GOVERNMENT COLLEGE OF ENGINEERING KANNUR

DEPARTMENT OF ELECTRICAL & ELECTRONICS ENGINEERING

6th SEMESTER ELECTRICAL & ELECTRONICS ENGG. 2021 Admsn

HUT 310: MANAGEMENT FOR ENGINEERS

MODULE 2:
MANAGEMENT: PLANNING & ORGANIZATION
References:
1. H. Koontz, H. Weihrich, Essentials of Management, Tata McGraw Hill, 10th Ed.
2. O. P. Khanna, Industrial Engineering and Management, Dhanpat Rai & Sons, 1991.
3. R. L. Daft, New Era Management, 11th Ed., Cengage
4. H. Weirich, M. V. Cannice and H. Koontz, Management: A Global, Innovative and
Entrepreneurial Perspective, McGraw Hill Education, 14th Edition
5. J. P. Mahajan, Management, Theory and Practices, Ane Books, ND, 2011.
6. L. J. Krajewski, M. K. Malhotra, L. P. Ritzman and S. K. Srivastava, Operations
Management, Pearson, 11th Ed.
7. Rajesh Kumar R, Principles of Management, Jothis Publications, Kochi, 2017.
8. B. R. Mishra, Management Principles and Application, DDCE Utkal.
9. M. Mahajan, Industrial Engineering and Production Management, Dhanpat Rai &Co.
10. OpenStax, Principles of Management, Rice University, Texas
11. M. Carpenter, T. Bauer, B. Erdogan, Management Principles, Creative Commons.

MANAGEMENT PROCESS
We have already seen that management is necessary for a business firm, government enterprises,
education and health services, military organisations, trade associations and so on.
We have gone through the system approach for management also. The systems approach focuses on
understanding the organization as a system that transforms inputs into outputs.

.
A manager is required to perform a large number of the managerial functions/ responsibilities. This
includes planning, organising, directing, controlling and related actions.
It is seen that, a centralised directing and controlling agency is essential and indispensable for any
business concern
The management process can be modified as shown below by including the POLC frame work for
the managerial function.
We also know that managers are required in all the activities of organizations such as: planning,
leading, controlling, budgeting, designing, production, selling, financing, and artistic presentation
and etc.
 PLANNING:
A plan is a future course of actions. Planning is determination of courses of action to achieve desired
goals.
Planning helps us to look into the future and decide in advance the way to deal with the situations. It
involves logical thinking and rational decision making.
When management is reviewed as a process, planning is the first function performed by a manager.
The work of a manager begins with the setting of objectives of the organization and goals in each
area of the business..
• According to Koontz: “Planning involves selecting missions, and objectives as well as the
actions to achieve them. It requires decision making, which is choosing future courses of action
from among alternatives”.
• Planning is an intellectual process which lays down an organisation’s missions, objectives and
develops various courses of actions in advance, and decide in advance the most appropriate
course of action by which the organisation can achieve those objectives.
• Planning is the fundamental management function, which involves deciding in advance,
- what is to be done, - when is it to be done, - how it is to be done and - who is going to do
it....etc
• It is a decision in advance: Planning is a process
which involves 'thinking before doing'.

PLANNING: NATURE/ CHARACTERISTICS:
The important characteristics of planning are
shown in the figure.
• It is the fundamental management function,
• It involves deciding in advance,
• Planning is goal-oriented: Planning helps in
determining the course of action to be followed
for achieving various organisational objectives.
• Primacy of Planning: Planning is the first of the
managerial functions. Other management
functions such as organising, staffing, directing, co-ordinating and controlling are also
undertaken after planning.
• Pervasiveness of Planning: Planning is found at all levels of management. Top management
looks after strategic planning, Middle management is in charge of administrative planning and
lower management has to concentrate on operational planning.
• Planning is a continuous process that takes place at all levels of management.
• Planning is an intellectual process: The quality of planning will vary according to the quality of
the mind of the manager.
• Flexibility: The process of planning should be adaptable to changing environmental conditions.
• Efficiency, Economy and Accuracy: Efficiency of plan is measured by its contribution to the
objectives as economically as possible. Planning also focuses on accurate forecasts.
• Co-ordination: Planning co-ordinates the what, who, how, where and why of planning. Without
co-ordination of all activities, we cannot have united efforts.
• Limiting Factors: A planner must recognise the limiting factors (money, manpower etc) and
formulate plans in the light of these critical factors.
• It bridges the gap from:
where we are & where we want to be.

IMPORTANCE OF PLANNING:
In the present economic, technological, political and social scenario planning is essential and crucial
for the survival and development of any enterprise. Every firm/ enterprise should show considerable
interest in planning. The change and growth bring new opportunities but they also bring more risks.
The task of planning is to minimise risk while taking advantage of opportunities.
The following reasons are the need for/ advantages of planning
• To manage by objectives: All the activities of an organisation are designed to achieve certain
specified objectives
• It helps to improve future performance, by establishing objectives and selecting a course of
action, for the benefit of the organisation.
• It uncovers and identifies future opportunities and threats to the organization.
• Helpful in Decision making
• It minimises risk and uncertainty, by looking ahead into the future.
• It facilitates the coordination of activities. Thus, reduces overlapping among activities and
eliminates unproductive works etc.
• It provides direction for action, by stating in advance, what should be done in future.
• It sets out standards for controlling. ...etc
• Planning enables a company to remain competitive with other rivals in the industry,
• Planning can point out the need for future change and the enterprise can manage the change
effectively.

DISADVANTAGES OF PLANNING:
- Planning is very costly in many cases, as it involves data collection, forecasts, analysis etc
- Planning is time consuming in many cases and delays action.
- Once the plan is prepared, there is tendency towards inflexibility to change, especially
inflexible administration,
- Planning leads to a false sense of security against risk or uncertainty
- Planning cannot give perfect assurance against some uncertainty
- Environmental factors are uncontrollable and unpredictable to a large extent..planning may fail
in such cases.

