CHAPTER THREE

PLANNING FUNCTION
Concepts and Need for planning

• Planning is an activity, which is performed before

any action is taken.

• The action we take is based on the plan.

– Determining specified objectives & how to accomplish

them.

– The process of preparing for change coping with

• The process by which managers set objectives,

assess the future, & develop courses of action to

accomplish these objectives.

• Planning is deciding in advance what to do, how to

do it, when to do it, and who is to do it.

• Thus, it is clear from the various definitions given

above that planning involves two things.

– Determining the aims and objectives

– Selecting the best course of action to realize the planning

objective

• on the bases of past experience, present facts and

circumstances and future possibilities,

Nature/Characteristics of Planning
• The Primacy of planning

– the function of planning precedes all other managerial functions.

• Pervasiveness/Universal of planning

– It is the function of all managers

– It exists in all organizations regardless of their type and size.

• Contribution to purpose & objective

– the purpose of any plan and all its supportive &

derivative plans is to facilitate the accomplishment of

objectives of the organization.

• Planning is directed towards efficiency

– The efficiency of a plan is measured by its

contribution to purpose & objectives,

• It concerns future activity

– Since planning is deciding currently about the future, it

involves forecasting and decision making.

• It has dynamic aspects (it is flexible &

continuous)

– A manager plans on the basis of some assumptions, which

may not come true in the future.

Importance/purpose of planning

• To offset uncertainty

• To focus attention on

objectives

• To gain economical

operation
 • Importance/purpose of planning
• To offset uncertainty:-
• Future is always full of uncertainties and charges which make planning a necessity because planning foresees the
future and makes provisions for it thereby giving an added strength to the organization for continuous growth and
steady prosperity.
• To focus attention on objectives:-
• Because, all planning efforts are directed towards achieving enterprise objectives, the very act of planning focuses
attention on these objectives. Well considered overall plans unify interdepartmental activities.
• To gain economical operation:
• Planning minimizes costs because of its emphasis on efficient operation and consistency. It substitutes joint
directed effort for uncoordinated piecemeal activity, even flow of work for uneven flow, and deliberate decisions
for snap judgments.
• To facilitate control
• Planning and controlling are inseparable, and commonly referred to as the Siamese twins. This is because;
unplanned action cannot be controlled, for control involves keeping activities on course by correcting deviations
from plans. Any attempt to control without a plan would be meaningless, since there is no way for people whether
they are going where they want to go (the task of control), unless they first know where they want to go (the task of
planning), plans thus furnish the standards of control.
• Generally, a coordinated sense of action, managerial perspective, improved decision making, increased efficiency,
improve control & performance are also benefits of planning.
Types of plans

• Planning can be classified in different ways in

different basis:-the following are the important

ones.

– Scope/breadth

– Repetitiveness

– Time dimension
• Duration /Time dimension

– Short range plans:- a plan for a year or less one

year

• e.g. Annual plan of sales, revenue

– Intermediate range plans:- plan between a year

and five years.

– Long range plans:- Plan for five or more years.

– it is concerned with not the immediate future,

but the distant future.

• e.g. Long term leases on production or ware

house facilities
• Scope dimension

– Strategic Plans

– Operational /Tactical plans

• Strategic Plans:

– are comprehensive in scope & reflect long-term

needs & direction of the organization.
– include the development of overall company
objectives.
– primarily concerned with solving long-term
problems associated with external,
environmental influences.
– involves the assessment of
• market conditions,

• customer needs,

• competitive strengths and weakness;

• sociopolitical, legal and economic conditions;

• technological developments and the availability of

resources that lead to the specific opportunities or
threats facing the organization
– include:-Mission/purpose, Objectives, Strategies etc.
• Operational /Tactical plans:-

– are plans used to implement strategic plans.

– are more limited in scope & address those activities &

resources required to implement strategic plans.

