Technological Innovation Management

and Entrepreneurship

Module 2
Organizing and Staffing: Organization-Meaning, Characteristics, Process of
Organizing, Principles of Organizing, Span of Management (meaning and
importance only), Departmentalisation, Committees- Meaning, Types of
Committees; Centralization Vs Decentralization of Authority and Responsibility;
Staffing-Need and Importance, Recruitment and Selection Process
Directing and Controlling: Meaning and Requirements of Effective Direction,
Giving Orders; Motivation-Nature of Motivation, Motivation Theories (Maslow’s
Need-Hierarchy Theory and Herzberg’s Two Factor Theory); Communication –
Meaning, Importance and Purposes of Communication; Leadership-Meaning,
Characteristics, Behavioural Approach of Leadership; Coordination-Meaning,
Types, Techniques of Coordination; Controlling – Meaning, Need for Control
System, Benefits of Control, Essentials of Effective Control System, Steps in
Control Process
2
 Text Books
1. Principles of Management – P.C Tripathi, P.N Reddy, McGraw
Hill Education, 6th Edition, [Link]-13:978-93-5260-535-4.
2. Entrepreneurship Development Small Business Enterprises-
Poornima M Charantimath, Pearson Education 2008, ISBN 978-81-
7758-260-4.
3. Dynamics of Entrepreneurial Development and Management by
Vasant Desai. HPH 2007, ISBN: 978-81-8488-801-2.
4. Robert D. Hisrich, Mathew J. Manimala, Michael P Peters and Dean
A. Shepherd, “Entrepreneurship”,8th Edition,Tata Mc-graw Hill
Publishing [Link].-new Delhi, 2012

● *Presentation Contents based on the Text Books

3
 ORGANISATION
● 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.

4
 MEANING OF ORGANIZING
● 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.

5
 CHARACTERISTICS OF
ORGANISATION
● A purpose, goal which indicated in planning.
● Activities required to achieve the purpose
● Classification of activities into jobs
● Establish relationships between jobs

6
TOPOLOGY OF ORGANIZATIONS

● Benifit their owners.

● Benifit their members
● Benifit their clients
● Benifit the whole society

7
 Process of ORGANISING

● Consideration of objectives
● Deciding organisational boundaries
● Grouping of activities into departments
● Analysing interdepartmental relations and deciding
which will be key department
● Determining levels at which various types of decisions
are to be made
● determining the span of management
● Setting up coordination mechanism.

8
 PRINCIPLES OF ORGANIZATION
● 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:
(16) Acceptability

9
 PRINCIPLES OF ORGANIZATION

(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.

10
 PRINCIPLES OF ORGANIZATION
(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.

11
 PRINCIPLES OF ORGANIZATION
(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.

12
PRINCIPLES OF ORGANIZATION

(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.

13
 PRINCIPLES OF ORGANIZATION
(5) Scalar principle:
● This is also known as chain of [Link] must
be clear lines of authority running from the top to the
bottom.
● Unbroken line of authority from top level to bottom
level.

14
 PRINCIPLES OF ORGANIZATION
(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.

15
 PRINCIPLES OF ORGANIZATION
(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.

16
 PRINCIPLES OF ORGANIZATION
(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.

17
 PRINCIPLES OF ORGANIZATION
(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.

18
 PRINCIPLES OF ORGANIZATION
(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.

19
 PRINCIPLES OF ORGANIZATION
(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.

20
 PRINCIPLES OF ORGANIZATION
(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.

21
 PRINCIPLES OF ORGANIZATION
(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.

22
 PRINCIPLES OF ORGANIZATION
(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.

23
 PRINCIPLES OF ORGANIZATION
(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.
(16) Acceptability:
● The structure of organisation should be acceptable to
people who constitute it.
● 2 things happen if people oppose the structure: it is
modified gradually by people or it is used ineffectively.
24
 Span of Management- Meaning
and importance
● Also Referred as A span of control
● It indicates the number of subordinates reports report
directly to the manager

25
 DEPARTMENTATION
● 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.

26
 DEPARTMENTATION
1) Departmentation by functions:
2) Departmentation by Technology

Purpose of Departmentation
1) Departmentation by product:
2) Departmentation by customers:
3) Departmentation by territory:
4) Departmentation by Process:
5) Departmentation by time:

27
1) Departmentation by functions:

● 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.

