The document outlines the principles and steps involved in organizing, focusing on how to group activities, assign responsibility, and delegate authority to optimize performance within an organization. It includes definitions of organization from various authors, the process of departmentalization, and the advantages and disadvantages of different departmental structures. Key principles of organization such as specialization, span of control, and unity of command are also discussed to facilitate effective management and achievement of objectives.

1. ORGANIZING AND STAFFING
DIRECT AND CONTROLLING
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1
MODULE 2

2. ORGNISATION
2
 The process of identifying and grouping of the
work to be performed, defining and delegating
responsibility and authority and establishing
relationships for the purpose of enabling people
to work most effectively together in accomplishing
their objectives.
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3. MEANING OF ORGANIZING
3
 Koontz and O'Donnel "It is grouping of activities
necessary to attain enterprise objectives and the
assignment of each grouping to a manager with
authority necessary to supervise it".
 Amitai Etizoni- ”Organisation is social unit or human
grouping deliberately structured for the purpose of
attaining specific goals”.
 Sehein- “Orgainsation as the rational coordination of
activities of a number of people for the achievement of
some common explicit purpose or goal, through division
of labour and function, and through a hierarchy of
authority and responsibility. 6/10/2024

4. STEPS IN PROCESS OF
ORGANIZING
4
 While organizing, a manager differentiates and
integrates the activities of his organization.
 By differentiation is meant the process of
departmentalization or segmentation of activities
on the basis of some homogeneity.
 Integration is the process of achieving unity of
effort among various departments, segments or
subsystems.
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5. STEPS IN ORGANIZING
(1) Consideration of objectives:
5
 The first step in organizing is to know the objectives
of the enterprise.
 Objectives determine resources and the various
activities which need to be performed and the type of
organization which needs to be built for this purpose.
 Objectives also serve as guidelines for the
management and workers.
 They bring about unity of direction in the
organization.
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6. STEPS IN ORGANIZING
(2) Identification and grouping of activities:
6
 In order to achieve the objectives of the enterprise, certain
activities are necessary.
 The activities will depend upon the nature and size of the
enterprise.
 Each job should be properly classified and grouped.
 This will enable the people to know what is expected of
them as members of the group and will help in avoiding
duplication of efforts.
 For example, the total activities of an enterprise may be
divided into major functions like production, purchasing,
marketing, finance etc.
 such function is further subdivided into various jobs.
 For example, in production department separate sections
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7. STEPS IN ORGANIZING
3) Assignment of duties:
7
 After classifying and grouping the activities into
various jobs, they should be allotted to the
individuals for ensuring certainty of work
performance.
 Each individual should be given a specific job to do
according to his ability and made responsible for
that.
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8. STEPS IN ORGANIZING
(4) Delegation of authority
8
 Every individual is given the authority necessary to
perform the assigned activity effectively.
 By authority we mean power to take decisions, issue
instructions, guiding the subordinates, supervise and
control them.
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9. STEPS IN ORGANIZING
5) Coordinating activities
9
 The activities and efforts of different individuals are
then synchronized.
 Such coordination is necessary to ensure effective
performance of specialized functions.
 Interrelationship between different job and
individuals are clearly defined so that everybody
knows from whom he has to take orders and to
whom he is answerable.
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10. PURPOSE OF ORGANIZATION
10
(1) To facilitate pattern of communication:
 Organization structure provide pattern of communication
and coordination.
 By grouping activities and people, structure facilitates
communication between people centered on their job
activities.
(2) To allocate authority and responsibility:
 Organization structure allocates authority and responsibility.
 It specifies who is to direct whom and who is accountable
for what results.
 The structure helps the organization members to know what
his role is and how it relates to others role.
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11. PURPOSE OF ORGANIZATION
11
(3) To locate decision centers:
 Organization structure determines the location of
decision making in the organization.
(4) To create proper balance:
 Organization structure creates the proper balance and
emphasis of activities.
 Those more critical to the enterprises success might be
placed higher in the organization.
 Activity of comparable importance might be placed at the
lower level.
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12. PURPOSE OF ORGANIZATION
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(5) To stimulate creativity:
 organization stimulates independent, creative thinking and
initiative.
(6) To encourage growth:
 If the organization structure is flexible, it will help in meeting
challenges and creating opportunities for growth.
(7) To make use of technological improvements:
 organization structure which is adoptable to changes can make
the best possible use of latest technology.
 It can modify the existing pattern of authority-responsibility
relationships in the wake of technological improvements.
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13. PRINCIPLES OF ORGANIZATION
13
 In order to facilitate the achievement of objectives,
management thinkers have laid down certain
principles of organization.
