TOPIC: ORGANIZING

Specific Objectives:

By the end of this topic one should be able to:

1. Explain the nature and purpose of organizing

2. Outline the types of organization structures
3. Explain ways of making organizations effective

ORGANIZING

This is an activity which establishes human adjustment among all the factors of production.
Organizations are social entities which coordinates the activities of a number of people for their
achievement of some common goals through division of labour and well defined systems of
working.

Organizing can be seen as a process.

As a process therefore, organizing can be defined as follows

1. A processing of welding together a framework of position which can be used by the

management for the purpose of accomplishing the organizational goals.

2. It's a process of identifying and grouping the work to be performed, definitions,

responsibilities, delegating them and giving authority together with establishing relationship for
the purpose of enabling people to work most effectively in accomplishing organizational
objectives.

3. it’s a process of grouping of activities necessary of the purpose of achieving organizational

objectives.

Organizing can be seen as a structure.

As a structure organization, structure consists of those aspects of patterns of organization,

organizations that are attractively stable and change only slowly.

Equally, organization as a structure can be defined as a system of relationship that governs the
activities of people who are dependent upper each other / changing the common objectives.
Importance of Organization

1. Organizing is an aid to management-it aids management in accomplishing organizational

objectives.
2. It facilitates growth of the organization i.e. it assists in recruitment of staff, delegation of
authority assignment of responsibility etc.
3. It helps to ensure optimum use of human resources because it affects human resources in
different ways such as training, placement of workers, creating of harmony, improving
communication etc.
4. It stimulates creativity-it encourages divergent thinking and makes employers to be
innovative.
5. It facilitates stability of the business organization because it has flexibility to adjust to
changes.
6. It encourages adoption to technology because it facilitates optimum use of technological
improvements.
7. It leads to executive development because it provides training opportunities.
8. It helps to ensure cooperation among workers because it entails communication reducing
conflicts.
9. It establishes responsibility and prevents buck passing
10. It eliminates disputes between individuals
11. It provides for easier communication and helps in developing executives
12. It assists in measuring a person's performance against his or her responsibility
13. It aids in equitable distribution of work and functions
14. It aids in equitable distribution of work and functions
15. It permits expansion and contractions without seriously disrupting the existing structure
16. It prevents duplication of work
17. It makes organizational goals possible without adequate control and without literally
killing top executives through overworking.

Essential elements of a good organization

1. A good organization must be helpful in the achievement of objectives
This means that it must be c capable of overcoming the problems of an organization
2. There must be harmonious grouping of functions: meaning that a good organization
should divide the functions in the enterprise in such a way that they can be implemented
easily and successfully.
3. An organization must be complete in all aspects
It means that a good organization must include all the activities of the enterprise and
there should be no any repetition of the activities (duplication)
4. There must be perfect coordination in all the activities of the organization. If the
activities are not coordinated, the achievement of the objectives of an organization cannot
be thought off.
5. There must be reasonable span of control
Through means that each manager or supervisor must have is reasonable number of
subordinates under him or her.
6. There must be proper utilization of resources
This means optimal use of resources this minimizes wastage and maximizes profits.
7. There is provision of expansion
This means that the organization must provide for adequate flexibility so that necessary
adjustment may be made in accordance to the needs of the charging circumstances
8. There has to be employee satisfaction. This includes job satisfaction which minimizes
high staff turnover
9. There must be a policy which can be executed easily and economically.

The process of organizing

The building up of an organization is the most important function of management. The
process of organizing consists of the following steps:
1. Determination and division of work
This is about determining the tasks required for the accomplishment of established
objectives via divided business activities into technical, commercial, financial, security,
and accounting and managerial. In a modern business enterprise manufacturing,
marketing, financing, purchasing and personnel are considered to be the main business
activities.
2. Grouping activities
The various activities identified above are then classified into appropriate departments
and divisions according to similarities and common purpose.
Such grouping of activities is known as departmentalization. Activities may be grouped
on the basis of functions, territories, customers etc.
Each department may be further divided into sections and subsections to create a logical
structure.
3. Assignment of duties
The individual departments are being allotted to different positions and individuals. The
duties of every individual are defined on the basis of his abilities and aptitude. Clearly
definition of the responsibility of each individual is necessary to avoid duplication of
work and overlapping of efforts. Every individual is made responsible for the specific job
assigned to him. In this way, duties are assigned to specific individuals.
4. Delegation of authority
One of the duties and responsibility of every individual have been fixed, he must be given
the authority necessary or equivalent to carry out the duties assigned to him A chain of
command is created from top to the bottom through successful delegation of authority.
Conclusion
The process of organizing is a series of steps which must be undertaken to create logical
structure of authority responsibility relationship. This process involves division of work,
placement of individuals on jobs, delegation of authority, coordination of individual
efforts and execution of responsibility for the results.

Principles of organization
The following are the major principles of organizing:
1. Principle of objectives- It states that the objectives of the business concern formulating
the organizational structure and achieving the desired results with minimum costs and
efforts.
2. Principle of specialization- It states that good organization must divide work into
smaller activities and entrust each to individuals with enough skills in better performance
and quality.
3. Principle of span of control -This states that span of control should be minimized
because there is a limit to the number of persons that can be effectively supervised by one
boss.
4. Principle of exception- This means that only exceptionally, complex matters should be
referred to the executives for decision making otherwise managers should handle matters
relating to their levels.
5. Principle of scalar chain - This is sometimes known as the scalar principle. From the
chief executive at the top of the enterprise to the first line of the bottom which must be
clearly be stated. This is also known as chain of command. This is likely to minimize any
confusion in organizational function
6. Principle of authority- This means that the responsibility and authority of each
manager and supervisors should be clearly defined. It also implies that the authority given
must be equal to the responsibility entrusted to the manager.
7. Principle of unity of command- This states that each subordinate should have only one
supervisor to report to. This is likely to minimize the disorders, delays and confusion. It
also reduces conflicts
8. Principle of delegation of authority - According to this principle, the authority
delegation should be equal to the responsibility so that to enable the concerned person to
accomplish the task assigned to him/ her by his or her supervisor. This helps to minimize
partial delegation.
9. Principle of responsibility- This states that the superiors should not be allowed to avoid
responsibility by delegating authority to his or her subordinates. The superiors therefore
must be held responsible to the acts of his or her subordinate to whom he or she has
delegated authority.
 10. Principle of flexibility- This states that the organization structure should be such
which should be adaptable to the changing circumstances, meaning that there should be
room for expansion and replacement without disrupting the basic design of the structure.
It also means giving room for addition of subtraction if need be.
11. Principle of simplicity- This states that the organization structure should be simple
enough with minimum number of levels. This is likely to reduce the problem of poor
coordination and communication.
12. Principle of continuity- This states that the structure should be such that its
serviceable for a long time. This is possible if it's dynamic and capable of adopting itself
to the views of changing circumstances.
13. Principle of unity of direction- This states that for a group of activities having the
same objectives there should be one plan and one objective this facilitates verification
and coordination of activities.
14. Principle of efficiency- This states that the structure that is formulated should enable
the business concern to function efficiently and achieve its objectives with minimum
costs and efforts.
15. Principle of balance- It states that a good organizing must put balance on all types of
factors of production so that inefficiency is reduced.