– deal more with the allocation of resources &

scheduling of actual work activities than with the

selection of strategies.
• Based on their use (Repetitiveness) dimension

• These plans can be classified in to:

– Single use plans

– Standing plans
• Standing Plans-

– Policies
– Procedures/ Standard operating procedures

– Rules & Regulations

• Single Use Plans

– Program (project)
– Budget
Planning process
1. Identifying and defining the real problem

2. Establish clear-cut objectives

3. Establishing the planning Premise

4. Identify Alternative Courses of Action

5. Evaluating Alternative Courses

6. Selecting a course of action /best Alternative

7. Numbering Plans by Budgeting
1. Identifying and defining the real problem

• An awareness of opportunities in the external environment as well as

with in the organization
• taking a preliminary look at possible future opportunities and
– see them clearly and completely,
– know where we stand in the light of our strengths and weakness,
– understand what problems we wish to solve and why,
– and know what we expect to gain.
• Our setting of realistic objectives depends on this awareness
• planning requires realistic diagnosis of the opportunity situation.
2. Establish clear-cut objectives
• to set objectives to the entire organization and to each
work unit, not only for long-term but also for the short
range.
• Objectives specify:
– the expected results and indicate the end point of what is to
be done,
– where the primary emphasis is to be placed, and

– what is to be accomplished by the net work of strategies,

policies, procedures, rules, budgets, and programs.
3. Establishing the planning Premise

• Premises are assumptions providing a background

against which estimated events affecting the plan
will take place.
• assumptions about the environment in which the
plan is to be carried out
• knowledge of the organizations existing condition
provides a framework for defining which aspects
of the environment will have the greatest
• The purpose of environmental analysis is:
– to identify ways to respond to changes in economic,
technological, social /cultural & political/ and legal
environments having indirect influence to the
organizations plans, and
– for changes direct influences which have extended on
the organizations market, industry, suppliers,
competitors, or key resources and skills.
• great consideration should be made to the assm. regarding
the future.
4. Identify Alternative Courses of Action

• finding alternatives is not common problem, but

reducing the number of alternatives so that selecting
the most promising may be analyzed which requires
the assessment of their probable consequences.
• Thus, the planner must usually make preliminary
examination to discover the most fruitful possibilities.
5. Evaluating Alternative Courses
• evaluating each and every alternative by weighing
them against in the light of the premises and goals.
• One course may appear to be profitable but require a
large each out lay with a slow pay back;
– another may look less profitable but involves less
risk;
– still another may better suit the company's long
range objectives but it is difficult to adapt it, etc.
• Therefore, make an adjustment for the forecast
plan if any;
• Factors to be considered:
– cost,
– speed,

– and quality requirements

• with respect to the achievement of desired
objectives in terms of each possible course of
6. Selecting a course of action /best Alternative
• deciding or selecting the best course of action that will help
efficiently achieve the organization objectives.
• When we decide, we have to make sure that the plan:
– possesses flexibility to adjust to varying conditions,
– acceptance of the plan by operating personnel as well as
the
– existing capacity of the firm and need for new equipment,
space personnel, training and supervision.
 7.Formulating Derivative Plans
• An arrangement of detailed sequence and timing should be
made for the proposed plan.

• At the point when a decision is made, planning is seldom

complete and certain arrangements should be made that

support the basic plan of action chosen, that is, identification

of the derivative plans that support the major plan of action.

8. Numbering Plans by Budgeting
• converting them to budgets, this helps to establish verifiable
targets of achievement, to facilitate control and hear.
• To arrange for sufficient reports and records over a
reasonable period to be collected to inform proper
management members and measure results as well as what
remedial action could be proposed if results indicate
weakness when plans are in action.
DESCISION
MAKING
Meaning of decision making
• Is a process of selecting or choosing based on some
criteria, the best course of action from number
alternatives.
• managers are continually confronted with opp. &
problems,
– they must constantly analyze the effect of
different decisions on their organizations and
• It is defined as a rational choice among alternatives.

• There have to be options to choose from; if there

are not, there is no choice possible and no decision.

Rational decision making
process
• Ascertain the need for a decision/Identify the problem:
– The decision making process begins by determining a problem

exists; that is, there is an unsatisfactory condition.