28
 1) Departmentation by functions:

29
 1)Departmentation by functions:

● Advantages
● It is simple and suitable for small organization
which manufactures limited number of products.
● It promotes specialization.
● It leads to improve planning and control of key functions.
● Manpower and other resources of the company are
effectively used.

30
1) Departmentation by functions:

● 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.

31
 2) Departmentation by product:

● This form is suited for a large organisation manufacturing

variety of products.
● All activities related to a particular product line may be
grouped together under the direction of a semi
autonomous division manager.
● Several companies such as Godrej,TATA have
product based departments.

32
 2)Departmentation by product:

33
 2)Departmentation by products:

● 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.

34
 2)Departmentation by products:
● 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.

35
 3)Departmentation by customers:
● 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.

36
 4)Departmentation by territory:
● 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.

37
 4)Departmentation by territory:
● 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.

38
 4)Departmentation by territory:
● 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.

39
 4)Departmentation by territory:

40
 5)Departmentation by Process:
● 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 equipment's used.
41
 6)Departmentation by Time:
● 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 organisations
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.

42
 6)Departmentation by Time:
● Advantages:
• Service can be rendered, that goes beyond the normal
8 hour shift.
• Facilities use of processes that cannot be
stopped or interrupted.
• Expensive capital equipment can be better utilized.
• High and continuous production per day.

43
 6)Departmentation by Time:
● Disadvantages:
• Lacks good and efficient supervision during night shift.
• Lack of effective coordination and communication from
people of one shift to next shift.
• Inconvenient for people to work in night shifts and
more difficult during shifts changes from day to night.

44
 Committees
● Group of people formally assigned some task.
● Committees are often set up for group participation.
● Types of committees: advisory committee and
executive committee.

45
 Authority and Responsibility

● According to Henri Fayol authority is defined as “The right

to give order and compel his subordinates to perform certain
task”
● The term authority refers to the rights conferred on a person
to order his subordinates.
● In an organization, appropriate authority is given to a
particular person on his position on hierarchy.
● Each manager is given degree of authority in order to meet
his responsibilities.

46
 Authority and Responsibility

● Without required authority, a manager may find it difficult

to exercise power and work effectively in an organization.

47
 Responsibility
● Just an authority is the right of a superior to issue commands;
responsibility is the obligation of a subordinate to obey those
commands.

● When a superior assigns some work to subordinates, it

becomes his responsibility to perform it.

● Responsibility is divided into two parts namely operating

responsibility and ultimate responsibility.

● The subordinates assumes only operating responsibility and

superior retains ultimate responsibility.

● If the subordinate fails to perform the job (operating

responsibilities) the superior is held responsible for this
48 failure (Ultimate responsibility)
 Responsibility
● Responsibility may be specific or continuing.
● It is specific when on being discharged by a subordinate,
it does not arise again.
● The responsibility of a foreman is continuing nature.
● The more authority a person gets, the more responsibility
he will have to carry.
● Authority should equal responsibility.

49
 DELEGATION OF AUTHORITY
● A manager in an enterprise cannot do all the tasks necessary
for the accomplishment of group goals.
● He therefore assigns same part of his work to his
subordinates and grants them necessary authority to make
decisions.
● This downward pushing of authority to make decisions is
known as “delegation of authority”.
● The delegating manager always retains the overall
authority which was assigned to him to perform his
functions.

50
 DELEGATION OF
AUTHORITY
● Advantages of delegation of authority.
• It relieves the manager of his heavy work load.
• It leads to better decision. This is because, the
subordinates are closest to the situation and have the
best view of the facts, are in better positions to make
decision.
• It speeds up decision-making.
• It helps to train the subordinates and builds moral.