Organizing is considered a process which contains the following key components

and concepts
1. Job design- This is the process of determining what procedures and operations are to be
performed by the employees in each position based on qualification and experience. The
basis for all job design activities and job specialization which involves a definition of the
task that distinguishes one job from the others.
2. Grouping of jobs/departmentation- This is the process of grouping jobs into logical sets
in an organization. It is also a process of grouping individual jobs into departments as
well as equipment. A department is a distinct area, unit or a subsystem of an organization
over which a manager has authority for performance of specific activities. It is also
known as division, branch battalion etc.
3. Authority and responsibility- This involves the determination of how authority and
responsibility are managed in the organization.
At the level of an individual manager and his subordinates, it involves the delegation
process while at the level of the total organization it relates to decentralization.

4. Span management- This refers to the number of the people or employees that a superior
can effectively supervise. It is the number of subordinates or employees reporting directly
to one person (a superior)
5. Organization structure- This may be defined as the prescribed pattern of work related
behaviors which are deliberately established for the accomplishment of organizational
objectives. It serves as an instrument for the introduction of logical and consistency
relationship among the various decision function which made up the organization.

Departmentation Is Required Due To The Following Reasons.

1. Specialization- Departmentation enables an enterprise to take advantage of
specialization since division of work becomes possible.

2. Expansion- With expansion only one manager can oversee a limited number of
subordinates. In the absence of departmentation the size of the enterprise remains limited.
3. Autonomy- Departmentation results in the division of the enterprise into semi-
autonomous units. In this units every manager is given adequate freedom. Autonomy
provides job satisfaction and motivation which in turn leads to higher efficiency of
operations.
4. Appraisal- Appraisal of managerial performance becomes easier when specific tasks
are assigned to departmental personnel.
5. Fixation of responsibilities- Departments enables each person to know the specific part
he / she is to play in the total organization. It provides a basis for building up loyalty and
commitment.
6. Management development- Departmentation facilitates communication, coordination
and control. It simplifies the training and development of executives by providing them
opportunity to take independent decision and to exercise initiatives.
7. Administrative control- Grouping of activities and personnel into manageable units
facilitates administrative control. The standards of performance for each and every
department can be precisely determined.
Departmentalization usually groups jobs according to one of the following bases;
 Number
 Time
 Function
 Product
 Location
 Equipment/process
 Customer

a. Departmentation by simple numbers

This was once an important method in organization of tribes, clans, armies etc. the simple
numbers method of departmentation is achieved by tolling off people who are to perform
the same duties and putting them under the supervision of a manager.
The essential fact is not what these people do where they work or what they work with.
It is that the success of the undertaking depends on the number of people involved in it.

b. Departmentation by time
This is a form of grouping jobs which has generally at lowest levels of organization. The
use of shifts in many enterprises where for economic, technological or other reasons, the
normal working day would not be enough.
Example of this kind of department is the hospital where around the clock patient care is
essential. Similarly, deferent departments have to be ready to respond to the emergencies
at any time. A factory operating for 24 hrs may have three departments, morning, day and
night shifts.

c. Departmentation by function
Functional departmentation entails what enterprises typically do.
Employees who are involved in the same or very similar features are grouped together.
The basic enterprise functions are;
1. Production i.e. creating utility or adding utility to a good/ service
2. Selling i.e. finding customers, patients, clients, students, or members who will agree to
accept the services/ goods at a price
3. Financing i.e. raising and collecting, safeguarding and expanding the finances of the
enterprise
The coordination of activities may be achieved through the rules and procedures, various
aspects of planning such as budgeting the organization hierarchy etc.

Advantages of departmentation by function

1. It maintains power and prestige of major functions
2. It is logical and time proven method
3. It follows the principle of occupational specialization and thereby facilitating
efficiency into the utilization of people
4. It simplifies training
5. It provides a means of maintaining tidy control at the top because top managers
are responsible for the end results
6. Coordination is improved since work is not duplicated at specific functional levels
7. It provides better opportunities for growth and career development
Disadvantages of departmentation
1. Responsibility for profits is at the top level only
2. It results into slow adaptation to changes in environment
3. It reduces coordination between functions at overall level
4. It deemphasizes the overall company objectives i.e. it leads to sub optimization
5. It limits development of managers who need certain knowledge and experience in all
enterprise functions
6. The chain of command becomes excessively long as new levels are added this may
slow down communication.

d. Departmentation by product
The activities associated with individual products or closely related products lines are
grouped together. This structure permits top management to delegate to division
executives authority over the manufacture, sales and engineering.

Advantages
1. All activities associated with unique products are kept together
2. Profitability of the various products is more easily evaluated
3. Internal competition is promoted i.e. one product line competes with another
4. It uses specialized technology

Disadvantages
1. Some duplication of efforts may results i.e. each product line may require its own
accountant, engineer, marketing staff etc.
2. Coordination of departments may be difficult
3. Additional management personnel may be required to handle different product lines
4. The firm may find it difficult to adopt itself to changes in demand and technology.

e. Departmentation by location, territory/ geographical

Jobs are in one location or nearby locations are grouped together into one department and
allocated a manager.
Territory departmentation is very useful to a large scale enterprise whose activities are
geographically spread e.g. banks, insurance companies, transport companies,
supermarkets; distribution agencies etc. the ultimate authority for performing the basic
organizational functions is still retained by the headquarters.

Advantages
1. It places responsibility at lower levels
2. It improves coordination within the region
3. It places emphasis on local market and problems
4. It improves face to face communication with the local people
5. It provides a measurable training ground for general managers
6. The managers can give special attention to the needs and problems of the local
market

Disadvantages

1. It requires more persons with general manager ability

2. Coordination and control of a different branches from the head office becomes
less effective
3. There is duplication of resources especially the human resources.
4. The branches are expensive to run.

iii. Authority and responsibility

This involves the determination of how authority and responsibility are managed in the
organization.
At the level of an individual manager and his subordinates, it involves the delegation
process while at the level of the total organization it relates to decentralization.
Delegation is the process through which the manager assigns a portion of his work or task
to the subordinates.
Decentralization on the other hand is where power is spread down the employees. Power
is the ability of an individual or group to influence the believes or the actions of other
people or groups
Authority in an organization is the right in a position and through it, the right of the
person occupying the position to exercise discretion in making decisions affecting other
persons. Responsibility is the obligation of the subordinates to carry out the duties
assigned to him. Responsibility is a personal attribute, it's an obligation to one's own
superior and no person can shift his responsibility by delegating his authority to others.
Accountability is subordinates obligation to render an account as report of his activities to
the superior. To be accountable, is to be answerable in respect to obligations fulfilled or
unfulfilled.
Accountability grows out of responsibility and goes hand in hand with it. A person who is
responsibility for something is also accountable for the results.

Sources of power/ bases of power;

1. Legitimate power- This normally arises from a position and derives from our
cultural system of rights, delegation and duties when a position is accepted by
people as being legitimate.
2. Reward power- This arise from ability of some people to grant rewards
3. Expert power- This is the power of knowledge, physicians, lawyers; university
professor's e.t.c. may have considerable influence on others because they are
respected for their special knowledge.
4. Referent power/ charismatic power- This is the influence that people or
groups may exercise because people believe in them and their ideas.
5. Coercive Power- It is the power to punish, whether by firing a subordinate or
withholding demerit. It arises from legitimate power.
Types of authority in an organization
a) Formal authority- This is normally confined by the law or delegated
within an organization based on the organization structure. It has to be in
writing and known to all managers or executives and employees in an
organization.
b) Line authority- This authority can be regarded as the main authority in an
organization. It is the ultimate authority to decide upon matters affecting
others and it's the main feature of superior subordinate relationship.
Line authority is not absolute; it must be applied with discretion within the
limits of delegated authority and must relate to performance of jobs which
leads to the attainment of the objectives of the organization.
Its scope is very limited as there is no right to command. It is concerned
with assisting and advising and it is used where line authority becomes
inadequate. Specialized skills are used to direct or perform those activities
which the line managers cannot effectively perform.
Staff authority is subordinate to line authority and its purpose is to aid the
activities which are directed and controlled by line managers
c) Staff authority- Its scope is very limited as there is no right to command. It
is concerned with assisting and advising and it is used where line authority
becomes inadequate. Specialized skills are used to direct or perform those
activities which the line manager cannot effectively perform. Staff
authority is subordinate to line authority and its purpose is to aid the
activities which are directed and controlled by line managers.
d) Functional authority- This authority is also subordinate to line authority
but in comparison with staff authority, it conflicts upon the holder the
right to command in matters relating to the functions. It therefore has
limited right to command and help the superior to delegate authority to
command to the specialist without bestowing full line authority. Where
organizations have a central head office and branches, functional authority
is often used e.g. the head office, Human resource director renders staff
functions for the whole company, but he usually exercises functional
authority on human resource matters in his relationship with branch
human resource officer.