• Establish decision criteria:

– Once the need for a decision has been determined, there comes a

need to establish decision criteria which requires identifying

those characteristics that are important in making the decision.

• Allocate weights to criteria
– the identified criteria should be weighted based on
their importance and arranged in priority.
– This is because some are obviously more important
than others and we need to weight each criterion to
reflect its importance in the decision.

• Develop Alternatives
– This involves developing a list of the alternative that
may be viable in dealing with the stated problem.
• Evaluate Alternatives

– critically evaluating each & identify the strong

and weak points
– not only consider things that can be measured in
numerical terms such as time and various types
of fixed & operating costs,
– but also consider intangible or qualitative factors
such as the quality of labor relations, the risk of
• Select the Best Alternative

– select the best alternative that suits to solve our

decision problem.

– In selecting the best alternative, factors such as

risk, economy of efforts, timing and limiting

factors should be considered adequately.

• Putting Decision Into Action

– implement or put it into action.

– Requires:

• communication of decisions to subordinates,

• getting acceptance of the decisions, and
• getting support and cooperation for converting the
decision in to effective action.
• The decision should be effective at proper time and in
proper way to make the action effective to achieve desired
• Following up Decisions

– Having implemented the decision, the manager

should compare the results of that course of
action with the desired outcome, if necessary,
take corrective action.
– Since decisions are made based on forecasts
about the future, the best decision that we select
may not suit absolutely to achieve our
objectives.
 Types decisions making
• Programmed decisions:

– are the kinds that managers face time and

again.

– are "programmable" because of a specific

procedure can be worked out to resolve them
based on experience in similar situations.

– Once a standard procedure has been

– They usually involve an organization's every
day operational and administrative activities

– They are primarily found at the middle and

lower levels of management.

– Data used in making a programmed decision

usually are complete and well defined.

– Participants know the details and agree on

how to resolve the problem.
• Non-programmed Decisions:
– are used to solve nonrecurring problems.
– No well-established procedure exists for
handling them, primarily because managers do
not have experience to draw upon.
– In contrast to programmed decisions, available
data are usually incomplete.
• Non programmable decisions are commonly

found at the middle and top levels of

management and often is related to an

organization's policy-making activities such as

whether to add a product to the existing product

line, to reorganize the company, or to acquire

 Decision making situations
• Decisions under certainty:-

– decisions made in which the external

conditions are identified and
– very predictable /whenever there is complete
data & information/
• Decisions under risk:-

– those decisions in which probabilities can be

assigned to the expected outcomes of each
• Decisions under uncertainty: -
– it is a case where neither there is complete data not
probabilities can be assigned to the surrounding
conditions.
– Some conditions that are uncontrollable by
management include:

• competition, government regulations,

• technological advances,
• the overall economy, and
 CHAPTER FOUR

ORGANIZING
• Organizing is the part of managing that involves

establishing an intentional structure of roles for people to fill

in an organization.

• Organizing involves;

– The identification and classification of required activities

necessary to attain objectives.

– The grouping of activities necessary to attain objectives.

– The assignment of each grouping to a manager

with authority necessary to supervise it.

– The provision for co-ordination horizontally

and vertically in the organizational structure.

Nature /characteristics/ basic concepts in organizing
• Division of Labor/specialization/

– Ann assignment of specific tasks to individuals

in which they specialize
• Advantage: -
– Peoples become highly proficient
– saves time
– less waste of materials in the learning process
• Disadvantage: -

– The boredom (boring) and fatigue caused by

monotonous, repetitive tasks.

– The specialist lacks job enrichment

The process of Organizing
• Organizing function can follow the following steps.

• Determine tasks /activities necessary to attain objectives

• Create jobs and define their duties and responsibilities.

• Group jobs in to practical units/departments based on

similarities, importance, who will do the work, etc.
• Create authority/reporting relationships

• Delegate authority
Important Elements of Organizing

Process
1. Departmentation

2. Delegation

3. Decentralization
Departmentation

• dividing and grouping the activities and employees of

an enterprise into various departments

• It implies the division of the total work of an

enterprise into individual functions and sub functions.

