Engineering Management

MNGT 211

FUNCTIONS OF MANAGEMENT

Balgos, Arabella Grace, C.

Atejada, Delany Rose, C.
Bartocillo, Angelo, S.
Belloca, Mark, G.
Eroy, Dianne, D.
Caputero, Shane, B.
Anot, Ma. Anoah Jade, A.
Clarito, Neil Paulo, D.
Tuesca, Robin, Z. Jr.
Management entails four basic functions: planning, organizing, leading, and controlling
resources (land, labor, capital, and information) to efficiently reach a company's goals. Managers
are the employees responsible for performing these four functions in addition to a number of
other duties to coordinate the organization's work. These duties, or roles, fall into three main
categories:

Interpersonal roles. Managers perform ceremonial obligations; provide• leadership to

employees; build a network of relationships with bosses, peers, and employees; and act as liaison
to groups and individuals both inside and outside the company (such as suppliers, competitors,
government agencies, consumers, special-interest groups, and interrelated work groups).

Informational roles. Managers spend a fair amount of time gathering• information by

questioning people both inside and outside the organization. They also distribute information to
employees, other managers, and outsiders.

Decisional roles. Managers use the information they gather to encourage• innovation, to resolve
unexpected problems that threaten organizational goals (such as reacting to an economic crisis),
and to decide how organizational resources will be used to meet planned objectives. They also
negotiate with many individuals and groups, including suppliers, employees, and unions.

Being able to move among these roles while performing the basic management functions is just
one of the many skills that managers must possess.

Defining Important Terms

• Management includes the activities of setting the strategy of an organization and

coordinating the efforts of its employees or volunteers to accomplish its objectives
through the application of available resources, such as financial, natural, technological,
allocated authority, and human resources. The word “Management” originates from Old
French ménagement “the art of conducting, directing”, and from Latin manuagere “to
lead by the hand”
• Engineering- is the profession in which a knowledge of the mathematical and natural
sciences, gained by study, experience, and practice, is applied with judgment, to develop
ways to utilize, economically, the materials and forces of nature for the benefit of
mankind
• Engineering management- is a specialized form of management required to successfully
lead engineering or technical personnel and projects and applies to either functional
management or project management.
The Functions of Management

• What is a function?
➢ To work or operate in a proper or particular way.
➢ An activity or purpose natural to or intended for a person or thing.

The Basic Functions of Management

Steve Case demonstrates that when managers possess the right combination of vision, skill,
experience, and determination, they can lead an organization to success. To do this, however,
they must perform the basic functions of management:

• Planning,
• Organizing,
• Staffing,
• Directing, and
• Controlling

Basic Functions of Management

A. Planning/Coordinating Function

a). Planning Function

(1) It is the basic function of management. It deals with chalking out a future course of
action & deciding in advance the most appropriate course of actions for achievement
of pre-determined goals. It bridges the gap from where we are and where we want to
be. A plan is a future course of actions. It is an exercise in problem solving and
decision making. Planning is determination of courses of action to achieve desired
goals. Thus, planning is a systematic thinking about ways and means for
accomplishment of pre-determined goals. Planning is necessary to ensure proper
utilization of human and non-human resources.
(2) Planning is the primary management function, the one on which all others depend.
Managers engaged in planning develop strategies for success, establish goals and
objectives for the organization, and translate their strategies and goals into action
plans. To develop long-term strategies and goals, managers must be well informed on
a number of key issues and topics that could influence their decisions.

Understanding the Strategic Planning Process

Strategic plans outline the firm's long-range (two to five years) organizational goals and
set a course of action the firm will pursue to reach its goals. These long-term goals

encompass eight major areas of concern: market standing, innovation, human resources,

financial resources, physical resources, productivity, social responsibility, and financial

performance. A good strategic plan answers:

Where are we going?

What is the environment?

How do we get there?

To answer these questions and establish effective long-term goals, managers require

extensive amounts of information. For instance, managers must study

Budgets,

Production schedules,

Industry and economic data,

Customer preferences,

Internal and external data,

Competition and so on.

Managers use this information to set a firm's long-term course of direction during a

process called strategic planning.

➢ Develop a Clear Vision - Most organizations are formed in order to realize a vision, a
realistic, credible, and attainable view of the future that grows out of and improves on the
present.

Henry Ford envisioned making affordable transportation available to every person.

Fred Smith (founder of FedEx) envisioned making FedEx an information company

(besides being a transportation company).
 Bill Gates (chairman of Microsoft) envisioned empowering people through
greatsoftware, anytime, anyplace, and on any device.

Translate the Vision into a Meaningful Mission Statement. To transform vision into reality,

managers must define specific organizational goals, objectives, and philosophies. A starting
point is to write a company mission statement, a brief document that defines why the
organization exists, what it seeks to accomplish, and the principles that the company will adhere
to as it tries to reach its goals.

Establish Company Goals and Objectives

As mentioned earlier, establishing goals and objectives is the key task in the planning process.
Although these terms are often used interchangeably, a goal is a broad, long range
accomplishment that the organization wishes to attain in typically five or more years, whereas an
objective is a specific, short-range target designed to help reach that goal.

For AOL, a goal might be to become the number-one Internet service provider in the
Brazilian marketplace, and an objective might be to add 100,000 new Brazilian subscribers by
year-end.

Develop Action Plans

Once managers have established a firm's long-term strategic goals and objectives, it must then
develop a plan of execution.

Tactical plans lay out the actions and the allocation of resources necessary to achieve
specific, short-term objectives that support the company's broader strategic plan. Tactical plans
typically focus on departmental goals and cover a period of one to three years. Their limited
scope permits them to be changed more easily than strategic plans.

Operational plans designate the actions and resources required to achieve the
objectives of tactical plans. Operational plans usually define actions for less than one year and
focus on accomplishing a firm's specific objectives such as increasing the number of new
subscribers by 5 percent over the next six months.

b). Coordinating Function

Introduction
 Coordination is the function of management which ensures that different departments and
groups work in sync. Therefore, there is unity of action among the employees, groups, and
departments. It also brings harmony in carrying out the different tasks and activities to achieve
the organization’s objectives efficiently. Coordination is an important aspect of any group effort.
When an individual is working, there is no need for coordination. Therefore, we can say that the
coordination function is an orderly arrangement of efforts providing unity of action in pursuance
of a common goal. In an organization, all the departments must operate a part of a cohesive unit
to optimize performance. Coordination implies synchronization of various efforts of different
departments to reduce conflict. Multiple departments usually perform the work for which an
organization exists

Definition
Mooney and Reiley defines Coordination is an orderly arrangement of group efforts to
provide unity of action in the pursuit of common goals.
Charles Worth defines Coordination is the integration of several parts into an orderly hole
to achieve the purpose of understanding.
Brech defines Coordination is balancing and keeping together the team by ensuring suitable
allocation of tasks to the various members and seeing that the tasks are performed with the
harmony among the members themselves.

• Features of coordination
Coordination is the integration, unification, synchronization of the efforts of the departments to
provide unity of action for pursuing common goals. A force that binds all the other functions of
management.

• It is relevant for group efforts and not for individual efforts. Coordination involves an
orderly pattern of group efforts. In the case of individual efforts, since the performance of
the individual does not affect the functioning of others, the need for coordination does
not arise.

