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Organizing
There are so many materials and people in an enterprise. Enterprise uses the manpower and materials for achieving the goals. Materials can be collected, established and coordinated. Manpower must be hired, trained, motivated and put at right place. Managers and workers must be clear about their authority and responsibility. Organization is defined as the determination of relationship between materials as well as human resources. It is most important and basic function of management. It includes division of work, coordination of people and appropriate establishment of materials and resources. Therefore we can say that organization is necessary function of management. Without it a business firm can’t move ahead. In short organization refers to a mechanism which enables man to live together and perform the activities collectively. It is the foundation on which the whole structure of management is built.
Organizing involves
Approaches to organizing
Various approaches have been developed for organizing. The common approaches to organizing are discussed below:
1. Classical Approach
The classical approach to organizing signifies traditionally accepted norms and systems. This approach focuses on efficiency and recommends that managers continually try to increase organizational efficiency to increase production. This approach includes the ideas of scientific management, administrative management and bureaucratic theory. All these three theories were propounded on almost similar assumption and the practical effort of all the three theories are basically the same.
Scientific management approach: Scientific management theory is developed by F.W. Taylor and later on, several scholars expanded his idea. Notable among them are: Henry L Gantt, Frank and Lillian Gilbreth, Harrington Emerson and William H. Leffingwell. Scientific management is an attitude and philosophy, which discards the traditional method of, hit and miss, rule of thumb, and trial and error of managing work and workers. It is also concerned with development and application of scientific, problem solving approach. Further, the principles of scientific management includes development of a science; scientific selection, training and development of workers, close cooperation between management and workers, equal division of work and responsibility, maximum output in place of restricted output.
Administrative management approach: Henry Fayol, a French industrialist and mining engineer by profession, developed the theory of administrative management. According to him, management is a distinct field of study and which involves many managerial function like forecasting planning, organizing, commanding, coordinating and controlling. He also has divided all industrial activities into six groups consisting of technical, commercial, financial, security, accounting and managerial. Based on his experience he has further developed the fourteen principles of management e.g. division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest, remuneration, centralization, scalar chain, order, equity, stability of tenure, initiative. Thus, these principles are universally applicable in all types of organizations.
Bureaucratic approach: Max Weber developed a theory of bureaucracy. It is a form of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations and impersonal relations. He too has offered bureaucratic model for management of any large and complex organization. The features of bureaucracy consist of hierarchy of authority, chain of command, clear cut division of work, system of rules, regulations and procedures, impersonality in interpersonal relations, system of work procedures, selection and promotion based on technical competence and adequate protection of individuals against arbitrary dismissal.
2. Behavioral Approach
Behavior approach to organizing is concerned with scientific investigation, analysis and understanding of human behavior in organization. It is multidimensional and interdisciplinary in nature. It focuses on human behavior in organization and seeks to promote verifiable propositions for scientific understanding of human behavior in organization.
Behavioral approach to organizing also focuses on psychology, sociology and anthropology. Psychology is the study of human behavior. Sociology is the study of human behavior in groups. Anthropology is the study of physical, biological and cultural influences on human behavior as individuals and members of group. A large number of behavioral scientists have made contributions to the behavioral approach. Notable among them are Abraham Maslow, Duglas McGregor, Fredecric Herzberg, Mary Parker Follet etc.
Abraham Maslow, a human psychologist, has developed a theory of human needs. According to him, people always have needs, and when one need is relatively fulfilled, others emerge in a predictable sequence to take place. Because, human needs tend to follow a basic hierarchical pattern from the most basic needs to the highest level needs. And until the most basic needs are fulfilled, person will not try to meet his higher level needs. He also has classified human needs into five levels as physiological, safety, social, esteem and self actualization needs.
Duglas Mc Gregor has proposed two distinct views of human beings: one negative labeled theory X and another positive labeled theory Y. According to him, theory Y is a set of optimistic assumptions about human nature and theory X is a set of pessimistic assumptions about the worker. As the manager gets the work done from the subordinates, it is necessary for them to understand the behavior of each workers as well as group.
Frederick Herzberg has develop the two factor theory for work motivation consisting of motivating factor and hygiene factor. Hygiene factors are external to the job itself. The presence of these factors does not motivate employees but absence of which cause dissatisfaction. Hygiene factors include company policy and supervision, relationship with supervisor, working conditions, salary, relationship with peers, personal life, relationship with subordinate, job security, status etc. The motivating factor causes high levels of motivation and job satisfaction, whereas absence of which does not cause high dissatisfaction. These factors also include achievement, recognition, advancement, work itself, the possibility of personal growth, responsibility etc. Herzberg came into conclusion that enriched jobs are the key to motivate employees. Therefore, manager needs to identify the behavior of subordinates to inspire them to get the things done. He needs to know workers psychology and treat them accordingly.