 The principles are guidelines for planning
organization structure.
 (1) Objectives: (2) Specialization: (3) Span of control:
 (4) Exception: (5) Scalar principle: (6) Unity of command:
 (7) Delegation: (8) Responsibility: (9) Authority:
 (10) Efficiency: (11) Simplicity: (12) Flexibility:
 (13) Balance: (14) Unity of direction: (15) Personal abilities:
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14. PRINCIPLES OF ORGANIZATION
14
(1) Objectives:
 Objectives of the enterprise should be clearly
defined.
 Every part of the organization and organization as a
whole should be geared to the basic objective
determined by the enterprise.
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15. PRINCIPLES OF ORGANIZATION
15
(2) Specialization:
 Effective organization must promote specialization.
 The activities of the enterprise should be divided
according to functions and assigned to persons
according to their specialization.
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16. PRINCIPLES OF ORGANIZATION
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 (3) Span of control:
 A manager can directly supervise only a limited
number of executives.
 Hence, it is necessary to have a proper number of
subordinates answerable to a manager.
 A maximum of six may be prescribed for this
purpose.
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17. PRINCIPLES OF ORGANIZATION
17
 (4) Exception:
 This principle requires that organization structure
should be so designed that managers are required to
go through the exceptional matters only.
 All the routine decisions should be taken by
subordinates, where as problems involving unusual
matters and policy decision should be referred to
higher levels.
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18. PRINCIPLES OF ORGANIZATION
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 (5) Scalar principle:
 This is also known as chain of command. There
must be clear lines of authority running from the top
to the bottom.
 Unbroken line of authority from top level to bottom
level.
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19. PRINCIPLES OF ORGANIZATION
19
 (6) Unity of command:
 Each subordinate should have only one supervisor
whose command he has to obey.
 Dual subordination must be avoided, for it causes
uneasiness, disorder, and indiscipline.
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20. PRINCIPLES OF ORGANIZATION
20
 (7) Delegation:
 Proper authority should be delegated at the lower
levels of the organization also.
 The authority delegated must be equal to
responsibility i.e., the manager should have enough
authority to accomplish the task assigned to him.
 Handle special problems ,co ordinating and
planning evmts.
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21. PRINCIPLES OF ORGANIZATION
21
 (8) Responsibility: accountability
 A superior should be held responsible for the acts of
his subordinates.
 No superior should be allowed to avoid
responsibility by delegating authority to his
subordinates.
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22. PRINCIPLES OF ORGANIZATION
22
 (9) Authority:
 Right and power to act.
 The authority is the tool by which a manager is able
to accomplish the desired objective.
 Hence, the authority of each manager must be
clearly defined.
 The authority should be equal to responsibility.
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23. PRINCIPLES OF ORGANIZATION
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 (10) Efficiency:
 The organisation structure should enable the
enterprise to function efficiency.
 The organization should be able to attain the mission
and objectives at the minimum cost.
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24. PRINCIPLES OF ORGANIZATION
24
 (11) Simplicity:
 The organization structure should be as simple as
possible with minimum number of levels.
 A large number of levels of organization means
difficulty of effective communication and
coordination.
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25. PRINCIPLES OF ORGANIZATION
25
 (12) Flexibility:
 The organization should be flexible, should be
adaptable to changing circumstances.
 It should permit expansion and replacement without
dislocation and disruption of the basic design.
 A organization must avoid complicated procedures
and excessive complication of control so that it may
adapt itself easily and economically to business and
technical changes.
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26. PRINCIPLES OF ORGANIZATION
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 (13) Balance:
 There should be reasonable balance in the size of
various departments, between centralization and
decentralization, between span of control and among
all types of factors such as human, Technical and
financial.
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27. PRINCIPLES OF ORGANIZATION
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 (14) Unity of direction:
 There must be one objective and one plan for a
group of activities having the same objective.
 Unity of direction facilitates unification and
coordination of activities at various levels.
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28. PRINCIPLES OF ORGANIZATION
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 (15) Personal abilities:
 As organization is a formal group of people there is
need for proper selection, placement and training.
 Organization structure must ensure optimum use of
human resources.
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29. SPAN OF CONTROL
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 The span of control indicates the number of subordinates
who can be successfully directed by a supervisor.
 It is often referred to as span of management, span of
supervision, span of authority.
 Span of management is important because of two
reasons.
 First is span of management affects the efficient
utilization of managers and the effective performance of
the subordinates.
 If the span is too wide, managers are overburdened and
subordinates receive little guidance.
 If the span of management is too narrow, the managers
are under utilized and subordinates are over controlled.
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ECE,MITE

