FACULTY OF BUSINESS ADMINISTRATION

B.COM
PRINCIPLES OF MANAGEMENT SBAX 1005

UNIT V: COORDINATION & CONTROL

Coordination- need, type and techniques and requisites for excellent Co-ordination- Controlling
Meaning and Importance Control Process

CO-ORDINATION

Coordination is the process of synchronizing activities of various persons in the organization in

order to achieve goals. It is undertaken at every level of management. It deals with the task of
blending efforts in order to ensure successful attainment of an objective. It is accomplished by
means of planning, organizing and controlling. It is a part of all phases of administration and that
is not a separate and distinct activity.

Definitions of Coordination:

1. According to Mooney and Reelay, Co-ordination is orderly arrangement of group

efforts to provide unity of action in the pursuit of common goals.
2. According to Charles Worth, Co-ordination is the integration of several parts into an
orderly hole to achieve the purpose of understanding.

Types of co-ordination:

The co-ordination may be divided on different bases, namely;

1. Scope on the basis of scope or coverage, co-ordination can be.

a. Internal refers to co-ordination between the different units of an organisation within

and is achieved by integrating the goals and activities of different departments of the
enterprise.

b. External refers to co-ordination between an organisation and its external environment

comprising government, community, customers, investors, suppliers, competitors,
research institutions, etc. It requires proper match between policies and activities of the
enterprise and the outside world.

2. Flow on the basis of flow, co-ordination can classified into:

a. Vertical implies co-ordination between different levels of the organisation and has to
ensure that all the levels in the organisation act in harmony and in accordance with the
goals and policies of the organisation. Vertical co-ordination is assured by top
management through delegation of authority.

b. Horizontal or lateral refers to co-ordination between different departments and other

units at the same level of the management hierarchy. For instance, co-ordination between
production department and marketing department is horizontal or lateral co-ordination.

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Techniques of co-ordination:

The main techniques of effective co-ordination are as follows.

1. Sound planning unity of purpose is the first essential condition of co-ordination.

Therefore, the goals of the organisation and the goals of its units must be clearly defined.
Planning is the ideal stage for co-ordination. Clear-cut objectives, harmonised policies
and unified procedures and rules ensure uniformity of action.

2. Simplified organisation a simple and sound organisation is an important means of co-

ordination. The lines of authority and responsibility from top to the bottom of the
organisation structure should be clearly defined. Clear-cut authority relationships help to
reduce conflicts and to hold people responsible.

3. Effective communication open and regular communication is the key to co-

ordination. Effective interchange of opinions and information helps in resolving
differences and in creating mutual understanding. Personal and face-to-face contacts are
the most effective means of communication and co-ordination

4. Effective leadership and supervision effective leadership ensures co-ordination both

at the planning and execution stage. Sound leadership can persuade subordinates to have
identity of interest and to adopt a common outlook. Personal supervision is an important
method of resolving differences of opinion.

5. Chain of command authority is the supreme co-ordinating power in an organisation.

Exercise of authority through the chain of command or hierarchy is the traditional means
of co-ordination. Co-ordination between interdependent units can be secured by putting
them under one boss.

6. Liaison departments where frequent contacts between different organisational units

are necessary, liaison officers may be employed

7. General staff in large organisations, a centralised pool of staff experts is used for co-
ordination. A common staff group serves as the clearing house of information and
specialised advice to all department of the enterprise. Such general staff is very helpful
in achieving inter-departmental or horizontal co-ordination.

8. Voluntary co-ordination when every organisational unit appreciates the workings of

related units and modifies its own functioning to suit them, there is self-co-ordination.
Self-co-ordination or voluntary co-ordination is possible in a climate of dedication and
mutual co-operation.

Principles of co-ordination (requisites for effective co-ordination)

Mary Parker Follett has laid out four principles for effective co-ordination;
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 1. Direct personal contact according to this principle co-ordination is best achieved
through direct personal contact with people concerned. Direct face-to-face
communication is the most effective way to convey ideas and information and to remove
misunderstanding.

2. Early beginning co-ordination can be achieved more easily in early stages of planning
and policy-making. Therefore, plans should be based on mutual consultation or
participation. Integration of efforts becomes more difficult once the unco-ordinated plans
are put into operation. Early co-ordination also improves the quality of plans.

3. Reciprocity this principle states that all factors in a given situation are interdependent
and interrelated. For instance, in a group every person influences all others and is in turn
influenced by others. When people appreciate the reciprocity of relations, they avoid
unilateral action and co-ordination becomes easier.