PLANNING PROCESS:
We have seen hat planning is the selection from among alternatives for future courses of action for
the enterprise as a whole and each department with it.
Even if the exact future cannot be predicted and some factors/ premises are beyond our control, we
need to plan. It is an intellectually demanding process and requires the selection of a course of
action.
Since planning is a process in which decisions are taken in advance, the following steps are involved
in planning process.
- Being aware of Opportunities/
(Perception of Opportunities),
- Establishing Objectives
- Developing the Planning Premises
- Determining Alternatives
- Evaluation of Alternatives
- Selection/Choice of Alternative Plans
- Formulating of Supporting plan/
( Derivative Plans)
- Quantifying Plans by Budgeting
The steps involved in planning process are
Explained below.
− Being Aware of Opportunities: All managers should see possible future opportunities in the
external and internal environments. They have to see them clearly and completely and know
where their company stands in the light of its strengths and weaknesses. Planning requires a
realistic diagnosis of the opportunity situation.
− Establishing Objectives: The second steps in planning is to setup objectives for the enterprise as
a whole, and for the departments and individuals.
Objectives are to be set for the long run as well as for the short run.
Objectives specify the expected results and show how the destination is to be achieved and
where emphasis is to be placed.
Objectives appear in different forms, they are mission, overall objectives, divisional objectives
and individual objectives etc.
Enterprise objectives give direction to major plans, in turn they are used to setup objectives for
lower levels.
− Planning Premises: Once the objectives are determined the next step is establishing the planning
premises.
Planning premises refer to the environmental conditions or surrounding circumstances in which
plans work.
Plans will operate in future, hence it is appropriate to expect future conditions and should plan
accordingly.
Premises are assumptions about the environment in which the plan is to be carried out.
Internal Premises come from the business itself. It includes skills of the workers, capital
investment policies, philosophy of management, sales forecasts, etc.
External Premises come from the external environment. That is, economic, social, political,
cultural and technological environment. External premises cannot be controlled by the
business.
Hence it is appropriate to expect/assume future conditions and should plan accordingly.
Intelligent forecasts are essential for planning.
− Identifying the Alternatives: An action can be performed n several ways. In order to achieve
the objectives, managers first must identify various alternative courses of action.
− Evaluating the Alternatives: After identifying the alternatives, the following stage is to evaluate
their advantages and disadvantages. Their evaluation should be done in the light of the enterprise
objectives. Evaluation should be done by weighing the various factors.
− Selecting the best course of Action: Choice of a particular alternative is the next step after
evolution. Evolution explains the merits and demerits. Selection is the real point of decision
making. At many times, it is confirmed that selection of two or more alternatives is better than
choosing only one alternative. Hence, managers should plan in such a manner to select right
combination.
− Formulating Derivative Plans: The developmental plans are known as Derivative Plans. This
task is to work out with its details and formulate the steps in full sequences.
They are the supporting plan.
There are three important constituents for such an action plan: i. The time-limit of performance,
ii. The allocation of tasks to individual employees. iii. The time-table or schedule of work.
− Budgeting: A budget is forecasted statement of revenue and expenditure, it is a numberised plan.
It allovates the various resources to the required activities keeping in view of objectives. The
organisation and each department working in it can have their own budget. Hence, budgeting is
the last stage of planning which puts the plan into action.
− Reviewing the planning process: Through feedback mechanism, an attempt is made to secure
that which was originally planned. To do this we have to compare the actual performance with
the plan and then we have to take necessary corrective action to ensure that actual performance is
as per the plan.

PLANNING PREMISES:
Planning premises are the anticipated environment (or conditions) in which the plans are expected to
operate.
• They are those basic assumptions upon which the process of planning proceeds. They are likely
to happen in the future or totally uncertain.
• They include:
- known conditions,
- assumptions and
- forecasts of the future that will affect the operation of the plan.
• In case the assumptions or premises happen as assumed then decisions will be proper,
in case the premises change then plans will have to be modified.
• Though future is always uncertain but still certain assumptions arc made to base the plans.
The premises are helpful guidelines for taking planning decisions.
• Classification of Planning Premises:
Planning Premises are classified as:
(i) Internal and External Premises.
(ii) Controllable and Uncontrollable Premises.
(iii) Tangible and Intangible Premises.
• Internal and External Premises:
- Internal Premises: They the factors which exist within the firm or belong to the firm,
They includes the availability, skills and competence of management and employees,
resources, equipment, raw materials, basic policies, strategies, programmes, technologies and,
etc,.
Strengths and weakness of the firms are also internal premises.
All these factors are known and fully controllable.
 - External planning premises: Factors originate from the outside environment of the firm.
They are the external conditions which influence the demand for the business products and
resources available to the organisation.
It includes: the economical and political trends, fiscal and monetary policies, national income,
trends in population growth, education,socio-cultural climate, technological changes, etc.
Some of the external premises are predictable (eg: population growth,..),
others may not be (political trends, govt. policy, tc).
All these external factors have great impact on the planning of a business unit.
• Controllable and Uncontrollable Premises:
- Controllable Premises: Factors within the control of management.
They include managerial policies, organizational structures, rules, programmes and human
resources etc.
- Semi-controllable factors: Factors over which management has some control, partial control
only, but not have full control,
It includes labour relations, efficiency of workers, pricing policy, marketing policy, etc.
- Uncontrollable Premises: Factors over which management has no control.
They include strikes, wars, natural calamities, govt policies, inter national trade agreements,
population growth, new inventions etc.
Any change in these uncontrollable premises necessitate modifications of plans.
• Tangible and Intangible Premises.
- Tangible premises: Factors which can be expressed in quantity
eg: cost per unit, units of production etc
- Intangible premises: Factors which cannot be expressed in quantities, just assumed..,
eg: reputation of a concern, relations, motivation, leadership skills etc.
All these intangible premises have greater influence on the decision making process.

CLASSIFICATION OF PLANNING
Planning can take many forms and styles. Business plans can be classified on the basis of
following dimensions.,..
1. Based on Level of Organizational hierarchy:
i. Corporate, ii. Functional, and iii. Unit planning
2. Based on the scope and nature of activities:
i. Strategic Planning, ii. Tactical Planning, and iii. Operational Planning
3. On the basis of time period involved:
i. Long term, ii. Medium/ Intermediate range, and iii. Short term Planning
4. Based on specificity:
i. Specific,
ii. Directional
5. Based on levels:
i. Top, ii. Medium, iii. Bottom level planning
6. Based on flow:
i. Top-down, ii. Bottom-up, iii. Composite planning
7. Based on Frequency of use:
i. Single use plans: a) Programs, b). Budgets
ii. Standing plans: a) Policy, b) Procedure, c) Rules
8. Formal and Informal planning
9. Contingency planning, etc..

STRATEGIC, TACTIC AND OPERATIONAL PLANNING
On the basis of importance of contents/ scope, planning may be divided into:
a) Strategic planning, b)Tactic planning and c) Operational planning.