• It is a continuous and dynamic process. Continuous because it is achieved through the

performance of different functions. Also, it is dynamic since functions can change
according to the stage of work.

• Most organizations have some sort of coordination in place. However, the management
can always make special efforts to improve it.

• Coordination emphasizes the unity of efforts. This involves fixing the time and manner in
which the various functions are performed in the organization. This allows individuals to
integrate with the overall process.

• A higher degree of coordination happens when the degree of integration in the

performance of various functions increases.

• It is the responsibility of every manager in the organization. In fact, this is integral to the
role of a manager because he synchronizes the efforts of his subordinates with others.

➢ Principles of coordination

1. Early Beginning:
The first principle is that coordination must be attempted and arranged in the early stage of
the management process and policy making. It may be impossible to secure co – ordination in
an enterprise if not started at the planning stage. Early coordination improves the quality of
plans and influences timely decisions on matters of policy.
2. Direct Personal Contact:
Direct personal contact removes misunderstanding and conflict between departments or
between personnel. It involves direct face to face communication, personal discussion,
settlement of differences, exchanges of ideas between the personnel.
3. Reciprocal Relationship of Factors:
No department can work in isolation from the other departments. That is, when purchase
department works with sales department, which in turn works with finance department and
personnel department, each of the four departments finds itself influenced by the other
department in the total situation.
Similarly, in a group every person influences all others and is in turn influenced by others.
When reciprocal relationships are maintained cordially, adequate coordination can be secured
in an enterprise.
4. Continuous Process:
Coordination is a continuous process and must go on all the time. In contrast to the principle
of continuity, difference of opinions and information gap may appear and misunderstanding
in inter departmental operations may crop up in the absence of coordination. By keeping the
process of coordination as a continuous flow of information, sound coordination can be
ensured in an enterprise.
5. Action Plan is the Fundamental Element of All Coordination Activities:
Most individual human interactions are modeled by an action plan in which a performer
delivers a condition satisfying a customer. The action plan has a requester, performer and
four time segments culminating in request, promise, delivery, and acceptance. Each of the
four segments can be linked to further action plans that respond to requests from components
of the segment. The resulting network of action plan is called an action process or workflow.
6. Coordination Tasks Can Be Delegated to Computational Processes:
Humans delegate tasks to agents by designing computational processes to perform the task

There are three categories of coordination systems according to the amount of task
delegation:
i. Human-human with computer assistance- all interaction is between humans, but
computational processes track their joint progress states to assist them to complete tasks.
(Known as Computer Supported Cooperative Work, CSCW.)
ii. Human-computer- the performer role is delegated to a computational system. Humans
interact with the system through an interaction language and interaction interface.
(Known as Human Computer Interaction, HCI.)

7. Coordination is a Solution to the Concurrency Control Problems of Arbitration,

Synchronization, Serialization, Determinacy, and Deadlock:
Concurrency means that tasks can be executed in parallel. A concurrent system is a set of
tasks, some of which are- ordered and the rest concurrent (unordered). Ordered tasks can
never be executed at the same time; concurrent tasks can. Arbitration arises when a task is
required to select only one of two (or more) potentially simultaneous activities, deferring
action on the unselected ones without losing them.

➢ Techniques of coordination
Every manager must remove the obstacles that determine coordination by adopting the
following specific techniques:

1. Chain of Command:
This technique also emphasizes that an employee should receive orders form one superior
only because dual command is a continuous source of conflict. Management has to exercise
authority to regulate the performance of different departments because clear cut authority
relationship help in reducing conflicts among different departments.
2. Leadership:
Co-ordination becomes possible through leadership as it provides individual motivation and
persuades the group to have an identity of interests and outlook in group efforts. To achieve
the common objectives of an enterprise, the manager must guide and co-ordinate the
activities of his subordinates.
3. Committees:
This Technique of achieving co-ordination is used in most organisations by forming a
committee. Which helps to promote unity of purpose and uniformity of action among
different departments. A committee is a group of persons and the decisions of the committee
are group decisions which provide co-ordination among various activities and persons
through information, advice interchange of ideas etc., while forming the committee utmost
care must be taken by the management, otherwise, the decisions taken by the group may not
be effective to achieve co-ordination in an enterprise.
4. Communication:
Effective communication conveys ideas, opinions or decisions of managers to subordinate at
different levels of the organization and carries back information, suggestions’ and responses
from subordinates. It regulates the flow of work, co-ordinates the efforts of the subordinates
of an enterprise.
To be effective, communication must be as direct as possible so as to minimize the chances
of misinterpretation. To ensure proper co-ordination, various kinds of communication
channels may be used, such as verbal relay of information, written reports memos or other
forms of documents, mechanical devices such as teletypes, intercommunication system, etc.
5. Voluntarily Coordination:
Self-co-ordination or voluntary co-ordination is possible in a climate of mutual co-operation,
when two or more persons working within the same or different departments, mutually
discuss their problems and arrive at a coordinated action. This can be easily achieved in any
organization, when the supervisor gives his consent without any hesitation for such a mutual
consultation among subordinates.
6. Sound Planning and Clear-Cut Objectives:
The objectives of the organization and policies must be clearly defined by the management.
A well-conceived plan must clearly define the goals of the organization so that interdepartmental
objectives can be accomplished. Thus to ensure co-ordination, clear formulation
of policies in the field of production, sales, finance, personnel, etc., must be correlated.
7. Incentives:
Incentives have a tendency to ignite action and bring about co-ordination. In order to infuse
enthusiasm in a worker for greater and better work, incentives have a distinct and significant
role. Financial incentives which include wage, bonus, salary, etc., and no-financial incentives
which include job security of interest, to achieve co-ordination and to reduce conflicts.

➢ Types of coordination
1. Vertical Coordination:
Vertical coordination is the coordination between different levels of the organization to
ensure that all levels of organization are in harmony with the organizational policies and
programmes. This is achieved through delegation of authority by directing and by controlling.
2. Horizontal Coordination:
Horizontal coordination is the coordination between departments on the same level of
managerial hierarchy. Coordination between production and marketing departments at the
same level or organizational hierarchy is an example of horizontal coordination. This is
achieved by forming cross-functional teams and self-managed teams.
3. Internal Coordination:
Vertical and horizontal types of coordination, if carried out within an organization, are called
internal coordination. Internal coordination is achieved through following techniques:
4. External Coordination:
Success or failure of an organization also depends on number of external forces. No
organization can operate in isolation, it has to continuously interact with dynamic
environmental forces and devise its strategies to respond to such forces to survive
Problems of coordination
In practice, coordination in the organisation faces certain problems listed below:
1. Natural hindrance: Due to lack of knowledge, the superior and subordinate
communication gap will be raised. Therefore, it prevents effective coordination in the
organisation.
2. Lack of administrative talent: Lack of administrative talent is widely applicable for the
superiors in the organisation such as autocratic attitudes and non-acceptance of feedback
from the subordinates.
3. Lack of techniques of coordination: Without mutual respect among the subordinates, the
coordination may not survive. Moreover, the managers must respect the feelings and
emotions of the employees.
4. Ideas and objectives: Every manager in an organisation must know the objectives very
clearly. If he cannot understand the objectives, then the coordination will not be successful
and effective

➢ Characteristics of coordination
A good system of co-ordination should satisfy the following characteristics:
(1) Co-ordination is a continuous process carried on by the managers. In involves an orderly
arrangement of group efforts. Its purpose is to secure unity of action towards common
objectives.
(2) Co-ordination should not be made through orders. It should not come from the above.
Instead, it should come through cooperation and willingness. Coordination through cooperation
and willingness ensures better results.
(3) Co-ordinating activities must respond to time, policies, programs, and objectives. They
should always be in tune.
(4) The co-ordinating approach should be balanced and as far as possible it should be of both
types – vertical as well as horizontal.
(5) It should be based on personal contact, Mumbai cooperation, mutual confidence, and good
human relations and above all the continuity principles.
(6) It should aim at morale boosting of the workers.