3. Contingency Approach
Contingency approach to organizing is also known as situational or practical approach to management. It was developed by practicing managers, consultants and researchers, who tried to apply the concept of earlier management theories into practice. This approach is based on the premise that there is probably no one best way to solve management problem in all organization.
According to his approach, the best way to lead, plan, organize and conduct managerial activities varies with the situation. A particular method suitable in one organization at a time may not necessarily be suitable to another one organization at other time. Hence, there are no plans, organization structure, and leadership style or control technique that will fit in all situations. Significant differences exist between one situation and other. Every organization is unique and management decision and structure must be unique. The manager must understand and uniqueness and complexity of each situation. There should be a match between situation and the manner of dealing. My previous post was on principles of organizing in management and business. You can check this article.
Therefore, management cannot have readymade universally applicable and patent principles to be applied to all situations as everlasting truth. Hence, management will have to recognize the nature of technology, the variations in human participants, and the wide diversity in environmental relationships. And all managerial actions will depend upon particular prevailing circumstances and situational factors.
4. System 4 approach
This approach was developed by Rensis Likert a social scientist his approach focus on interpersonal relation and development of different working group leadership, motivation, communication, decision making and democratic practices with in organization. It recognizes unique value of organizational members and behavioral aspects.
Principles of organizing
1. Principle of unity of objectives: Organizational goals, departmental goals, and individual goals must be clearly defined. All goals and objectives must have uniformity. When there is contradiction among different level of goals desired goals can’t be achieved. Therefore, unity of objectives is necessary
2. Principle of specialization: Sound and effective organization believes on organization. The term specialization is related to work and employees. When an employee takes special type of knowledge and skill in any area, it is known as specialization. Modern business organization needs the specialization, skill and knowledge by this desired sector of economy and thus, efficiency would be established.
3. Principle of coordination: In an organization many equipment, tools are used. Coordination can be obtained by group effort that emphasize on unity of action. Therefore, coordination facilitates in several management concepts
4. Principle of authority: Authority is the kind of right and power through which it guides and directs the actions of others so that the organizational goals can be achieved. It is also related with decision making. It is vested in particular position, not to the person because authority is given by an institution and therefore it is legal. It generally flows from higher level to lowest level of management. There should be unbroken line of authority.
5. Principle of responsibility: Authentic body of an organization is top level management, top level management direct the subordinates. Departmental managers and other personnel take the direction from top level management to perform the task. Authority is necessary to perform the work .only authority is not provided to the people but obligation is also provided. So the obligation to perform the duties and task is known as responsibility. Responsibility can’t be delegated. It can’t be avoided.
6. Principle of delegation: Process of transferring authority and creation of responsibility between superior and subordinates to accomplish a certain task is called delegation of authority. Authority is only delegated, not responsibilities in all levels of management. The authority delegated should be equal to responsibility
7. Principle of efficiency: In enterprise different resources are used. Therese resources must be used in effective manner. When the organization fulfill the objectives with minimum cost, it is effective. Organization must always concentrate on efficiency.
8. Principle of unity of command: subordinates should receive orders from single superior at a time and all subordinates should be accountable to that superior. More superior leads to confusion, delay and so on.
9. Principle of span of control: unlimited subordinates cant be supervised by manager, this principle thus helps to determine numerical limit if subordinates to be supervised by a manager. This improves efficiency.
10. Principle of balance: the functional activities their establishment and other performances should be balanced properly. Authority, centralization, decentralization must be balance equally. This is very challenging job but efficient management must keep it.
11. Principle of communication: Communication is the process of transformation of information from one person to another of different levels. It involves the systematic and continuous process of telling, listening and understanding opinions ideas, feelings, information, views etc, in flow of information. Effective communication is important
12. Principle of personal ability: for sound organization, human resources is important. Employees must be capable. Able employees can perform higher. Mainly training and development programs must be encouraged to develop the skill in the employees
13. Principle of flexibility: organizational structure must be flexible considering the environmental dynamism. Sometimes, dramatically change may occur in the organization and in that condition, organization should be ready to accept the change
14. Principle of simplicity: this principles emphasizes the simplicity of organizational structure, the structure if organization should be simple with minimum number of levels do that its member an understand duties and authorities.