30. SPAN OF CONTROL
30
 A narrow span results in tall organization with many
levels of supervision between top management and
lowest organizational levels which creates more
communication and cost problems.
 On the other hand, a wide span for the same number
of employees results in flat organization with fewer
management levels between top and bottom.
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31. SPAN OF CONTROL
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32. SPAN OF CONTROL
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 Advantage of a narrow span of control are
1. Tight control and close supervision of work are
possible.
2. Personal attention can be given to the overall
development of each worker.
3. Availability of time to think and act.
Advantage of a wider span of control are
1. Organisation structure can be made simpler if more
workers come under each manager.
2. Saving salaries because less number of manager.
3. Absence of over-supervision of worker.
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33. SPAN OF CONTROL
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 Disadvantage of a narrow span of control are
1. Superior too much involved in subordinates work.
2. High cost due to many levels of management.
3. Excessive distance between lower level and top level.
Disadvantage of a wider span of control are
1. Tendency of overloading superior to become decision
bottle necks
2. Danger of superior’s loss of control.
3. Requires managers with exceptional qualities.
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34. DEPARTMENTATION
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 Horizontal differentiation of tasks or activities
into discrete segments is called
departmentation.
 Departmentation involves grouping of
operating tasks into jobs, combining of jobs
into effective work group and combining of
groups into divisions often termed as
‘departments’.
 The aim is to take advantages of division of
labour and specialization up to a certain limit.
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35. DEPARTMENTATION
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1) Departmentation by functions:
2) Departmentation by product:
3) Departmentation by customers:
4) Departmentation by territory:
5) Departmentation by Process:
6) Departmentation by time:
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36. 1)Departmentation by functions:
36
 This is the simplest and most commonly used base
for Departmentation.
 Each major function of the enterprise is grouped into
a department.
 For example there may be production, finance,
marketing and personnel department in an
organization .
 All functions related to production are grouped
together to form production department, similarly
other departments are formed on the basis of
function.
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37. 1)Departmentation by functions:
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38. 1)Departmentation by functions:
38
 Advantages
(1) It is simple and suitable for small organization
which manufactures limited number of products.
(2) It promotes specialization.
(3) It leads to improve planning and control of key
functions.
(4) Manpower and other resources of the company are
effectively used.
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39. 1)Departmentation by functions:
39
 Drawbacks
(1) It fosters sub-goal loyalty. Department goal
becomes important than organizational goal resulting
into interdepartmental conflicts.
(2) Difficult to set up specific accountability and profit
centers within functional departments with the result
that performance cannot be accurately measured.
(3) It does not offer a good training for overall
development of a manager.
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40. 2)Departmentation by product:
40
 This form is suited for a large organisation
manufacturing varity of products.
 All activities related to a particular product line may
be grouped together under the direction of a
semiautonomous division manager.
 Several companies such as Godrej, TATA have
product based departments.
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41. 2)Departmentation by product:
41 6/10/2024

