National Institute of Business Management

Chennai - 020
FIRST SEMESTER EMBA/ MBA
Subject: Principles and Practices of Management
Enrollment No - MBA1/OCT15N/93171446117645F
Attend any 4 questions. Each question carries 25
marks
(Each answer should be of minimum 2 pages / of 300
words)

__________________________________________________
1.

What

are

the

fundamentals

of

staffing

and

manpower? Explain the different methods of selection

recruitment, training and development.
Staffing can be defined simply in the terms of finding the right
aspirant/candidate

and

fitting

him/her

in

the

right

job.

The

term staffing can be defined as the managerial function of hiring and

developing the required personnel to fill in various positions in an
organization. This function involves the determination of the size and
categories of staff requirement. It is also concerned with employing the
right type of people and developing their skills through training.
Fundamentals of Staffing

Staffing basically involves matching jobs and individuals. Organizations

require the services of a large number of personnel. These personnel
occupy the various positions created through the process of organizing.
Each position of the organization has certain specific contributions to
achieve organizational objectives. Hence the person occupying the
position should involves matching have sufficient ability to meet its
requirements. This may require a number of functions like manpower
planning,

recruitment,

selection,

training

and

development,

performance appraisal promotion, transfer, etc. Various authors look at

staffing as one of the elements of organizing Process.
The responsibility for Staffing rests on all managers at all levels of the
organization. It increases as one goes up in the organizational
hierarchy. For example chief executive takes active interest in the
selection of personnel particularly at higher levels. Similarly managers
at other levels are involved in some form of staffing function for
example, besides selection of subordinates for their departments; they
are involved in their Raining performance appraisal, etc. In order to
facilitate the effective performance of staffing function, personnel
department is created in large organizations. This department is
basically staff department. Its primary responsibility is to take those
aspects of staffing which cannot he performed well by line managers
either because discharge of such a f action requires the use of specific
skills not adequately possessed by line managers or because line
managers may not get enough time to go through these aspects.
The staffing function focuses on maintaining and improving the
manpower in an organization.

Staffing is an important managerial function - Staffing function is

the most important managerial act along with planning, organizing,
leading and controlling. The operations of these four functions depend
upon the manpower which is available through staffing function.
Staffing is a pervasive activity - As staffing function is carried out
by all mangers and in all types of concern where business activities are
carried out.
Staffing is a continuous activity - This is because staffing function
continues throughout the life of an organization due to the transfers
and promotions that take place.
The basis of staffing function is efficient management of
personals - Human resources can be efficiently managed by a system
or proper procedure, that is, recruitment,

selection, placement,

training and development, providing remuneration, etc.

Staffing helps in placing right men at the right job -It can be
done effectively through proper recruitment procedures and then
finally

selecting

the

most

suitable

candidate

as

per

the

job

requirements.
Staffing is performed by all managers - depending upon the
nature of business, size of the company, qualifications and skills of
managers, etc
Importance of Staffing
Key to other managerial functions - Staffing function is very closely
related to other managerial areas of the business. It greatly influences
the direction and control in the organization. The effectiveness of other

managerial functions depends on the effectiveness of the staffing

function.
Building healthy human relationships - Staffing function helps to
build proper human relationships in the organization.
Human resources development - Skilled and experienced staff is
the best asset of a business concern. The staffing function helps
developing this asset for the business. It inculcates the corporate
culture into the staff which in turn ensures smooth functioning of all
the managerial aspects of the business.
Manpower Planning
Planning for manpower resources major managerial responsibility to
ensure adequate supply of personnel are the right time both in terms
of their quality and aptitude and effective utilization of these
personnel.
Objectives of Manpower Planning
1. Man power planning enables an organization forecast its manpower
requirement
2. Manpower planning helps the organization to match its power with
skills necessary for achieving its objectives
3. Manpower planning helps organization to know how its personnel
are employed and how their skills are being used
4. Systematic manpower planning facilities similar approach in other
aspects of staffing
Manpower Planning Process