STRATEGIC PLANNING
• Strategic planning involves making decisions about the organization’s long term objectives, and
determining the manner of deployment of resources to achieve these goals.
• Strategic planning deals with strategic issues like:
- Vision, mission, values,
- type of business to be undertaken,
- type of products to be offered,
- diversification of business into new lines,..etc...
• Top level managers are responsible
• For a long period ranges between 2-5 years.
• Strategic planning covers all the functional areas of business and, it is effected within the existing
and long-term framework of environmental factors.
• Strategic goals include:
- increased market share,
- boosting quantity and quality of products,
- enhancing profitability,
- human, financial and physical resources,
- improving customer service,
- areas of innovation,
- activities for social responsibility etc..

TACTICAL PLANNING
Tactical planning, is the process of deciding the most effective use of the resources already allocated
through strategic planning and to develop a control mechanism to ensure effective implementation of
the actions so that organizational objectives are achieved.
It aims at sustaining the organization in its production/generation and distribution of current products
(goods and services) to the existing markets.
• It describes the detailed tactical actions designed to implement the strategic plans.
• It is the Middle manager’s responsibility
• Scope is narrower than that of strategic plan, but broader than operational plans,
• Strategic plan what? Tactical plan how?
• Broader to smaller/ specific actionable plans
• Span of one year or less
• For short term goals
• Deals with functional areas like Marketing, Manufacturing, financing etc
• eg: adjustment of production within given capacity, - increasing the efficiency of operating
activities through analysis of past performance, - budgeting future costs, - specific details of
future short-term operations, - Designing and testing of equipment etc

OPERATIONAL PLANNING
• Formulated by Dept managers, supervisors, low level
managers etc
• Identifies the specific procedures and actions for day
-to-day activities to achieve the Strategic and tactical
plans
• Highly specific with emphasis on short term goals
• Prepared for a week/ month or a year
• eg: Purchase plan, advertisement plan, recruitment
plan, human requirements etc
• They are Single use or Ongoing plan.

Difference between Strategic Planning and Tactical Planning
The major differences between the two are as follows:
- Strategic planning guides wrt the movement and allocation of its financial, physical, and human
resources over future specified period of time.
Tactical/ Operational planning, focuses on the ways and means in which each of the
individual functions may be programmed. .
- Strategic planning takes into account the external environment,
Tactical planning mostly focuses on internal organizational environment so as to make the
effective use of given resources.
- Strategic planning focuses on setting long-term trend and direction for managerial
actions.
Focus of Tactical planning is on making effective use of organizational resources allocated by
strategic planning process.
- Strategic planning precedes tactical and operational planning. Therefore, tactical planning is
based on strategic planning.
- Strategic planning is formulated by top-level management with the support of specified planning
staff in the organization.
Tactical/ Operational planning is performed by medium/operating managers with the help of the
subordinate staff.
- Span for Strategic planning is generally 2-5 years, for tactical planning it is 1 year or less.
(Refer previous sections for more details).