42. 2)Departmentation by products:
42
 Advantages
 (1) It focuses individual attention on each product
line.
 (2) It leads to specialization of physical facilities on
the basis of product which results in economy.
 (3) It is easier to evaluate and compare the
performance of various product division and it
enables the top management to invest more in
profitable product groups.
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43. 2)Departmentation by products:
43
 Drawbacks
 (1) This form results in duplication of staff.
 (2) Extra expenditure is incurred in maintaining a
sales force for each product.
 (3) Employment of a large number of managerial
personnel is required.
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44. 3)Departmentation by customers:
44
 This is used in the enterprises engaged in providing
specialized services to different classes of customers.
 Management groups the activities on the basis of
customers to cater to the requirements of clearly
defined customer groups.
 For example, an automobile service company may
organize its departments as heavy vehicles servicing
division, car servicing division and scooter servicing
division
 Similarly an educational institute may have
departments for regular courses, evening and
corresponding courses etc.
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45. 4)Departmentation by territory:
45
 Under this classification, the market area is broken
up into sales territories and a responsible executive
is put in-charge of each territory.
 The territory may be known as district, division or
region.
 The field salesmen under respective regions report
to their corresponding sales supervisors.
 Banks, Railways and big manufacturing companies
like petroleum companies are some example for this.
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46. 4)Departmentation by territory:
46
 Advantages
1) Places responsibility at lower level.
2) Ensures a better coordination with in a region.
3) Provides region wise comparison of performance.
4) Takes advantage of economics of local operations.
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47. 4)Departmentation by territory:
47
 Disadvantage
1) Requires more person with general manager
abilities.
2) Requires to maintain similar functional people at
all region.
3) Difficult to control from top management.
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48. 4)Departmentation by territory:
48 6/10/2024

49. 5)Departmentation by Process:
49
 Departmentation here, is done on the basis of
several discrete process or technologies involved in
the manufacture of a product.
 For example, a vegetable oil company may have
separate departments for crushing, refining and
finishing.
 A textile mill may have departments for ginning,
spinning, weaving and dyeing.
 A work that would otherwise be done in several
different locations in an enterprise is done in one
place because of special equipments used.
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50. 6)Departmentation by Time:
50
 One of oldest forms of departmentation, generally used
at lower level of an organisation.
 It is grouping of activities on the basis of time.
 The use of shifts is common in some organistions due
to economical or technological reasons.
 For service organisation like hospital, fire department,
security round the clock work is essential.
 All these call for shift work is essential.
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51. 6)Departmentation by Time:
51
 Advantages:
1) Service can be rendered, that goes beyond the
normal 8 hour shift.
2) Facilities use of processes that cannot be stopped
or interrupted.
3) Expensive capital equipment can be better
utilized.
4) High and continuous production per day.
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52. 6)Departmentation by Time:
52
 Disadvantages:
1) Lacks good and efficient supervision during night
shift.
2) Lack of effective coordination and communication
from people of one shift to next shift.
3) Inconvenient for people to work in night shifts and
more difficult during shifts changes from day to
night.
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53. Committee Organization
53
• Some of the adminstarive tasks cannot be performed by
a single person alone.
• Such sitiuation may call for two or more person to
perform such tasks. This calls for a committee
organisation.
 “A committee is a group of persons performing a group
task with the object of solving certain problems”.
 Committees help in taking corrective decision,
coordinating the affairs of different departments and
meeting communication requirements in the organization.
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54. Committee:Types
54
 The committees may be of different types as follows.
1)Ad-hoc committee: It is a temporary committee formed
for a short period to solve a minor problem.
 For eg: a committee to decide the date and venue of
annual general body meeting.
2)Standing or Permanent committee: Such committees
is formed to solve problems which is repetitive in nature.
 Eg: Disciplinary committee to solve discipline related
issues of individual workers from time to time.
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55. 55
3)Advisory committee: This committee studies the
various aspects of a problem and suggests courses of
action to the management thus reducing its burden. An
advisory committee does not have power to act.
 For eg: a committee in a manufacturing industry studying
the feasibility in going for modernization of the plant.
4)Educational committee: this is a committee which
guards the company policies and procedures. They often
educate and give an insight to the management about
the goals of the organisation whenever there is
confusion.
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56. STAFFING
56
 “Staffing is the process of attracting and devoloping
human resources to work for an organisation and
also to evaluate them in their work”.
 It is now recognized as a separate management
function.
 Today the staffing function has assumed greater
importance because of rapid advancement of
technology, increasing the size of the organization
and complex behavior of human beings. 6/10/2024