The process of manpower planning entails consideration of several

steps with relevant inputs before the manpower demand can be
arrived at, on the one hand, and identification of the sources of supply
to meet the demand taking into account the several constraints on the
other hand. Manpower planning considers matching all jobs and
individuals in future. Since there is enough time, the organization can
achieve this by taking systematic manpower planning.
Projecting Manpower Requirements The

first

essential

step

in

manpower

planning

is

to

forecast

organization structure that will meet the future needs of the

organization. The basic exercise that has to be undertaken in this
context is to arrive at the scale of business activity over a time period.
Job Analysis Job analysis can be directed along the following lines:
What is the basic objective of the job? What is the purpose of the
segment of the organization to which the job is related?
What types of plans and projects are undertaken in this job?
What types of decisions are to be made by the incumbent on the
job?
What is the authority of the job? How many subordinates will work
under him? Can this job alter the present organization structure?
If yes, in what way?
What type of personnel does the incumbent contact?

 What are the requirements of personal attributes of incumbent in

terms of education, training, experience, apprenticeship, physical

strength, mental capabilities, social skills, etc?
Manpower Inventory
Manpower inventory is related to the identification of key personnel in
the

organization

and

cataloguing

their

characteristics

without

reference to the present positions held by them. It provides information

about present and future personnel being available in the organization.
Recruitment and Selection
Recruitment and selection process starts after the identification of
vacancies to be filled up. While recruitment is concerned with the
identification of sources from where the personnel can be employed
and motivating them to offer for the employment, selection takes care
of choosing the most suitable personnel for employment.
Sources of Manpower Supply
Normally, an organization can fill up its vacancies either through
promotion of people available in the organization or through the
selection of people from outside. Thus there can be two sources of
supply of manpower - external and internal. The first problem is to
identify outside sources. Normally, following outside sources are
utilized for different positions.
Advertisement-Advertisement is the most effective means to

search potential employees from outside the organization.

 Employment

information
employment

Agencies
about

the

agencies.

Many

organizations

prospective
In

our

get

candidates

country,

two

the

through
types

of

employment agencies are operating: public employment

agencies and private employment agencies. There are
employment exchanges run by the government almost in all
districts. The employment seekers get themselves registered
with these exchanges.
On Campus Recruitment Many organizations conduct

preliminary search of prospective employees by conducting

interviews at the campuses of various institutes, universities,
and colleges. This source is quite useful or selecting people to
the posts of management trainees, technical supervisor,
scientist, and technicians.
Deputation Many organizations take people on deputation

from other organizations. Such people are given choice either

to return to their original organization after a certain time or
to opt for the present organization.
Employee

Recommendations

Employee

recommendations can be considered to employ personnel

particularly at the lower levels.
Labour Unions In many organizations, labour unions are

used as source of manpower supply, though at the lower

levels.
Gate Hiring The concept of gate hiring is to select people

who

approach

on

their

own

for

employment

in

the

organization. This happens mostly in the case of unskilled and

semi-skilled workers.
Selection
Selection is a deliberate effort of the organization to select a fixed
number of personnel from a large number of applicants.
Selection Process
A selection process involves a number of steps. The basic idea is to
solicit

maximum

ascertain

their

possible
suitability

information
for

about

employment.

the
Since

candidates
the

type

to
of

information required for various positions may vary, it is possible that

selection process may have different steps for various positions. For
example, more information is required for the selection of managerial
personnel as compared to workers. Similarly, various steps of selection
process may be different for various organizations because their
selection practices may differ. For example, some organizations
conduct selection tests of various types while others may not use
these. However, a standard selection process has the following steps:
screening application forms, selection tests, interview, checking of
references, physical examination, approval by appropriate authority
and placement. Below is a discussion of the various steps.
1. Screening of Applications Prospective employees have to fill
up some sort of application forms. These forms have variety of
information

about

the

applicants

achievements, experience, etc.

like

their

personal

bio-data,

2. Selection Tests Many organizations hold different kinds of

selection tests to know more about the candidates or to reject the
candidates who cannot be called for interview etc.
3. Interview Selection tests are normally followed by personal
interview of the candidates.
4. Checking of References - Many organizations ask the candidates
to provide the names of referees from whom more information about
the candidates can be solicited.
5. Physical Examination - Physical examination is carried out to
ascertain he physical standards and fitness of prospective employees.
The practice of physical examination varies a great deal both in terms
of coverage and timing.
6. Approval by Appropriate Authority - On the basis of the above
steps, suitable candidates are recommended for selection by the
selection committee or personnel department.
7. Placement -After all the formalities are completed, the candidates
are placed on their jobs initially on probation basis. The probation
period may range from three months to two years.
Training and Development
The term training is concerned with imparting specific skills for
particular purposes. For example, Flippo has defined training as "the
act of increasing the knowledge and skills of an employee for doing a
particular job".
Development has been defined as follows: "Management development
is all those activities and programmes when recognized and controlled,

