principles of mgt and ob
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Solved question paper (December 2008) (HINTS)
Question 1. What is stress? Discuss the relationship between personality and stress?
We generally use the word "stress" when we feel that everything seems to have become toomuch - we are overloaded and wonder whether we really can cope with the pressures
placed upon us.
Anything that poses a challenge or a threat to our well-being is a stress. Some stresses get yougoing and they are good for you - without any stress at all many say our lives would be boring
and would probably feel pointless. However, when the stresses undermine both our mental and
physical health they are bad. In this text we shall be focusing on stress that is bad for you.
Fight or flight response
The way you respond to a challenge may also be a type of stress. Part of your response to achallenge is physiological and affects your physical state. When faced with a challenge or a
threat, your body activates resources to protect you - to either get away as fast as you can, or
fight.
If you are upstairs at home and an earthquake starts, the faster you can get yourself and your
family out the more likely you are all to survive. If you need to save somebody's life during that
earthquake, by lifting a heavy weight that has fallen on them, you will need components in your
body to be activated to give you that extra strength - that extra push.
Our fight-or-flight response is our body's sympathetic nervous system reacting to a stressful
event. Our body produces larger quantities of the chemicals cortisol, adrenaline and
noradrenaline, which trigger a higher heart rate, heightened muscle preparedness, sweating, and
alertness - all these factors help us protect ourselves in a dangerous or challenging situation.
When we are stressed the following happens:
Blood pressure rises
Breathing becomes more rapid
Digestive system slows down
Heart rate ( pulse) rises Immune system goes down
Muscles become tense
We do not sleep (heightened state of alertness)
Effect on your body
A tendency to sweat
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Back pain
Chest pain
Cramps or muscle spasms
Erectile dysfunction
Fainting spells
Headache
Heart disease
Hypertension (high blood pressure)
Loss of libido
Lower immunity against diseases
Muscular aches
Nail biting
Nervous twitches
Effect on your thoughts and feelings
Anger
Anxiety
Burnout
Depression
Feeling of insecurity
Forgetfulness
Irritability
Problem concentrating
Restlessness
Sadness
Fatigue
Irregular periods(hot flashes)
Effect on your behavior
Eating too much
Eating too little
Food cravings
Sudden angry outbursts
Drug abuse
Alcohol abuse
Higher tobacco consumption
Social withdrawal
Frequent crying
Relationship problems
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There is a deep relationship between "personality and stress". In the present world these two concepts have attained a veryimportant role. Stress plays a very important role in every day life of an individual and is present in one form or another. Stressaffects the personality as well as the performance of a person. If we understand the relation between stress and the personality,
how they affect each other we will be able to channalize and manage stress in a better way. Stress won't affect individual's personality in a negative way. Due to the relationship between personality and stress you come to know that how personalityaffects the stress and how stress affects the personality, how it affects your work, your relationship with other people, personallife, peace of mind, are influenced. If you will understand this dynamic relationship you will lead a successful life. You will be
able to perform better and would receive appreciation and should give a boost to your self esteem, by dynamic, it is meant that personality affects stress and stress affects personality.
Personality: Personality is the product of a culture to do different things in different situations; it is affected by the environment, family,
norms and values, society. The society produces different types of people or individuals. These individuals perform differenttasks at different times under different situations. In other words the culture/society/environment produces a different person inan army man, in a teacher, in a student and in a sweeper etc. these individuals have to perform different tasks in the society. This
aspect of personality is linked with stress. Stress is situation where there are demands on a person.
1. Social demands: To act or, perform in a certain way, if the person is unable to perform according to the demands of a
situation, the pressure emerges.
Two types of stress
a. Positive stress-it is called u-stress; you perform well due to this stress.e.g. Stress in exams makes you achieve better marks inthe examination.
b. Negative stress: if you can't adjust to the demands of the situation then the stress is prolonged then thisnegative stress affects on your performance, your health and your over all personality.
2. Organizational demands: The organizations have certain expectations; they require their employees to fulfill certain tasks. This also puts stress on theemployees and the workers. If the organization demands some sort of work from the employee which he knows he will not be
able to perform well. The person should say no rather than putting extra stress on himself for something he can not do, or if someone has to do some thing too challenging for them then they should first attempt to divide the work into smaller tasks, do the first
part of it. If he succeeds then go on to the next part. In this way he will be able to manage the tasks.