Delegation
It is the process whereby an individual or group transfers to some other individuals or
groups the duty of carrying out some particular action and at the same time taking some
particular decisions.
 It means, in effect and trusting some part of the work of management to
subordinates
 It is the process of vesting decision making discretion to subordinates by the
superiors
 Responsibility is not surrendered since no manager avoids ultimate responsibility
by delegating
 The work is delegated and the superior holds the subordinates accountable. The
subordinate is responsible for doing the job and the superiors' responsibility to see
the job is done.

Elements/process of delegation
1. Assignment of duties to subordinates
2. Granting authority to make commitments to the extent necessary to enable them
carryout those duties assigned
Creating an obligation on the part of each subordinate; this enables satisfactory
performance of the job

Types of delegation
1. General/specific delegation- General delegation is where any person is granted
authority to perform the various functions his department or division but the exercise of
authority by each subordinate continues to be subject to an overall regulation and
supervision by his supervisor. Specific delegation is functional in character, subordinates
are given different specific functions to perform i.e. the production manager may delegate
the authority for production and the accounts officer may delegate authority for
accounting matters.
2. Written/unwritten delegation- Written delegation is made by written orders/
instructions. Unwritten delegation is based on customs, conventions, agreements, usage
etc.
3. Formal/informal delegation- Formal delegation of authority is laid down in the
organization structure on an enterprise e.g. the sales manager is assigned the
responsibility and the accompanying authority to maintain and promote sales. Informal
delegation occurs when employees perform certain duties not because these are assigned
to them but because they feel that they can perform their tasks better and in time.
4. Downward, upward and sideward delegation- Downward delegation occurs where the
superior assigns duties and delegates authority to his immediate subordinates.
In upward delegation, a subordinate assigns some of his tasks to his immediate superior.
This is a rare kind of delegation.
In sideward delegation, a subordinate assigns some of his duties and tasks to another
subordinate of the same rank.

Guidelines to ensure effective delegation

1. Grant proper amount of authority- It means that responsibility should not be
less than authority delegated. Enough authority should always be delegated to
achieve the desired results.
2. Make sure that authority is clearly stated.- Authority relationship should be
clearly defined not only to the subordinates in question but all others
concerned as well.
3. Define the results expected- This will enable the subordinates to know by
what standards their performance should be charged
4. Consider the capability of the subordinates- Authority should be delegated to
those who are competent and willing to accept delegation. People should be
selected in the right of the jobs to be done.
5. Follow unit of command and chain of command.- Every subordinate must at a
time receive orders and be accountable to only one superior. In delegating, it
is also important to follow the chain of command where authority flows from
the highest manager to all the subordinates at all levels
6. Modify the authority whenever necessary- Managers should maintain
flexibility attitude about what kind of and how much authority to delegate.
This is because the environment of the business is dynamic and authority
relationship needs to be altered from time to time
7. Develop a willingness to delegate- No organization can function without
delegation, managers must be willing to let go and let others make mistake if
delegation is to work.
8. Develop effective communication- There should be a free flow of information
between the superior and the subordinates. This enables the superior to give
clear instructions and the subordinates to seek necessary clarification
9. Establish an effective control system- Manager should put controls in place to
ensure that the authority delegated is used properly. The superior should set
the performance standards and evaluate subordinates performance periodically
and help them improve.
10. Appropriate incentives- Suitable financial incentives are provided to reward
subordinates for the successful assumption of authority.
11. Allocate sufficient resources
Why managers do not delegate
1. Feeling of superiority- a manager may have a feeling that his subordinates are
not capable enough to do any work without close supervision. He may
therefore concentrate all decision making in his hands.
2. Fear of exposure- if the manger is himself not competent to plan ahead, and
decode which tasks should he delegate to whom he may avoid delegation of
authority because doing so will expose him for what he is incompetent and as
a disorganized person
3. Risk avoidance- the feeling of insecurity may be a major reason for reactance
on the part of the manager to delegate authority. Despite the delegation of
authority, the manager will continue to be accountable for the actions of
subordinate and these might deter him from running the risk of decision
making to subordinates.
4. Feeling of indispensability- if a manager has inflated sense of his own worth,
and wants others to realize his importance, he may delegate authority such
that everyone around him is dependent on him for decision making.
5. Habit pattern- if as a result of practice of close supervision, the manager has
developed personal contact with all aspects of work, he may avoid delegation
of authority so as to sustain the deep, seated habit pattern.
6. Loss of importance- a manager may feel that delegation of authority to
subordinates may lead to diminution of his authority and divest of the
importance enjoyed by him as the center of whole authority.

Why do subordinates fear delegation?

1. Fear of criticism- The subordinates' reluctance to accept delegation of
authority may be due to fear of criticism of mistakes. They may have a fear
that even the slightest mistake on their part may lead to their dismissal from
service
2. Insecurity- They consider it safe to carry out the decision handed down to
them by the superiors than to make decision themselves
3. Lack of self-confidence- Sometime, the subordinates may avoid acceptance of
delegation due to lack of confidence in their capabilities to discharge new
responsibilities
4. Inadequacy of information and resources- They may fear that delegation in
their case will mean assignment of activities to them without a matching
authority over the relevant information to facilitate decision, making or the
necessary human and physical resources to carry out the decision
5. Inadequate incentives- If delegation of authority is not accompanied by
suitable incentives, subordinates may not be motivated to accept it willingly.
Advantages of delegation
1. Reduction of managerial work load-delegation reliefs the manager of the need to
attend to routine types of duties
2. Basis of effective functioning- it establishes a relationship through the organization
and helps in achieving coordination of various activities.
3. Benefit of specialized services-it enables the manager to benefit from specialized
knowledge and expertise of persons at lower levels
4. Efficient running of the branches- in the big organization, delegation can provide key
to smooth and efficiently running of the various branches of the business
5. An aid to employee development-delegation enables employees of the business to
develop their capabilities to undertake new and more challenging jobs. It also
promotes job satisfaction and high employee motivation
6. An aid to expansion and diversification of the business- with the employees fully
trained in decision making in various areas of the business, it can confidently
undertake expansion and diversification of its activities.

Decentralization
This is the process of transferring all the authority to all levels of management to enhance
efficiently in the performance of the task. According to Koonts and O Donnel
decentralization of authority is a fundamental phase of delegation. According to Allen,
decentralization is the systematic effort to delegate to the lowest level of all the authority,
except that which can only be exercised at the top (central point).