have substantial influence in changing the capacity of the individual to

perform his assignment better and in so doing are likely to increase his
potential for future management assignments".
Training Method
The range of training methods is such that they can provide
opportunity to unskilled to become skilled; they offer people to be
promoted at various levels of the organization. Training methods are
means of attaining the desired objectives in a learning situation. These
methods can be grouped in some categories on various bases.
On-the job training methods
1.

On specific job:
Experience
Coaching
Understudy

2. Position rotation
3. Special projects, task forces, etc.
4. Apprenticeship
5. Vestible school
Off-the job training methods
1. Special courses and lectures
2. Conference
3. Cases
4. Role playing

5. Management games
6. Brainstorming
7. In-basket exercise
8. Sensitivity training
9. Transactional analysis.

On-the-job Training Methods

1. On Specific job - On specific job method is the most common form
of training for all individuals. A person can learn when he is put on a
specific job. He can develop skills for doing the job in better way over
the period of time.
2. Position Rotation - In position rotation, a person is given jobs in
various departments of the organization. The major objective of job
rotation training is to broaden the background of the trainee.
3. Special Projects. Task Forces, etc. - Assignment of people on
special projects, task forces, committees, etc. works like position
rotation.
4. Apprenticeship - Apprenticeship is like understudy in which the
trainee is put under the supervision of person who may be quite
experienced in his field.
5. Vestibule School - The concept of vestibule school is that people
will learn and develop skills while working in the situations similar to
what they will face after they are put on actual jobs.
Off-the-job Training Methods

In off-the-job training, a trainee has to leave his place of working and

devote his entire time for training purpose. During this period, the
trainee does not contribute anything to the organization.
1. Special Courses and Lectures - Special courses and lectures are
knowledge based training methods. In these programmes, an effort is
made to expose participants to concepts and theories, basic principles,
and pure and applied knowledge in any subject area.
2. Conference - In order to overcome the limitations of lecture method
which emphasizes only one way of communication, that is, from trainer
to trainee, many organizations have adopted guided-discussion type of
conferences in their training programmes.
3. Cases - Case method of training has been developed by Harvard
Business School of U.S.A. It is one of the most commonly used training
methods not only for business executives but also for management
institutes.
4. Role Playing - Role playing is a (mining technique which can be
used very easily as a supplement to various training techniques. The
concept of role playing has been drawn from drama and plays in which
actors play the various roles.
5. Management Games - Management games are used to stimulate
the thinking of people to run an organization or its department. The
game can be used for developing skills for a variety of purposes like
investment

strategy,

marketing

strategy,

production

strategy,

collective bargaining, etc.

6. Brainstorming - Brainstorming is a technique to stimulate for idea
generation. Originally applied by Osborn in 1938 in an American

company, the technique is now widely used by many companies,

educational institutions, and other organizations for building ideas.
7. In-basket Exercise - In-basket exercise is a simulation technique
designed around the 'incoming mail' of a manager. A variety of
situations is presented in this exercise which would usually be dealt by
a manager in his typical working day.
8. Sensitivity Training - Probably no other training technique has
attracted so much attention or controversy in recent years as
sensitivity training. Many of its advocates have an almost religious zeal
in their enchantment with the training experience. Some of its critics
match this thing in their attacks on the technique. In part as a result of
criticisms and experience, a somewhat revised approach, often
described as team development training, has appeared.
9. Transactional Analysis Transactional analysis (TA) is used to
develop better interpersonal interactions among individuals. It involves
understanding of personality factors of individuals and their ego with
which they interact.
________________________________________________________________________