3. Situational demand: Stress emerges out of expectations, situational expectations, cultural expectations, organizational
expectations, and family expectations all these expectations make you work. If you work according to the situation there should be no stress.
Question No:2 what is conflict and collbaration . what is the role of conflict in organizational behavior?
When individuals with different values, beliefs or attitudes work closely with one another, it is inevitable
that conflict will rear its ugly head. Developing and training your employees in conflict management
styles will keep the workplace running smoothly should a conflict arise. Various techniques exist to
manage conflict; one such strategy is the collaboration method. Collaboration is an ideal method
because both sides of the conflict work toward a "win/win" outcome.
Conflict Management
Conflict situations are an important aspect of the workplace. A conflict is a situation when the
interests, needs, goals or values of involved parties interfere with one another. A conflict is acommon phenomenon in the workplace. Different stakeholders may have different priorities;
conflicts may involve team members, departments, projects, organization and client, boss and
subordinate, organization needs vs. personal needs. Often, a conflict is a result of perception. Isconflict a bad thing? Not necessarily. Often, a conflict presents opportunities for improvement.
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Therefore, it is important to understand (and apply) various conflict resolution techniques.
Collaboration is a working practice whereby individuals work together to a common purpose to achieve
business benefit.
What is Collaboration?
Collaboration is a working practice whereby individuals work together to a common purpose toachieve business benefit. Key features of collaboration tools are:
Synchronous collaboration such as online meetings and instant messaging
Asynchronous collaboration such as shared workspaces and annotations
Many organizations are also looking at Free-form Collaboration tools to improve collaboration
and reduce the number of emails used for collaboration.
Collaboration, at the conceptual level, involves:
Awareness - We become part of a working entity with a shared purpose
Motivation - We drive to gain consensus in problem solving or development
Self-synchronization - We decide as individuals when things need to happen
Participation - We participate in collaboration and we expect others to participate
Mediation - We negotiate and we collaborate together and find a middle point
Reciprocity - We share and we expect sharing in return through reciprocity
Reflection - We think and we consider alternatives
Engagement - We proactively engage rather than wait and see
Role of conflict in organisation behavior
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The role of conflict in organizational behavior depends upon its frequency, intensity, and the
manner in which it is addressed. Lengthy or significant conflicts can overwhelm an organization,
while smaller issues may serve as a catalyst for improvements in the way the business is run. Theway that an organization manages conflict also plays a role in how it affects the company
overall.
Conflict in organizational behavior can be debilitating if managed poorly. An organization that
becomes adept at catching signs of trouble before they develop into full blown issues will tend to
be healthier overall. If conflict does develop, companies with a procedure for managing this kindof trouble often create a more positive, constructive environment for employees.
The role of conflict in organizational behavior can be overwhelming if it is not addressed promptly. Problems that are ignored or inadequately resolved often become a part of
organizational culture. In essence, the company gets in the habit of being dysfunctional. The
long-term results of this inattention can range from causing inconvenience to destroying the
organization.
If conflict in organizational behavior is addressed quickly and effectively, it can help to improve
operations. Once disparate elements have been brought into harmony, the effort often not onlystops the immediate effects of the conflict, but also helps to improve productivity. In addition to
removing the distraction of the problem, solving it will often reveal better methods of working.
Question 3. What is organizational change. What are its objectives?
Organisational change is defined as change that has an impact on the way that work is performed
and has significant effects on staff. This could include changes:
- In the structure of an organisation- To organisational operation and size of a workforce
- To working hours or practices- In the way roles are carried out
- To the the scope of a role that results in a change to the working situation, structure, terms and
conditions or environment.
Organisational change can have an impact irrespective of whether changes are viewed as large or
small.
Company or organization going through a transformation. Organization change occurs when business
strategies or major sections of an organization are altered. Also known as reorganization, restructuring and turnaround.
Objectives of organizational change:
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Provide the framework for retaining and building capabilities for employees duringchange;
Provide the framework for human resources implementation activities and timeframesrelated to an organisational change project;
Provide detailed information relating to how employees will be transitioned into new or
revised structures following a change exercise; Inform employees on the communication approaches related to human resources
implementation activities;
Promote and advise employees on employee support programs (eg. wellness and training
and development activities to support employees through the implementation phase.
Question 4. Discuss some theoritcal models in leadership, which is situational.