57. STAFFING
57
 The organization structure spells out various positions of the
organization.
 Filling and keeping these positions with right people is the staffing
phase of the management function.
The staffing function performs the following sub functions:
 (1)Manpower planning.
 (2) Recruitment of employees.
 (3) Selection of the best qualified from those who seeks
job
 (4) Training and Development.
 (5) Decision on remuneration packages.
 (6) Performance appraisal .
 (7) Promotion and transfer. 6/10/2024

58. STAFFING
58
 In any organizations have separate department known as
personnel department or human resource (HR Dept.)
department to perform staffing function.
 They are all time involved in determining what personnel
are needed in what quantity and of what quality.
 Staffing is a development oriented function as it tries to
maintain and develop employees through appropriate
training and compensation program
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59. STAFFING
59
 Nature or features of staffing
(1) Staffing is a continuous process:
Staffing is a continuous process because the employees
leave the organisation for a number of reasons. Also to
meet the need of an organisation, fresh recruitment has
to be done from time to time.
(2) Staffing involves people:
Staffing involves people and hence it is the most difficult
job. Russi Mody once admitted that among 5 M’s of the
management( men,money, material, machines and
methods) , Men who are the most difficult to handle.
(3) Staffing is development oriented.
It aims at developing and orienting people to the needs
of the company through appropriate training programs.
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60. STAFFING
60
 Nature or features of staffing
(4) Staffing involves multidisciplinary knowledge.
Staffing as a function makes use of information drawn
from various branches of knowledge such as psychology,
sociology, economics etc.
(5) Staffing is step by step process.
Staffing has to be done in step by step process in order
order to be meaningful. It takes time and immense
patience on the part of people involved in staffing.
Various steps involved in staffing are human resource
planning, recruitment, selection, placement, training, and
development, remuneration, performance appraisal,
promotion, transfer, retirement etc
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61. RECRUITMENT
61
 “Recruitment is the process of identifying the
sources for prospective candidates and to stimulate
them to apply for the jobs”.
 It is a linking activity that brings together those
offering jobs and those seeking jobs.
• Recruitment enables management to select suitable
employees for its different job.
• The various sources of recruitment are divided into
two categories:
 (1) Internal Sources.
 (2) External Sources.
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62. RECRUITMENT
62
(1) Internal Sources.
 Internal sources involve transfer and promotion.
 Transfer involves the shifting of an employee from
one job to another.
 Many companies follow the practice of filling higher
jobs by promoting employees who are considered fit
for such positions.
 Filling higher positions by promotion motivates
employees.
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63. RECRUITMENT
63
Advantage of recruitment from Internal Sources.
 1) It provide them to develop financially.
 2)Employees from within the organisaton adjust to
new positions much faster than employees from
outside.
 3) This method is less time consuming and less
expensive.
 4) It encourages employees to work harder in order
to attract promotions and generates higher
motivation levels.
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64. RECRUITMENT
64
Disadvantage of recruitment from Internal
Sources.
1) It may not be possible to find the required talent,
skill from within the organisation.
2) There may be a limited choice for promotion.
3) No chance for new ideas and talents to flow into
the organisation.
4) Employees who are not successful in getting
promoted get de motivated. 6/10/2024

65. RECRUITMENT
65
(2) External Sources
 (1) Direct recruitment: An important source of
recruitment is direct recruitment by placing a notice
on the notice board of the enterprise by specifying
the details of the jobs available. This is also known
as recruitment at factory gate.
 (2) Voluntary or walk in applicant: Many qualified
persons apply for employment to reputed companies
on their own initiative.
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66. RECRUITMENT
66
(2) External Sources
 (3) Advertising: Advertisement in newspapers,
employment news, trade and professional journals,
internet etc., help to get prospective employees having
suitable skills and qualification.
 This helps in informing the candidates spread over
different parts of the country.
 The advertisement contains information about the
company, job description, and job specialization etc.
 (4) Labour unions: Labour unions also supply workers
to the factory for employment. This method of
employment has also lost its popularity. 6/10/2024