2. Explain the nature and functions of Directing.

Directing is said to be the heart of management process. Directing is
influencing people's behavior through motivation, communication,
group dynamics, leadership and discipline .Directing is said to be a
process in which the managers instruct, guide and oversee the
performance of the workers to achieve predetermined goals. Planning,

organizing, staffing has got no importance if direction function does not

take place. Directing is the fourth phase of the management process.
This phase could also be referred as coordinating, or activating. It is
the action phase of management, requiring the leadership and
management

skills

necessary

to

accomplish

the

goals

of

the

organization
Managers give this function a variety of names. Higgins calls it leading.
Other labels are: influencing, coaching, motivating, interpersonal
relations, and human relations.
Purpose:
The purpose of directing is to channel the behavior of all personnel to
accomplish
the organization's mission and objectives while simultaneously helping
them
accomplish their own career objectives

Philosophy of Directing:
Directing initiates action and it is from here actual work starts.
Direction is said to be consisting of human factors. In simple words, it
can be described as providing guidance to workers is doing work. In
field of management, direction is said to be all those activities which
are designed to encourage the subordinates to work effectively and
efficiently.

Direction represents one of the essentials functions of management

because it deals with human relations. Once the organizational plans
have been laid down, the structure being designed and competent
people brought in to fill various positions in organization. Direction is
the managerial function of guiding, motivating, leading, supervising
the subordinates to accomplish desired objectives. Acquiring physical
and human assets will not suffice; what is more important is that
people must be directed toward organizational goals. Without proper
direction and supervision employees become inactive, dull and
inefficient and consequently the physical assets like machinery and
plant will be put to ineffective use.
Basic Concepts about Directing
Direction consists of the process and techniques utilizing in
issuing instruction
And making certain that operations are carried out as originally
planned.
Direction is a complex function that includes all those activities
which are designed to which encourage subordinates to work
effectively and efficiently in both short and long run.
Direction is telling people what to do and seeing that they do it to
the best of their ability.
Directing

deals

with

subordinates and others

To carry out plans.

the

steps

manager

takes

to

get

 Direction

provides

link

between

different

functions

in

an

organization.

Nature and Function of Directing

Directing is to point or aim to point out the proper course; to guide; to
order, to plan and superintend; to command; to counsel. Directing may
thus be conceived as a vector with two dimensions namely (a)
magnitude and (b) aim or direction. Therefore directing must have an
aim which in fact is the goal of the enterprise. Without an aim there is
no direction and therefore, no directing. The areas that are directed are
the enterprise as a whole, the total system, lock stock and barrel-the
enterprise structure and the human elements that man it.
The Human Element
Human element is emphasized in the task of directing. The enterprise
must produce tangible goods and services of a quality and at a price
that must sell in the competitive Market. And this managing has to be
achieved through the human element of the enterprise. Without
harnessing the manpower to its full productive capacity, good work
done in the other managerial functions, such as planning, organizing
and staffing, would remain sterile and unproductive. The human
element itself is a productive factor, whether employees at lower levels
or managers from bottom upward. Each worker is thinking and feeling
unit. Each has a compulsion to work. It is the task of the directing
function that the will and the compulsion are not at loggerheads. More
than this, each man is either a co-operator or a contender. He occupies

a higher centre of power and influence in the organization hierarchy.

He is closer to the enterprise goal-has more access to it-wields more
influence on it, for good or evil.
Individual - and the Group
The Universe of the directing functions is the world of men within the
enterprise. Its subject is the man as the unit. Man is a bundle of
conflicts. This conflict shapes his conduct within the enterprise, in his
interpersonal relationships, how he works for the enterprise, how he
discharges his obligations to other groups and to the enterprise.
Second man is self-inconsistent. It is both a strength and weakness in
his partnership in the enterprise effort. It is also a challenge and
opportunity of the directing authority. He can be changed, directed,
managed or developed. Third man is primarily emotional, egoistic. He
is logical to a point. But if you can rouse him he can work wonders
beyond normal boundaries. Negatively, if he is hurt, affronted, his
wrath is roused, he can be a nuisance. The range between his use and
uselessness is enormous. Managing the ego of the human element of
the enterprise need to be consciously pursued by the directing
function. Every man has a secret life; and this is not only in his
emotional and psychological self but in his way of life. Part of it need
not concern us, as the enterprise manager, but quite a part reveals
itself in his in-enterprise behavior which cannot be overlooked. This
element decides between his openness, candour, cooperative team
spirit and his secretiveness, slyness, subterfuge, habit of pulling strings
and spreading stench and foul air all around. It should be understood