Interest in leadership increased during the early part of the twentieth century. Early leadership theories
focused on what qualities distinguished between leaders and followers, while subsequent theories
looked at other variables such as situational factors and skill levels.
Contingency Theories:
Contingency theories of leadership focus on particular variables related to the environment that might
determine which particular style of leadership is best suited for the situation. According to this theory,
no leadership style is best in all situations. Success depends upon a number of variables, including the
leadership style, qualities of the followers and aspects of the situation
Situational Theories:
Situational theories propose that leaders choose the best course of action based upon situational
variables. Different styles of leadership may be more appropriate for certain types of decision-making.
For example, in a situation where the leader is the most knowledgeable and experienced member of a
group, an authoritarian style might be most appropriate. In other instances where group members are
skilled experts, a democratic style would be more effective.
Management Theories:
Management theories, also known as transactional theories, focus on the role of supervision,
organization and group performance. These theories base leadership on a system of rewards and
punishments. Managerial theories are often used in business; when employees are successful, they are
rewarded; when they fail, they are reprimanded or punished. Learn more about theories of
transactional leadership.
Relationship Theories:
Relationship theories, also known as transformational theories, focus upon the connections formed
between leaders and followers. Transformational leaders motivate and inspire people by helping group
members see the importance and higher good of the task. These leaders are focused on the
performance of group members, but also want each person to fulfill his or her potential. Leaders with
this style often have high ethical and moral standards.
Situational Leadership Theory
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Most of the leadership training programs offered today are aimed at helping you discover the
leadership style you exhibit, and making you aware of its strengths and weaknesses. However, a
situational leadership style is not dictated by the leadership skills of the manager. The theory behind situational leadership is more closely tied to using the style needed to be successful given
the existing work environment, or the specific needs of the business.
The effective manager is able to utilize multiple leadership styles as conditions change. This is
the theory behind the concept of situational leadership. Implementing situational leadership in
an organization then becomes a matter of training managers to recognize the current work setting, or employee condition, and using the most effective leadership style given the specific
challenge.
For example, delegating work to an employee that is ill prepared to accept that responsibility
may result in the impression that the worker is incompetent. This can lead to frustration for both
the manager and worker. Ironically, it is actually the manager's inability to recognize the most
effective leadership style, or refusal to switch styles, that is really the cause of an ineffective
workforce.
Question 5. Define Herzberg theory of motivation? Discuss the importance and limitations of these theories?
In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or themotivator-hygiene theory. According to Herzberg, there are some job factors that result in
satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg,
the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “NoDissatisfaction”.
FIGURE: Herzberg’s view of satisfaction and dissatisfaction
Herzberg classified these job factors into two categories-
a. Hygiene factors- Hygiene factors are those job factors which are essential for existence of
motivation at workplace. These do not lead to positive satisfaction for long-term. But if these
factors are absent / if these factors are non-existant at workplace, then they lead to
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dissatisfaction. In other words, hygiene factors are those factors which when
adequate/reasonable in a job, pacify the employees and do not make them dissatisfied. These
factors are extrinsic to work. Hygiene factors are also called as dissatisfiers or maintenance
factors as they are required to avoid dissatisfaction. These factors describe the job
environment/scenario. The hygiene factors symbolized the physiological needs which the
individuals wanted and expected to be fulfilled. Hygiene factors include:
Pay - The pay or salary structure should be appropriate and reasonable. It must be equal
and competitive to those in the same industry in the same domain.
Company Policies and administrative policies - The company policies should not be too
rigid. They should be fair and clear. It should include flexible working hours, dress code,
breaks, vacation, etc.
Fringe benefits - The employees should be offered health care plans (mediclaim),
benefits for the family members, employee help programmes, etc.
Physical Working conditions - The working conditions should be safe, clean and hygienic.
The work equipments should be updated and well-maintained.
Status - The employees’ status within the organization should be familiar and retained.
Interpersonal relations - The relationship of the employees with his peers, superiors andsubordinates should be appropriate and acceptable. There should be no conflict or
humiliation element present.
Job Security - The organization must provide job security to the employees.
b. Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as
motivators. The motivational factors yield positive satisfaction. These factors are inherent to
work. These factors motivate the employees for a superior performance. These factors are
called satisfiers. These are factors involved in performing the job. Employees find these factors
intrinsically rewarding. The motivators symbolized the psychological needs that were perceived
as an additional benefit. Motivational factors include: Recognition - The employees should be praised and recognized for their
accomplishments by the managers.