B. Organizing Function

➢ Organizing is the function of management, which follows planning. It is the process of

bringing together physical, financial, and human resources and developing productive
relationships among them to achieve organizational goals.
According to Chester Barnard, “Organizing is a function by which the concern is able to define
the role positions, the jobs related, and the co-ordination between authority and responsibility.
Hence, a manager always has to organize in order to get results.”

Function of Organizing
1. Identification of activities - All the activities that have to be performed in a concern
have to be identified first.
2. Departmentally organizing the activities - In this step, the manager tries to combine
and group similar and related activities into units or departments. This organization of
dividing the whole concern into independent units and departments is called
departmentation.
3. Classifying the authority - Once the departments are made, the manager likes to classify
the powers and their extent to the managers. This activity of giving a rank in order to the
managerial positions is called hierarchy.
3 Levels of Management

4. Coordination between authority and responsibility - Relationships are established

among various groups to enable smooth interaction toward the achievement of the
organizational goal.

Importance of Organizing Function

 1. Specialization - Organizational structure is a network of relationships in which the work
is divided into units and departments.
2. Well-defined jobs - Organizational structure helps in putting the right men on the right
job which can be done by selecting people for various departments according to their
qualifications, skill, and experience.
3. Clarifies authority - Organizational structure helps in clarifying the role positions of
every manager (status quo).
4. Coordination - Organization is a means of creating coordination among different
departments of the enterprise. It creates clear-cut relationships among positions and
ensures mutual cooperation among individuals.
5. Effective administration - The organization structure is helpful in defining the job
positions. This all leads to efficient and effective administration.
6. Growth and diversification - A company’s growth is totally dependent on how
efficiently and smoothly a concern works.
7. Sense of security - Organizational structure clarifies the job positions. Therefore, clarity
of power helps automatically increase mental satisfaction and, thereby, a sense of security
in a situation.
8. Scope for new changes - Where the roles and activities to be performed are clear and
every person gets independence in his work, this provides enough space forr a manager to
develop his talents and flourish his knowledge.

Principles of Organizing
1. Principle of Specialization

According to this principle, the whole work of concern should be divided amongst the
subordinates on the basis of qualifications, abilities, and skills.

2. Principle of Functional Definition

According to this principle, all the functions of a concern should be completely and
clearly defined for the managers and subordinates.

3. Principles of Span of Control/Supervision

According to this principle, a span of control is a span of that depicts the number of
employees that can be handled and controlled effectively by a single manager.

a. Wide span of control- It is one in which a manager can effectively supervise and
control a large group of people at one time.
 b. Narrow span of control- According to this span, the work and authority are
divided amongst many subordinates, and a manager doesn't supervise and control
a very large group of people under him.

4. Principle of Scalar Chain

Scalar chain is a chain of command or authority which flows from top to bottom. With a chain of
authority available, wastages of resources are minimized, communication is affected,
overlapping of work is avoided and easy organization takes place.

5. Principle of Unity of Command

It implies a one-subordinate-one superior relationship. Every subordinate is answerable and

accountable to one boss at a time.

ORGANIZING AS A PROCESS INVOLVES:

1. Identification of activities: The first step in the organizing process is to identify the
activities that are necessary to achieve the organization's objectives and goals. This
involves detailing all the work that must be done to attain the organization's goals and
preparing a list of specific tasks that need to be accomplished

2. Classification of grouping of activities: After identifying the activities, the next step
is to classify and group them into categories. It is necessary to determine those
activities which are essential to accomplish the organizational objectives. The whole
work is to be divided into smaller activities so that duplication is avoided and work
can be completed as per the organizational objectives

3. Assignment of duties: Once the activities are identified and grouped, the next step is
to assign duties to individuals or groups. This involves determining who will be
responsible for each activity and what their specific duties will be.

4. Delegation of authority and creation of responsibility: After assigning duties, the

next step is to delegate authority to accomplish the activities. Delegation allows team
leaders to reduce their work by assigning future tasks to subordinates and develops a
sense of responsibility in the subordinates and motivates them to do more challenging
work.
 5. Coordinating authority and responsibility relationships: The final step in the
organizing process is to coordinate the authority and responsibility relationships. This
involves creating a structure of relationships where every individual knows his
superiors and subordinates and their reporting relationships. Managers coordinate
employees, resources, policies, and procedures to facilitate the goals identified in the
plan. The aim is to create harmony of work by the high level of management.

Organizations are basically classified on the basis of relationships. There are two types of
organizations formed on the basis of relationships in an organization.

1. Formal Organization - This is one which refers to a structure of well-defined jobs

each bearing a measure of authority and responsibility. It is a conscious determination
by which people accomplish goals by adhering to the norms laid down by the
structure. This kind of organization is an arbitrary set up in which each person is
responsible for his performance. A formal organization has a formal set up to achieve
pre- determined goals.

2. Informal Organization - It refers to a network of personal and social relationships

that spontaneously originates within the formal set up. Informal organizations
develop relationships that are built on likes, dislikes, feelings, and emotions.
Therefore, the network of social groups based on friendships can be called as
informal organization. There is no conscious effort made to have an informal
organization. It emerges from the formal organization and it is not based on any rules
and regulations as in case of formal organization.

LINE ORGANIZATION

Line organization is the oldest and simplest method of administrative organization. According to
this type of organization, the authority flows from top to bottom in a concern. The line of
command is carried out from top to bottom. This is the reason for calling this organization as
scalar organization which means scalar chain of command is a part and parcel of this type of
administrative organization. In this type of organization, the line of command flows on an even
basis without any gaps in communication and coordination taking place.

FEATURES OF LINE ORGANIZATION

1. It is the simplest form of organization.

2. Line of authority flows from top to bottom.
3. Specialized and supportive services do not take place in these organizations.
 4. Unified control by the line officers can be maintained since they can independently
take decisions in their areas and spheres.
5. This kind of organization always helps in bringing efficiency in communication and
bringing stability to a concern.

MERITS OF LINE ORGANIZATION

1. Simplest - It is the most simple and oldest method of administration.

2. Unity of Command - In these organizations, superior-subordinate relationship is

maintained and scalar chain of command flows from top to bottom.

3. Better discipline - The control is unified and concentrates on one person and
therefore, he can independently make decisions of his own. Unified control ensures
better discipline.

4. Fixed responsibility - In this type of organization, every line executive has got fixed
authority, power, and fixed responsibility attached to every authority.

5. Flexibility - There is a co-ordination between the topmost authority and bottom line
authority. Since the authority relationships are clear, line officials are independent
and can flexibly make the decision. This flexibility gives satisfaction of line
executives.

6. Prompt decision - Due to the factors of fixed responsibility and unity of command,
the officials can make prompt decisions.