67. RECRUITMENT
67
(2) External Sources
 (5) Employment agencies: Many organisations these
days entrust their manpower requirements to private
agencies devoted to recruitment thus saving vital time
effort.
 (6) Recommendations: Applicants introduced by
friends, relatives and employees of the organization may
prove to be a good source of recruitment.
 Many employers prefer to take such persons because
something about their background is known.
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68. RECRUITMENT
68
(2) External Sources
 (7) Campus interview: Many industries visit engineering
colleges, polytechnics and other institution to conduct
campus interviews in order to recruit fresh employees.
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69. SELECTION
69
 Selection of candidates start after the completion of the
recruitment process.
 Selection is the process of picking out few suitable persons
from large number who have applied for the job and thus
eliminating the rest.
 The process of selection leads to employment of persons
having the ability and qualifications to perform the jobs
which have fallen vacant in an organization.
 In order to achieve this purpose, a well, organized selection
procedure involves many steps and at each step more and
more information is obtained about the candidates. 6/10/2024

70. SELECTION
70
 Steps involved in selection procedure are
 (1) Receipt of applications:
 Whenever there is vacancy, it is advertised or enquires
are made from suitable sources and applications in
standard form are received from the candidates.
 The applications give preliminary idea of the candidates
 like family background , age , qualifications, experience
etc.,
 Standard forms make the application processing very
easy.
 Candidates who do not posses the required qualification
are eliminated and others are called for preliminary
interview. 6/10/2024

71. SELECTION
71
 Steps involved in selection procedure are
 (2) Preliminary interview
 The purpose of preliminary interview is to eliminate unfit,
unqualified and less qualified applicants.
 Preliminary interview are brief and give a general idea
about candidates education, experience, appearance,
personality and salary requirement of the candidate.
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72. SELECTION
72
 Steps involved in selection procedure are
 (3) Employment Tests
 Candidates who pass the preliminary interview are asked to
appear for selection tests.
 Tests are conduct to measure the skills and abilities of
candidates in detail.
(1) Proficiency tests: To measure the knowledge and proficiency
in the areas already claimed in the application form.
(2) Aptitude tests: Aptitude tests consists of
(a) Intelligence test
(b) Attitude test
(c) Interest test
(3) Personality test: To check candidates balance in thoughts,
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73. SELECTION
73
 Steps involved in selection procedure are
(4) Group Discussion
 In this test, candidates are assembled in small groups
and general topic of current interest is given for
discussion.
 This test gives an idea about candidates communication
skills, general awareness, ability to contribute in team
and ability to command the attention of others and so on.
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74. SELECTION
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 Steps involved in selection procedure are
 (5) Final interview
 The employment tests do not provide the complete set of
information about the candidate.
 Interview may be used to secure more information about
the candidate.
 The main purpose of interview is to find out the suitability
of the candidate, to seek more information about the
candidate, to give an accurate picture of the job with
details of terms and conditions.
 In addition, interview help to check the information given
by the applicant in the application and to assess the
capability and personality of the applicant.
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75. SELECTION
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 Steps involved in selection procedure are
 (6) Checking references.
 This is one of the last steps before candidate is offered a
job in the organisation.
 An investigation is made on the reference given by
candidates regarding his past employment, education,
character, personal reputation etc
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76. SELECTION
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 Steps involved in selection procedure are
(7) Medical examination.
 A thorough medical check up of candidate is carried out
prior to placement.
(8)Final selection:
 After a candidate has cleared all the hurdles in the
selection procedure, he is formally appointed by issuing
him an appointment letter or by concluding with him a
service agreement.
 The appointment letter contains the terms and conditions
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77. Unit 4
Directing and
Controlling
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78. DEFINITION OF DIRECTING
 Directing is defined as telling people what to do
and seeing that they do it for the best of their
ability.
 Directing is that function through which managers
gets the work done from others.
 Thus directing function includes three important
components:
 communicating
 leading and
 motivating.
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79. LEADERSHIP
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Thus most important features of leadership are:
 Leaders possess great influential power.
 Leaders, have followers and they influence the
behaviour of followers.
 There is a reciprocal relationship between leaders
and followers.
 Leaders have a great vision for future.
 Leaders create a shared vision among followers and
direct them to work towards the achievement of
common goals. .
 Leaders are sensitive towards the needs of followers
and they motivate followers.
 Leadership is situational and effectiveness of leaders
is influenced by situational
 variables like environment, interpersonal relationship,
job content, group relations, size of group, group
norms etc.