Sense of achievement - The employees must have a sense of achievement. This depends
on the job. There must be a fruit of some sort in the job.
Growth and promotional opportunities - There must be growth and advancement
opportunities in an organization to motivate the employees to perform well.
Responsibility - The employees must hold themselves responsible for the work. The
managers should give them ownership of the work. They should minimize control but
retain accountability.
Meaningfulness of the work - The work itself should be meaningful, interesting and
challenging for the employee to perform and to get motivated.
Limitations of Two-Factor Theory
The two factor theory is not free from limitations:
1. The two-factor theory overlooks situational variables.
2. Herzberg assumed a correlation between satisfaction and productivity. But the research
conducted by Herzberg stressed upon satisfaction and ignored productivity.
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3. The theory’s reliability is uncertain. Analysis has to be made by the raters. The raters may spoil
the findings by analyzing same response in different manner.
4. No comprehensive measure of satisfaction was used. An employee may find his job acceptable
despite the fact that he may hate/object part of his job.
5. The two factor theory is not free from bias as it is based on the natural reaction of employees
when they are enquired the sources of satisfaction and dissatisfaction at work. They will blame
dissatisfaction on the external factors such as salary structure, company policies and peer
relationship. Also, the employees will give credit to themselves for the satisfaction factor at
work.
6. The theory ignores blue-collar workers. Despite these limitations, Herzberg’s Two-Factor theory
is acceptable broadly.
Herzberg's findings revealed that certain characteristics/importance of a job are consistently
related to job satisfaction, while different factors are associated with job dissatisfaction. These
are:
Factors for Satisfaction Factors for Dissatisfaction
Achievement Company Policies
Recognition Supervision
The work itself Relationship with Supervisor and Peers
Responsibility Work conditions
Advancement Salary
Growth Status and security
Question 6. What is learning. Describe theory of (a) Classical conditioning. (b) operant learning.?
Learning is a powerful incentive for many employees to stick to certain organizations. Learninghas a significant impact
on individual behavior as it influences abilities, role perceptions andmotivation. Along with its role in individual
behavior, learning is essential for knowledgemanagement. Knowledge management enhances an organization’s
capacity to acquire, shareand utilize knowledge in ways that improve its survival and success.
Learning is defined as “a relatively permanent change in behavior that occurs as a result of prior experience.
Learning is understood as the modification of behavior through practice, training, or experience.This is supplemented
with five important components of learning.
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Classical Conditioning:
Classical conditioning is based on the premise that a physical event – termed a stimulus – thatinitially does not elicit a particular
response gradually acquires the capacity to elicit thatresponse as a result of repeated pairing with a stimulus that elicits a reaction.
Learning of thistype is quite common and seems to play an important role in such reactions as strong fears,taste aversions, some
aspects of sexual behavior and even racial or ethnic prejudice.
Operant Conditioning:
Operant conditioning also called instrumental conditioning refers to the process that our behavior produces certain consequences
are. If our actions have pleasant effects, then we willbe more likely to repeat them in the future. If, however, our actions have
unpleasant effects, weare less likely to repeat them in the future. Thus, according to this theory, behavior is thefunction of its
consequences.
Cognitive theory of learning:
Contemporary perspective about learning is that it is a cognitive process. Cognitive processassumes that people are conscious,
active participants in how they learn. Cognitive theory of learning assumes that the organism learns the meaning of various objects
and event andlearned responses depending on the meaning assigned to stimuli.
Social learning theory:
Also called observational learning, social learning theory, emphasizes the ability of an individualto learn by observing others. The
important models may include parents, teachers, peers,motion pictures, TV artists, bosses and others.An individual acquires new
knowledge by observing what happens to his or her model. This ispopularly known as vicarious learning. A learner acquires tacit
knowledge and skills throughvicarious learning
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Question 7. What are the difficulties in the smooth relationship between line and staff officials in an
enterpirse? How can be removed?
Line and staff structure is an extension of the standard line organizational structure, wherein staff supervisors and staff specialists are attached to the line of authority. Staff supervisors advise line
executives; for example, the CEO represents a line executive and his administrative assistant, astaff official. The CEO has final decision-making power, but staff officers heavily advise every
choice. Therefore, the line execs retain the power, but staff officers guide them – they are the
power behind the throne. This interaction causes problems for line and staff organizations.