DEMERITS OF LINE ORGANIZATION

1. Over reliance - The line executive’s decisions are implemented to the bottom. This
results in over-relying on the line officials.

2. Lack of specialization - A line organization flows in a scalar chain from top to bottom
and there is no scope for specialized functions. For example, expert advices whatever
decisions are taken by line managers are implemented in the same way.

3. Inadequate communication - The policies and strategies which are framed by the top
authority are carried out in the same way. This leaves no scope for communication on
 the other end. The complaints and suggestions of lower authority are not
communicated back to the top authority. So there is one way of communication.

4. Lack of Coordination - Whatever decisions are taken by the line officials, in certain
situations, wrong decisions, are carried down and implemented in the same way.
Therefore, the degree of effective coordination is less.

5. Authority leadership - The line officials have tendency to misuse their authority
positions. This leads to autocratic leadership and monopoly in the concern.

LINE AND STAFF ORGANIZATION

Line and staff organization is a modification of line organization and it is more complex than line
organization. According to this administrative organization, specialized and supportive activities
are attached to the line of command by appointing staff supervisors and staff specialists who are
attached to the line authority. The power of command always remains with the line executives
and staff supervisors guide, advice and council the line executives. Personal Secretary to the
Managing Director is a staff official.

FEATURES OF LINE AND STAFF ORGANIZATION

1. There are two types of staff:

a. Staff Assistants - P.A. to Managing Director, Secretary to Marketing Manager.

b. Staff Supervisor - Operation Control Manager, Quality Controller, PRO

2. Line and Staff Organization is a compromise of line organization. It is more complex

than line concern.

3. Division of work and specialization takes place in line and staff organization.

4. The whole organization is divided into different functional areas to which staff
specialists are attached.

5. Efficiency can be achieved through the features of specialization.

6. There are two lines of authority which flow at one time in a concern:

a. Line Authority
 b. Staff Authority

7. Power of command remains with the line executive and staff serves only as counselors.

MERITS OF LINE AND STAFF ORGANIZATION

1. Relief to line of executives - In a line and staff organization, the advice and counseling
which is provided to the line executives divides the work between the two. The line
executive can concentrate on the execution of plans and they get relieved of dividing
their attention to many areas.

2. Expert advice - The line and staff organization facilitates expert advice to the line
executive at the time of need. The planning and investigation which is related to
different matters can be done by the staff specialist and line officers can concentrate
on execution of plans.

3. Benefit of Specialization - Line and staff through division of whole concern into two
types of authority divides the enterprise into parts and functional areas. This way
every officer or official can concentrate in its own area.

4. Better coordination - Line and staff organization through specialization is able to

provide better decision making and concentration remains in few hands. This feature
helps in bringing co-ordination in work as every official is concentrating in their own
area.

5. Benefits of Research and Development - Through the advice of specialized staff, the
line executives, and the line executives get time to execute plans by taking productive
decisions which are helpful for a concern. This gives a wide scope to the line
executive to bring innovations and go for research work in those areas. This is
possible due to the presence of staff specialists.

6. Training - Due to the presence of staff specialists and their expert advice serves as
ground for training to line officials. Line executives can give due concentration to
their decision making. This in itself is a training ground for them.
 7. Balanced decisions - The factor of specialization which is achieved by line staff helps
in bringing co-ordination. This relationship automatically ends up the line official to
take better and balanced decision.

8. Unity of action - Unity of action is a result of unified control. Control and its
effectivity take place when co-ordination is present in the concern. In the line and
staff authority all the officials have got independence to make decisions. This serves

DEMERITS OF LINE AND STAFF ORGANIZATION

1. Lack of understanding - In a line and staff organization, there are two authority
flowing at one time. This results in the confusion between the two. As a result, the
workers are not able to understand as to who is their commanding authority. Hence
the problem of understanding can be a hurdle in effective running.

2. Lack of sound advice - The line official get used to the expertise advice of the staff.
At times the staff specialist also provide wrong decisions which the line executive
have to consider. This can affect the efficient running of the enterprise.

3. Line and staff conflicts - Line and staff are two authorities which are flowing at the
same time. The factors of designations, status influence sentiments which are related
to their relation, can pose a distress on the minds of the employees. This leads to
minimizing of co-ordination which hampers a concern’s working.

4. Costly - In line and staff concern, the concerns have to maintain the high remuneration
of staff specialist. This proves to be costly for a concern with limited finance.

5. Assumption of authority - The power of concern is with the line official but the staff
dislikes it as they are the one more in mental work.

6. Staff steals the show - In a line and staff concern, the higher returns are considered to
be a product of staff advice and counseling. The line officials feel dissatisfied and a
feeling of distress enters a concern. The satisfaction of line officials is very important
for effective results.

FUNCTIONAL ORGANIZATION

Functional organization has been divided to put the specialists in the top position throughout the
enterprise. This is an organization in which we can define as a system in which functional
department are created to deal with the problems of business at various levels. Functional
authority remains confined to functional guidance to different departments. This helps in
maintaining quality and uniformity of performance of different functions throughout the
enterprise. The concept of Functional organization was suggested by F.W. Taylor who
recommended the appointment of specialists at important positions. For example, the functional
head and Marketing Director directs the subordinates throughout the organization in his
particular area. This means that subordinates receives orders from several specialists, managers
working above them.

FEATURES OF FUNCTIONAL ORGANIZATION

1. The entire organizational activities are divided into specific functions such as
operations, finance, marketing and personal relations.

2. Complex form of administrative organization compared to the other two.

3. Three authorities exist - Line, staff and function.

4. Each functional area is put under the charge of functional specialists and he has got the
authority to give all decisions regarding the function whenever the function is
performed throughout the enterprise.

5. Principle of unity of command does not apply to such organization as it is present in

line organization.

MERITS OF FUNCTIONAL ORGANIZATION

1. Specialization - Better division of labour takes place which results in specialization of

function and its consequent benefit.

2. Effective Control - Management control is simplified as the mental functions are

separated from manual functions. Checks and balances keep the authority within
certain limits. Specialists may be asked to judge the performance of various sections.

3. Efficiency - Greater efficiency is achieved because of every function performing a

limited number of functions.

4. Economy - Specialization compiled with standardization facilitates maximum

production and economical costs.
 5. Expansion - Expert knowledge of functional manager facilitates better control and
supervision.

DEMERITS OF FUNCTIONAL ORGANIZATION

1. Confusion - The functional system is quite complicated to put into operation,

especially when it is carried out at low levels. Therefore, co-ordination becomes
difficult.

2. Lack of Coordination - Disciplinary control becomes weak as a worker is commanded

not by one person but a large number of people. Thus, there is no unity of command.

3. Difficulty in fixing responsibility - Because of multiple authority, it is difficult to fix

responsibility.

4. Conflicts - There may be conflicts among the supervisory staff of equal ranks. They
may not agree on certain issues.

5. Costly - Maintenance of specialist’s staff of the highest order is expensive for a

concern.

C. Staffing Function

Recruiting, selecting, training, fostering, advancing, and compensating employees are all
managerial tasks that fall under the heading of staffing. Recruiting and training employees to fill
open positions within an organization is referred to as staffing. The quantity and kind of
personnel needed must be estimated. It involves determining the type and quantity of necessary
personnel, hiring them, training them, and also maintaining and enhancing their performance and
competence. Identification, evaluation, placement, development, and evaluation of people at
work is the process of staffing.