4. Continuity co-ordination is an on-going or never-ending process rather than a once-

for-all activity. It cannot be left to chance, but management has to strive constantly.
Sound co-ordination is not fire-fighting, i.e., resolving conflicts as they arise.

Difference between coordination and cooperation

1. Coordination should not be confused with cooperation because the two terms denote
quite different meanings. Cooperation refers to the collective efforts of people who
associate voluntarily to achieve specified objectives. It indicates merely the willingness
of individuals to help each other.
2. Coordination is the result of voluntary attitudes of a group of people. Coordination is
much more inclusive, requiring more than the desire and willingness to cooperate of the
participants whereas, cooperationinvolves a deliberate and conscious effort to bring
together the activities of various individuals in order to provide unity of action. It requires
concurrence of purpose, harmony of effort and concerted action.

Co-ordination is the Essence of Management

"Co-ordination is the Essence of Management." The meaning of this sentence implies, Co-
ordination affects all the functions of management. In other words, Co-ordination affects
Planning, Organising, Staffing, Directing, and Controlling.

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1. Planning and Coordination: According to Harold Koontz and Cyril O'Donnell, "Planning
is deciding in advance what to do, how to do it, when to do it and who is to do it."There are
many departmental plans in a business. These include, Purchase Plan, Sales Plan, Production
Plan, Finance Plan, etc. All these plans must be coordinated (brought together) and one Master
Plan must be made for the full business. Therefore, Planning is affected by Coordination.

2.Organising and Coordination:There are many steps in Organising. All these steps must be
coordinated, for achieving the objectives of the business. The Top Level Managers must
coordinate the efforts of the Middle Level Managers. Similarly, the Middle Level Managers must
coordinate the efforts of the Lower Level Managers. Furthermore, the Lower Level Managers
must also coordinate the efforts of the workers. Therefore, Organisation is affected by
Coordination.

3. Staffing and Coordination: Staffing involves Recruitment and Selection, Training,

Placement, Promotion, Transfer, etc. All these steps must be properly coordinated. Similarly, the
efforts of all the individuals, groups and departments must be coordinated for achieving the
objectives of the business. Therefore, Staffing is affected by Coordination.

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4. Directing and Coordination: Directing means giving necessary information, proper
instructions and guidance to sub-ordinates. This results in coordination. Therefore, Direction is
affected by Coordination.

5. Controlling and Coordination: In Controlling the standards are first fixed. Then the
performances are measured. Performances are compared with the standards, and the deviations
are found out. Then the deviations are corrected. So, controlling involves many steps. All these
steps must be properly coordinated. If coordination is not proper, Control will surely fail.
Therefore, Control is also affected by Coordination.

Conclusion on Coordination

Now we can conclude that all the functions of management are affected by coordination. Hence
coordination is essential for achieving the objectives of the organisation. It is also required for
the survival, growth and profitability of the organisation. Coordination encourages team spirit,
gives right direction, motivates employees, and makes proper utilisation of resources. Therefore,
Coordination is rightly called the "Essence of Management"

CONTROLLING:

Controlling consists of verifying whether everything occurs in conformities with the plans
adopted, instructions issued and principles established. Controlling ensures that there is effective
and efficient utilization of organizational resources so as to achieve the planned goals.
Controlling measures the deviation of actual performance from the standard performance,
discovers the causes of such deviations and helps in taking corrective actions.

Definitions of Controlling;

1. According to Brech, Controlling is a systematic exercise which is called as a process of

checking actual performance against the standards or plans with a view to ensure
adequate progress and also recording such experience as is gained as a contribution to
possible future needs.
2. According to Donnell, Just as a navigator continually takes reading to ensure whether
he is relative to a planned action, so should a business manager continually take reading
to assure himself that his enterprise is on right course.

Features of Controlling Function

Following are the characteristics of controlling function of management-

a. Controlling is an end function- A function which comes once the performances are
made in confirmities with plans.

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 b. Controlling is a pervasive function- which means it is performed by managers at all
levels and in all type of concerns.
c. Controlling is forward looking- because effective control is not possible without past
whenever required.
d. Controlling is a dynamic process- since controlling requires taking reviewal methods;
changes have to be made wherever possible.
e. Controlling is related with planning- Planning and Controlling are two inseparable
functions of management. Without planning, controlling is a meaningless exercise and
without controlling, planning is useless. Planning presupposes controlling and
controlling succeeds planning.