TYPES OF PLAN:
• Mission or Purposes,
• Objectives or Goals,
• Strategies
• Policies,
• Procedures
 • Rules,
• Programs,
• Budgets
The details of the important plans are given below.
• Mission or Purpose:
- Mission statement identifies the basic function or task of an enterprises or agency or of any part
of it.
- It describes the organization's purpose and its overall intention.
- It indicates the contribution of the organization to society.
- Mission statement describes: what the group is going to do, and why it's going to do that.
- The mission statement supports the vision and serves to communicate purpose and direction to
employees, customers, vendors and other stakeholders.
- They are more action oriented.
- Mission should be: - concise, - outcome oriented, and – inclusive
Concise: Statement should not be too lengthy, should not be too short as a vision statement.
The mission statement should convey the point/content in one sentence.
Outcome oriented: Should be able to explain the overarching outcomes of the organization.
Inclusive: Though concise, the statement should convey overarching goals, strategies, action
plan and related contents. Mission statement should be very broad.
- Eg: "To promote child health and development through a comprehensive family and community
initiative."
To design and build a highway…., - to produce a high quality item, - to teach and research, etc
• Objectives or Goals:
- Objectives are specific statements about anticipated end results of any activity. It describes the
ends towards which the activity(s) is aimed
- Objectives and goal are similar, but the difference is:
Objectives are specific and short term targets, while Goals are broad and long term targets of the
firm
Eg: Goal: to increase the sale; Objective: increase the sale by 5 % per year..
- Both should be result oriented.
- Objectives refer to specific measurable results for the firm's broad goals. They are not only the
end point of planning stage, but the end toward which organizing is aimed..,
Objectives can be for staffing/ leading/ controlling etc processes.
- Objective/ goal should not be unrealistic, must be achievable,.
- There can be Financial goal and Strategic goals etc.
- Hierarchy of Organizational Objectives:
Overall objectives of the organization should be supported by subobjectives/ dept objectives etc.
Organizational objectives form a hierarchy ranging from the broad aim to specific individual
objectives.
The process of assigning a part of a mission to a particular department,
and then further subdividing the assignment among sections, departments and individuals
creates a hierarchy of objectives.
The objectives of each subunit contribute to the objectives of the larger unit.
The objective hierarchy along with the organizational hierarchy is shown,
- We can see that, the accomplishment
of the overall objectives, mission etc
 is the responsibility of top
management.
- At top, the social purpose of the firm
Is placed.
- Firm’s contribution such as services
Or goods with good quality at
reasonable price to the welfare of the
people is at the zenith of the hierarchy.
- Then comes the mission or purpose.
- Key result area objectives includes:
- specific objectives for Productivity,
- markets, innovation, financial resources, worker performance etc, which are essential for the
success of the firm, They are dealt with Middle level management in the organization.
- The objectives are further divided/ translated into divisions/ departments/ units and even
individuals.
• Strategies:
- Strategy is the determination of basic long term objectives of an enterprise and adoption of
courses of action, and allocation of resources necessary to achieve them.
- Strategies explain how the initiative will reach its objectives.
- It is a plan of action.
- Firms may have a wide variety of strategies. They range from the very broad to the very specific.
- Broadly they are: Competitive /Corporate Strategy; Business Strategy; Functional Strategy; and
Operating Strategy.
• Policies:
- Policies are general statements or understandings that guide in decision making.
- Policy is a broad guideline, set by the top management.
- They are fundamental written statements meant to guide the thinking and action in decision
making of the managers.
- It is a standing solution for recurring situations- ready reference to many problems.
- Policy should be a general statement, not situation specific;
- Used for same/ similar conditions
- Policy is standing/ continuous plan,- not a single use plan
- Policy helps to avoid developing an issue/ problem
- Manager can apply their discretion for the implementation,
- They defines the boundary for decisions
Eg. - Following ethics; - selection of govt college students to the firm, - encouraging
suggestions from employees, - promotion from within the firm, - pricing policy,… etc
- Decision based on policy should be consistent with objective, it should contribute to objective,
- Permits delegation of power to subordinates, by maintaining control over them..
- It need not be statement, can be actions also.
- Policies should be: - Objective oriented; - Clear and explicit to remove chaos and ambiguities; -
Carefully designed; - Based on the holistic view, taking into account all employees, resources,
facilities etc.
- They should be properly communicated and implemented.
- It should be Reviewed, revised and replaced whenever required.
• Procedures:
- Procedures are plans that establish a required method of handling future activities.
- A procedure explains a specific action plan for carrying out a policy.
- Procedures tells employees how to deal with a situation and when. Using policies and procedures
together gives employees a well rounded view of their workplace.
- It is a chronological sequence of required activities
- It is a logical sequence of operations to be performed in a given project, based on a set of goals,
policies, rules and task assignments etc.
- Eg: - Leave sanctioning procedure; - procedure for grievance handling; - procedures for billing; -
procedure for delivery of a product; in production section; etc
- Should contain enough information so that a staff/ person knows what to do – be clearly written
- Conform to the requirements of any applicable policies and all relevant laws
- Be reviewed and revised as needed to meet the agency's changing needs and conditions..
- They refer to positions rather than to specific staff.
- Policy is standing/ continuous plan,- not a single use plan
- Difference between Policy and Procedures:
A policy is a guideline while a procedure is the method of action.
Policies are not that technical, while procedures are more detailed step by step system.
Policies are related to the strategies of an organization, while the procedures are more tactical/
operations.
Policy is related to decision making, procedure is related to actions.
- Eg: Company policy may to give vacation to the staff;
While related procedure will be: to schedule the vacation, and to rearrange the available staff not
to affect the operations.
• Rules:
- Policy describes specific required actions or non-actions, allowing no discretion
- All employees must compulsorily follow and implement the rules..
- Eg: ‘No smoking’ in store room
- We know that, policy is to guide decision making with managers discretion, while Rule allows
no discretion in their application.
- It is indicated in the form of orders, warnings, prohibitions and norms, so as to maintain
discipline or to standardize or restrain, the behaviour of individual and group,
- Rules are not only for planning, but for controlling also.
- Rule is standing/ continuous plan,- not a single use plan
- Difference between Policy and Rules:
Rule is an order which needs to be followed; Policy is a framework within which the decisions
are to be made.
Rule is to regulate the behavior of an individual; policy acts as a guide for the decision making
Rule is a specific statement, while policy is a general statement;
Rule is related to Policies and Procedures, while Policy is derived based on Objectives;
Rule is highly rigid, while policy is comparatively less rigid
- A rule is a statement about what to do, or not to do, in a specific situation.
But a procedure is a series of steps to be followed to accomplish an end result.
• Program:
- Program is a comprehensive plan that covers a company’s goals, policies, rules, objectives,
procedures, resource flow etc, to implement a given course of action.
- It includes all those activities which are necessary to achieve a specific objective.
- Separate programmes are required for the implementation of different tasks.
- Eg: Setting up of a new plant a program is needed,- introducing new product/ Sales promotion
etc is another program
- Same program may not be used for other goal.
- They create a link between the company’s objectives, procedures and rules.
- They are supported by budgets for implementation,
- Made at the top level of management.
- Program is a Single use plan, not repetitive
- Program can be Minor or Major.
Eg: Major program: - establishing a new plant; -acquiring 1000 new jets by an airline firm;
Minor: Conducting a training session to improve the motivation of worker etc.
Conducting a 2 year structured training program for the entire workers in a firm in different
levels etc is a Major program
- To support the primary program all managers will make other programs at the middle and lower
levels of management
• Budget:
- A budget is a statement of expected results in numerical forms.
- Budgets are quantitative statements, ie, quantified plans
- It is having a future orientation
ie, a budget quantifies the forecast or future of the organization in numerical terms.
- Budget has Dual role.. Planning and as a Control device
- Many types of budgets for manager level are available:
Financial budget: forecasts the profit of the firm.
Operational budgets: generally prepared by lower-level managers.
Cash budgets monitor the cash inflows and outflows of the company.
- Mention how funds will be sourced and how these funds will be spent on labour, raw material,
marketing, capital good, etc….
- Budget is a Single use plan

LONG-TERM PLANNING AND SHORT-TERM PLANNING

Planning is concerned with future course of action. This may be of long term or short term.
• Long term Planning/ Long Range Planning:
- Long-term planning involves more than one year period, usually 3-5 Years;
5 years is also common in Indian context.
- Long-term planning is of strategic nature,
- Covers all the functional areas of the business and is undertaken within the existing and long
term future environmental scenario.
- High emphasis is placed on analysis of environmental (internal and external) factors.
- Basic changes in the organization like change in organizational vision and mission, major
change in organization structure, change in key personnel of the organization, etc. become the
significant factor for long-term planning.
• Short term Planning
- Short-term planning usually covers one year or less.
- This aims at making effective use of organizational resources such as financial, physical, and
human resources.
- Short-term planning directly and immediately affects functional areas like production,
marketing, finance, etc.
• Coordination of Short-term Planning and Long-term Planning.
In any successful planning process, short-term plans are made with reference to long-term plans
because short term plans contribute to long-term plans.
There is a need for coordination between these two plans.
Otherwise resources etc will be wasted.
While preparing the short-term plans, the managers should consider that ST plans are
contributing to the long-term plans.
For this purpose, they should scrutinize the ST plans in the light of the LT plans.
People at comparatively lower levels should also be made aware of this aspect.

ORGANIZING
Organizing is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of organizational goals
• Organising involves determining & providing human and non-human resources to the
organizational structure.
• Practically, Organisation involves division of work among people whose efforts must be
coordinated to achieve specific objectives and to implement pre-determined strategies.
• Organisation is the foundation upon which the whole structure of management is built. It is the
backbone of management.
• According to Koontz: “ Organisation involves the grouping of activities necessary to accomplish
goals and plans, the assignment of these activities to appropriate departments and the provision of
authority, delegation and co-ordination.“
• According to Henry Fayol, “To organize a business is to provide it with everything useful for its
functioning i.e. raw material, tools, capital and personnel’s ”.