80. Importance of Leadership
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 Leadership is the most important component of
managing process.
 A manager can be efficient and effective only if
he is a good leader.
a. Leaders guide and inspire subordinates:
Leaders motivate their followers and guide them
towards accomplishment of group goals which
inturn contributes to the accomplishment of
organizational goals.

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b. Leaders build good work environment: Leaders
create a work environment in which employees can
contribute by performing to the best of their abilities.
The environment creates a relationship based on
trust.
e. Leaders build confidence in followers: Leaders
recognize abilities of their followers and encourage
them to develop to their potential by building
confidence in them.
d. Leaders secure cooperation from the group:
Leaders influences the group members in such a
way that all the members work collectively towards
group objectives and thus instill cooperation among
all members.

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e. Leaders act as change agents:
 organizations operate in an environment which is
subjected to continuous changes, and if the
organizations do not respond to these changes,
then survival of the organizations may be difficult.
 But organizational members resist any changes, as
they are accustomed to particular methods of work.
 It requires great leadership to reduce the resistance
to change and convince the employees to accept
the change.
 Thus leaders act as change agents of the
organization and helps in implementing successful
positive changes in the organization.

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f. Leaders are representatives of the followers:
On one hand leaders direct the employees of the
organization, but on the other hand they are also
representatives of their followers. They always take
personal interest in helping their followers and
protect the interests of the followers while taking
any major organizational decisions.
g. Leaders develop great vision: Leaders are
known for their great vision and they develop the
vision for building great organizations.

84. MOTIVATION
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 Motivation is the process of stimulating people
to action to accomplish desired goals.
 Motivation represents inner drive within an
individual which directs him to behave in
specific way.
 Only highly motivated employees can
achieve the goals of an organization.

85. MOTIVATION
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 Motivation is also defined as the one which
accounts for direction, intensity and persistence of
efforts towards achievement of goal.
 Direction refers to quality of efforts, and if efforts are
not channelized in proper direction they may not
yield expected results.
 Intensity of efforts refers to how hard an individual
puts efforts.
 Persistence refers to sustenance of efforts till the
achievement of goals.
 Motivated individuals put same intensity of efforts
till they achieve the goals.

86. Importance of Motivation
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 Highly motivated workforce is absolutely essential for
any organization to achieve its objectives.
 Management basically aims at optimum utilization of
various resources of the organization.
 These resources are human resources, financial
resources, and physical resources like materials, tools,
machines, equipments etc.
 All these resources are very precious and they cannot
be wasted.
 Use of financial and physical resources always depends
on human resources and thus only motivated employees
can effectively convert financial and physicaJ resources
into useful products and services.

87. Importance of Motivation
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 Motivation results in desirable behaviour of employees.
 These behaviours are essential for implementation of
organizational plans successfully.
 Thus successful achievement of goals not only depends
on good plans but also on motivated workforce.
 Individuals may possess abilities or skills to perform a
task effectively and efficiently. But translation of these
abilities into actual performance will depend on their
willingness to do the task. This inturn will depend on his
or her motivation. Motivation thus bridges the gap
between ability to work and willingness to perform.
Hence motivation is essential for effectiveness and
efficiency.