• It results:

– In division of work

– In organizational units to be manageable size and

– Utilization of managerial ability based on

specialization to secure maximum results.

Span of Management /span of control

• Refers to the number of subordinates that a

single manager can directly, immediately and

effectively supervise.

• It is related to the levels.

• We can have wide span, which is associated with

few orgn levels; and a narrow span which results in

many levels.

• Organizations with Wide span

– Advantage:
• Supervisors are forced to delegate
• Clear policies must be made
• Disadvantage:

• Tendency of overloaded superiors to

become decision bottlenecks.

• Dangers of superior's loses of control

• Requires exceptional quality of managers.

• Organizations with narrow span

• Advantages:

– Close supervision

– Close control

– Fast communication between subordinates and

superiors
• Disadvantage:

– Superiors tend to get too much involved in

subordinate's work

– Many levels of management

– High costs due to many levels

– Excessive distance between lowest level and top

The Bases of Departmentation
• The most common bases of departmentation used by
organizations are:

• Functional Departmentation

• Product Departmentation

• Geographic / Territorial Departmentation

• Customer Departmentation

• Process Departmentation
Functional Departmentation
• It is the process of grouping the organization's

activities in to units in logical manner on the basis of

essential functions that must be performed to attain

organizational objectives/goals.

• These functions include marketing, finance,

operations, manufacturing personnel, engineering etc.

Product Departmentation

• It is the grouping of activities on the basis of product or product

line.

• It is adopted by (commonly used by) manufacturers who produce

and sell a number of product lines made up of several different

items; such as drug, food, clothing, machines, automobiles.

• etc. e.g. Product Departmentation of an automobile management

enterprise.
 Geographical Area/Territory Departmentation

• it groups business activities on the basis of

geographic region or territory, enabling a firm to

adapt to local customs and laws and to survey

customer more quickly.

Customer Departmentation

• It is the grouping of enterprise activities based on

customers' interests.

• Companies that must provide special services to

different groups set up departments by types of

customers
Process or Equipment Departmentation
• It is the grouping of enterprise activities according
to the products' manufacturing process.
• is logical and used when the machines or
equipment used require special skill for operating
and are of large capacity which eliminate
organizational diving or have technical facilities
which strongly suggest a concentrated location.
Delegation:
• It is the act of assigning formal authority and responsibility for

completion of specific activities to a subordinate.

• Is the assignment to another person of authority and

responsibility to carry out specific activities.

• Is allocating tasks to subordinates giving them adequate

authority to carry out those assignments and making obligated to

complete the tasks satisfactorily.

Decentralization
• In a centralized set up, decision making authority

is concentrated in a few hands at the top.

• Contrary to this, is a decentralized organization,

there is dispersal of decision making authority.

• Decentralization is the opposite of centralization.

• Definition:

– It is the tendency to disperse decision-making

authority in an organized structure.

– It is a fundamental aspect of delegation, i.e., to

the extent authority is not delegated, it is

centralized.
4.6.1 Reasons for Decentralizing:
• To tap/ exploit the knowledge and expertise of
managers;
– it provides the basis for greater innovation.
– It does so because it allows for the utilization of
specialized knowledge.
– it provides greater flexibility for the organization
to respond to new ideas and test them.
• To enable the organization to respond to a social
environment faster.
• To help participate non-managerial employees in
decision making process
– it can increase such employees' performance and
commitment to decisions and
– promote better overall relations between non-
managerial employees and managers.
• Advantages:

– Relives top management of some burden of

decision making

– Encourages decision making and assumption of

authority & responsibility.

– Gives managers more freedom and

– Makes comparison of performance of different

organizational units possible.

– Promotes development of general managers.

– Aids in adaptation to fast changing

environment.
• Limitations of Decentralization:

– It increases the chances that a lower-level

manager will take undesirable action.

– It decreases control and monitoring of

subordinates' activities and also may hinder co-

– Makes it more difficult to have a uniform

policy.

– Can be limited by the availability of qualified

managers.