ORGANIZING AS A PROCESS:
Organizing as a process involves the following steps:
- Identification of activities.
- Classification or grouping of activities.
- Assignment of duties.
- Delegation of authority & responsibility creation.
- Coordinating authority & responsibility relationships
• Identification of activities:
Organising as a function begins with identifying all activities that are planned for a business based on
their mission, goals and objectives.
Determining total workload of the organisation is the first step in the process of organising.
• Classification or grouping of activities.
The jobs identified from the previous step are further grouped together and put into separate
departments.
These departments can be either functional or divisional.
Functional departments are related to common functions grouped into one department,
Divisional departments are created for businesses on the basis of either types of products,
geographical location of the business or the targeted customer groups.
Grouping of activities into departments is called departmentalisation.
Various departments like production, marketing, finance etc. are created and filled with people
having different skills and expertise but performing similar activities.
• Assignment of duties.:
Employees are assigned and granted with duties and responsibilities through job description.
It clearly defines their responsibilities.
Subsequent to containing all activities into specialised departments, employees working in these
departments are assigned with only one job in that department that suit their skills, qualifications and
capabilities.
After creating departments, departmental heads are appointed to carry out the activities of their
respective departments. Every head has authority to get the work done through departmental
members.
• Delegation of authority & responsibility creation:
The departmental head delegates responsibility and authority related to departmental activities to
members of his department.
This creates a structure of relationships where every individual knows his superiors and subordinates
and their reporting relationships.
Everybody should clearly know to whom he is accountable;
This will help in the smooth working of the enterprise by facilitating delegation of responsibility and
authority.
Authority without responsibility is a dangerous thing;
And responsibility without authority is an empty vessel.
• Coordinating authority & responsibility relationships:
When departments work for their objectives, there may develop inter-departmental conflicts. This
can affect achievement of organisational goals.
Resources are scarce and coordination helps in their optimum utilisation.
Coordination becomes possible by defining relationships amongst departments and people working
at different positions
For example, the finance department wants to cut down costs, but marketing department wants more
funds to advertise the products. This conflict can be resolved through coordination so that all
departments share common resources.

PRINCIPLES OF ORGANIZATION:
1. Consideration of unity of objectives
2. Specialisation
3. Co-ordination
4. Clear unbroken line of Authority
5. Responsibility
6. Efficiency
7. Delegation
8. Unity of Command
9. Span of Management
10. Communication
11. Flexibility.
Some of the important characteristics are explained below.
- Consideration of unity of objectives: The objective of the undertaking influences the
organisation structure. There must be unity of objective so that all efforts can be concentrated on
the set goals.
- Specialisation: Effective organisation must include specialization. Precise division of work
facilitates specialization.
- Coordination: Organisation involves division of work among people whose efforts must be
coordinated to achieve common goals.
 Co-ordination is the orderly arrangement of group effort to provide unity of action in the
pursuit of common purpose.
- Clear unbroken line of Authority: It points out the scalar principle or the chain of command.
The line of authority flows from the highest executive to the lowest managerial level and the
chain of command should not be broken.
- Responsibility: Authority should be equal to responsibility. Each manager should have enough
authority to accomplish the task.
- Efficiency: The organisation structure should enable the enterprise to attainobjectives with the
lowest possible cost.
- Delegation: Decisions should be made at the lowest competent level.
Authority and responsibility should be delegated as far down in the organisation as possible.
- Unity of Command: Each person should be accountable to a single superior.
If an individual has to report to only one supervisor there is a sense of personal responsibility to
one person for results.
- Span of Management: No superior at a higher level should have more than 6-8 immediate
subordinates.
The average human brain can effectively direct three to six brains or subordinates.
- Communication: A good communication subsystem is essential for smooth flow of information
and understanding and for effective business performance.
- Flexibility: The organisation is expected to provide built in devices to facilitate growth and
expansion without dislocation. It should not be rigid or inelastic.

DELEGATION
A manager is not judged by the work he actually performs on his own, but the work he gets done
through others.
Delegation means giving authority to various organizational positions to get things done.
• Delegation is the assignment of authority to subordinates in a defined area and making them
responsible for the results.
• A manager can assign duties and authority to his subordinates, and ensures the achievement of
desired goals.
• eg. All important decisions are taken at top level by Board of Directors. The execution is
entrusted to Chief Executive….
When the number of subordinates increases beyond a limit, then he/she will have to delegate his
powers to others who perform supervision for him.
The Chief Executive assigns the work to Dept’l managers ….
ie, delegate the authority to their subordinates.
• Every superior delegates the authority to his subordinates for getting a particular work done.

Need of Delegation:
- Relieving Top Executives
- Improved Functioning- Nobody is unduly burdened and no work is left unattended.
- Use of Specialists
- Helps in Employee Development- When subordinates are given independent assignments
then they will be able to use their initiative and experience.
- improves confidence in taking up further responsibilities.
- Helps in Expansion and Diversification, etc..

Characteristics of Delegation
• Delegation takes place when a manager grants some of his powers to subordinates.
• Delegation occurs only when the person delegating the authority himself has that authority.
i.e. he must possess what he wants to delegate.
• Only a part of authority is delegated to subordinates.
• A manager delegating authority can reduce, enhance or take it back.
• He exercises full control over the activities of the subordinates even after delegation
• It is only the authority which is delegated and not the responsibility.
• Manager cannot hand over (abdicate) responsibility by delegating authority to subordinates.

Elements of Delegation
- Assignment of Duties:
- Grant of Authority:
- Assigning of Responsibility and Accountability,
- Creation of Accountability
• Assignment of Duties: Superior asks subordinate to perform a particular task in a given time. It
is the description of the role assigned to the subordinate.
Duties in terms of functions or tasks to be performed constitute the basis of delegation process.
• Grant of Authority: The grant of authority is the second element of delegation.
The delegator grants authority to the subordinates so that the assigned task is accomplished.
The superior should delegate sufficient authority or enough independence to do the assigned
work..
Delegation of responsibility with authority is meaningless.
The subordinate can accomplish the work when he has the authority required for completing that
task.
Authority is derived from responsibility.
There should be a balance between authority and responsibility.
• Assigning of Responsibility and Accountability:
There should be a balance between authority and responsibility.
The delegation process does not end once powers are granted to the subordinates.
• Creation of Accountability:
Accountability is the obligation of a subordinate to perform the duties assigned to him.
The delegation creates an obligation on the subordinate to accomplish the task assigned
to him by the superior.
Accountability is the by-product of this process.
Authority flows downward whereas accountability flows upward.
Should be accountable to only one superior.
• Authority is delegated, - responsibility is created, and, - accountability is imposed.