Process of Controlling

Controlling as a management function involves following steps:

1. Establishment of standards- Standards are the plans or the targets which have to be
achieved in the course of business function. They can also be called as the criterions for
judging the performance. Standards generally are classified into two-

a. Measurable or tangible - Those standards which can be measured and expressed

are called as measurable standards. They can be in form of cost, output,
expenditure, time, profit, etc.

b. Non-measurable or intangible- There are standards which cannot be measured

monetarily. For example- performance of a manager, deviation of workers, their
attitudes towards a concern. These are called as intangible standards.

Controlling becomes easy through establishment of these standards because controlling is

exercised on the basis of these standards.

2. Measurement of performance- The second major step in controlling is to measure the

performance. Finding out deviations becomes easy through measuring the actual
performance. Performance levels are sometimes easy to measure and sometimes difficult.
Measurement of tangible standards is easy as it can be expressed in units, cost, money
terms, etc. Quantitative measurement becomes difficult when performance of manager
has to be measured. Performance of a manager cannot be measured in quantities. It can
be measured only by-

a. Attitude of the workers,

b. Their morale to work,

c. The development in the attitudes regarding the physical environment, and

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 d. Their communication with the superiors.

It is also sometimes done through various reports like weekly, monthly, quarterly, yearly reports.

3. Comparison of actual and standard performance- Comparison of actual performance

with the planned targets is very important. Deviation can be defined as the gap between
actual performance and the planned targets. The causes can be-

a. Erroneous planning,

b. Co-ordination loosens,

c. Implementation of plans is defective, and

d. Supervision and communication is ineffective, etc.

4. Taking remedial actions- Once the causes and extent of deviations are known, the
manager has to detect those errors and take remedial measures for it. There are two
alternatives here-

a. Taking corrective measures for deviations which have occurred; and

b. After taking the corrective measures, if the actual performance is not in

conformity with plans, the manager can revise the targets. It is here the
controlling process comes to an end. Follow up is an important step because it is
only through taking corrective measures, a manager can exercise controlling.

Importance of Controlling;

a. Control system acts as an adjustment in organisational operations. It mainly checks

whether plans are being observed and suitable progress towards the objectives is being
made or not, and if necessary any action to control the deviations.

b. Policies and other planning elements set by the managers become the basis and reason for
control. Through control it is monitored whether the individuals adhere to those
frameworks or not so that organisation and management can verify the quality of various
policies.

c. Exercising some authority and forming superior-subordinate relationship throughout the

organisation can be established through controlling.

d. With the presence of authority or control the individuals will work properly and exhibit
better performance to reach the targets set for them.

e. Control system ensures the organisational efficiency and effectiveness. When Proper
system exists the organisation effectively achieves its objectives.

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Requirements of Effective Control System

a. Focus on Objectives: The control system should always focus on objectives. It should
aim to achieve the objectives of the organisation.

b. Suitability: The control system should be suitable to the needs of the organisation.

c. Promptness: The control system should be prompt. That is, it should find out the
deviations quickly. This will help the management to correct the deviations quickly.

d. Flexibility: The control system should be flexible. It should change according to the
changes in plans, situations, environments, etc. A rigid control system will always fail.
Hence flexibility is necessary for a control system.

e. Forward Looking: The control system should be forward-looking. It should forecast the
future deviations. That is, it should find out the deviations before it happens. It should
also take steps to prevent these future deviations.

f. Economical:The control system should be economical. This means the cost of the
control system should not be more than its benefits.

g. Simplicity:The control system should not be complicated. It should be easy to

understand and simple to use. Those who are going to use the control system should
understand it clearly and completely.

h. Motivating: The control system should be motivating. That is, it should give more
importance to preventing the mistakes and less importance to punishing the employees.
So, it should encourage, not discourage the employees.

i. Suggestive: The control system should be suggestive and it should give complete answers
for the following questions :- (a) what is the Problem? (b)Where is the Problem? (c)How to solve
the Problem?

j. Proper Standards:The control system should have proper standards. The standards should
be very clear. They should be definite, verifiable, specific and measurable. They should not be
too high or too low.

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Question Bank

Section-A

1. Define Coordination.
2. State the differences between Coordination and Cooperation.
3. List the four principles of coordination.
4. Define controlling.
5. State the features of controlling.

Section-B

1. Explain the various types of Coordination.

2. Discuss the techniques of coordination.
3. Coordination is the essence of Management- Explain.
4. Explain the importance of controlling.
5. Discuss the various steps in controlling.

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