Difference between delegation and decentralization

Delegation Decentralization
It is an act/process It is the end results of delegation and
dispersion of authority to various levels
It is vital to management It is optional in the sense that the top
 management favor a deliberate policy \to
work for a general
dispersion of authority
It refers to the relationship between two It refers to the relationship between
individuals i.e. a superior and his top management and various
immediate subordinate department and activities in the enterprise
Control over a subordinate performance is The power to control may be delegated to
exercised the power to control may be departments concerned.
by the superior who constitute the source
of

Guidelines determining the degree of decentralization of authority

Decentralization is not just physical dispersion of activities. An enterprise, whose
activities and function are confined to a small area, may have a greater decentralization
than the ones whose activities and functions are distributed over a wider area. The degree
of decentralization in an enterprise is determined by the combination of the following
factors:
1. Competence of the personnel available- The competence and the capacity of
subordinates or managers is an important determinant of the degree of
decentralization. When the managers of the enterprise are capable and
experienced enough, to make important decisions decentralization could be
easier.
2. Size and complexity of the organization- The larger the enterprise the more
the authority the central manager is forced to delegate. With growth in size
and complexity of the organization, decentralization is necessary to ensure to
ensure speed and accuracy of decision making and flexibility of the
operations.
3. History of the organization- A firm is likely to have a very centralized
structure if it has grown primarily from may be personal leadership
4. Adequacy of communication system- Managers may seek to avoid
decentralization through the development of a good communication system
that provides for speed, accuracy and capacity of information needed for top
management to exercise centralized control.
5. Dispersion of the organization- Geographical dispersion of the organization
tends to result in greater decentralization of authority.
6. Uniformity of policies- The greater the need for uniformity of policies the
greater will be the degree of centralization
Environmental influences. tax policies, action of competitors, economic
forces, government policies, technology, customers' e.t.c.
 7. Philosophy of the top management- The attitude of the top managers has an
important bearing on the degree of decentralization
8. Business dynamics
9. Desire for independence
10. Control techniques

The degree of decentralization tend to be greater where an effective control system is not
available

Advantages of decentralization

1. It can contribute to Staff motivation by enabling the middle and junior staff to get a
test of responsibility and encouraging the use of initiative by all employees.
2. It encourages decision making and assumption of authority and responsibilities
3. It results in the principles of democratic management
4. It encourages smooth diversification of products and markets
5. It prevents the top management overload by freeing them from many operational
decisions enabling them to concentrate on their strategic responsibilities
6. It speeds up operational decision making by enabling line units to take local actions
without reference back
7. There is better communication
8. It focuses attention into important matters of cost and profit centers within the total
organization these sharpens management awareness of cost effectiveness as well as
revenue targets
9. It enables local management to be flexible in their approach to decisions; this is after
taking into account the local conditions and makes decisions that are more adaptable
in situations of rapid change

Disadvantages of decentralization

1. It results into higher operational cost and duplication of resources

2. It requires an adequate control and communication system if major errors of judgment
are to be avoided on the part of the operational management
 3. It requires greater coordination by senior management to ensure that individual units
within the organization are not working against the overall organization i.e. need to
control sub optimization
4. It can lead to inconsistency of treatment of customers, clients or the public especially
in service industries.
5. It requires plentiful supplies capable and well-motivated managers who are able to
respond to the increased responsibility which decentralization brings about
6. It may encourages a parochial attitude in subsidiary units, who may be inclined to
look more to their own needs then those of the colleagues in the organization

IV. Span of management/ span of control

This refers to the number of the people or employees that a superior can effectively supervise. It
is the number of subordinates or employees reporting directly to one person (a superior)

In practice, spans of management can vary between 1-40 or more subordinates directly
supervised, although the most likely range is between 3-20. Small spans of management tend to
be found among managerial, professional and technical groups.

Factors affecting the span of management

1. Location – in case of geographically scattered operations, the span has to be narrow

because one executive cannot effectively manage the distinct and distributed operations.
2. Competence of the superior - executives who are more capable can supervise large
number of subordinates than those who are less competent.
3. Caliber of subordinates - the more qualified and experienced subordinates are, the lesser
the pressure on the superior and the wider the span of management
4. Nature of work - in case of routine repetitive operations, span can be wider since
subordinates do not frequent guidance from the superior. In case of specialized and
frequently changing of duties, and those involving constant interaction, the span of
management has to be narrow
5. Level of authority – at higher levels of management, span of control is generally narrow
than at lower levels.
6. Clarity of plans - the more clear and understandable the plans are, the wide the span of
management.
7. Communication techniques – more effective is the communication, lesser is the need for
face to face contact and wider may be the span.
8. Staff assistance - an executive can supervise more subordinates when advice and
assurance of the staff specialists is available to him
9. System of control - span of management has to be narrower where the control is
exercised through personal supervision
V. Organization structure

This may be defined as the prescribed pattern of work related behaviors which are deliberately
established for the accomplishment of organizational objectives. It serves as an instrument for
the introduction of logical and consistency relationship among the various decision function
which made up the organization.

Specialization and coordination are the key issue on the design of the organization structure.
Specialization relates to division of labour and use of special purpose machines and equipment.

Coordination means harmony in operations to achieve organizational objectives

Organizational structure shows different position and responsibilities attached to the post.

Types of organization structure

1. Line organization

2. Functional organization

3. Staff organization

4. Matrix organization

5. Project organization

6. Free form organization

7. Committee organization

1) Committee organization

A committee is a group of persons constituted to deal with specific issues or problems of

organization. Committee can also be considered as formal groups with a chairman on agenda and
rules on conduct. Committee has specific tasks or set of tasks to achieve. These tasks are made
frequently although not always associated with decision making.

As a formal group the formality of a committee is expressed by the following features:

1. a) A chairman or chairperson who is responsible in ensuring

 That the committee is conducted in accordance with the rule

 The committee is supplied with necessary resources
 A secretary who is responsible for taking the minutes of the meeting standing out the
agenda and other papers.
 An agenda which is set out the agreed subject of matter of the meeting
 The minutes of the meeting which are the official records of what has taken place
 Committee papers and reports which provides the committee with the quality of
information which will enable it to make usual informed decisions or proposal
 Rules of procedure which are designed to promote the smooth running of a committee
and ensure the consistency and fair play monitoring such rules includes procedures for:
1. Speaking in a debate
2. Voting
3. Proposing a motion
4. Adding emergency to the operations of the committee as a communication medium.

Types of committees

i. Standing and adhoc committees

The standing committee which is always present in the organization

Adhoc committee is a temporary special purpose committee which is appointed to deal with
many specific problems or issues. It is disbanded and dissolved as soon as the assignment given
is completed

ii. Executive and advisory committee

An executive committee s one charged with the responsibility of making and executing his
decisions.

An advisory committee only remains as specific problem in all the details and makes
recommendations

iii. Line and staff committees

A line committee is responsible for controlling and coordinating a specific business function
having executive over the subordinate within a formal chain of command.

A staff committee only acts in advisory capacity having no authority in its decisions

iv. Formal and informal committees

A formal committee is constituted as per the organization policies and rules deriving its authority
from the same policies and rules

An informal committee is not consolidated as per the formal policies or rules of the organization.
It has no formal authority.