Authority
The combined line and staff authority processes can result in confusion as well as
disenfranchised employees. Line officials have the power to make decisions, which upsets some
staff officials since they tend to put in more mental labor. The different levels of authority can
cause confusion among employees who are not sure whether to follow the in-line executive or
the relevant staff specialist.
Decision Making
Since staff officials do most of the research, some line managers begin to rely too heavily on the
staff expert's advice. While usually not an issue, when the staff expert is wrong and the line execdoesn't notice, inefficient decision making results. Whenever a decision results in higher returns,
the staff specialists are rewarded. While this reward may be justified, the line officials involved
can become dissatisfied or begin to feel unappreciated, which leads to low productivity.
Conflict
Sometimes, the two authorities, line and staff, disagree, which causes conflict that hurts theefficiency and productivity of the company. Minor conflicts are common and occur in any
system, but serious conflicts of interest or differing opinions can spread disruption through the
entire operation. “Poor human relations, overlapping authority and responsibility, and misuse of staff personnel by top management are all primary reasons for feelings of resentment between
line and staff personnel,” reports Reference for Business. These feelings of conflict drive some
departments to view the organization narrowly instead of considering how their actions affect the
organization as a whole.
Cost
Line and staff organization is more costly than simple line organization since you must hire,maintain and pay all your staff specialists. For an expert to remain so, they need consistent
training and up-to-date information, which costs either the employee or the company funds.
The conflicts and choas of line and staff management can be removed through effective, effient,
and provacative leadership considering the situation, pros and cons of the availablity of resources(information), etc.
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In many organizations, managers use authority by dividing it into line authority, staff authority
and functional authority. These kinds of authority differ according to the kinds of power on
which they are based.
Line Authority: Managers with line authority are those people in the organization who aredirectly responsible for achieving organizational goals. Line authority is represented by thestandard chain of command starting with the board of directors and extending down activities of
the organization that are carried out. Line authority is based primarily on legitimate power.
Since line activities are identified in terms of the company‟s goals, the activities classified as line
will differ in each organization. For example, managers at a manufacturing company may limitline functions to production and sales, while managers at a department store, in which buying is a
key element will consider the purchasing department as well as the sales department as line
activities. When an organization is small, all positions may be line roles. At Nordstrom,
associates are given considerable line authority.
Staff Authority: Staff authority belongs to those individuals or groups in an organization who provide services and advice to line mangers. The concept of staff includes all elements of theorganization that are not classified as line. Advisory staffs have been used by decision makers
from emperors and kings to dictators and parliaments over the course of recorded history.
Staff provides managers with varied types of expert help and advice. Staff authority is based
primarily on expert power. Staff offer line managers planning advice through research, analysis
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and options development. Staff can also assist in policy implementation, monitoring and control
in legal and financial matters; and in the design and operation of data processing systems.
As managers expand organizations over time, staff roles are often added to supplement line
activities. For example, partners at many law firms are adding staff members to run the „business
side‟ of the firm. The presence of these specialists frees lawyers to practice law, their linefunction.
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Question 8. Explain management as a process? What are the various elements of this process?
Management is the process of reaching organizational goals by working with and through peopleand other organizational resources.
Management has the following 3 characteristics:
1. It is a process or series of continuing and related activities.
2. It involves and concentrates on reaching organizational goals.3. It reaches these goals by working with and through people and other organizational
resources.
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MANAGEMENT FUNCTIONS:
The 4 basic management functions that make up the management process are described in the
following sections:
1. PLANNING2. ORGANIZING
3. INFLUENCING
4. CONTROLLING.
PLANNING: Planning involves choosing tasks that must be performed to attain organizational
goals, outlining how the tasks must be performed, and indicating when they should be
performed.
Planning activity focuses on attaining goals. Managers outline exactly what organizations shoulddo to be successful. Planning is concerned with the success of the organization in the short termas well as in the long term.
ORGANIZING:
Organizing can be thought of as assigning the tasks developed in the planning stages, to variousindividuals or groups within the organization. Organizing is to create a mechanism to put plans
into action.
People within the organization are given work assignments that contribute to the company‟s
goals. Tasks are organized so that the output of each individual contributes to the success of departments, which, in turn, contributes to the success of divisions, which ultimately contributesto the success of the organization.