that the organizational man cannot be all open, direct, and straight
forward. Secretiveness should not be encouraged; it is the one surest
way how dysfunctional conflicts raise their heads. Sixth, there are
formal groups within the enterprise, functions divisions, departments,
cadres, grades and others. These groups function openly with assigned
tasks, within the recognized organizations structure. There are other
groups, many of which are unobserved-only felt and perceived. The
inner logic of such informal grouping may be divided into six motives:
1. Survival as in nature, so in an enterprise, the group is a more
effective unit than the lone individual in the struggle for survival.
2. A genuine fondness, commonness of likes and dislikes may provoke
an informal group, although the cementing of such a group is often
looser apt to snap under stress and strain.
3. The motive of gain is a good bond holding together a group. It is
one step more active than the survival group.
4. A group often functions for revenge.
5. A man also forms or joins a group for sport and pleasure, to combat
boredom

and

drudgery

of

the

workplace.

Such

group

is

comparatively harmless and neutral to enterprise interest but may still

cause waste and dissipation of enterprise time and direction.
6. Finally, a man seeks a group where he can feel important, here he
can show off, where he has others who praise him for qualities of which
he seeks to boast and which he desires to possess.
Two important points need to be remembered by the directing
functionary.

Such informal groups often spell potential harm to the enterprise. They
have to be watched, spotted and discouraged.
The Directing Function and the followers - It needs to be
emphasized that the directing function directs, guides, harmonizes and
manages the human element-not as power or wisdom from outside the
zone of operation. The truth is far from it. The followers and
subordinates are very much part of him and of his function. He
appraises through their experience and their own assessment of
situations. He gleans their wisdom and their skills( much as a skilled
gardener gleaning flowers) puts the string of harmony round them and
synthesizes their efforts-labor, initiative, resourcefulness and gives
them a direction, a goal to achieve, and avenue to reach the goal. His
followers and subordinates are his raw materials his bricks and mortar,
clay and timber, the colour and the brush out of which all, he must
raise the architecture, a work or art and achievement. The elements
are all there, bonded, recreated as it were, into a new weapon of power
and success.

3.

Discuss

the

importance

of

Coordination

in

managerial functions?
Coordination is an orderly arrangement of group efforts to maintain
harmony among individuals efforts towards the accomplishment of
common goals of an organisation.

It is the force that integrates all

functions of the management. Managers at each level are required to

perform this function for smooth operations in the organisation. Thus,

coordination synchronizes the efforts of different groups of persons
from various units in an organisation.
Coordination means to integrate all the activities of an organization.
Coordination is defined as Synchronization of efforts from the standpoint of time and the sequence of execution. In general coordination
means bringing together the activities and resources of organisation
and bringing harmony in them. Coordination is the base or primary
function of every manager because various departments of an
organisation are working independently and there is need to relate and
integrate their activities. It is done for achieving the goals of the
organization. There must be proper co-ordination throughout the
organization. In order to achieve organisational objectives efficiently
and effectively, the managers have to give a common direction to
group efforts and the working of different departments. The process by
which a manager integrates their activities is known as coordination.
In any organization, each employee has his own values and
aspirations. Management tries to maintain a good bond between
organisational and individual objectives. It utilizes their knowledge and
experience of individuals for the achievement of organisational
objectives. At the same time, it also tries to do justice to employees
objectives.
The main Elements of Coordination are:
(i) Integration:
Coordination

integrates

all diverse

interests

and

individuals to achieve common goals of an organisation.

efforts

of all

(ii) Balancing:
Coordination provides mutual support to various activities so that goals
of different units are in line with one another.
(iii) Timing:
Coordination adjusts the time schedules of different activities so that
they can support one another to deliver the final result in time.
Coordination is necessary because:
Coordination affects all the functions of management, viz.,
Planning, Organizing, Staffing, etc.
Coordination is a function of management.
Coordination is a principle of management, and all other
principles are included in this one principle, i.e. Co-ordination is
the "Mother Principle".
According to Mary Parker Follett, Coordination is the "Plus-value of
the group". That is, if there is good Co-ordination then the
combined group achievement will be greater than the total of the
individual achievement, i.e. 2+2=5. This is impossible in the
physical world, but it is possible in human affairs through coordination.
Coordination is not really a separate function of management but in
fact it is the essence of management. It is like a thread of garland,
flowers of which are different managerial functions. It should be
performed right from the planning stage to the controlling stage.
Absence of coordination weakens the effect of authority-responsibility
relationships in the organisation.