Types of organizational structure
There are three types of organizational structures
· Line organizational structure
· Line and staff organizational structure
· Functional organizational structure
· Matrix structure
Line organization structure
It is the simplest and oldest form of organizational structure. The line of authority flows vertically from top most executive to the lowest subordinate throughout the organization. Where, managers have direct authority over their respective subordinates through the chain of command. Authority flows directly from top to bottom through various managerial positions. It is simple form of organization. Only one form of authority that is line authority exists in this form of organization. Line authority refers to the direct authority of a manager over his subordinates. The authority responsibility relationship is clearly established. All managers in line organization have full authority to decide things and act with respect to their related functions. in line organization department are created for basic activities and departmental heads are responsible for all activities performed in the department.
Merits of line organization:
1. It is very simple to establish.
2. It clearly defines the authority, responsibility and accountability of a job
3. It can be easily adapted to the requirement of the organization.
4. Managers have exclusive authority over their unit so they can easily make changes in the functioning of the unit when required
5. There is definite authority at every level so that everyone can take decisions quickly.
6. Every employee knows to whom he/she is responsible and from whom they receive their orders.
7. It confirms scalar principle of organization where one subordinate receives the orders from single superior.
8. All activities relating to single department are managed by one individual.
9. There is clear cut definition of authority and identification of responsibility, relationships and so on.
Demerits of line organization
1. The line executives are generalists and not specialists.
2. The top level managers are overloaded with work.
3. There is concentration of authority at top level only. If top level managers are not capable there may be failure.
4. All managers and supervisors handle their job on their own ways independently with grow the line organization my find it difficult to maintain effective coordination between different departments and units.
5. There is only one way communication i.e. from top to bottom
6. It is not suitable for large organization
7. There is possibility of nepotism and favoritism.
8. There is replacement problem during absenteeism of top authority
9. It can be autocratic.
Line and staff organization structure
In this type of organization structure two type of authority relationship exists. They are staff and line authority. Staff authorities’ means authority to advice, support and serve the line managers. All managerial functions are practiced by line authority with the help of specialized skill of staff authority. It is modification of line organization and is more complex than it. Staff managers and line managers are distinguished on the basis of their role. There is more specialization and division of work. However conflict may arise between line and staff authority.
Merits of line and staff organization structure:
1. The line executives are generalists and staff executives are specialists and they work together with coordination
2. The top level managers are not overloaded with work. Staff specialists give relief in critical matters.
3. There is no concentration of authority at top level only. Even if top level managers are not capable there is no failure because staff managers can help to overcome the problematic issues through proper decisions and specialization.
4. All problems are handled with care and are tries to solve with the help of staff specialists.
5. There is two way communications i.e. from top to bottom and bottom to top. There can be feedback and suggestion with orders too.
6. There is better decision taking and improvement in efficiency.
7. It is suitable for large organization
8. There is better utilization of personnel skills and knowledge.
Demerits of line and staff organization
1. It is difficult to establish and is costly too.
2. There is possibility of conflict between the line managers and staff managers. Line managers may ignore staff’s advice and complain that staff doesn’t give right type of advice. Staff managers can complain that their advice is not properly implemented.
3. The allocation of authority and responsibility between the line and staff official I generally not clearly defined.
4. Line managers may be too much dependent upon the staff authority. Staff authority however is not accountable for the result. Sometimes when staff authority do no perform well there may be failure
5. There is wide difference between the approach of line managers and staff managers.
6. There can be reduction of initiative power o line authority.
Functional organization
In functional organization all business activities of an enterprise are divided into number of fractions and each function is entrusted to a specialist, each specialist is known as functional specialist and authority delegated to him is known as functional authority. One of the main features of this organization is that a functional manager can exercise functional authority over his own sub-ordinate but also over all sub ordinates in all other functional departments. The principle of unity of command is not applied in his type of organizational structure. The sub-ordinate may be confused by the multiple command system. The functions are divided into units like marketing, production, research and development, human resource etc.
Merits of functional organization structure:
1. It provides benefits of specialist. Every manager is expert in his own field of knowledge. There is advantage of best managerial decisions
2. Here each department is given under supervision of specialist. All decisions about the departments are also taken with the help of specialists.
3. There is no concentration of authority at top level only. Even if top level managers are not capable there is no failure because functional managers can help to overcome the problematic issues through proper decisions and specialization.
4. Functional organization provides preference for growth and expansion of business activity.
5. There is separation of mental and manual work.
6. It is suitable for large organization
Demerits of functional organization
1. Subordinates are always in confusion to obey the orders due to multiple command system.
2. No formal relationship among the departmental specialist.
3. There is lack of mutual understanding and coordination of activities of different department
4. There is delay in decision making.
5. Narrow vision of departmental specialist creates problems in functional organizational.
6. There is weak discipline among the employees.
7. There is lack of fixed responsibility.
Matrix structure
It is a type of organizational structure in which people with similar skills are pooled for work assignments, resulting in more than one manager (sometimes referred to as solid line and dotted line reports, in reference to traditional business organization charts).