– Involves considerable expenses for training

4.7. Organizational Relationships

• 4.7.1 Formal and Informal organizations &

their relationships

– The design (framework) of an organization

can be divided into two categories:

– The formal and informal organization.

Formal Organization:
• is established with intentional structure of roles in a
formally organized enterprise.

• is drafted by top management.

• defines everything clearly, and explicitly.

• It is consciously, deliberately, and rationally designed

by management to achieve predetermined objectives.
Thus, formal organization has the following
important points:

• It is consciously brought in to existence for the

achievement of predetermined objectives.

• Authority and responsibility are clearly defined.

• The line of communication is also formalized (It

is shown in organization charts)

• relationship of the superior and the
subordinate is fixed.
– it is deliberately impersonal

– it is bureaucratic in nature and

– operated by the rules & regulations

– personal issues are not entertained.)

• It exists in a written form

Informal Organization:
• It is a network of personal and social relations

• not established or required by the formal organization

– but arising spontaneously as people associate with

one another.
• Is undocumented & officially unrecognized r/n b/n
members of an org.
– that inevitably emerges out of the personal & group
needs of employees.
• consists of small social groups and friendly

associations with in the formal organization.

• It is genuine that whenever formal organizations

are formed, informal social groups are created

within its framework.

• Such groups are created on the basis of similarity

• are results of the need of people for social interaction, & for
friendly associations.
• They affect the formal organization positively or negatively,

• management neither creates nor abolishes them.

• Therefore, managers should learn

– how to live with it,

– how to influence it, and

– how to direct its energy and initiative towards
constructive channels.
• Managers, to deal with informal organizations the
following general suggestions are helpful:
– Managers accept and understand the informal
organizations
– Consider possible effects on informal
organizations when they take any action.
– Integrate, as far as possible, the interests of
informal groups with those of the formal
4.8. Line and Staff Relationships
• The concept of line and staff is related to authority

and positions/functions.

• Line and staff authority

– is the r/n b/n d/t types of authority exercised by managers

of an org.

– These three forms of authority are called line staff and

Line authority:

• the authority of those managers directly

responsible, throughout the organization chain of

command, for achieving organizational goals.

• It enables a manager to tell subordinates what to

do.
• This authority is represented by the chain of

command,

– which links superiors and subordinates from top to

bottom in an organization.

• Both line and staff managers have line authority

over their subordinates.

Staff authority:

• The authority of those groups of individuals who

provide line managers with advice and services.

• People in staff positions assist and advice line

managers.
• They relieve some of the line managers' burdens by giving

them the information they need to make operational

decisions.

• People in these positions have the authority to offer advice

and make recommendations; they have staff authority.

Functional Authority:
• controlling the activities of workers of other departments

that are related to specific staff responsibilities.

• This authority is exercised over people or activities in

other departments.

• Usually limited in scope and duration; it is exercised one

level below the person wholes it.

Line and staff positions/functions:

• To classify a position as line or staff, it is related to the

degree to which the function in question contributes

to the direct achievement of organizational objectives.

• The line functions

– contribute directly to accomplishing to firm's objectives,

– are those functions that contribute directly to the creation

and distribution of the goods or services of the

organization.

– People with line positions are responsible for physically

producing the product or service and for selling it.

• staff functions
– facilitate the accomplishment of the major
organizational objectives.
– Staffs people advice and assist line people. That is
the only reason these positions exist.
– All staff positions are advisory,
– staff people may make recommendations, but line
managers retain formal authority and decide what to
do with a staff person's advice.
Organizational Structure & Charts
• Organizational Structure: -

– Is the arrangement and interrelationship of the

component parts and positions of a company.
– It is the established pattern of relationships among
different components or parts of the organization.
– There are different forms of organizational structure:
- line / military, functional organization line & staff.
• Organizational Charts: -

–are diagrams of the organizational

structure, showing the functions,

departments, or positions of the

• Organizational Manual: -

– is the description of the organizational

chart, and is designed to promote,

understanding of the basic organizational

structure by means of descriptions of the

Chapter Five
Staffing
• filling and keeping filled positions in the
organizational structure through :

– identifying work-force requirement,

– inventorying the people available recruiting,

– selecting, placing, promoting, appraising,

compensating

– the training and/or developing

 Human Resource Planning /Man power
planning

• It is the process of determining the need of the provision

of adequate human resources to the job in the organization.