According to Harold Koontz:

“The managerial function of staffing involves manuring the organizational structure

through proper and effective selection, appraisal and development of personnel to fill the roles
designed into the structure.”

According to Cyril O’Donnell:

 Staffing is defined as, “Filling and keeping filled, positions in the organizational
structure. This is done by identifying work-force requirements, inventorying the people
available, recruiting, selecting, placing, promotion, appraising, planning the careers,
compensating, training, developing existing staff or new recruits, so that they can accomplish
their tasks effectively and efficiently.”

IMPORTANCE OF STAFFING

1. Staffing helps in discovering and obtaining competent and personnel for various jobs.
2. It helps to improve the quantity and quality of the output by putting the right person on the
right job.
3. It helps to improve job satisfaction of employees.
4. It facilitates higher productive performance by appointing right man for right job.
5. It reduces the cost of personnel by avoiding wastage of human resources.
6. It facilitates growth and diversification of business.
7. It provides continuous survival and growth of the business through development of
employees.

8 IMPORTANT STAFFING PROCEDURES

1. Human resource planning: it is a constant, systematic process necessary for the deployment of
human resources to achieve the objectives of the company and produce quality work.

There are 3 Human resource planning activities those are:

a. Forecasting: an assessment of future human resource needs in relation to the current

capabilities of the organization
b. Programming: translating forecasted human resource needs into personnel objectives
and goals.
c. Evaluation and control: monitoring human resource action plans and evaluating their
success.

2. Recruitment: it is a process in which the company attracts individuals with the best
qualifications to apply and fill their vacant positions.
“The term recruitment applies to the process of attracting potential employees of
the company.” (Mc Farland)
“Recruitment is the process of searching prospective employees and
stimulating them to apply for the jobs in the organization.” (Flippo)

• Methods and sources of recruitment

 According to ‘Dunn and Stephens, recruitment methods can be classified as into three
categories:
1) Direct Methods
2) Indirect Methods
3) Third-Party Methods

• Sources of Recruitment
The various sources of recruitment may be classified as:

A. Internal sources or from within the organization

B. External sources or recruitment from outside.

3. Selection: the next step in order to choose the best candidates among the applicants
Selection means taking up the different workers by various acts from the application
forms invited through different sources of internal and external.
The selection process begins with a review of applications or résumés to eliminate
applicants who do not have the required skills or experience. Next, the candidates who meet the
basic qualifications are screened, often by a combination of phone screenings, email
communications, or face-to-face interviews. Background checks, drug screens, employment,
reference verification, and skills testing may also be part of the process, which concludes when
a hiring decision has been reached.
According to Dale Yoder, “Selection is the process in which candidates by employment
are divided into two classes those who are to be offered employment and those who are not.”

4. Induction and orientation: in this part, hired applicants are given a briefing about the
company, their responsibilities, their work, and their objectives.

5. Training and development: there will be scenarios where the chosen employees lack the skills
necessary for the job, and where training enters, the company trains its employees in order to
become their best selves and produce competent and quality work.
“Training is an act of increasing the knowledge and skill of an employee for doing a
particular job.” (Flippo)

Q1. Do you think it is necessary to conduct a training program? Why?

6. Performance appraisal: this is the assessment or evaluation of the employees’ performances;

this will determine if the employee deserves to be paid more.

Ways of Appraising Performance

1. Rating scale method
2. Essay method.
3. Management by Objectives Method
4. Assessment center method
 5. Checklist method
6. Work standards method
7. Ranking method
8. Critical-incident method

Q2. What method or ways would you prefer for measuring the employee’s appraisal
performance?

7. Employment decisions: this are the decisions made after the evaluation of the employees. It
includes monetary rewards, promotion, demotion, or transfer.

8. Separations: this includes voluntary and involuntary separation. The reason for involuntary
separation is either poor work performance or the employee's violation of the company’s rules
and regulations.
Q3. Imagine yourself as a successful Civil Engineer. What attributes should you look for
when hiring a new employee?

D. Communicating Function

WHAT COMMUNICATION IS

Communication is omnipresent in all aspects and functions of management. Morris Philip Wolf
and Shirley Kuiper define communication as “a process of sharing information through
symbols, including words and message.” Communication may happen between superior and
subordinate, between peers, between a manager and a client or customer, between an employee
and a government representative, etc. It may be done face-to-face, or through printed materials,
or through an electronics device like the telephone, etc. In management, communication must be
made for a purpose and because it has a cost attached to it, it must be used effectively.

FUNCTIONS OF COMMUNICATION

Communication may be used to serve any of the following functions:

1. Information function - Information provided through communication may be used for

decision-making at various work levels in the organization. A construction worker, for instance,
may be given instructions on the proper use of certain equipment. This will later provide him
with a guide in deciding which equipment to use in particular circumstances. Another concern is
the manager who wants to make sure that his decision in promoting an employee to a higher
position is correct. Through communication, the information provided will minimize if not
eliminate the risk.
2. Motivation function - Communication is also oftentimes used as a means to motivate
employees to commit themselves to the organization's objectives.

3. Control function - When properly communicated, reports, policies, and plans define roles,
clarify duties, authorities and responsibilities. Effective control is, then, facilitated.

4. Emotive function- When feelings are repressed in the organization, employees are affected by
anxiety, which, in turn, affects performance. Whatever types of emotions are involved, whether
satisfaction, dissatisfaction, happiness, or bitterness, communication provides a means to
decrease the: internal pressure affecting the individual.

THE COMMUNICATION PROCESS

The communication process consists of eight steps which are as follows: develop an idea,
encode, transmit, receive, decode, accept, use, and provide feedback.

Figure 1. The Communication Process.

Develop an Idea
It is important that the idea to be conveyed must be useful or of some value. An example of a
useful idea is how to prevent accidents in workplaces.

Encode
The next step is to encode the idea into words, illustrations, figures, or other symbols suitable for
transmission. An example of an encoded message using telefax as a means of transmission is
shown in Figure 6.2.

Transmit
After encoding, the message is now ready for transmission through the use of an appropriate
communication channel. Proper transmission is very important so the message sent will reach
and hold the attention of the receiver.
Receive
The next step is the communication process is the actual receiving of the message by the
intended receiver.

Figure 2. Example of an Encoded Message for Telefax Transmission.

Decode
The next step, decoding, means translating the message from the sender into a form that will
have meaning to the recipient. Examples of various terms encoded and decoded are shown in
Figure 6.3.

Accept
The next step is for the receiver to accept or reject the message. Sometimes, acceptance (or
rejection) is partial. An example is provided as follows:
A newly-lured employee was sent to a supervisor with a note from his superior directing the
supervisor to accept the employee into his unit and to provide the necessary training and
guidance.

The factors that will affect the acceptance or rejection of a message are as follows:

1. the accuracy of the message;

2. whether or not the sender has the authority to send the message and/or require action; and
3. the behavioral implications for the receiver.

Use
The next step is for the receiver to use the information. If the message provides information of
importance to a relevant activity, then the receiver could store it and retrieve it when required.

Provide Feedback
The last step in the communication process is for the receiver to provide feedback to the sender.