For example, all engineers may be in one engineering department and report to an engineering manager, but these same engineers may be assigned to different projects and report to a different engineering manager or a project manager while working on that project. Therefore, each engineer may have to work under several managers to get his or her job done.
The matrix for project management
A lot of the early literature on the matrix comes from the field of cross functional project management where matrices are described as strong, medium or weak depending on the level of power of the project manager.
Some organizations fall somewhere between the fully functional and the pure matrix. These organizations are defined in A Guide to the Project Management Body of Knowledge as ’composite’. For example, even a fundamentally functional organization may create a special project team to handle a critical project.
However, today, matrix management is much more common and exists at some level in most large complex organizations, particularly those that have multiple business units and international operations.
Management advantages and disadvantages
Key advantages that organizations seek when introducing a matrix include:
· To break business information silos - to increase cooperation and communication across the traditional silos and unlock resources and talent that are currently inaccessible to the rest of the organization.
· To deliver work across the business more effectively – to serve global customers, manage supply chains that extend outside the organization, and run integrated business regions, functions and processes.
· To be able to respond more flexibly – to reflect the importance of both the global and the local, the business and the function in the structure, and to respond quickly to changes in markets and priorities.
· To develop broader people capabilities – a matrix helps develop individuals with broader perspectives and skills who can deliver value across the business and manage in a more complex and interconnected environment.
Key disadvantages of matrix organizations include:
· Mid-level management having multiple supervisors can be confusing, in that competing agendas and emphases can pull employees in different directions, which can lower productivity.
· Mid-level management can become frustrated with what appears to be a lack of clarity with priorities.
· Mid-level management can become over-burdened with the diffusion of priorities.
· Supervisory management can find it more difficult to achieve results within their area of expertise with subordinate staff being pulled in different directions.
Meaning of authority
Authority is the kind of right and power through which it guides and directs the actions of others so that the organizational goals can be achieved. It is also related with decision making. It is vested in particular position, not to the person because authority is given by an institution and therefore it is legal.
Meaning of responsibility
Authentic body of an organization is top level management, top level management direct the subordinates. Departmental managers and other personnel take the direction from top level management to perform the task. Authority is necessary to perform the work .only authority is not provided to the people but obligation is also provided. So the obligation to perform the duties and task is known as responsibility.
Meaning of accountability
Subordinates receive the authority from top level of the organization and they also receive the command and direction to perform the work. In other words, they are authorized and responsible for a specific function. Sometimes the task may not be performed effectively the subordinates may not be performed effectively. The subordinates must report to boss about the assigned task. S/he must answer his/her performance which is known as accountability.
Meaning of delegation of authority
All activities are not performed by one person. Authority should be provided to the subordinates too. Process of transferring authority and creation of responsibility between superior and subordinates to accomplish a certain task is called delegation of authority. It can take place without decentralization. It can be withdrawn by delegator at any time. It minimizes the burden of managers of unit, departments or plant. Relationship is between superior and immediate subordinates are indicated. It is technique of management used to get the things done through others. It is confined to manager and subordinates. Authority is only delegated, not responsibilities. Very important to management process Control remains in hand of superior who supervise the activities of subordinates. It is an art of management science. When authority is not given to subordinates there is no performance. Delegation is the process of sharing power and work (deliver the power from one to another).
Builds Trust and Understanding
Delegation involves trusting in someone's abilities and relying on them. This helps build a feeling of mutual understanding and trust. It gives managers the opportunity to understand the employees' approach towards work.
Motivates Employees
Entrusting employees with additional responsibilities works as a great motivator at the workplace. An employee who feels trusted; i.e. when he knows that the higher management trusts him and relies on his capabilities, he works with greater efficiency. Delegation of authority makes him feel important and more responsible.
Tests Employee Skills
With authority comes added responsibility, shouldering which, is not easy. It requires one to work with greater focus and efficiency, and to take initiatives, be alert, think creatively, analyze situations, and take decisions. Assessing how well the delegates are functioning can help a manager rate their performance and take decisions about their promotions.
Provides Training
Delegation gives the employees an experience of the actual work, thus providing them with practical training of the job. Delegation of authority involves sharing and transfer of knowledge, thus increasing the delegates' general awareness and know-how of the work. The skills and gained knowledge is tested while working, thus giving the employees an opportunity to prove themselves.