51
 Authority Responsibility

Authority refers to the power to command Responsibility refers to

accountability for actions.

Authority comes with the Responsibility matches the authority

position in organisation. conferred on any position

Authority can be delegated Responsibility can never be delegated.

Authority is the right to give order and Responsibility may be defined as the
power to take obedience. obligation to perform assigned duties.

52
CENTRALIZATION AND
DECENTRALIZATION
● Centralisation refers to the extent to which decision
making process rests with the top management.

● If the top management makes all the important decision in

the organisation with little or no participation from the
lower level employees, then the organisation is said to be
a highly centralized orgainsation.

● Everything that goes to reduce the subordinate’s role in

decision making is centralization.

53
 CENTRALIZATION AND
DECENTRALIZATION
● If the organisation encourages lower level personnel to
participate in the decision making process by giving them
greater freedom, the organisation is called a decentralized
organisation.

● In decentralized setup, ultimate authority to command and

ultimate responsibility for the results is localized as far down in
the organization.

● According to Allen “Decentralization refers to the systematic

effort to delegate to the lower levels all authority except that
which can only be exercised at central points”.
54
 CENTRALIZATION AND
DECENTRALIZATION
● Advantages in decentralization:
(1) It eases the burden of top level managers.
(2) Decentralization permits quicker and better decision
making.
(3) With decentralization capable managers can be
developed
(4) Promotes participation in decision making and improves
morale and motivation.

55
CENTRALIZATION AND
DECENTRALIZATION
● Disadvantages of decentralization:
(1) It increases administrative expenses.
(2) It may create problems in bringing coordination among
various units.
(3) It may bring about inconsistencies in the company,
because uniform procedures may not be followed for
the same type of work in various divisions.

56
 Centralization De centralization

1)Centralization is preferred if Decentralization is preferred if

experience is concentrated at the top experience is spread over the
level hierarchy.

2)This is more stable in simple and This is more appropriate in complex

stable organisation and uncertain organisation

3)This is preferred if the lower level This is preferred if the lower level
managers are not competent enough to managers are competent to take decision.
take decision.

4)Centralization is needed if the decision It is better if the decisions taken

to be taken are significant are insignificant and relatively
minor ones.

57
 Centralization De centralization

5)Organisation tends to be centralized if Organisation tend to be de

the environment is threatening and centralized if environment is free
distrustful and friendly

6)Centralization is better in single Decentralization is better in multi

location facilities. location facilities.

7)If the minds of top management is If the minds of top management is more
more autocratic, it leads to more democratic, it leads to more
centralization. decentralization.

58
 STAFFING
● “Staffing is the process of attracting and developing human
resources to work for an organization 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.

59
 STAFFING
● 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 .
60
(7) Promotion and transfer.
 STAFFING
● 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

61
 STAFFING
● Nature or features of staffing
(1) Staffing is a continuous process:
Staffing is a continuous process because the employees leave the
organization for a number of reasons. Also to meet the need of
an organization, 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.
62 4/28/2021
 STAFFING
● 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 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,
63 retirement etc
 RECRUITMENT
● “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.
64
 RECRUITMENT
(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.

65
 RECRUITMENT
Advantage of recruitment from Internal Sources.

1) It provide them to develop financially.

2) Employees from within the organization 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.

66
 RECRUITMENT
Disadvantage of recruitment from Internal Sources.
• It may not be possible to find the required talent,
skill from within the organization.
• There may be a limited choice for promotion.
• No chance for new ideas and talents to flow
into the organization.
• Employees who are not successful in getting promoted
get de motivated.

67
 RECRUITMENT
(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.

68
 RECRUITMENT
(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.
69
 RECRUITMENT
(2) External Sources

(5) Employment agencies: Many organizations 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.
(7) Campus interview: Many industries visit engineering colleges,
polytechnics and other institution to conduct campus interviews in
order to recruit fresh employees.
70
 SELECTION
● 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
72 more information is detained about the student.
 SELECTION
● 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.