FORMS OF COMMUNICATION

Communication consists of two major forms:

1. verbal
2. nonverbal

Verbal Communication

Verbal communications are those transmitted through hearing or sight. These modes of
transmission categorizes verbal communication into two classes: oral and written.

Oral communication- mostly involves bearing the words of the sender, although sometimes,
opportunities are provided for seeing the sender's body movements, facial expression, gestures,
and eye contact.
Written communication - where the sender seeks to communicate through the written word. It is
sometimes, preferred over the oral communication because of time and cost constraints. Perfume
advertisers, for instance, lace their written message with the smell of their products. In the same
light, the now popular musical Christmas card is an attempt to enhance the effects of the written
note.

Nonverbal Communication

Nonverbal communication is a means of conveying message through body language, as well as

the use of time, space, touch, clothing, appearance, and aesthetic elements. Body language
consists of gestures, bodily movement, posture, facial expression, and mannerisms of all kinds.

THE BARRIERS TO COMMUNICATION

The barriers to communication may be classified generally as:

1. personal barriers
2. physical barriers
3. semantic barriers

Personal Barriers

Personal barriers are hindrances to effective communication arising from a communicator's

characteristics as a person, such as emotions, values, poor listening habits, sex, age, race, socio-
economic status, religion, education, etc.

Physical Barriers

Physical barriers refer to interferences to effective communication occurring in the environment

where the communication is undertaken. Physical barriers include distances between people,
walls, a noisy jukebox near a telephone, etc.

Semantic Barriers

Semantics is the study of meaning as expressed in symbols. Words, pictures, or actions are
symbols that suggest certain meanings. A semantic barrier may be defined as an "interference
with the reception of a message that occurs when the message is misunderstood even though it is
received exactly as transmitted.”For example, the words "wise" and "salvage" will have different
meanings to an English speaking foreigner than to an ordinary Filipino.

OVERCOMING BARRIERS TO COMMUNICATION

To eliminate problems due to noise, selective perception, and distraction, the following are
recommended:
1. Use feedback to facilitate understanding and increase tbe potential for appropriate action.
2. Repeat messages in order to provide assurance that they are properly received.
3. Use multiple channels so that the accuracy of the information may be enhanced.
4. Use simplified language that is easily understandable and which eliminates the possibility of
people getting mixed-up with meanings.

TECHNIQUES FOR COMMUNICATING IN ORGANIZATIONS

Communication may be classified as to the types of flow of the message which are as follows:
downward, upward, or horizontal.

Figure 3: Message Flow and Areas of Concern

Downward Communication

Downward communication refers to message flows from higher levels of authority to lower
levels. Among the purposes of downward communication are:

1. to give instructions
2. to provide information about policies and procedures
3. to give feedback about performance
4. to indoctrinate or motivate

Among the techniques used in downward communication are as follows: letters, meetings,
telephones, manuals, handbooks, and newsletters.

Upward Communication

Upward communication refers to messages from persons in lower-level positions to persons in

higher positions. The messages sent usually provide information on work progress, problems
encountered, suggestions for improving output, and personal feelings about work and non-work
activities. Among the techniques used in upward communication are: formal grievance
procedures, employee attitude and opinion surveys, suggestion systems, open- door policy,
informal gripe sessions, task forces, and exit interviews.

Formal Grievance Procedures. Grievances are part of a normally operating organization. To

effectively deal with them, organizations provide a system for employees to air their grievances.
Holley and Jennings define grievance as "any employee's concern over a perceived violation of
the labor agreement that is submitted to the grievance procedure for eventual resolution."
Grievances represent an open, upward communication channel whereby employees can offer
suggestions to management.

Employee Attitude and Opinion Surveys. Finding out what the employees think about the
company is very important.

Suggestion Systems. Suggestions from employees are important sources of cost-saving and
production enhancing ideas.

Open Door Policy. An open-door policy, even on a limited basis, provides the management with
an opportunity to act on difficulties before they become full-blown problems.

Informal Gripe Sessions. Informal gripe sessions can be used positively if management knows
how to handle them. When employees feel free to talk and they are assured of not being
penalized for doing so, then management will be spared with lots of efforts determining the real
causes of problems in the company.

Task Forces. When a specific problem or issue arises, a task force may be created and assigned
to deal with the problem or issue. Since membership of task forces con- sists of management and
non-management personnel, integration and teamwork are fostered, creativity is enhanced, and
interpersonal skills are developed.

Exit Interviews. When employees leave an organization for any reason, it is to the advantage of
management to know the real reason. If there are negative. developments in the organization that
management is not aware of, exit interviews may provide some of the answers.
Horizontal Communication

Horizontal communication refers to messages sent to individuals or groups from another of the
same organizational level or position.

The purposes of horizontal communication are:

1. to coordinate activities between departments

2. to persuade others at the same level of organization

3. to pass on information about activities or foolings

Among the techniques appropriate for horizontal communication are: memos, meetings,
telephones, picnics, dinners, and other social affairs.

MANAGEMENT INFORMATION SYSTEM

Management information system (MIS) is defined by Boune and Kurtz as "an organized method
of providing past, present, and projected information on internal operations and external
intelligence for use in decision- making"

The MIS currently used by corporate firms consists of "written and electronically based systems
for sending reports, memos, bulletins, and the like." The system allows managers of the different
departments within the firm to communicate with each other.

Figure 4. The MIS and its Relation with the Different Departments of the Organization.
The Purposes of MIS

The MIS is established for various reasons. Wheelen and Hunger enumerate them as follows:"

1. To provide a basis for the analysis of early warning signals that can originate both externally
and internally

2. To automate routine clerical operations like pay roll and inventory reports

3. To assist managers in making routine decisions like scheduling orders, assigning orders to
machines, and reordering supplies.

4. To provide the information necessary for management to make strategic or non-programmed

decisions.

SUMMARY
Communicating is a vital function of the engineer manager. Organizations cannot function
properly without effective communication. If the required outputs must be realized,
communication must be managed.

Communication is used to serve the information function, motivation function, control function,
and emotive function.

The communication process consists of various steps, namely, develop an idea, encode, transmit,
receive, decode, accept, use, and provide feedback. The forms of communication are verbal and
non-verbal.

The barriers to communication may be classified as personal, physical, or semantic. These may
be eliminated or minimized by using feedback, repeating messages, using multiple channels, and
using simplified language.

Communication flows are either downward,upward or horizontal. Management information

systems are useful means of communication.

E. Motivating Function

Motivation in management refers to the steps managers can take to inspire their teams to
achieve more and to support their workplace experience. When a company has managers who
motivate their teams, they may find an overall increase in productivity and achievement.It is the
role of the leader to learn about an employee, create a workplace culture that helps the employee
to succeed and rewards that employee for a job well done.

Methods of Employing Motivation

Successfully motivating employees means honing in on what they need to grow and perform
their job well. Here are some steps to consider when bringing motivation into the workplace:

1. Foster a positive atmosphere

If staff are comfortable being themselves at work, they are better able to focus on their tasks
rather than performing for the people around them. This welcoming environment can inspire
employees to try their hardest while the company provides them with the tools for success. It can
be important for new employees to feel welcome in a team, so motivating people to interact
positively with new staff can make the atmosphere more positive.

2. Provide a comfortable environment

If the surroundings are comfortable and welcoming, your team will settle into their jobs and
focus on their work better. Here's how to do it:

• Let in lots of natural light with windows and low-glare blinds.