Achieves Work Distribution
This can be considered as a major advantage of delegation, as it reduces the burden of work with the manager, gives more people a chance to share responsibility, and thus leads to a fair distribution of work. Delegating authority for a certain project or task can help a manager concentrate on other more important tasks. Transfer of smaller responsibilities can make it easy for a manager to shoulder greater or more important responsibilities in the organization.
Gives Scope for Innovation
To implement new ideas in the organization, one needs to have certain powers and the right amount of freedom. A rigid framework and lack of authority may restrict an individual from thinking differently. If deserving individuals are given the right authorities, they may be able to bring innovation. Delegation of authority may invite out-of-the-box ideas and positive changes in the organization.
Builds Team Spirit
delegating authority to a group of individuals increases their bonding and mutual understanding. They get a chance to work together towards a common goal, thus building the team spirit.
DISADVANTAGES
Misuse of Power
In delegating authority, there is a risk of the delegate misusing his power for personal gains. He may have access to confidential information, which he may lead to the competitors, or involve himself in other fraudulent activities. This possibility raises a question mark on the employee's integrity, in which case, choosing such an individual as the delegate would be a wrong decision.
Failure to Fulfill the Tasks
The manager's instructions may not be well taken care of by the delegate, or he may not be very particular about following them. This may breed from unwillingness or incapacity of the delegate.
Delay
The delegate may take long to understand the new responsibility. As he has authority, delayed actions on his part may hamper his team's performance. A delay in planning or taking decisions may not be affordable for the organization. Hence, it is not advisable to delegate authority when there is a time crunch.
Impact on Quality of Work
There are chances of quality being affected simply because the employee is new to the work. The experience and knowledge that the manager has, may be lacking in the delegate. He might make mistakes. His way of working may be different. This may impact the overall quality of work. Thus, it is important for a manager to understand that his responsibility does not end after delegation.
Delegation of authority must be planned and executed with care. Only the deserving candidate should be given additional responsibilities. The manager should give clear instructions and provide the delegate with sufficient training. Even after delegating, frequent monitoring may be required in the initial phase.
Managers are reluctant about delegating authority; sometimes due to fear of the delegate outsmarting them, and at times due to a doubt about the delegate's dependability. But if managers look at the bigger picture and if they can choose the right people for delegation of authority, it can work in favor of the organization's growth and success.
Principles of delegation of authority
1. Principle of parity of authority and responsibility- parity of authority and responsibility is one of the important principles of delegation of authority. There is equality in assigned task and power to do the work. Authority to the subordinates is given by the superior on the basis of assigned task. So Authority to the subordinates is given nether more or less than the task otherwise there can be improper utilization of authority and mismanagement of task.
2. Principle of absoluteness of responsibility- according to it, responsibility can’t be delegated. Only authority can be delegated. The person who delegates authority is himself responsible for his seniors.
3. Principle of unity of command- according to it, subordinates must be commanded by one superior, they should take their task from one superior and should be accountable for their responsibility toward the superior level of operation
4. Principle of functional definition of authority and responsibility- as per this principle. Duties and task assigned by the superior and the authority given to fulfill the task should be clearly explained and decided. But this subordinates can know about the limit of one’s right, duties and responsibility.
5. The scalar chain- according to it, authority flows from top to bottom. So that scalar chain is the basis of relationship between the superior and subordinates. It emphasizes the relation between superior and subordinates by which delegation will be easier.
Decentralization
Meaning of decentralization of authority.
Decentralization is delegation of and dispersion of authority from top executive to the low level administrator or it may be geographical dispersion of authority from central to many branches. It is not possible without delegation of authority. It prepares the organizational participants of the organization. It is both philosophy and technique of management. Relationship is between top level, management, departments and units. It involves all managers at all level and relates relationship between departments, sections and units. Withdrawal of authority is not simple in this case. It is optional and situation as per the need of the organization. Control system is also delegated and decentralized to the departmental managers. Superior is relieved from responsibilities too.
Advantages of Decentralization:
1. Reduces the burden on top executives:
Decentralization relieves the top executives of the burden of performing various functions. Centralization of authority puts the whole responsibility on the shoulders of an executive and his immediate group. This reduces the time at the disposal of top executives who should concentrate on other important managerial functions. So, the only way to lessen their burden is to decentralize the decision-making power to the subordinates.
2. Facilitates diversification: Under decentralization, the diversification of products, activities and markets etc., is facilitated. A centralized enterprise with the concentration of authority at the top will find it difficult and complex to diversify its activities and start the additional lines of manufacture or distribution.
3. To provide product and market emphasis: A product loses its market when new products appear in the market on account of innovations or changes in the customers demand. In such cases authority is decentralized to the regional units to render instant service taking into account the price, quality, delivery, novelty, etc.