Coordination activates each function of management and makes them

effective and purposeful. It helps in achieving harmony among
individual efforts for attaining organisational goals. It is present in all
the activities of an organisation such as production, sales, finance etc.
It synchronizes the working of different groups of persons. It helps in
reducing time, cost and in increasing efficiency, morale of the
employees. It establishes direct contact between the management and
the employees.
Thus, coordination:
a. Helps in achieving organisational objectives with minimum of
conflict.
b. Provides the required quality, timing, amount and sequence of
efforts.
c. Brings

harmony

in

efforts

of

different

departments

and

individuals.
Coordination is considered as the essence of management because of
following reasons
1. Coordination is needed to perform all the functions of
management:
(i) In planning coordination is required between main plan and
supportive plans of different departments.
(ii) In organising coordination is required between different resources of
an

organization

accountability.

and

also

between

authority

responsibility

and

(iii) In staffing coordination is required between skill of a person and

job assigned to him, between efficiency and compensation etc.
(iv) In directing function coordination is required between superior and
subordinates, between orders, instructions, guidelines and suggestions
etc.
(v) In controlling function coordination is required between standards
and actual performance.
2. Coordination is required at all the levels:
(i) Top level requires coordination to integrate all the activities of
organisation and lead the efforts of all the individuals in one common
direction.
(ii) Coordination is required at middle level to balance the activities of
different departments so that these can work as a part of one
organisation only.
(iii) Lower level requires coordination to integrate the activities of
workers towards achievement of organisational objectives.
3.

Coordination

is

the

most

important

function

of

an

organization:
Any company which fails to coordinate its activities cannot survive and
run successfully for a long period of time.

Characteristics of Coordination:
1. Coordination Integrates Group Efforts:

Coordination gives a common direction to group efforts to ensure that

work is performed according to the plans.
2. Coordination Ensures Unity of Action:
Coordination integrates the functions of all departments and ensures
that all activities aim at accomplishment of organisational objectives.
3. Coordination is a Continuous Process:
Coordination is a never ending process. It starts with the functions of
planning and continues till controlling. It is an ongoing process,
required for the efficient functioning of the organisation.
4. Coordination is all Pervasive Function:
All

the

activities

of

an

organisation

are

interrelated

and

interdependent. Thus, coordination is required at all levels and in all

departments.
5. Coordination is the Responsibility of all Managers:
Every manager is required to perform the function of coordination. For
example, Operational level management coordinates the activities of
its workers so that work is performed according to plans.
6. Coordination is a Deliberate Function:
A manager is required to coordinate the efforts of different people
towards common goal of the organisation. Coordination gives common
direction to the efforts of the employees who are willing to work and
cooperate.

Importance of Coordination:
1. Size of the Organization:

The need of coordination arises when the organization grows in size.

Growth here means increase in number of employees. Employees with
different values, experiences and objectives become part of the
organization to satisfy their needs
2. Functional Differentiation:
The organisation is divided into different departments, sections or
divisions. The need of coordination is required to ensue these units
remain a part of the organisation and move towards the realization of
pre-determined organisation goal.
3. Specialisation:
The organisation hire specialists who that they are competent to
handle their jobs. They do not consult departmental heads. This often
leads to conflict among specialists and departmental heads. Therefore,
coordination is needed to reconcile differences to ensure unity of
action achieve organisational objective
The need and importance of coordination can be judged from
these points:
1. Coordination encourages team spirit
Coordination arranges the work and the objectives in such a way that
there are minimum conflicts and rivalries. It encourages the employees
to work as a team and achieve the common objectives of the
organization. This increases the team spirit of the employees.
2. Coordination gives proper direction