INFLUENCING:
Influencing is also referred to as motivating,leading or directing.Influencing can be defined as
guiding the activities of organization members in he direction that helps the organization movetowards the fulfillment of the goals.
The purpose of influencing is to increase productivity. Human-oriented work situations usually
generate higher levels of production over the long term than do task oriented work situations because people find the latter type distasteful.
CONTROLLING:
Controlling is the following roles played by the manager:
1. Gather information that measures performance
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2. Compare present performance to pre established performance norms.
3. Determine the next action plan and modifications for meeting the desired performance
parameters.
Controlling is an ongoing process.
Elements of Management Process
Planning: Planning is the primary function of management. It involves determination of a courseof action to achieve desired results/objectives. Planning is the starting point of management
process and all other functions of management are related to and dependent on planning
function. Planning is the key to success, stability and prosperity in business. It acts as a tool for solving the problems of a business unit. Planning plays a pivotal role in business management It
helps to visualize the future problems and keeps management ready with possible solutions.
Organising: Organising is next to planning. It means to bring the resources (men, materials,machines, etc.) together and use them properly for achieving the objectives. Organisation is a
process as well as it is a structure. Organising means arranging ways and means for the execution
of a business plan. It provides suitable administrative structure and facilitates execution of proposed plan. Organising involves different aspects such as departmentation, span of control
delegation of authority, establishment of superior-subordinate relationship and provision of
mechanism for co-ordination of various business activities.
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Staffing: Staffing refers to manpower required for the execution of a business plan. Staffing, as
managerial function, involves recruitment, selection, appraisal, remuneration and development of
managerial personnel. The need of staffing arises in the initial period and also from time to timefor replacement and also along with the expansion and diversification of business activities.
Every business unit needs efficient, stable and cooperative staff for the management of business
activities. Manpower is the most important asset of a business unit. In many organisations,manpower planning and development activities are entrusted to personnel manager or HRDmanager. 'Right man for the right job' is the basic principle in staffing.
Directing (Leading): Directing as a managerial function, deals with guiding and instructing
people to do the work in the right manner. Directing/leading is the responsibility of managers at
all levels. They have to work as leaders of their subordinates. Clear plans and sound organisation
set the stage but it requires a manager to direct and lead his men for achieving the objectives.Directing function is quite comprehensive. It involves Directing as well as raising the morale of
subordinates. It also involves communicating, leading and motivating. Leadership is essential on
the part of managers for achieving organisational objectives.
Coordinating: Effective coordination and also integration of activities of different departments
are essential for orderly working of an Organisation. This suggests the importance of coordinating as management function. A manager must coordinate the work for which he is
accountable. Co-ordination is rightly treated as the essence of management. It may be treated as
an independent function or as a part of organisms function. Coordination is essential at all levels
of management. It gives one clear-cut direction to the activities of individuals and departments. Italso avoids misdirection and wastages and brings unity of action in the Organisation. Co-
ordination will not come automatically or on its own Special efforts are necessary on the part of
managers for achieving such coordination.
Controlling: Controlling is an important function of management. It is necessary in the case of individuals and departments so as to avoid wrong actions and activities. Controlling involvesthree broad aspects: (a) establishing standards of performance, (b) measuring work in progress
and interpreting results achieved, and (c) taking corrective actions, if required. Business plans do
not give positive results automatically. Managers have to exercise effective control in order to bring success to a business plan. Control is closely linked with other managerial functions. It is
rightly treated as the soul of management process. It is true that without planning there will be
nothing to control It is equally true that without control planning will be only an academic
exercise Controlling is a continuous activity of a supervisory nature.
Motivating: Motivating is one managerial function in which a manager motivates his men to
give their best to the Organisation. It means to encourage people to take more interest andinitiative in the work assigned. Organisations prosper when the employees are motivated through
special efforts including provision of facilities and incentives. Motivation is actually inspiring
and encouraging people to work more and contribute more to achieve organisational objectives.
It is a psychological process of great significance.
Communicating: Communication (written or oral) is necessary for the exchange of facts,opinions, ideas and information between individual‟s and departments. In an organisation,
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communication is useful for giving information, guidance and instructions. Managers should be
good communicators. They have to use major portion of their time on communication in order to
direct, motivate and co-ordinate activities of their subordinates. People think and act collectivelythrough communication. According to Louis Allen, "Communication involves a systematic and
continuing process of telling, listening and understanding".