4. Executive Development:
When the authority is decentralized, executives in the organization will get the opportunity to develop their talents by taking initiative which will also make them ready for managerial positions. The growth of the company greatly depends on the talented executives.
5. It promotes motivation:
To quote Louis A. Allen, “Decentralization stimulates the formation of small cohesive groups. Since local managers are given a large degree of authority and local autonomy, they tend to weld their people into closely knit integrated groups.” This improves the morale of employees as they get involved in decision-making process.
6. Better control and supervision:
Decentralization ensures better control and supervision as the subordinates at the lowest levels will have the authority to make independent decisions. As a result they have thorough knowledge of every assignment under their control and are in a position to make amendments and take corrective action.
7. Quick Decision-Making:
Decentralization brings decision making process closer to the scene of action. This leads to quicker decision-making of lower level since decisions do not have to be referred up through the hierarchy.
Disadvantages of Decentralization:
Decentralization can be extremely beneficial. But it can be dangerous unless it is carefully constructed and constantly monitored for the good of the company as a whole.
Some disadvantages of decentralization are:
1. Uniform policies not followed:
Under decentralization, it is not possible* to follow uniform policies and standardized procedures. Each manager will work and frame policies according to his talent.
2. Problem of Co-Ordination:
Decentralization of authority creates problems of co-ordination as authority lies dispersed widely throughout the organization.
3. More Financial Burden:
Decentralization requires the employment of trained personnel to accept authority, it involves more financial burden and a small enterprise cannot afford to appoint experts in various fields.
4. Require Qualified Personnel:
Decentralization becomes useless when there are no qualified and competent personnel.
5. Conflict:
Decentralization puts more pressure on divisional heads to realize profits at any cost. Often in meeting their new profit plans, bring conflicts among managers.
Difference between delegation and decentralization of authority
Meaning of coordination
It is defined as a harmonization of all resources and activities that facilitates in work. It is the essence of management for the achievement for the achievement of harmony of individual effort towards the accomplishment of group goals. It is a process by which the manager achieves harmonious group effort and unity of command of action for the attainment of a common purpose. Without coordination, other function of management can; t integrated.
“Coordination deals with the task of blending efforts in order to ensure successful attainment of an objective.”
Importance of coordination
1. Unity of action: – an enterprise has diverse resources; technique, activities etc and they all must be coordinates to bring unity through unity in action.
2. Increase in efficiency and economy: – coordination brings efficiency because it is an effort of all organizational members. It also helps to maintain good relation among all levels of management.
3. Development of personnel: – coordination helps to obtain information about job, qualities of a job holder which helps to analyze about the potentialities of the job holder and improve coordination system
4. Differential perception: – different people have different perception. When all people are coordinated effectively their effort and power are concentrated to achieve organizational goals.
5. Survival of the organization: – coordination helps to harmonize the work resources and physical facilities. When there activities are not harmonized the organization can’t achieve the goal and it can’t survive in the society
6. Accomplishment of objectives: – when the employees, their task and available resources are coordinated, their production will be increased and it helps to accomplish the objectives of the organization
7. Basis of managerial function: – all managerial functions such as planning, organizing, directing, controlling etc can’t be conducted effectively without communication.
8. Specialization: – in the absence of coordination in the organization the activities can’t be moved in specialized areas. Therefore, it helps in specialization
Means/ techniques of coordination
1. Well defined goals: – the first means or technique of coordination is well defined goals. The goals of the organization should be clear and well defined. Each individual in the organization should understand the overall goals. When the goals are not well defined the coordination may not effective.
2. Sound organization structure: – coordination is the essence of management. It is not possible without sound organization structure. The authority and responsibility for each and every positions and employees should be clearly defined.
3. Effective communication: – coordination helps in creating proper understanding among persons. Without effective communication, coordination may be effective. The ideas, opinions should be interchanged freely. It is only through effective communication that even individual understand his/her limitations, positions and responsibility in the organization. Effective communication helps in coordination. Therefore, it is also an important means of coordination.
4. Proper leadership: – proper leadership leads the subordinates effectively and efficiently. A good managerial leader uses the motivational tools to coordinate the employees with effective communication system. In short, coordination is made possible through proper leadership.
5. Proper supervision: – supervisors coordinate the subordinates and their activities. Top level management cannot coordinate all employees. In short, proper supervision helps in effective coordination.
6. Better plans and policies: – coordination is made according to plans and policies of the organization and departments. When the plans and policies are not better coordination is not effective in the organization.