Factors Influencing Degree Of Delegation

- Knowledge about Company
- Assignment of duties: The element of delegation is linked to the availability of subordinate
managers.
- Importance and Costliness of Decisions
- Size of the Enterprise
- Available Controls
- Types/nature of Enterprise
- Environmental Factors, etc

Limitations of Delegation
 - Increased costs. It requires more managers and large staff. Considerable expense for training
- Inconsistency: Makes it more difficult to have uniform policy
- Increases complexity of coordination of decentralized units
- May result in loss of some control by upper level managers. Top level administration may
feel it would decrease their status
- Hesitation from superior- Hesitation from Subordinates-
- Limitation of lack of qualified managers
- May not be favorable for small scale industries
- May be limited by inadequate planning and control techniques & system
- May be limited by external forces, such as labour unions, Govt. controls, tax policies etc…
- It may lead to overlapping and duplication of effort

SPAN OF MANAGEMENT
Span of Management or Span of control refers to the number of subordinates managed by a superior.
Span of control is the number of people/employee reporting directly to an authority.
• The span should neither be too large nor too small.
• It is the number of subordinates a manager or supervisor can supervise, manage or control
effectively and efficiently.
ie, an optimum number of subordinates is ok.
• If the span is too large, it will become difficult to effectively control them and the desired results
cannot be achieved.
• If the number is too small, the time, energy and abilities of the supervisor are not utilized fully
and the task may not be accomplished.
• Span may be different under different situations depending upon the time, knowledge, energy and
abilities of the supervisor.
• Sir Ian Hamilton was in favour of a narrow span consisting of not more than six subordinates.
3-7 is an optimum range.
• Management complexities increase geometrically as the number of subordinates increases
arithmetically.

Factors effecting Span of Management
- Capacity of superior.
- Capacity of subordinate.
- Nature of work.
- Degree of decentralization.
- Degree of planning.
- Time,
- Geographical distribution
- Communication technique.
- Use of staff assistance.
- Supervision from others

Types of Span:
Span of control is of two types: Narrow & Wide
• Narrow span of control:
A single manager or supervisor oversees few subordinates only.
This gives rise to a tall organizational structure.
Advantages:
 - Close supervision
- Close control of subordinates
- Fast communication
Used for specialised work
Disadvantages:
- Too much control
- Many levels of management
- Costly
- Excessive distance between lowest level and highest level
• Wide span of control:
A single manager or supervisor oversees a large number of subordinates.
This gives rise to a flat organizational structure.
Advantages:
- More Delegation of Authority
- Suitable for repetitive jobs
- suitable when Clear policies…
- Less cost of supervisors
- Suitable for lower level management
Disadvantages:
- Overloaded supervisors
- Danger of loss of control
- Requirement of highly trained managers
- Block in decision makinin decision making

• Based on span of control we can classify the organization to Tall and Flat Structures.
A tall organizational structure means that management is broken down into several layers, with
executives on top and normal employees on the bottom.
This increased layers is due to narrow span.
 TYPES OF ORGANISATION STRUCTURES
Organisation requires the creation of structural relationship among different departments and the
individuals working in it for the accomplishment of desired goals.
Lines of authority and the efforts to coordinate should be clear.
• Types of organisation structure are:
1. Line organisation
2. Line and Staff organisation
3. Matrix type,
4. Functional organisation, ….
5. Process/ Product/….etc
.. etc

Line authority:
- Simple- vertical line authority,
- Line authority flows from top to bottom
- quantum of authority is highest at the top and reduces at next lower position
- It is also known as ‘Military’ / traditional/ Scalar/ or ‘Hierarchical’ form
- People in management positions, has formal authority to direct and control immediate
subordinates.
- Duties, responsibility, position are clearly defined
- Only one boss for every subordinate, hence unity of command is achieved.
- Examples are shown below.

Staff authority (Line and Staff Authority):
- Staff authority includes the right to advise, recommend, and counsel in their area of expertise
- But, Staff officers do not have any power of command.
- Specialists who advise line managers in technical areas, etc ar known as Staff authority.
- The staff authority provides expert information/ advice, based on specialization related to
management and operating problems
- The staff officers carry on the research, planning, scheduling, legal, establishing of standards
and recording of performance…etc in the organization.
- Staff authority has a narrower communication relationship.
- These specialists stand ready with their specialty, serve line mangers as and when their
services are called for...
- Staff advices, cannot control, Only the line managers maintains discipline and stability;
- Types of Staff officer:
1. Personal Staff: -attached as a personal assistant or adviser to the line manager.
Eg. Assistant to MD.
2. Specialized Staff: Such staff acts as the experts in specialized areas like R& D, Personnel
(HR), Accounting, Law… etc.
3. General Staff: a set of experts in different areas who are meant to advise and assist the
top level.
Eg. Financial advisor, technical advisor etc.
• Advantages of Line Organization:
- Simple- vertical line authority-
- Duties, responsibility, positions are clearly defined
- Prompt decision making
- Maintains discipline
- Only one boss- unity of command
- Better coordination
- Flexible to extend or contract..
But, disadvantages are:
- No specialization, lack of expertise in many fields
- Overloaded managers
- Concentration of authority at top
- Military type mechanism
- Suitable for small and medium enterprises
• Advantages of Staff Authority Pattern:
- Based on specialization
- Brings expert knowledge on management and operating problems
- Expert advice leads to better decisions, better efficiency etc
- Line executives are relieved of some loads
- Under this system, the staff officers prepare the plans and give advice to the line officers
- The line officers execute these plans with the help of workers..
- Used for medium and large organizations
- Expert advice serves as ground for training to line officials.
- Line and staff organization has greater flexibility,
- New specialized activities can be added to the line activities without disturbing the line
procedure
- Improves competency…
But: disadvantages are:
- Costs increases
- Possibility of Confusions due to two authorities.
- Discipline problems may arise due to line and staff conflicts- Staff may steal the show- The
line officials may feel dissatisfied
- Staff experts do not get the authority to implement their recommendation- they may be
ineffective
- The risk of misunderstanding and misinterpretation of advice at lines.
- Staff managers may not be accountable for the results,
- Line mangers-more practical manner…
but staff officials are more theoretical.