73
 SELECTION
● 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.

74
 SELECTION
● 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, spontaneity,
ability to meet stressful situation etc
75
 SELECTION
● 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.

75
 SELECTION
● 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.
76
 SELECTION
● 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
 SELECTION
● 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
of employment, pay scale and other benefits associated
with the job.
 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.

80
 LEADERSHIP
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.

81
 Importance of Leadership
● 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.

82
 Importance of Leadership
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
83 members.
 Importance of Leadership
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.
84
 Importance of Leadership
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.

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 MOTIVATION
● 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.

86
 MOTIVATION
● 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.
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 Importance of Motivation
● 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
88 useful products and services.
 Importance of Motivation
• 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.

89
 Importance of Motivation
● 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 [Link]

90
 Motivational Theories
● Maslows Need -Hierarchy
theroy
• Basic Needs
• Safety and security
• Social
• Esteem
• Self fulffilement

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 Motivational Theories
● Alderfers ERG theroy

Existence Relatedness Growth

92
 Motivational Theories

● Herzberg's two factor theroy

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 COMMUNICATION
● The source or sender or communicator:
Communication process starts with sender. Sender is
the person who has an intended message to convey to
someone. 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.

94
 Types of Communication
● 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.
95
 Types of Communication
● 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.

96
 Types of Communication
Oral and Written Communication
● Oral communication i s 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.
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 Types of Communication
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.

98
 Types of Communication
● 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.
99
 Types of Communication
● 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, inform procedures, inform organization
goals etc.
● Job instruction sheets, circulars, memos, orders, etc are

99 examples for downward communication.

 Types of Communication
● 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.

100
 Types of Communication
● 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.

101
 COORDINATION
● Coordination is the process of integration or
synchronization of the interdepartmental efforts of
individuals in order to attain common goals.
● For example coordination between various departments
like production, marketing, purchase, quality, human
resource management, finance etc are very important for
smooth functioning of the organization.
● Coordination helps in unifying efforts of all these
departments and achieving the common organizational
objectives.

102
 Need of Coordination
● Coordination is very much essential due to following
reasons.
● Organizations 'are made up of various units and
departments, which are interdependent.
● The splitting of work into smaller and smaller units
through division of work creates the need for
coordination among many individuals who need to
complete the full task.

103
 Requirements of Good Coordination
Good coordination requires the following important
prerequisites.
● Direct personal contact between individuals who are
responsible for task completion improves coordination.
● Direct personal contact eliminates any misunderstanding
among individuals.
● Mutual consultation and joint planning ensures better
support for each other and commitment for common
goals.
● Defining clear objectives ensures clarity of role and
responsibility among individuals resulting in better
coordination.
● Clear definition of authority and responsibility of
individuals eliminates any ambiguities among individuals.
104
 Requirements of Good
Coordination
● Good coordination requires the following
important prerequisites.

● Effective communication is very Communication

ensures harmonious different departments.
● Effective leadership ensures coordination among
groups and individuals since an effective leader
creates a sense of shared vision among them.

105
 CONTROLLING
● 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.

106
 STEPS IN CONTROL
PROCESS

107
 NEED FOR CONTROL
SYSTEM

108
 BENIFITS OF
CONTROL

109
 ESSENTIALS OF EFFECTIVE
CONTROL SYSTEM
The essentials of an effective control system are
• Suitable
• Timely and forward looking
• Objective and Comprehensive
• Flexible
• Economical
• Prescriptive and operational
• Acceptable to organisation members
• Reveal Exceptions at strategic points
• Motivate people to high performance
• Should not lead to less attention to others aspects
• Should be periodically reviewed and evaluated.

110
 STEPS IN CONTROL
PROCESS
There are 3 basic steps in control process:
• Establishing standards
• Measuring and comparing actual results against
standards
• Taking corrective action

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THANK YOU