MPOB Unit 2 NOTES
MPOB Unit 2 NOTES
(i) Planning lays down the objectives to be achieved and the step to be followed to achieve them. It is a mental
process requiring the use of intellectual faculties, foresight and sound judgement. It involves selecting and relating of
facts and making and using of assumptions regarding the future in the visualisation and formation of proposed
activities believed necessary to achieve the desired results. It involves deciding in advance what to do, when to do,
where to do, how to do and who is to do and how the results are to be evaluated. Thus, planning is the systematic
thinking about the ways and the means for the accomplishment of predetermined objectives.
Planning involves the following steps:
(i) Determination of objectives;
(ii) Forecasting;
(iii) Formulation of policies and programmes;
(iv) Preparation of schedules and procedures; and
(v) Budgeting.
The purpose of planning is to minimise the risk and to make at the same time full advantage of the available
opportunities. It bridges the gap from where we are and where we want to go. Good planning is flexible in nature as it
can adjust to changes in business conditions.
(ii) Organising refers to identification of activities to be carried out, grouping of similar activities and creation of
departments.It brings together the human and material resources. Organisation also leads to creation of authority
and responsibility relationships among superior and subordinates throughout the enterprise. It involves determining
the activities to be done, grouping the activities, assigning the grouped activities to individuals, and creating a
structure of authority and responsibility among the people to achieve the objectives of the enterprise. Urwick defined
organising as determining what activities are necessary to achieve the purpose and arranging them in groups which
may be necessary to assign to the individuals. The process of organisation involves the determination of authority and
responsibility relations in the organisation. It is an important function of every manager to determine the nature of the
activities required to attain the group goals, the grouping of these activities and the assignment of the activities to the
individuals with necessary delegation of authority.
The process of organisation involves the following steps :
(a) Determination of objectives;
(b) Identification and grouping of activities;
(c) Assignment of duties to individuals; and
(d) Development of relationships.
(iii) Staffing or Human Resource Management involves manpower planning employment of personnel and their
training, performance appraisal, remuneration, etc
After organising the various activities to be performed, management is in a position to know the manpower
requirements of the enterprise at different levels in the organisation structure. After determining the number and
types of personnel to be selected to fill different jobs, management proceeds with recruiting, selecting and training the
people to fulfil the requirements of the enterprise. In a running enterprise, staffing is a continuous process because
new jobs are created in the enterprise and existing employees leave the enterprise. Staffing comprises of those
activities which are essential to keep manned the positions created by the organisation structure. It includes the task
of determining the requirements with regard to number and types of people for the jobs to be done, laying down
qualifications for various jobs and recruiting, selecting and training people to
perform those jobs efficiently.
Staffing is concerned with both managers and non-managers. It is a function
performed by managers at all levels. Earlier, staffing was considered a part of organising.
But with the recognition of the importance of the human factor in industry and
business, it began to be considered as a separate function. Staffing usually includes the
following activities:
(2) Human resource planning.
(in) Deciding sources of recruitment.
(in) Receiving applications.
(in) Testing and interviewing.
(u) Final selection and issue of appointment letter.
(vi) Orientation and placement.
(vin) Training and development.
(iv) Directing and Leading is very broad function concerned with interpersonal relations. It includes communication
with the subordinates, providing them leadership and also motivating them.
Direction is the process of guiding, supervising, leading and motivating the subordinates to work in a way that is
beneficial to the enterprise. The manager not only shows the right path but also leads the subordinates to achieve the
objectives of the enterprise. He creates a sense of belongingness, faith and loyalty among the subordinates.
The direction function involves the following four elements:
(i) Leadership. Leadership is the process by which a manager guides and influences the work of others in choosing and
attaining specified goals. According to Chester Barnard, leadership is the quality of the behaviour of the individuals
whereby they guide people towards the accomplishment of some common goal.
(ii) Communication. A manager has to tell the workers what they are required to do, how to do and when to do it. It
has to create an understanding in the minds of the subordinates of work to be done. This is done by the process of
communication.
(iii) Motivation. It is the function of a manager to motivate the people working under him to perform the work
assigned. A successful manager motivate the people to work harmoniously for the attainment of desired objectives.
(iv) Supervision. Supervision is the process by which conformity between planned and actual results is maintained.
Effective supervision ensures greater output of high quality. It teaches the subordinates the way their tasks are to be
performed.
(v) Controlling refers to comparing the actual performance with the plans or standards. Corrective steps are taken
when the actual performance is not upto the mark.
According to Fayol, "In an undertaking, control consists of verifying whether everything occurs in conformity with the
plan adopted, the instructions issued and the principles established." Controlling is that management activity whereby
the managers compare actual performance against the planned one, find out the deviations, take corrective action to
remove the deviations, incorporate positive deviations in the plans and help ensure the realisation of the specific
goals.
In a running concern, planning and control go tögether because planning seeks to set consistent, integrated and
articulated goals or programmes, while control seeks to compel events conform to plans. The most notable feature of
the process of control is that it is forward-looking. A manager cannot control the past but can avoid the problems in
future by taking actions in the light of past experiences. The control process consists of the following steps :
(i) Setting up of standards.
(ii) Measuring performance.
(iii) Comparing performance with standards.
(iv) Taking corrective action.
COORDINATION-THE ESSENCE OF MANAGING
Coordination has been viewed by different management experts in different ways; Flenri Fayol considers coordinarion
as a function of manager. Louis A. Allen also regards coordination as one of the separate managerial functions, James
D. Mooney considers coordination as the first principle of organisation. Ralph C. Davis looks upon coordination
primarily as a vital phase of controlling.
In the words of Mooney and Railey, "Coordination is the orderly arrangement of group efforts to provide unity of
action in the pursuit of a common purpose." It is the effort to ensure a smooth interplay of the functions and forces of
the different component parts of the organisation to the end that its purpose will be realised with a minimum of
friction and a maximum of collaborative effectiveness. In other words, coordination means the orderly synchronisation
of efforts of the people working in the organisation for the achievement of organisational objectives.
Coordination is a continuous process for achieving unity of purpose in the organisation. It leads to blending the
activities of different individuals and groups for the achievement of certain objectives. The features of coordination are
as follows:
(i) It is an essential managerial activity. It is needed at all levels of management.
(ii) It involves an orderly arrangement of group efforts.
(iii) It is a continuous process carried on by the managers.
(iv) Its purpose is to secure unity of action towards common objectives.