Coordination integrates (bring together) these activities for achieving

the common goals or objectives of the organization. Thus, coordination
gives proper direction to all the departments of the organization.
3. Coordination facilitates motivation
Coordination gives complete freedom to the employees. It encourages
the employees to show initiative. It also gives them many financial and
non-financial incentives.
4. Coordination makes optimum utilization of resources
Coordination helps to bring together the human and material resources
of the organization. It helps to make optimum utilization of resources.
5. Coordination helps to achieve objectives quickly
Coordination helps to minimize the conflicts, rivalries, wastages, delays
and other organizational problems
6. Coordination improves relations in the organization
The Top Level Managers coordinates the activities of the Middle Level
Managers and develop good relations with them. Similarly, the Middle
Level Managers coordinate the activities of the Lower Level Managers
and develop good relations with them. Overall improves the relations in
the organization.
7. Coordination leads to higher efficiency
Since coordination leads to optimum utilization of resources it results in
more returns and low cost. Thus, coordination leads to higher
efficiency.
8. Coordination improves goodwill of the organization
Coordination helps an organization to sell high quality goods and
services at lower prices. This improves the goodwill of the organization

and helps it earn a good name and image in the market and corporate
world.
So in short we can say without coordination no company can work
efficiently and earn profit. It ensures unity of action among individuals,
work groups and departments, and brings harmony in carrying out the
different activities and tasks so as to achieve the organizational goals
efficiently. Coordinating function involves synchronization of different
efforts of the various departments so that the planned objectives are
achieved with minimum conflict. The coordinating function of the
management prevents overlapping and conflict so that the unity of
action is achieved. It is a hidden force which binds all the other
functions of management.
Coordinating function is an essential function for achieving a balanced
organizational performance. The effective and efficient coordinating of
internal and external organizational components help in reducing
internal and external complexities and uncertainties in the organization
thus increasing productivity, integrating macro and micro level
organizational dynamics, connecting of roles among inter and intra
organizational

groups,

bridging

performance

and

trust

among

competing organizational groups, and defining organizational tasks and

their accomplishment. Effective and efficient implementation of the
coordinating function in the organization needs the following.

It needs professional, competent leadership, a democratic style

that leads to trust, open communication, and ease of information
flow.

It needs a constant definition and communication of mission and

objectives that are understood by all the managers.

It needs an open, two-way channel of communication.

It involves a sharing atmosphere as well as commonly agreed on

direction.

Because

effective

coordinating

function

requires

cooperation and communication, the meeting technique is still the

most effective format for assuring the interrelationships among
the various job responsibilities.

4.

What

is

the

importance

of

planning

in

an

organization? Describe the different plans with their

objectives.
Planning is the primary function of management and occupies the first
position in the management process. It is the starting point of the
whole management process as other management functions are
related to planning function. Planning is the selecting and relating of
facts and the making and using of assumptions regarding the future in
the visualization and formulation of purposed activities believed
necessary to achieve desired results. Planning is deciding in the
present what to do in the future. It is the process whereby companies
reconcile their resources with their objectives and opportunities.
Planning means to decide the objectives clearly and to prepare a plan.
Planning is deciding in advance what to do, how to do it, when to do it,
and who is to do it. Planning bridges the gap between where we are

and where we want to go. It makes it possible for things to occur which
would not otherwise happen.
Importance of Planning
Planning is the first and most important function of the management. It
is needed at every level of the management. In the absence of
planning all the business activities of the organization will become
meaningless. The importance of planning has increased all the more in
view of the increasing size of organizations in the absence of planning;
it may not be impossible but certainly difficult to guess the uncertain
events of future.
1. Planning facilitates decision making: Decision making means
the process of taking decision. Under it, a variety of alternatives are
discovered and the best alternative is chosen. But it is important to
determine

the

objectives

before

the

discovery

of

alternatives.

Objectives are determined under the process of planning. So it can be

said that planning facilitates decision making.
2. Planning reduce risk of uncertainty: Planning is always done for
future and future is uncertain. With the help of planning possible
changes in future are anticipated and various activities are planned in
the best possible way.
3. Planning reduces overlapping and wasteful activities : Under
planning, future activities are planned in order to achieve objectives.
The problems of when, where, what and almost decided. This puts an
end to disorder. In such situation coordination is established among

different activities and departments. It puts an end to overlapping and

wasteful activities.
4. Planning provides direction: Under the process of planning the
objectives of the organization are defined in simple and clear words.
The outcome of this is that all the employees important role in the
attainment of the objectives of the organization.
5.Planning establishes standards for controlling: By determining
the objectives of the organisation through planning all the people
working in the organization and all the departments are informed
about when, what and how to do things. Standards are laid down about
their work, time and cost. Under controlling, at the time of completing
the work, the actual work done is compared with the standard work
and deviations are found out and if the work has been done as desired
the person concerned are held responsible.