Advantages of a committee in an organization

1. Discussion of proposal are based on group assessment of facts and ideas are not a very
small grouped working in isolation
2. Committee can encourage the proofing of special knowledge and talent possessed by
individual members
3. Precisely because they are organized groups, committee can undertake a large volume of
work than individuals or vey smaller groups working in isolating
4. Committee are very useful in achieving coordination and collaboration between worked
groups
5. Committees acts as a vocal point for information and customs within the organization
6. It's a tool of managerial strategy i.e. the committee may serve as important tool for
delusion or consolidation of authority vested on a single individual or postponing actions.
7. It is a tool of training and development of the employee

Limitations of committee organizations

1. Decision making is on hold together slower process when dominated by committee

2. Committee works demand certain skills members who are unsure of themselves unskilled
in committee practice tend to leave the initiative to the good committee members
3. Committee sometimes have the tendency to be looked down in procedural matters which
reduce the time avoidable for the decision of substantive issues
4. Committee decision may often represent compromised solution rather than optimum
solution
5. Committee may represent the wishes of a certain group who one or more influenced and
not necessarily the riskiness of the members.

Making Committees Effective

1. The mandate of the committee needs to be clearly defined so as to keep the committee on
focus.

2. Committees should have specific agendas to work from.

3. The size of the committee should be appropriate. (not so large)

4. It should have the right membership.

5. The chairperson should be suitable.

6. They should be provided with the necessary resources to accomplish their tasks.

7. A committee should be provided with a reasonable deadline.

8. A final written report should be presented by the committee for action.

9. Members of the committees should not devote too much time on committee assignments and
forget their regular jobs.

2. Matrix organization/ hybrid departmentalization

This is normally the combining of functional and project or product patterns of departmentation
in the same organization structure. This kind of organization occurs frequently in construction
e.g. building a bridge, in aerospace designing and launching a weather satellite, in the installation
of an electric data processing system, in management consulting firms in which professional
experts work together on project.

In case of a two year project to produce a modified fashion of standard air craft, one project
manager will coordinate and be held accountable for the work to be undertaken by the project
team, and he will be the person who deals on a regular basis with the clients.

Functional managers provide technical expertise and organizational stability. Project managers
provide the drifting force and the day to day control required to steer the project its temporary
life.

Guidelines for making matrix organization

1. Define the objectives of the project/ task

2. Balance the power of functional and project and project managers
3. Clarify roles, authority and responsibilities of managers and team members
4. Ensure that influence is based on knowledge and information rather than the
5. Select an experienced manager for the project who can provide
6. Understand organization and team development
7. Install appropriate cost, time and quality control that reposts' derivations from standards
in a timely
8. Reward project managers and team members

Advantages
 1. It's oriented towards the end result.
2. It helps to clarify who is responsible for the success of the
3. It encourages functional managers to understand their contributive role in their
organizations productive efforts.
4. It leads to shorter project development time
5. It pin points the project profit responsibility
6. It combines the relative stability and efficiency of hierarchical structure with the
flexibility and uniformity of an organic form

Disadvantages

1. Conflicts can arise concerning the division of authority and the allocation of resources
between project groups and functional
2. It requires money time and consuming meetings
3. Too much shifting of staff from one project to another may hinder training of new
employees.
4. Relative dilation of functional management responsibilities throughout the organization
mega exist
5. This type of organization requires the manager to be more effective in human relational
and to have interpersonal skills which is not always passed by all managers.

TOPIC: DIRECTING

Specific Objectives

By the end of this sub-module unit, the trainee should be able to:

1. explain the meaning of leading/directing function

 2. describe the various leadership styles
3. explain various motivation theories
4. explain the importance of coordination in management
5. explain the importance of communication and supervision in management

DIRECTING

Directing literary implies moving into action. When any administrative decision is taken, it must
be converted into action by proper implementation otherwise it is of use.

DEFINITION OF DIRECTING

It is the function of management that involves instructing, guiding and inspiring human factor in
the organization to achieve organizational goals.

It covers the following elements:

 Communication
 Leadership
 Motivation
 Coordination

The process of directing should include the following steps:

1. Determine what is to be done- The manager must first clearly define the goals and
objectives that need to be achieved. This includes setting specific, measurable,
achievable, relevant, and time-bound goals.
2. Issue specific orders and precise instructions- Once the goals and objectives are clear; the
manager must communicate them to their subordinates. This should be done in a clear
and concise manner, with specific instructions on how to achieve the desired outcome.
3. Provide guidance and support- The manager should be available to provide guidance and
support to their subordinates as needed. This may involve answering questions, providing
feedback, or helping to troubleshoot problems.
4. Motivate the subordinates- The manager should create a positive work environment and
motivate their subordinates to achieve their goals. This can be done through various
means, such as providing recognition and rewards, setting challenging but achievable
goals, and creating a sense of camaraderie and teamwork.
5. Maintain constant communication- The manager should maintain open and regular
communication with their subordinates. This is important for building trust, resolving
conflicts, and ensuring that everyone is on the same page.
 6. Maintain discipline and reward those who perform well- The manager is responsible for
maintaining discipline and rewarding those who perform well. This helps to create a fair
and equitable work environment.
7. Provide effective leadership to the subordinates so that they work with enthusiasm and
dedication- The manager should be a role model for their subordinates and provide them
with effective leadership. This includes setting a clear vision, inspiring and motivating
others, and making sound decisions.

Principles of Directing

1. Effective leadership-focused and inspiring

2. Direct supervision - personal contact with subordinate.
3. Unity of command-an employee should receive directions from only one supervisor.
4. Harmony of objectives - between individuals & group
5. Strategic use of informal communication- helpful in building relationships and resolving
conflicts.
6. Principle of follow-up- helps ensure that plans are implemented and goals are achieved.
7. Managerial communication - two-way

MOTIVATION

This is an act of stimulating someone or oneself to get a desired course of action. It is that inner
state of mind that channels workers behavior and energy towards the attainment of desired goals.

Factors Affecting or Determining Motivation

1. The Nature of the job: - A job that is challenging and good enough will motivate an
individual and use
2. The Work environment: - When the work environment is conducive, worker will be
motivated e.g. a spacious office will motivate an employee.
 3. Participation in planning: - When employees are given an opportunity to participate in
planning & implementation they become highly motivated.
4. Better reward system: - When the employees are fairly and equitably compensated they
become more motivated.
5. Security: - When employees are provided with security at work and have security of
tenure, they are highly motivated.
6. Recognition by management: – When the management recognizes the efforts of the
workers, they will be highly motivated.
7. Trust and loyalty: - When there is trust and loyally between the subordinates & the
management motivation becomes high in the workplace.
8. Room for advancement. : - career growth and development.
9. Delegation of authority: - transfer of authority from upper to lower
10. Good management

Importance of Motivation

1. Through motivation high performance in the organization can be

2. Motivation enhances willingness of people to work thus minimizes conflicts and
resistance to change.
3. Sound motivation minimizes chances of absenteeism and labour.
4. Increased motivation reduces the need of close supervision which may be
expensive to the organization
5. Effective motivation leads to cordial relationship between workers and
management, as there is increased job satisfaction.
6. Good motivation may lead to improvement of skills of individuals within the
organization.