• Invest in comfortable chairs that are ergonomically designed.
• Offer adjustable desks that provide standing and sitting options.
• Install efficient ventilation, air conditioning and heating systems.
• Add plants around the office.
• Provide clean and well-stocked bathrooms.
• Have an organised and tidy kitchen area.

3. Have open communication and achievable goals

Employees who understand the tasks you set them and feel comfortable talking to you about
them are likely to be more productive and produce better results. You can motivate your team by
having open lines of communication: letting them know what you expect of them and removing
any ambiguity around goals and priorities. To improve workplace communication with your
team members, do the following:

• Hold regular office hours where employees know they can come and talk to you.
• Schedule regular meetings that involve the entire team.
• Ask the team for feedback, ideas and questions.
• Check that employees feel comfortable offering constructive feedback about your
leadership.

4. Get to know your team

Your team members are people just like you, and connecting with them on a human level can be
a great way to foster trust and motivation. By taking an interest in their lives and asking relevant
questions, you can let them know that you value them, which will inspire them to work harder
for you. It's preferable to focus on hobbies and topics that they bring up, rather than on their
personal history or life to avoid inappropriate questions.

5. Uphold the company's values

Demonstrating the values that the company represents to employees is a good way to inspire
your team to follow your lead. By seeing that you're focused, enthusiastic and hardworking, team
members may be more likely to uphold these values as well. If you want employees to always be
on time and well-mannered, it's important that you do the same.

6. Invest in your team

A company's success can depend on the skills of its employees. You can motivate your team to
upskill and work hard by investing in their skills and providing them with opportunities for
career development and training. Here are a few ways to do it:

• Give them a flexible schedule so that they can continue their education.
• Pay for their attendance at relevant conferences.
• Allocate paid mental health days to help avoid burnout.
• Hold team development days to foster team spirit.
• Offer opportunities for mentorship.
• Provide development tools like podcasts, books and videos.
• Hold regular performance reviews.

7. Create healthy competition

While you don't want your team to be in ruthless competition with each other, fostering a healthy
competitive environment can be a good motivational tool. You can create competition by
devising contests around objectives, providing incentives or even setting up a competitive sports
team. Basing these competitions around teamwork can foster positivity and collaboration, which
helps ensure that the competition never becomes unhealthy.

8. Recognise achievements

If your team members complete a difficult or long task, rewarding them with praise or incentives
can be a great way to motivate them to achieve more. Knowing that their manager cares about
what they are doing and appreciates their hard work helps inspire the team to work harder and
perform better. Incentives can include lunches, email recognition, tokens like gift certificates or a
day off.

9. Give constructive but positive feedback

Your team members may not enjoy being criticised without praise for their work, so creating a
feedback process that is positive but constructive can be a great motivational tool. Praise can
reduce doubt and procrastination in your team and may reward them to work harder. You can try
to structure your feedback to start with praise, offer a suggestion for improvement, and end with
a positive remark so that they don't feel discouraged.

10. Foster employees' autonomy

While it can be tempting to want to monitor every step of your team's work, giving them some
freedom fosters a sense of independence and pride in their work. Having control over aspects of
a project can make employees more invested and giving them autonomy over some decisions
may motivate them to work harder on tasks. It may be useful to offer an open line of
communication if you give your team autonomy, so that they know you trust them but are
available to help if needed.

F. Leading Function

Leading

The process of influencing and motivating people to work effectively and willingly
toward company goals—isthe third basic function of management.

Additional studies have shown that managers with strong interpersonal skills and high
emotional quotients (EQS) tend to be more effective leaders. The characteristics of a high EQ
include:

Self-awareness- Self-aware managers have the ability to recognize their own feelings
and how they, their job performance, and other people are affected by those feelings. Moreover,
managers who are highly self-aware know where they are headed and why.

Self-regulation-Self-regulated managers have the ability to control or reduce disruptive

impulses and moods. They can suspend judgment and think before acting. Moreover, they know
how to utilize the appropriate emotion at the right time and in the right amount.

Motivation-Motivated managers are driven to achieve beyond expectations- their own

and everyone else's.

Empathy- Empathetic managers thoughtfully consider employees' feelings, along with

other factors, in the process of making intelligent decisions. .

Social skill- Socially skilled managers tend to have a wide circle of acquaintances, and
they have a knack for finding common ground with people of all kinds. They assume that
nothing important gets done by one person alone and have a network in place when the time for
action comes.
 Direction is that inert-personnel aspect of management which deals directly with
influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational
goals. Direction has following elements:

Supervision- implies overseeing the work of subordinates by their superiors. It is the act
of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to

work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.

Leadership- may be defined as a process by which manager guides and influences the
work of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc from

one person to another.

Bases of Power

The power possessed by leaders may be classified according to various bases. They are as
follows:

1. legitimate power

2. reward power

3. coercive power

4. referent power

5. expert power

Traits of Effective Leaders

There are certain leadership traits identified by re-searchers and which may be useful in
developing effective leaders. These traits are as follows:

1.a high level of personal drive

2. the desire to lead

3. personal integrity

4. self-confidence

5.analytical ability or judgment

6. knowledge of the company, industry or technology

7. charisma

8. creativity

9. flexibility

Leadership Skills

Leaders need to have various skills to be effective. They are:

1. technical skills

2. human skills, and

3. conceptual skills.

BEHAVIORAL APPROACHES TO LEADERSHIP STYLES

Those in positions of leadership exhibit a pattern of behavior that is unique and different
from other patterns. This total pattern of behavior is called leadership style. There are several
approaches used in classifying leadership styles. They are as follows:"

1. According to the ways leaders approach people to motivate them.

2. According to the way the leader uses power.

3. According to the leader's orientation towards task

Ways Leaders Uses Power

Leadership styles also vary according to how power is used. They are as follows: (1)
autocratic, (2) participative, and (3) free-rein.

Autocratic Leaders. Leaders who make decisions themselves, without consulting

subordinates are called. autocratic leaders. Motivation takes the form of threats, punishment, and
intimidation of all kinds.

Participative Leaders. When a leader openly invites his subordinates to participate or

share in decisions, policy-making and operation methods, he is said to be a participative leader.

Free-Rein Leaders. Leaders who set objectives and allow employees or subordinates relative
freedom to do whatever it takes to accomplish these objectives, are called free-rein leaders. They
are also referred to as laissez-faire leaders.

Leaders Orientation Toward Tasks and People

 Leaders may be classified according to how they view tasks and people. Consequently, a
leader may either be: (1) employee oriented or (2) task oriented.

Employee Orientation. A leader is said to be employee- oriented when he considers employees

as human beings of "intrinsic importance and with individual and personal need" to satisfy.

Task Orientation.A leader is said to be task-oriented if he places stress on production and the
technical aspects of the job and the employees are viewed as the means of getting the work done.

G. Controlling Function

What is Controlling?

Controlling ensures that there is effective and efficient utilization of organizational

resources so as to achieve the planned goals.

Controlling measures the deviation of actual performance from the standard performance,
discovers the causes of such deviations and helps in taking corrective actions

According to Koontz &O’Donell “Controlling is the measurement & correction of

performance activities of subordinates in order to make sure that the enterprise objectives and
plans desired to obtain them as being accomplished”.