MATRIX STRUCTURE OF ORGANIZATION:

Traditional hierarchy is not used, but a grid/ matrix type reporting is used.
- A matrix structure is a combination of two or more types of organisational structures
- In other words, employees have dual reporting relationships
Eg; generally to both a functional/ operational manager and another product/project manager.
 - In a matrix structure, individuals work across teams and projects as well as within their own
department or function, ie under multiple bosses..

- The characteristics of a matrix organization:

Employees are generally accountable to more than one boss.
There are usually two separate chains of command.
The matrix structure is designed to be partially impermanent.
There are two kinds of managers: functional managers and project managers etc
Managerial roles are not fixed, variable..

FORMAL AND INFORMAL ORGANISATION

The formal organisation refers to the structure of jobs and positions with clearly defined functions
and relationships as prescribed by the top management.
Everybody is assigned a certain responsibility for the performance of the given task and given the
required amount of authority for carrying it out .
This type of organisation is built by the management to realise objectives of an enterprise and is
bound by rules, systems and procedures.
• Informal Organisation
An informal organisation is an arrangement which is not established by any formal authority.
It arises from the personal and social relations of the people.
Informal organisation refers to the relationship between people within the organisation based on
personal attitudes, emotions, prejudices, likes, dislikes etc.
Generally small informal or social groups etc
These groups may be based on same taste, language, culture or some other factor.
The socio-psychological needs, interests and aspirations of members get priority.
- Generally, no procedures and regulations
- no formal organisation structure;
- Does not have any well-defined tasks,- not pre-planned etc,
- Its goals are ill defined and intangible
- The relationships among people are interpersonal.
- Informal organisation is dynamic and very vigilant.
- It is sensitive to its surroundings.
- he socio-psychological needs, interests and aspirations of members get priority.
- Communication is not structured…etc

STRUCTURE OF ORGANIZATION BASED ON DEPARTMENTATION

In addition to line and staff structures etc, another classification is based on the specific functions or
depratmentation of an organization. Different structures are shown below.
1. Functional Organization Structure:
 2. Divisional Organization Structure

3. Geographic Organization Structure

Another type is also shown.

Some other types are also shown.


DECENTRALIZATION & CENTRALIZATION OF AUTHORITY
If there is absolute centralization of authority in an organization there will not be any subordinate
managers and it is not possible in a structured organization.
In centralization, the authority and decision making is concentrated on a few/ top managers.
Decentralization is the tendency to disperse decision making authority in an organized structure.
• Decentralization:
- It is the process of transferring and assigning decision-making authority to lower levels of
an organizational hierarchy.
- Decentralization is different from delegation. Scope of delegation is limited as superior
delegates the powers to the subordinates on individual bases, and responsibility cannot be
delegated.
- In decentralization, Authority with responsibility is delegated to subordinates. Responsibility
is also delegated to subordinates.
- The span of control of top managers is relatively small, because there is more autonomy in
the lower ranks.
- Democratic, participative and detailed Decision-making process.
- Organizational change: emerging from interactions, organizational dynamics.
- Flexible to adapt to minor issues and changes
• If managers delegate all their authority, their positions will no longer exist.
 So absolute centralization or absolute decentralization are not possible in a structured
organization.

DIRECTION IN MANAGEMENT
In the context of management of an organisation, Directing refers to the process of instructing,
guiding, supervising, counselling, motivating and leading people in the organisation to achieve its
goals.
Directing the heart of management process.
• The main characteristics of directing are:
- Directing initiates action,
- It takes place at every level of management,
- It is a continuous process,
- Directing flows from top to bottom.
• All those activities which are designed to encourage the subordinates to work effectively and
efficiently..
• Broadly grouped into four categories / elements:
- Supervision,
- Motivation
- Leadership
- Communication
MOTIVATION
Motivation in management describes the ways in which managers promote productivity in their
employees.
• The term motivation is derived from the word 'motive' which means a need, or an emotion that
prompts an individual into action.
• Human motives are internalized goals within individuals.. Needs/ drives/ wishes/ desire etc to
act more. The performance of a worker depends upon his ability and the motivation.
• Motivation is the psychological process of creating urge among the subordinates to do certain
things or behave in the desired manner.
• There are many strategics adopted by managers for increasing the motivation of subordinates.
• Motivation can be: A compliment, salary rise; incentive; a smile, a promise of a rise, a new
machine; a preferred location of job, etc
• Motivation: all those forces, pressures & influences that trigger, channel, and sustain human
behaviour.
• Employees who are adequately motivated to perform will be more productive, more engaged
and feel more invested in their work.
• Factors affecting Motivation:
- Bonus and incentives
- Leadership,
- Achievements
- Recognition
- Possibilities for growth, promotion etc
- Additional Responsibility
- Workplace culture
- work itself for personal satisfaction… etc
• Types of motivation:
- a manager has to provide some personal incentive to the subordinates to motivate.
- Positive Motivation:
Encouraging/ recognition/ incentives/ promotion/ more facility/ etc (based on X-Theory of
motivation)
It can be i) Financial or ii) nonfinancial ;
Financial such as increase in wages, bonus etc;
non-financial like better working conditions, job security, recognition, etc.
- Negative Motivation:
Threatening/ punishment etc.
Negative motivation to do more works,
It can be i) Financial or ii) nonfinancial punishment.