Methods of Motivating employees

A motive is a need or driving force within a person. The management can motivate their
employees through:

o Fair remuneration - Fair & reasonable reward for the services

 o Incentives - Bonuses, pension scheme & profit sharing
o Security of tenure - Assure continues employment
o Good working conditions- working hours, medical leave.
o Recognition
o Participation- In decision making
o Communication - Adequate upward & downward
o Safety programs - Compensation / hospital expenses
o Health programs - protection against health hazards
o Education and development programs

Features of a Sound Motivation Program

a. It should be productive - Must result into positive increase of productivity of

labour.
b. Must be competitive - The costs of the motivation system /programme must be
justified in its
c. Should be comprehensive. It should provide for both physiological and
psychological need and cover all employees at all level.
d. Should be flexible - It should be capable of being adjusted easily in case of
changes in the environment.
e. It should be acceptable to the employees.
f. It's a psychological concept i.e. its concerned with intrinsic forces operating
within an individual which compels him to act in a particular way. A motive is a
personal and individual
g. It is dynamic and continuous process i.e. it deals with human beings which are
error changing and modifying themselves every moment with their needs being
unlimited.
h. Motivation is a complex and difficult function. In order to motivate people a
manager needs to understand and satisfy a multiplicity of human needs, but needs
are mental feelings which cannot be described and measured accurately. They are
vague and have to be deduced from external behavior of needs. Moreover needs
are basically
i. It is a circular process- feeling of unsatisfied needs causes tension and an individu

When the needs are satisfied, tension is removed and the person feels inspired to work in a
particular direction. This in turn leads to revaluation of the situation and the birth of the new
ideas or needs.
Motivation is different from satisfaction- motivation is the process of stimulating an individual
or a group to take a desired action. Satisfaction implies contentment arising from the satisfaction
of the need. Motivation is the drive towards an outcome whereas satisfaction refers to the
outcome experienced by person.

Motivation Process

A person feels motivated when the available incentive lead to satisfaction of his needs. The
following are steps in motivation process:

1. Awareness of needs

When a person realizes a need or motive that is not satisfied, it creates tension in his minds. Thus
motivation process starts with awareness of a need.

2. Search for action

The person looks for suitable action to relieve his tension and satisfy his needs. He thus develops
certain goals and attempt to fulfill them.

3. Fulfillment of needs

The suitable action is undertaken and therefore the need is satisfied or fulfilled.

4. New need

Once the need has been satisfied, another need begins to dominate the mind.

Theories of Motivation

The theories of motivation are categorized into two:

 1. Content Theory
2. Process Theory

Content Theory

These theories attempt to explain the specific things that actually motivate an individual at work.
They are concerned mainly with identifying people's needs, their relative strength and the goal
people pursue in order to satisfy their needs.

These theories include: -

1) Abraham Maslow's hierarchy of needs theory

2) Herzbergs two factor theory
3) Alderfers modified need hierarchy ERG (Existence need, Related need and Growth need)
4) Mc Cleland achievement motivation

Process Theories

These theories concern themselves with identification of dynamic variables that makes up
motivation. Mainly process theories focus on how behavior is initiated, directed and sustained.
These theories include:-

 Expectancy based model of Vroom.

 Lawler's and Porter equity

Content Theories

Abraham Maslow Hierarchy of Needs Theory

Maslow developed a theory of motivation on the basis of human needs. The main arguments of
Maslow's theory are:

Man is a perpetually wanting animal and his needs are never fully satisfied. The moment a need
is satisfied another one starts to dominate the minds of an individual.

Human needs differ in importance and therefore can be arranged in a hierarchy

An individual need in the hierarchy emerge only when the lower level needs are reasonably well
satisfied

Lower order needs are more fifth then higher level needs

Maslow's studies into human motivation led him to propose a theory of needs based on a
hierarchical model with basic needs at the bottom and higher needs at the top.
These needs are as follows:-

1. Psychological needs

These are the needs for food, drink, water, sleep, clothing and shelter. These are for the survival
of human life. They are the most basic fundamental needs and must be satisfied by all other
needs.

An organization can help individuals satisfy their needs by providing good pay, proper working
conditions and other benefits.

Characteristics of physiological needs

o They are relatively independent of each

o They can be identified with specific location of the
o To remain satisfied, they must be met repeatedly within a short
o Unless these needs are satisfied to the degree necessary to sustain life other needs
will not motivate

2. Safety /security needs

This is the need for stale environment relatively free from accident, fire, murder, threats etc. it
also touches an aspects of economic security, unemployment, theft, sickness and disability. An
organization can influence safety needs either positively by providing (job security, pension
plans, insurance plans, safety and healthy working conditions).or negatively by growing fear of
being fired or laid off through management action.

3. Love needs/ social needs

Man is a social being; therefore he has the needs of belonging and be accepted by others. Social
needs includes need for love and affection, association and acceptance by various social groups
an organization can help achieve social needs through group decision making, team building
activities, engagement in corporate social responsibility and sporting activities.

4. Esteem needs

These are needs for self-fulfillment, self-confidence, feeling of personal worth and
independence, esteem for others i.e. recognition, status, power, prestige achievement etc.

An organization can help to satisfy such needs through job titles, praises, promotion,
performance appraisal, provision of spacious offices and prestigious packages given to
employees.

5. Self-actualization needs
These needs according to Maslow emerge after all other needs have been satisfied. Self-
actualization need needs include the realization of one's potentialities, self-fulfillment, self-
development and creativeness. This refers to the needs for becoming what one is capable of
becoming and for accomplishing more and more.

The form these needs take varies from person to person just as human personalities vary.

Self-actualization can be satisfied through any of these ways: Athletics, Politics, academics,
family and religion.

The most and central point of Maslow's theory is that people tend to satisfy their needs
systematically starting with the basic physiological needs & then moving up the hierarchy until a
particular group of needs is satisfied, a person’s behavior will be dominated by them. Thus a
hungry person is not going to be motivated by consideration of safety or affection, until after his
hunger has been satisfied.

Maslow's later modified this argument by stating that there was an exception to the rule in
respect of self-actualization need. For this group of needs, it seems that satisfaction of need gives
rise to further needs for realizing one's potential.

ALDERFERS MODIFIED NEED HIERARCHY (ERG, Exisistence Need, Related Need,

And Growth Need.)

Alderfers condenses Maslow's five levels of needs into three levels based on the core needs of
existence, relatedness, and growth.

Existence needs are concerned with sustaining human existence and survival and cover Maslow's
physiological and safety needs. They include all the various forms of material desires such as
food, water, pay and good working conditions.

Relatedness needs are concerned with relationships to the social environment and cover love,
belonging, affiliation, and meaningful interpersonal relationships of a safety or esteem nature.

Growth needs are concerned with the development of potential and cover esteem and self-
actualization.

McClelland Achievement Motivation

He said that human beings have three basic needs (motivational) power, affiliation and
achievement. Power is shown in strong desire to alter the course of events.

Affiliation is need for friendship, love, and group approval.

Achievement is shown by desire to succeed not to fail.

Herzberrg's Two-Factor Theory

(Motivation hygiene theory)

Herzberg collected data on job attitudes through interviewing engineers and accountants. He
concluded that there are two categories of needs that are independent of each other and affect
behaviour in different ways.

When people feel dissatisfied with their job they were concerned by the environment in which
they job, this had to do with the job itself.

1. Hygiene / dissatisfiers

They tend to bring job dissatisfaction. Their removal or making them favourable does not
motivate work or improve production but only reduce dissatisfaction.

They include:

 Supervision
 Administrative polices
 Working conditions
 Interpersonal relationships with supervisors
 Job security Status
 Money /Salary

2. Motivation/Satisfies

These are factors, which improve on motivation of individuals. They build strong motivation.
Their absence does not cause dissatisfaction but bring about a condition of not satisfied.

They include: -

 Recognition for accomplishment

 Feeling of achievement
 Promotion
 Challenging work
 Increased Responsibility
 Opportunity for growth
 Motivators are job centered, inherent to the job while hygienes are extrinsic. The theory
highlights that the most effective technique of intrinsic motivation is job enrichment.

The theory also points out that the opposite of job satisfaction is not job dissatisfaction but no
job satisfaction.

Process Theory

Expectancy theory

V room models

Victor H Vroom holds that people will be motivated to do things to reach a goal if they believe
in the worth of that goal and if they see that what they do will help them in achieving it.