Characteristics of Planning
Planning focuses on achieving the objectives: Management begins with
planning and planning begins with the determining of objectives. In the
absence of objectives no organization can ever be thought about.
Planning is the primary function of management: Planning is the first
important function of management. The other functions organising,
staffing, directing and controlling come later. In the absence of
planning no other function of management can be performed.
Planning is continuous: Planning is the process which begins with the
beginning of business itself and ends with the ending of the business. It

means that as long a business exists, the planning process is

continuous.
Planning is Futuristic: Planning decides the plan of action-What is to be
done, how is to be done, when is to be done, by who is to be done, all
the questions are related to future. Under the planning, answers to
these questions are found out. While an effort is made to find out these
answer.
Planning is a mental exercise: Planning is known as a mental exercise
as it is related to thinking before doing something. A planner has
mainly to think about the following questions. (1) What to do?
(3)When to do it?
(2) How to do it?

(4) Who is to do it?

Types of Planning
Strategic Planning
Top-level managers, formulate long-term strategic planning to reinforce
the firms mission (the mission clarifies organizational purpose)
Strategic plans are specified for five years period or more; but
circumstances dictate the planning horizon.
Tactical Planning
Middle management is responsible for translating strategies into
shorter-term tactics. Tactical plans are often specified in one-year
increments. (E.g. annual budget) Translating strategic plans into
measurable tactical objectives is important because most strategic
objective is rather vague.
Operational Planning
Operational

planning

is

accomplished

by

fist-line

managers.

Operational planning is most concerned with budgets, quotas and

schedules. These are refinements of tactical objectives in which work is

defined and results are measured in small increments. Time horizon for
operational planning is very short. Most plans at this level reflect
operational cycles.
Contingency Planning
Contingency plans allow a manager to be flexible and change-savvy by
providing an alternative course of action, which can be implemented if
and when an original plan fails to produce the anticipated result. It is
an alternative course of action, which can be implemented if and when
an original plan fails to produce the anticipated result. Having a
contingency plan might seem like extra work, but it's better to have it
and not need it than to need it and not have it.
Reasons for Planning
1. Leads to success in the achievement of goals and objectives
a. Brings about behaviour that leads to desired actions and
outcomes
b. Makes performance of tasks more meaningful
c. Helps nurses relate what they are doing to their professional
goals
2. Provides for the effective available personnel and facilities
a. E.g. projecting the number of nurses needed to care for a
group of patients or ordering enough supplies for a unit.
3. Helps to cope with crisis and problems calmly and efficiently
pervade
a. Predict future activities, anticipate future problems, and plan
for alternatives to prevent or cope with potential problems.
4. Reduces element of change
a. Study what has been successful or unsuccessful
b. Discover the need for change
5. Necessary for effective control

a. Enables

manager

accomplishment

to
of

design

effective

goals

and

way

objectives

to

ensure
through

coordination and collaboration between and among people in

the organization and effective use of resources
b.
Planning Process
There are several models that could be used for planning, but they are
all very similar. The planning process contains six steps:
1. Establishment of Objectives
Planning starts with the setting of goals and objectives to be
achieved.
Moreover objectives focus the attention of managers on the
end results to be achieved.
2. Establishment of Planning Premises
Planning premises are the assumptions about the lively
shape of events in future. They serve as a basis of planning.
Establishment of planning premises is concerned to take
such steps that avoids these obstacles to a great extent.
3. Choice of alternative course of action
When forecast are available and premises are established, a
number of alternative course of actions have to be
considered.
For this purpose, each and every alternative will be
evaluated by weighing its pros and cons in the light of
resources available and requirements of the organization.
4. Formulation of derivative plans

 Derivative plans are the sub plans or secondary plans which

help in the achievement of main plan. Secondary plans will
flow from the basic plan.
Derivative plans indicate time schedule and sequence of
accomplishing various tasks.
5. Securing Co-operation
After the plans have been determined, it is necessary rather
advisable to take subordinates or those who have to
implement these plans into confidence.
6. Follow up/Appraisal of plans
This is done on the basis of feedback or information received
from departments or persons concerned.
This enables the management to correct deviations or
modify the plan.