• It is designed to ensure that the personnel need of the

organization will be constantly and appropriately met.

• It is accomplished through analysis of

– Internal factors such as current and expected skill

needs, vacancies, departmental expansions and

reductions; and

– External environmental factors such as the labor

market, the government regulation, the labor union; etc.

• There are four basic steps in human

resource planning:

– Planning for future needs.

– Planning for future balance.

– Planning for recruiting and selecting or for

layoff.
 Recruitment
• is the process of reaching out and attempting to attract

potential candidates who are capable of and interested in

filling available positions of an orgn.

• It is concerned with developing a pool of job candidates, in

line with the human resource plan.

• It is an intermediary activity between manpower planning

on the one hand, and selection of employees on the other

Sources of Recruitment

• Internal Recruitment / recruitment from within: this

involves recruitment within the organization; it could be

through promotion lateral transfer, demotion or any there

from.

• External /outside/ recruitment: It involves recruitment

outside the orgn

Selection

• Is a process of determining from among applicants

WHICH ONE FILLS BEST for the job description

and specification which is offered to the job within

the organization. It involves evaluating and

choosing among job candidates.

Orientation and socialization /induction/

• It is designed to provide a new employee with the

information he/she needs in order to function

comfortably and effectively in the organization.

• Typically, socialization will convey three types of

information.
– General information about the daily work routine;
– a review of the organizations history, purpose, operations,
– a detailed presentation, work rules, and employee benefits.
Training and Development
• Job demands change, which requires altering and

updating an employee's skills.

• training is a process designed to maintain or improve

current job performance; development is a process

designed to develop skills necessary for future work

activities.
• Reasons for Training

– To orient new employees

– To improve performance:

– To maintain current performance:

• Training Methods

– On-the-job training:

– Off-the-job training:
CHAPTER SIX

DIRECTING/LEA
DING
• is the process of influencing people so that they

will contribute to organization and group goals.

• It is influencing people so that they will work

willingly and enthusiastically to ward the

achievement of organizational goals ultimate

objectives.
Elements of Directing/Leading
• There are three elements of directing that helps managers to influence

people to contribute willingly for the achievement of organizational goal.

• These are:

– Motivation

– Leadership

– Communication
• MOTIVATION

– Motivation refers to the forces to a person that

arouse enthusiasm and persistence to pursue a

certain course of action.

– It means stimulating people to action through

incentives or inducements
• Rewards are of two types:
– Intrinsic reward –

• the satisfaction a person receives in the process of

performing a particular action.
• The completion of a complex task may bestow a
pleasant feeling of accomplishment, or solving a
problem that benefits others may fulfill a personal
mission.
– Extrinsic rewards –

• given by another person, typically the manager, and

include promotion and pay increases.
 Theories of Motivation

• Hierarchy of Needs Theory (Abrham

Maslow)

• The two-Factor Theory (Herzberg 1975)

Hierarchy of Needs Theory (Abrham Maslow)

• It proposes that humans are motivated by multiple

needs and that these needs exist in hierarchy order:

• Physiological needs - the need for food, water air

& sex

• Safety needs - the need for security & safety

• Belongingness/Social needs - the need for

friendship, interaction and love

• Esteem needs - the need for respect & recognition

• Self-actualization needs - the ability to reach one's

potentials.
• This theory is based on:

– Only an unsatisfied need can influence behavior; a

satisfied need is not a motivator.

– A person's needs are arranged in a priority order of

importance. The hierarchy goes from the most basic

needs to the best complex.

• A person will at least minimally satisfy each level of

need before feeling the need at the next level.

• If need satisfaction is not maintained at any level, the

unsatisfied need will become a priority once again.

– For example, for a person who is presently feeling

social needs, safety will become a priority once

again if he or she is fired.