Vroom theory is that people motivation towards doing anything will be determined by the value
they place on the outcome of their effort (whether positive or negative) multiplied by the
confidence they have that their effort will materially aid in achieving a goal.

In other words Vroom make the point that motivation is the product of anticipated worth that an
individual place on a goal and the chance that he or she sees of achieving that goal.

Porter and Lawler model

Their model is based on assumption that rewards cause satisfaction and that sometimes
performance produce rewards.

They made the hypothesis that satisfaction and performance are linked by rewards. They see
good performance leading to rewards which are either be intrinsic or extrinsic.

Intrinsic rewards are given to the individual by himself for good performance and they include: -
feeling of accomplishment and satisfaction of higher level needs.

Extrinsic rewards are given by the organization and they include pay, promotion, job security,
good working condition etc.

Motivating Factors

1. Participation in planning
When employees are given a choice to plan their own work and contribute in organizational
planning, the plans, are more acceptable to them.

2. Challenging work

When work is not challenging, boredom sets in and this is likely to cause laziness and
dissatisfactions at the place of work

3. Recognition of status

Most people want approval by peers, friends or supervisors. Benefits that show status may
increase motivation.

4. Authority, responsibility and power

Some people are motivated greatly by being responsible for the work of others. Many people
stay in the organization with the hope of rising to upper levels

5. Independence to action

Being allowed to work without close supervision motivates a person.

6. Security

This includes financial and nonfinancial incentives that are given to the employee will be
motivating

7. Advancement

People are motivated by upward mobility in their job

8. Personal growth

People want to grow wholesomely both in aspects related to the job of those outside the job

Morale

This is a term used to describe the overall climate prevailing among workers. It’s an attitude of a
satisfaction with desire to continue in willingness to strive for goals for a particular enterprise.

Lack of morale can result in:-

o Increased cases of Absenteeism

o Antagonism towards rules and supervision
o Excessive complains & grievances
o High labor turnover
o Friction between employees and the management or the employer
 o Lateness at work
o Increased accidents at work
o Alcoholism as a result of frustration

Leadership

According to Chester Barnard, leadership is the ability of a supervisor or manager to influence

the behavior of his subordinates and persuade them to follow a particular course of action.

Importance of Leadership

1. Efficient leadership motivates the members of the organization

2. Efficient leadership helps in directly group activities.
3. Leadership helps to reduce resistance and conflicts in the
4. Good leadership assists in bringing change and increase interpersonal communication.
5. Leadership ensures cohesiveness among group
6. Leadership helps to develop talents of
7. Good leadership enables optimal utilization of the organizational

Theories of Leadership

1. Trait theory

According to this theory leadership behavior is the sum total of the traits that an individual
possess. A successful leader must therefore possess certain tracts or qualities. These qualities
include:-

 Initiative
 Open minded
 Self confidence
 Vision and foresight
 Maturity
 Sense of responsibility
 Physical fitness

2. Situational theory
According to this theory, leadership is a function of the situation in which the leader works &
emerges. It argues that a leader may be successful in one situation and fail in another.

3. Behavioural theory

According to this theory, leadership is a function of effective role behaviour. A leader should
posses' favourable leader behaviour to inspire and guide subordinates.

Leadership Styles

1. Autocratic / Authoritarian Leadership

This is whereby power is highly centralized. The subordinates are not allowed to make or
participate in decision- making.

An acrobatic leader demands complete loyalty and unquestionable obedience from the
subordinates.

Advantages of Autocratic Leadership

 Tasks are accomplished on time

 Decision-making is not delayed.
 Communication is fast

Disadvantages of Autocratic Leadership

 There is social distance between the leader & the being led.
 May lead to high labour turnover because of job dissatisfaction.
 Members lack commitment to organization.
 The work may not be effectively done in the absence of the leader.
 Workers initiative is stifled.

2. Democratic /Participative Leadership

This is a subordinate centered leadership whereby the leader involves the total participation of
the subordinates in decision-making process. He leads by consent of the group rather than by use
of authority.

Advantages of Democratic Leadership

 Effective consultation between the leader & his subordinates.

 Effective delegation since there is trust confidence between subordinate & the leader
 There is openness & Open communication.

 High motivation within workers leading to high productivity & quality of products and
services
Disadvantages of Democratic Leadership

 New ideas & change are more likely to be accepted and implemented when everyone has
a say in the decision-making process. However, it can be difficult to get everyone on
board with new ideas, especially if they involve significant change.
 Decision-making is time consuming since a lot of consultation is carried out to gather
everyone’s input before reaching a consensus.
 The job may not be perfectly done, as the leader may not be able to oversee directly.
 Concept may develop due to groupthink, which is the tendency of people to make
decisions that conform to the group's consensus, even if they don't personally agree with
them.
 Some workers may take advantage of the freedom and trust given to them.
 May allow for even unfair criticism by the workers.
 Over delegation may lower the quality of work.

3. Pseudo Democratic or Manipulative Leadership

This leader makes his desires known & then appoints a committee to deliberate but primarily to
approve his proposal.

Group members go through the nation of cooperative action but to no avail since the decisions
have been reached before hard.

The leader may be very successfully being tolerated when he rewards those who support him.

4. Bureaucratic Leadership

The leader depends upon the rules and regulations developed by him. The rules specify the
functions and duties of every member of the organization. The leaderships therefore reduced to a
routine job. There is limited scope for initiative and subordinates like to play. The leader is
centered leading to total inefficiency.

5. Laissez faire/ free rein

Under this type of leadership, the leader leaves it to subordinates to decide and controls
themselves believing that they are competent and motivated. He does not lead and avoids using
power.

He leaves the group to itself. He rarely acts or takes a consultancy position of the group without
any influence of authority.
He does not interfere in the activities of his subordinates. He believes that people will perform
better if they are left free to make and enforce their own decisions. Such a leader may be
successful where the subordinates are highly competent and fully dedicated to the organization.

6. Charismatic Leadership

This is where the leader has total loyalty and support of the subordinates. It may be as a result of
special qualities that he/she possesses and as such the followers strongly believe in his/her ideas.
A Charismatic leader possesses natural, inborn unique traits and attributes that distinguishes
him/her from other leaders. He may be kind, forceful, persevering, sincere, humble, etc.

Leadership Style According To Likert

Likert has classified leadership styles into four types. They include:

1. Exploitative / Authoritative

This is a system that is highly autocratic. It has very little trust in subordinates. People are
motivated through fear and punishment with occasional rewards. Communication is downward
and decision-making is limited to the top.

2. Benevolent Authoritative

The manager has patronized confidence in the subordinates and motivates with some rewards
some fear and punishment. The manager permits some upward communication and solicits some
ideas and opinions and also allows some delegation of decision making but with close policy
control.

3. Consultative Leadership

The manager has substantial but not complete trust and confidence in subordinates. He tries to
use subordinates ideas and opinions and he use rewards for motivation with occasional
punishment. Upward & downward communication is allowed and the general policy is made at
the top, but specific decisions are made at lower levels.

[Link] Leadership

The leaders have complete trust and confidence in subordinates. He gets ideas and opinions from
the subordinates. Rewards are given on the basis of group participation. Subordinates engage in
communication and also in decision making throughout the organization.