7. Cooperation: – without cooperation, coordination may not succeed because coordination is related to employees and their activities. When they are not cooperative, coordination may not be made. So, cooperation is essential in the organization.
8. Meeting and conference: – coordination may be possible when all employees their all activities and departmental goals are involved in organizational planning and policies. Their all problems and matters may be involved. When there is environment of constructive discussion and debate with meeting and conference
9. Group decision: – the group decision is a decision in which all members of the organization are participated to make decisions. The ideas and feelings are mixed into the decision and coordination may succeed
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Thursday, July 19, 2018
Organizing
Communication
Communication
Meaning of communication
Communication is the process of transformation of information from one person to another. It is a process of exchanging opinions ideas, feelings, information, views and other fast between or among two or more people. It involves the systematic and continuous process of telling, listening and understanding. Communication skill means conveying the message to others and understanding the message from others. Business communication is a bridge of passing information between the management and the employees.
Process of communication
1. Source or sender: – the first step in the communication process is source or sender. The source is also called communicator. Communication begins when someone has some idea, information, view, feeling to transmit. The communicator may be a person, group or an organization. When the communicator intends to communicate to somebody communicator prepares the message
2. Encoding: – the idea or feeling the sender has to be translated into some language or symbols. This process is called encoding. The sender must choose appropriate words, symbols, pictures etc to express his/her idea.. While selecting the symbols, the sender has to pay attention about the receiver understanding the message.
3. Message or medium: – the medium is simply the pathway for transmission of the message. Some medium must be selected. This channel is chosen by the sender. They can be formal or informal. Examples are face to face , email, letters, fax. Telephone etc
4. Decoding to the receiver: – the receiver assigns some meaning to the symbol transmitted by the source, so the receiver interprets the message and the process is known as decoding. It is not an easy task because words have different meaning for different people. Problems of communication break down frequently.
5. Feedback: – this is the final phase. Feedback is the reaction of the receiver. The receiver has to confirm whether or not the message has been received or not. It is only taken in two-way communication.
6. Noise: – it is interference with the normal flow of information. It disturbs the communication system. No matter how well designed is the communication system; if noise exists the message received is different from message sent. Example: – noise of machines, vehicles, loud voice etc.
Barriers to effective communication
A. Physical barriers
Internal structure of the organization and layout of office machines and equipments creates physical barriers in communication
a. Distance: – communication is found obstructed in long distance. Like communication between America and Nepal.
b. Noise: – it is from external sources and affects the communication process. Noise negatively affects the accuracy
c. Physical arrangement: – the physical arrangement of organizational sources like men, money, material and machine obstruct the communication process.
B. Semantic barriers
The use of difficult and multiple use of languages, words, figures, symbols create semantic barriers.
a. Language: – we can find some words having different meaning. As meaning sent by the sender can be quite different from the meaning understood by the receiver. Long and complex sentences creates problem in communication process.
b. Jargons: – technical or unfamiliar language creates barriers to communication that may be drawn from the literature. So message should be simple and condensed as far as possible so that no confusion creation will be there to the receiver.
C. Organizational barriers
It is raised from the organizational goals, regulations, structure and culture.
a. Poor planning: – it refers to the designing, encoding, channel selection and conflicting signals in the organization.
b. Structure complexities:- difficult organizational structure barrier for free flow of information. Appropriate communication process must be used.
c. Status differences: – it creates barrier for communication. Superior provides information to the subordinate about plans and policies. Different information is provided by different subordinates who create barrier in communication.
d. Organizational distance:- distance between sender and receiver also creates barriers to effective communication.
e. Information overload: – if superior provides too much information to the subordinate in short period receiver suffers from information overload which creates barriers to effective communication.
f. Timing: – communication can be obstructed if not done on time. If the information is not provided in time it creates barriers to effective communication.
D. Psychological barriers
It is the barriers to effective communication created from the lack of interest of the people from whom the communication is meant. People do not pay attention to the communication which are not interesting to them and which do not fulfill their want.
a. Perception: – it is the process of accepting and interpreting the information by the receiver. People receive things differently for a various number of reasons.
b. Filtering: – communication some time filters the negative information to make it more favorable to the receiver. In this process, knowingly or unknowingly some valuable information may be disposed.
c. Distrust: – superior provides information or message to the subordinates to their own view, ideas and opinion which create obstruction in communication.
d. Emotions: – emotion also creates barriers to effective communication like anger, het, mistrust, jealousy etc.
e. Viewpoint: – it also creates barriers to effective communication. It the receiver doesn’t clear the message and ignore without hearing, the message may create obstructions.
f. Defensiveness: – if the receiver receives the message as threat and interprets that message in the same way, it creates barriers to effective communication.