LEADING
According to Koontz and O'Donnell Leadership is “influence, the art of process of influencing
people so that they will strive willingly towards the achievement of group goals”.
Leader is a person who is able to make others willingly follow him.
- Leaders are agents of change,
- Leaders: Persons whose acts affect other people more than other people’s acts affect them.
- Leadership occurs when one group member modifies the motivation or competencies of
others in the group…
- Leader offers a means to satisfying their needs, wishes and desires while utilising their skills,
efficiency and capacity for the benefit of the organization,
- The ability to lead is an important aspect of managing. Leadership is not a substitute, but a
supplement for the management
- Function of a leader are:
To guide, instruct and motivate his subordinates
To co-ordinate and control
It is a Psychological process
Aid to authority
Motive power to group efforts
Basis for co- operation
Integration of Formal and Informal Organization.
• Characteristics of leadership:
- Goal based activity,
- Power based activity,
- Universality (at all levels),
- Influential process,
- Situational variables (different styles will be required at different circumstances)
• Leadership Styles
1. Autocrat
2. Democratic Leader
3. Laissez fair or Free Rein Leader
4. Task or Production Oriented Leader
5. People Oriented Leader
6. Japanese Leadership styles
 7. Trait Approach to Leadership,… etc

• Managers Vs. Leaders

- Manager is a part of organization
Leader can exist even for unorganized systems…
- M: Develop Policies & Procedures
L: Develop vision & Strategy
- M: Direct & Control
L: Motivate & Inspire
- M: Explain “What we have to do”
L: Where we are going,
- M: Concerned with here and now
L : Concerned with long view
- M: Task oriented
L: Vision oriented
- M: Concerned with projects
L: Concerned with people
- M: Doing things right
L Doing the right things,…etc

Transformational & Transactional Leadership
• Transformational Leadership: A transformational leader is a person who stimulates and
inspires (transform) followers to achieve extraordinary outcomes.
He pays attention to the concern and developmental needs of individual followers;
They take care of each other's interests and act in the interests of the group as a whole,
This leadership creates positive change in the followers-
• Transactional Leadership: Also known as managerial leadership, focuses on the role of
supervision, organization, and group performance;
A style of leadership in which the leader promotes compliance of his followers through both
rewards and punishments.
Not looking to change the future; looking to merely keep things the same/done.
These leaders pay attention to followers' work in order to find faults and deviations.
This type of leadership is effective in crisis and emergency situations, as well as when projects
need to be carried out in a specific fashion

CO-ORDINATION
Every department or section of an big organization, is given a target to be achieved and they should
concentrate only on their work. They may not bother about the work of other parts.
It is essential to channelise the activities of various sections and individuals in the organisation for
the achievement of common goals.
• Co-ordination is one of the most important functions of management for cahnnelising all
activities for a common objective..
• According to Henry Fayol, “To Coordinate is to harmonise all the activities of a person in order
• to facilitate its working and its success”.
• Dalton McFarland defines co-ordination as the "process whereby an executive develops an
orderly pattern of group effort among his subordinates and secures unity of action in the pursuit
of common purposes.
• Important features of Coordination as a management function are:
- Coordination is concerned with harmonious and unified action directed toward a common
objective.
- It ensures that all groups and persons work efficiently, economically and in harmony.
- Person to person communication is most effective for co-ordination.
- Co-ordination requires effective channels of communication.
- Co-ordination is undertaken at every level of management.
- Coordination creates a team spirit and helps in achieving goals through collective efforts.
- Co-ordination can be classified under two categories:
(i) vertical and horizontal co-ordination, and
(ii) internal and external co-ordination.
- Vertical co-ordination is the co-ordination between different levels/layers of management,
the horizontal co-ordination is used when coordination has to be achieved between
departments of the same level of authority.
- Co-ordination is internal when it is between different sections of the same concern and,
external when it is required with persons outside the organisation.

COMMUNICATION
Communication is the exchange of information using a shared set of symbols.
When managers foster effective communication, they strengthen the connections between employees
and build cooperation.
According to Koontz and O'Donnell, "Communication, is an intercourse by words, letters symbols or
messages, and is a way that the organization members shares meaning and understanding with
another".
• Communication is a central feature of the structure of groups and organizations.
• Communication is the process that links group members and enables them to coordinate their
activities within and between organizations.
• Communication also functions to build and reinforce interdependence between various parts of
the organization.
• It is an established fact that managers spend 75 to 90 per cent of their working time in
communicating with others. Hence, communication constitutes a very important function of
management.
• It refers to the exchange of ideas, feelings, emotions and knowledge and informations between
two or more persons.
• It may be written, oral, gestural.
• Communication can be formal or informal,
• Communication can flow: downward; upward or horizontally,
• Good managers are good communicators.
• Communication Process: The communication in management also can be considered as a
process.
It refers to a series of actions or steps taken in order to successfully communicate between
manager and subordinate or in the reveres order.
It involves several components such as the sender of the communication, the actual message
being sent, the encoding of the message, the receiver and the decoding of the message.
Anything that interferes with clear communication is called noise.
The major steps in communication process are:
 - Source/ sender
- Idea formation,
- encoding,
- channel selection,
- decoding and
- feedback.
SUPERVISION.
Supervision is another important element of directing function of management.
After issuing instructions, the manager or the supervisor has to see that the given instructions are
carried out. This is the aim of supervision.
• Supervision refers to the job of:
- direct to the work done,
- overseeing subordinates at work to ensure maximum utilisation of resources,
- to correct the subordinates whenever they go wrong.
• Supervision is performed at all levels of management,
• The major responsibility for supervision lies with the first line/ bottom layers of management.
• Factors affecting effectiveness of supervision are:
- Sound organisational set up,
- effective delegation,
- human approach,
- effective communication etc.
CONTROLLING
Controlling is the process that measures current performance and guides it towards some
predetermined objectives.
Controlling can be defined as "determining what is being accomplished, that is evaluating the
performance, if necessary, applying corrective measures so that the performance takes place
according to plans.
- Control is essential for achieving objectives of an enterprise.
- If planning is looking ahead, controlling is looking back.
The planning of various activities does not ensure automatic implementation of policies.
Controlling requires measurement of output etc variables and feedback or correction.
- If planning is the beginning of the management process, controlling may be said to be the
final stage.
- The main purpose of control is to see that the activity is achieving the desired results.
- Main function is to find out the deviations between the actual performance and the standard
performance and to take steps to prevent such variances in future.
- Control is a line function and executives at various levels of management continuously assess
the performance of their subordinates.
• Steps in Control Process
The process of controlling involves the following steps:
(i) establishing standards of performance ;
(ii) measuring actual performance ;
(iii) comparing the actual performance with the standard.;
(iv) finding variances or deviations, if any ; and
 (v) taking corrective action or measures.

• Control is not possible without planning and planning is meaningless without control.
• For an effective control system: it must:
- conform to the nature of activity,
- report deviations promptly,
- reflect organisation structure,
- assure corrective action and
- be economical.
• Modern concept of control:
- provides a historical record of what has happened;
- pinpoints the reasons why it has happened and
- provides data that enable the manager to take corrective steps, if he finds he is on the wrong
track.
• The opposite of control is not freedom, but chaos or anarchy.
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