Objectives

• To identify the actual progress of the work in the company.

• To facilitate R&D department to improve efficiency.
• To facilitate coordination in the organization.
• To measure the actual performance with the set standard.
• To calculate the actual quantity and quality of the product.
• To eliminate wastage of resources.
• To meet the deadline of the projects.

Steps in Controlling Function

Steps in Controlling Function include establishing standards, measuring performance,

comparing actual performance with standard performance and finally taking remedial
measures.Many firms control for quality through a four-step cycle that involves all levels of
management and all employees.
 Figure : Steps in Controlling Function

1. Establishment of Standards – Standards are the targets required to be achieved. Controlling

becomes easy through establishment of these standards because controlling is exercised on the
basis of these standards. They are the criterions for judging the performance. Standards generally
are classified as

• Measurable or Tangible Standards- Those standards which can be measured and expressed are
called as measurable standards, such as cost, output, expenditure, time, profit, etc.
• Non-Measurable or Intangible Standards –These cannot be measured monetarily, such as
performance of a manager, deviation of workers, their attitudes towards a concern. These are
called as intangible standards.

2. Measurement of Performance – Deviations are found out by comparing standard

performance with the actual performance. Performance levels are sometimes easy to measure
and sometimes difficult. Measurement of tangible standards is easy as it can be expressed in
units, cost, money terms, etc. Performance of a manager cannot be measured in quantities. It is
also sometimes done through various reports like weekly, monthly, quarterly, yearly reports. It
can be measured only by their-

Attitude Morale to work Response towards physical Communication with the

environment superiors

3. Comparison of Actual with Standard Performance –By comparing the actual with
standard, deviations are identified. Manager has to find out whether the deviation is positive or
negative or whether the actual performance is in conformity with the planned performance. The
managers have to exercise control by exception.

4. Taking Remedial Actions – Once the causes and extent of deviations are known, the manager
has to detect those errors and take remedial measures for it. There are two alternatives as
follows:

Taking corrective measures for deviations In the end, if actual performance is not in
which have occurred conformity with plans, the targets are revised

Management Skills
 Management skills play a crucial role in the controlling function of engineering
management as they enable managers to monitor, evaluate, and adjust processes to ensure that
projects and operations are on track and meet their objectives. The following are some of the
management skills which helps contribute to the overall project success and the long-term
growth of engineering organization:

1. Interpersonal Skills -To communicate with other people, work effectively with them,
motivate them, and lead them are interpersonal skills.
2. Technical Skills -A person who knows how to operate a machine, prepare a financial
statement, program a computer, or pass a football has technical skills: Managers at all levels
use administrative skills, which are the technical skills necessary to manage an organization.
3. Conceptual Skills - Managers need conceptual skills to see the organization as a whole, in
the context of its environment, and to understand how the various parts interrelate.
Conceptual skills are especially important to top managers. These managers are the
strategists who develop the plans that guide the organization toward its goals. A key
managerial activity requiring conceptual skills is decision making, a process that has five
distinct steps: (1) recognizing the need for a decision, (2) identifying, analyzing, and defining
the problem or opportunity, (3) generating alternatives, (4) selecting an alternative and
implementing it, and (5) evaluating the results.

Types of Control

Figure : Types of Control

1. Post-Action-Control/Feedback Control – This process involves collecting information about

a finished task, assessing that information and improvising the same type of tasks in the future.
The results of the completed activity are compared with pre-determined standards and if there are
any deviations, corrective action can be taken for future activities. For example, a restaurant
manager may ask the customer about the quality and taste of food ordered by him/her and take
suggestions to improve the meals.

2. Concurrent Control – It is also called real-time control. It checks any problem and examines
it to take action, before any loss is incurred.

3. Steering Control – The key feature of this control is the capability to take corrective action,
when the deviation has already taken place, but the task has not been completed. The big
advantage of steering control is that corrective actions can be taken early.
4. Yes/No Control – This control is designed to check at each check point, whether the allow
activity to proceed further or not. These controls are necessary and useful where a product passes
sequentially from one point to another, with improvements added at each step along the way.
These controls stop errors from being compounded. Safety checks and legal approvals of
contracts, prior to approval are examples of yes/no controls.

5. Predictive/ Feed Forward Control – This type of control helps to foresee problem ahead of
occurrence. Therefore, action can be taken before such a circumstance arises.

In an ever-changing and complex environment, controlling forms an integral part of the

organization.

Features of Controlling Function

Following are the characteristics of controlling function of management:

1. Controlling is an end function- A function which comes once the performances are made in
conformities with plans.
2. Controlling is a pervasive function- which means it is performed by managers at all levels
and in all type of concerns.
3. Controlling is forward looking- because effective control is not possible without past being
controlled. Controlling always look to future so that follow-up can be made whenever
required.
4. Controlling is a dynamic process- since controlling requires taking reviewalmethods,
changes have to be made wherever possible.
5. Controlling is related with planning- Planning and Controlling are two inseperable
functions of management. Without planning, controlling is a meaningless exercise and
without controlling, planning is useless. Planning presupposes controlling and controlling
succeeds planning.

Importance of controlling

1. Accomplishing Organizational Goals

The controlling function is an accomplishment of measures that further makes progress towards
the organizational goals & brings to light the deviations, & indicates corrective action. Therefore
it helps in guiding the organizational goals which can be achieved by performing a controlling
function.

2. Judging Accuracy of Standards

A good control system enables management to verify whether the standards set are accurate &
objective. The efficient control system also helps in keeping careful and progress check on the
changes which help in taking the major place in the organization & in the environment and also
helps to review & revise the standards in light of such changes.

3. Making Efficient use of Resources

Another important function of controlling is that in this, each activity is performed in such
manner so an in accordance with predetermined standards & norms so as to ensure that the
resources are used in the most effective & efficient manner for the further availability of
resources.

4. Improving Employee Motivation

Another important function is that controlling help in accommodating a good control system
which ensures that each employee knows well in advance what they expect & what are the
standards of performance on the basis of which they will be appraised. Therefore it helps in
motivating and increasing their potential so to make them & helps them to give better
performance.

5. Ensuring Order & Discipline

Controlling creates an atmosphere of order & discipline in the organization which helps to
minimize dishonest behavior on the part of the employees. It keeps a close check on the activities
of employees and the company can be able to track and find out the dishonest employees by
using computer monitoring as a part of their control system.

6. Facilitating Coordination in Action

The last important function of controlling is that each department & employee is governed by
such pre-determined standards and goals which are well versed and coordinated with one
another. This ensures that overall organizational objectives are accomplished in an overall
manner.

Limitations of Controlling:
The defects or limitations of controlling are as following:

1. Difficulty in Setting Quantitative Standards:

It becomes very difficult to compare the actual performance with the predetermined standards, if
these standards are not expressed in quantitative terms. This is especially so in areas of job
satisfaction, human behaviour and employee morale.

2. No Control on External Factors:

An organization fails to have control on external factors like technological changes, competition,
government policies, changes in taste of consumers etc.

3. Resistance from Employees:

Often employees resist the control systems since they consider them as curbs on their freedom.
For example, surveillance through closed circuit television (CCTV).

4. Costly Affair:
Controlling involves a lot of expenditure, time and effort, thus it is a costly affair. Managers are
required to ensure that the cost involved in installing and operating a control system should not
be more than the benefits expected from it.