
group efforts among
his subordinates and secures unity of action in the pursuit of common
purpose." -McFarland
"Coordination is balancing and keeping together the team by ensuring suitable allocation
of tasks to the
various members and seeing that the tasks are pertormed with harmony
among the members themselves
-E.F.L. Brech

Coordination -
The Essence of Management T

ordination is sometimes considered a

separate function of
management. lt is
management, for achieving harmony among individual however, the essence of
ettorts towards
Fach managerial function is an exercise contributing indiVidually
the
accomplishment of group goals.
to
coordination. Coordination is
and inherent in all functions of an organisation. implicit
The process of coordinating
the activities or an
organisation begins at the
planning
panagement plans for the entire organisation. stage
g irself Top
According to these plans the
organisational struCture 1s
developed, which is the
pfocess. outcome of oroanising
he stafine function is
performed to fill the roles
designed in the
n order to ensure that these plans are executed organisational structure.
according to
plans, directing is reauired
Any discrepanci deviations between actual and standard
performance are taken
controlling.
care of at the stage of
dination is not a separate function ot
management, but its very
essence. Foor
to effectively and efficiently achieve its objectives coordination is
required. Like
of all management functions.
a thread in
coordination is a part a
garland,
 Chapter-1 Nature and Significance of Management
33

Characteristics/ Features of Coordination

1. Coordination integrates group efforts. I TUP
Coordination unifies unrelated or diverse interests into
on. group etfort to ensure that pertormance is
purposeful work activity. It gives a common focus to

uns
as it was planned and scheduled.
2. Coordination ensures
the unity of action.
The purpose of coordination is to secure
unity of action in the realisation of a common
binding force between departments and ensures that all action is aimed at purpose. It acts as the
and achicving the goals of
the
lves 3.Coordination is a continuous process. organisation.
the Coordination is not a one-time function but a continuous process. It begins at the planning stage and continues
vith till controlling.
Plaww - LeKTAie
4. Coordination is an all pervasive function.
ary
Coordination is required at all levels of
hey
hey management due to the interdependent nature of activities of various
eed departments. It integrates the efforts of different departments and different levels.
nise 5. Coordination is the
Coordination is the
responsibility of all managers.
function of every manager in the
organisation.
Top level managers need to coordinate with their subordinates to that the overall
organisation are duly carried out.
ensure
policies for the
Middle level management coordinates with both
ng
the top level and first line managers
Operational level management coordinates the activities of its workers to ensure that work
on according to plans. proceeds
inn
6. Coordination is a deliberate function.
ong A manager has to coordinate the efforts of different
and people in a conscious and deliberate manner. Even where
members of a department willingly cooperate and work, coordination gives a direction to that willing spirit,
the
S.

ech TopTip
Cooperation
*Ceexolinachio wostol dkr
in the absence of coordination may lead to wasted effort and coordination
without
Cov /CopA
cooperation may lead to
s cak
dissatisfaction among employees. a

ce of Importance of Coordinatiøn
goals. 1. Growth in size
aplicit As organisations grow in size, the
number of people emplayedby the-erganisation also increases, At times,
it may become difficult
. Top
integrate their efforts and activities. All individuals differ in their habits of work,
to

background, approaches tosituations and relationships with others.

ltbecomes necessary to ensure that all individuals work towards the
common goals of the organisation. But
ising employees may have their own individual goals also. Therefore, for organisational efficiency, it is important to
harmonise individual goals and organisational goals through coordination.
2. Functional differentiation
age of Functions of an organisation divided into departments,
are
divisions and sections.In an organisation there may
be separate departments of finance, production, marketing or human resources. All these departments may have

sation tneirown objectives, policies and theirown style ofworking For example,the marketing department's objective
may be to increase sales by 10 per cent by offering discounts. But, the finance department may not approve of
rland,
such discounts as it means loss of revenue.
 34
Business Studies XII
Part-A -

by Subhash Dey

inds ofcontlict arise in organisations because each unit/ department is performing activities in isolation
a n dbarriers betweendepartments are becoming morerigid. However, all departments and individuals
r c p e n d e n t and they have to depend on each other for information to perform their activitiesThe
acvity ot each department needs to be focused on attainment of common organisational goals. ne proc O
linking the activities of various departments is
accomplished by coordination.
3. Specialisation
Modern organisations are characterised by a high degree of
complexities of modern technology and the diversity of tasks tospecialisation. Specialisation arises out of the
be pertormed. Organisations, therefore, need
employ a number of specialists. Specialists usually think that
they only are
decide according to
their professional criteria. They do not take advice or qualified fromto evaluate, judge and
pertaining to their area of specialisation. suggestions others in matters
This often leads
to conflict amongst different
coordination is requred by an independent specialists
as well as others in the
to reconcile the
organisation. Therefore, some
person difterences in approach, interest
of the specialists. or
opinion
RECAP

Coordination The essence of management

The process by which a manager synchronises the activities of different departments is called
Co-ordinationis not a separate function of management. It is the
coordination
force that binds all other
essence of management. functions and thus called
The process of coordinating the activities begins at the planning stage in which the top
organization. management
nent plans 6..
olanc
for the
At the organizing stage, the organizationalstructure is developed
plans.
as per
entire
Thestaffing function is performed thereafter as
per the structure developed in the organization
Directing is then required to ensure that these plans are executed accordingly. structuree.
Controlling function ensures that the discrepancies between actual and planned activities are
taken care
Coordination, therefore, synchronises the efforts through all functions of management and of.
ensures that the
objectives are achieved with a minimum of conflict.
Characteristics/Features of Coordination nal
1. Coordination
integrates group efforts by unifying diverse interests into purposeful work activity. DU PCR
2. Coordination ensures
unity of action by acting as a binding force between departments and ensurine thm..
aimed at achieving the
goals of the organisation.
3. Coordination is a continuous process as it starts at the planning stage and continues till
4. controlling.
Coordination is a pervasive function as it is required in all types of organisations, in all the departmente