The two-Factor Theory (Herzberg 1975)
• These factors are hygiene factors and motivation
factors.
• Hygiene factors
• (salary, job security, working conditions, status;
Company policies; quality of technical supervision
and quality of interpersonal, relationships among
peers, supervisors, and subordinates) are the primary
elements involved in job dissatisfaction.
• When present in sufficient quality, they have no effect;
when absent, they can lead to job dissatisfaction.
• Motivation factors

• achievement, recognition, responsibility, advancement,

the work itself, and possibility of growth

• are the primary elements involved in job satisfaction.

• When present, they can stimulate personal and

psychological growth.
LEADERSHIP

• Leadership is the process of influencing

individuals and groups to set and achieve goals.

• It is an act of influencing and motivating people

to perform certain tasks to achieve organizational

objectives
 THEORIES OF LEADERSHIP

1. The trait theory of leadership:-

• Traits are inborn and inherent personal qualities of

individuals.

• This theory believes leaders possess certain

specific inborn traits,

2. The behavioral theory of leadership:-

• focused on what leaders do rather than their traits.

• suggested that there were two distinct types of

leadership which are known as task-oriented

/production centered/ and employee oriented

/people centered/.
• The situational /contingency/ theory of leadership:

• leadership is strongly affected by a situation from which

a leader emerges and in which he/she works.

• It's a function of the leader, the followers and the

situation.

• It attempts to discover that the one unique set of

leadership traits were largely unsuccessful.

• LEADERSHIP STYLES

– Autocratic

– Democratic /participate

– Laissez-faire /free rein

• Autocratic style - "I" approach, is a leadership approach in which a

manager does not share decision making authority with subordinates.

• Participate (democratic) style - "We" approach, It is a leadership

approach in which a manager shares decision making authority with

subordinates.

• Laissez-faire/Free-rein style -"They" approach, It empowers

individuals or groups to function on their own, without direct

involvement from the managers to whom they report.

CHAPTER SEVEN

CONTROLLING
• is the measurement and correction of the

performance of activities of subordinates in order to

make sure that enterprise objectives and the plans

devised to attain them are being accomplished.

• It's thus the function of every manager, from the

chief executive to the Forman

• is the process by which management sees if what

did happen was what was supposed to happen.

• If not, necessary adjustments are made

1. Planning is the foundation of control:

2. Action's the essence of control:

3. Delegation is the key to control:

4. Information is the guide to control:

 THE CONTROL PROCESS

In controlling process there are three

steps,

1. Setting standards

2. Measurement of performance
• Setting Standards:
• Standards may be tangible or intangible.

• Greater emphasis should be laid on tangible standards.

• tangible terms may be in terms of output, costs, profit,

time persons available for training etc.

• intangible terms standards may be for the results to be expected from a

training program, employee morale, advertising campaign, etc.

• Organizations create standards to help measure and monitor both

productivity and quality efforts.

• People and processes are governed by qualitative and quantitative

standards.

• An organization uses these standards to teach, train, and evaluate

organizational performance.
• Measurement of Performance and comparing it

against standards.

• An organization measures actual performance of people

and processes to ascertain if they are functioning

according to plans and expectations.

• After it has been measured it will be compared against

the established standards.

• Taking Corrective Actions

• As soon as the deviations are reported, it is the duty of the

manager concerned to take steps to correct the past action or at

least to bring similar action closer to the standards in future.

• When significant deviations from established standards occur,

the organization must determine the cause by identifying the

nature and scope of the problem

 TYPES OF CONTROLLING
• Controlling can be feed forward, concurrent or
feedback controls.

1. Feed forward controls

– are preventive in nature.

– They are created to screen out possible causes

of problems.
2. Concurrent controls
– monitor on going operations as they occur in real
time,
– allowing for instant reactions and the spotting of
trends.
3. Feedback controls
• are after action controls.
• Inspecting output after an operation has been
• All the three types of controls are important to

managers and their organizations.

• When designed and used properly, they can prevent,

identify, and correct deviations from established

standards.