88. Importance of Motivation
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 Motivation is an important factor which
contributes to employee retention and building a
stable workforce.
 Motivation brings down number of employee
grievances and complaints.
 Active involvement of employees in whatever
task they do will also brings down any chances of
accidents and losses resulting out of accidents.
 Highly motivated workforce can produce best
quality of products and services. This

89. COMMUNICATION
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 The source or sender or communicator:
Communication process starts with sender.
Sender is the person who has an intended
message to convey to some one. He has the
purpose of communicating information or
message to one or more persons.
 Encoding: Encoding means putting message
into a code. Encoding is the process of translating
message into a form which can be understood by
the receiver. It can be in the form of oral, written
or symbols.

90. Types of Communication
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 Formal and Informal Communication
 Formal communication is officially accepted
communication in the organization and it uses
official channel for transmitting messages.
 It follows official route for flow of communication
between various people in the organization.
 Commands, instruction, orders flowing from top
level to lower level, messages for coordination
between people at same level, suggestions from
people at different levels, requisitions from lower
level to higher level etc represent formal
communication.

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 Formal and Informal Communication
 Informal communication is that communication
which is not officially accepted part of the
communication in an organization.
 It does not adhere to the organizational hierarchy.
Informal communication is based on the informal
relationship among the organizational members.

92. Types of Communication
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Oral and Written Communication
 Oral communication is face to face interpersonal
communication between individuals.
 Message is exchanged through word of mouth i.e. it
is exchanged through spoken words.
 Written communication is transmitted through
written document in the form of letters, circulars,
memos, reports, manuals etc.
 It is the most popular mode of formal
communication and it is very widely used.
 It creates a permanent and verifiable document
which serves as proof for communication process.

93. Types of Communication
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Merits of oral communication .
 It is very quick and saves time.
 Direct contact establishes personal touch and hence it is
more effective.
 Message can be transmitted to large number of people
at the same time (through speech).
 Easy to understand and scope for immediate feedback.
 Chances of misinterpretation are minimum.
Demerits :
There is no recorded proof for message and hence fixing
responsibility for both sender and receiver is difficult.
Keeping attention of receiver is difficult when messages
are lengthy. . Requires good oratory skills.

94. Types of Communication
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 Non Verbal Communication or Body Language
 Non verbal communication refers to messages sent
through human actions and behaviours rather than
words.
 We generally use body language in the form of
facial expressions,
body positions, gestures, eye contact, posture,
silence, etc to convey different messages.
 Body language is also a very powerful in conveying
messages.
 Research has proved that non verbal cues are
more impact on message interpretation than actual
spoken words.

95. Types of Communication
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 Vertical and Horizontal Communication
 Communication is said be vertical when messages
flow from one hierarchy level to another.
 Vertical communication can be downward or
upward.
 Downward communication starts from top
management and flows down to lower level through
different hierarchy levels.
 Downward communication is used to give orders,
instructions, ihform procedures, inform organization
goals etc.
 Job instruction sheets, circulars, memos, orders,
etc are examples for downward communication.

96. Types of Communication
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 Vertical and Horizontal Communication
 Upwards communication flows from lower level to
top management and it provides top management
information about what is happening at lower
levels.
 But upward communication is used more when
managers use open door policy and encourage
subordinates to share information.
 Examples for upward communication include
requests, applications, reports, suggestions etc.

97. Types of Communication
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 Vertical and Horizontal Communication
 Horizontal communication refers to exchange of
information between two people at same
hierarchy level or peer level.
 For example information exchanged between two
departmental heads of an organization, a
production engineer informing a maintenance
engineer about breakdown of a machine etc.
 It is also called as lateral communication.

98. CONTROLLING
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 Controlling is defined as the process of measuring
the actual work and comparing it with a
predetermined standard in order to determine any
deviation so that timely corrective actions are taken
and tasks are completed as per original plans.
 Controlling is defined as the continuous function of
determining what is being performed, measuring its
actual results in relation with predetermined
objectives and devising such corrective measures
that may be necessary to make the performance
conform to the original plans.

99. Objectives of Controlling
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 To ensure effectiveness and efficiency in all
management functions.
 To determine what is happening in the organization
and measure actual progress from time to time.
 To ensure effective communication between various
units of organization.
 To keep a check on resource utilization.
 To reframe organizational plans in relation to
changes in the environment.
 To detect any deviation and take timely corrective
actions.
 To ensure that all the activities are performed
according to predetermined plans.