Factors affecting effectiveness of leadership/ choice of leadership style:

1. Factors related to the manager
 • Self-knowledge and experience
• Managers personality
• Academic and professional background
• Personal capacity
• Managers values
• Managers goals and aspirations
2. Factors related to subordinates
• Attitude towards authority
• Their work ethics
• Maturity level of subordinates i.e. task related maturity and not age Employment
value system
• Workers experience and skill level
• Employees expectations
• Employees need for independence
• Employees loyalty to the organization
3. Factors related to the situation
• Size of work groups
• Task structure
 Leadership styles of the managers/ suppliers
 Objective of the organization
 Leader subordinate relationship
 Whether or not the company has a trade union
 Impact of technology

Communication.

Communication is commonly defined as the process by which a person (sender) transmits

information (message) to another (receiver).it's the transfer of information, ideas, understanding
or feelings between people.

An organization must keep in touch with its environment e.g. customers, suppliers the
government dealers etc.

The purpose of communication in an enterprise is to effect change i.e. to influence action

towards the welfare of an enterprise. Communication is essential for the internal function of the
enterprise, because it integrates the managerial functions.

Communication is especially need to:-

  Establish and disseminate the goal of an enterprise.
 Develop plans for achievement of an organization
 Organize human and other resource in the most effective and efficient manner.
 Select, develop and appraise members of the organization.
 Lead, direct, motivate and create a climate in which people want to work.
 Control

Communication process

The process traces the movement of information from the sender to the receiver. The process has
the following elements of steps:-

• Sender - This is anyone who wants to communicate something to someone else. The sender has
a thought or an idea which must be put into a language understood by the receiver and the sender
(encoding).

• Message - This is the information the sender wants to transmit.

• Channel / media- This is the link between the sender and the receiver of the message. It refers
to the model of transmission of the message e.g. a letter, telephone, television, a computer,
gestures etc.

•Receiver - This is the person the sender wants to react with the message. Once the receiver gets
the message he/she must decode it. This is the process by which the message and attaches
meaning to

•Feedback -The action taken by the message receiver once the message has been conveyed. Its
only through feedback that the sender can know the process was successful.

Noise Hindering Communication

Unfortunately communication is affected by noise which is anything / whether in the sender, the
transmission that hinders communication, for example:-

A noise or a confined environment may hinder the development of clear communication.

Encoding may be faulty because of the use of ambiguous language.

Transmission- The message may be distorted by technical problems, environmental noise, or

interruptions.

Receiving: The receiver may be distracted, have preconceived notions about the sender or the
message, or be unable to decode the message accurately.
Decoding may be faulty because the wrong meaning may be attached to the words.

The process of communication is affected by many situational and organizational factors. Factors
in the external environment may be; Educational, sociological factors, legal factors, political
factors, economic factors etc.

Communication is also affected by internal factors such as structure of the organization,

managerial styles and changes in technology etc.

Types of Communication

Communication in an organization is either internal or external. In an effective organization,

communication flows in various directions i.e. down word, up word or crosswise. This various
types of communication in an organization may include:-

1) Types of communication according to flow of direction

1. Vertical up word communication

In this type of communication, the information flows from the lower levels (subordinates) to the
higher levels (superiors) through the chain of command.

2. Vertical down words communication

In type of communication, information flows from the higher levels (superiors) to the lower level
(subordinates). This type of communication exist especially in organization with an authoritarian
atmosphere

3. Direct horizontal communication

This involves an individual from one department communicating to another person in another
department at the same level
4. Indirect communication

This communication occurs between people of different organizational levels of different

departments.

2) Type of communication on the basis of relationship between the parties in the

organization

1. Formal communication

This type of communication follows the course laid down in the organization structure of the
enterprises. Members of the enterprise are supposed to communicate with each other strictly as
per channels laid down in the structure.

2. Informal communication

In this type of communication the transmission of information is not through any structure or any
pattern of relationship provided in the organization. This type of communication is through the
grapevine where there is no approval of the management.

3) Types of communication on the basis of the method used

1. Written communication

This is the form of a letter, memos, manuals, or minutes. In a formal organization such as a
business enterprise, written communication is the most important media for conveying ideas,
information etc.

2. Oral/verbal communication

This provides immediate feedback and unclear issues can be clarified immediately. It gives
communication a personal and intimate touch. Verbal communication can be in the following
forms:-

 Face to face communication.

 Joint consultations.
 Public communication which may be used to announce a policy decision of workers.
 Broadcasts which relates to statement from the management to the staff generally or to
certain section of it.

3. Non-verbal communication
In this form of communication, gestures rather than words are used to convey feeling of
emotions. Facial expressions, postures, gestures, tone of voice and other body movements are
made

Barriers and Break Downs in Communication

The communication problems or barriers whether arising from mechanical, organizational or

personal factors, may often result in distortion of meanings or filtering of information by
suppression or with holding.

Broadly, the distortion or filtering of information may be due to the following:-

1. Mechanical barriers

2. Organizational barriers

3. Personal barriers

i) Mechanical barriers Causes

1. Distortion- It may be due to noise in the transmission or because the communicator does not
use the right words to give meaning and precision to his ideas and message.

2. Filtering - It is caused due to a distance between the communicator and the receiver. As a
message passed through different points in the communication channels, it may be attached or
twisted by the persons in between whether intentionally or unintentionally.

3. Overloading- It is caused by over working of the communication channels due to an increase

in the number of messages to be sent out.

ii) Organizational barriers

They may be caused by inadequate or improper arrangements for various intra- organizational
communication activities.

Causes

1. Inadequate facilities that pertains to meetings, conference and other mechanisms for hearing
and sorting out suggestions.
2. Inadequate policies, rules and procedures in an organization. Thus rigidity in communication
procedures and rules should be avoided.

3. Status pattern - problems in communication arise from relative position of the superior
subordinates in the organization.

iii) Personal barriers

Sometimes the failure in communication is due to personal problems of the person to whom the
communication is being addressed or the person who is giving out the information.

Causes

1. Lack of attention or interest by the receiver.

2. Hasty conclusion i.e. the receiver may be by nature a person in hurry such that without going
through the message carefully, he may jump to hasty conclusion according to his own opinion.

3. Lack of confidence in the communication.

4. Improper state of mind i.e. emotional mentally

5. Love for the status quo i.e. if the communication tends to disturb the existing scheme of
things, or is otherwise seen to be against the interest of the receiver, it may create
misunderstandings.

Essentials of a sound communication system (principles of effective communication / ways

of overcoming barriers

Effective communication is the responsibility of all people. In the organization managers as well
as subordinates who work towards a common aim. Whether communication is effective can be
evaluated by the intended results.

A good system of communication must fulfill the following requirements.

• Senders of the message must clarify in their minds what they want to
communicate. This means that one of the first steps of communication is
clarifying the purpose of the message and making a plan to achieve the intended
end.
• Effective communication requires that encoding and decoding be done with
symbols that are familiar to the sender and receiver of the information
• The information must be send off at the proper time and should reach the receiver
when he or she i
• All the messages and information should be formed and transmitted to support the
integrity of the organization. The communication system should reflect the
objective and policies of the organ
• Participation: - The receiver must be involved in the planning and transmission of
the information, such participation helps to promote mutual trust and
• The management should use informal communication to supplement and
strengthen formal channels. The grapevine can be used to transmit information
not considered appropriate for formal
• A good communication system must contain feedback mechanism where the
sender should try to know the reaction of the receiver. This will enable the
management to certain whether or not the messages was properly understood and
acted upon by the employees.
• Economy: - The communication system should be cost effective. The cost of
communication should be controlled by avoiding unwanted messages and
communication
• Flexibility: - The system of communication must be flexible enough so that it can
be adjusted to the changing requirements of the
• Attention:- The receiver of the communication must be attentive and have an
opened