Types of communication
Formal and informal communication
1. Horizontal communication: – it is the process of lateral flow of information in order to coordinate work activities at the same level of management hierarchy. It helps in coordination of task, share information and minimize the conflict. In other words, it is the flow of information between the activities and to solve the organization problems, this can be shown by following figure.
2. Vertical communication: – it is the process of upward and downward flow of information in order to coordinate work activities at the different level of management hierarchy. It helps in task directives, share information about rules and regulations, responsibility, problem, achievement and suggestions and minimize the conflict between subordinates and superior. There are two types of vertical communication
I. Downward communication: – it is the flow of information from top to bottom through formal lines of authority. Top level management transmits the information to subordinates about objectives, policies, strategies and responsibility.
II. Upward communication: – it is the flow of information from bottom to top in an organization. Middle and low level management transmits the information to superior about problems, suggestions
3. Diagonal communication: – it is the flow information between the superior and subordinates who are neither in the same department nor at the same level. It violates the principle of chain of command and unity of command.
Channels of communication
1. Formal communication channel
Networks are another aspect of direction and flow of communication. Bavelas has shown that communication patterns, or networks, influence groups in several important ways. Communication networks may affect the group's completion of the assigned task on time, the position of the de facto leader in the group, or they may affect the group members' satisfaction from occupying certain positions in the network. Although these findings are based on laboratory experiments, they have important implications for the dynamics of communication in formal organizations.
There are several patterns of formal communication:
· "Chain",
· "Wheel",
· "All-Channel" network,
· "Circle".
2. Informal Channel of Communication / Grapevine:
The informal channel of communication is often discouraged or looked down upon in an “organization, and is not officially sanctioned. It is popularly referred to as grapevine. This is because it runs in all directions irrespective of the formal structure.
The origin of the term grapevine can be traced to the way the botanical vine grew over telegraph wires, making telegraphic messages go in unintended directions. In business life, grapevine owes its existence to man’s gossipy nature.
Humans tend to speak loosely or lightly with their associates wherever they may be. Time to time they feel the need to get freed from the necessity to stick to logic or truth.
As people go about their work, they have casual conversation with their friends in the office. These conversations deal with both personal and business matters. This results in the generation of a rumour mill, which is a grapevine.
Grapevine is classified into four categories:
Single strand: Each one tells another.
Group or gossip chain: One tells all persons in his/her group.
Probability chain: Each randomly tells a number of people.
Cluster chain: Some tell selected others.
Grapevine satisfies the social needs of members, leads to more relaxed human relations (partly through the release of fantasy), serves to fill the possible gaps in the formal communication and links even those people who do not fall in the official chain of command.
Other characteristics of grapevine are:
(i) It is more people-oriented then issue-oriented.
(ii) May not be totally authentic and dependable.
(iii) Grapevine transmission flows in all directions in an organization.
(iv) Grapevine information travels very fast.
(v) Its responsibility cannot be fixed.
Factors leading to grapevine:
A rumor mill becomes active when the following factors exist in an organization:
(i) A lack of sense of direction, especially in times of crisis. The more the uncertainty, the greater the rumormongering.
(ii) The formation of favored groups of employees by the management. This breeds insecurity among other employees leading to rumors.
(iii) A lack of self-confidence amongst employees leads to the formation of groups. These groups often run rum our mills.
Advantages:
(i) Speed:
Speed is the most remarkable characteristic of this channel of communication. It is possible to transmit information remarkably fast since there are no formal barriers and no stopping. A rumour, thus, may spread like a wildfire.
(ii) Feedback:
The feedback through this channel is much faster than a formal channel of communication. The channel is like the pulse of an organization. The reaction to the decisions, policies, directives and directions often reach managers faster through this channel than through the formal one.
(iii) Parallel function:
The informal channel does not have official sanction, but is an inevitable parallel to the formal channel. It works as a supplementary channel of communication in an organization. Good managers have been known to use the informal channel to their benefit for transmitting information otherwise unfit for formal channels.
(iv) Support system:
A grapevine is an informal support system developed by employees within an organization. It brings them closer and gives them immense satisfaction.
Disadvantages:
(i) Less credible:
A grapevine is less credible than a formal channel of communication. It cannot be taken seriously as it involves only the word of mouth. It is, therefore, likely to be contradicted.
(ii) Selective information:
Informal channels usually fail to carry the complete information. As a result, the receiver does not get the essence of the whole message. Mischief mongers or vested interests may use the channel for transmitting selective information.
(iii) Creates trouble:
A grapevine can foster trouble within an organization as there is no control over the information sent, received, its portrayal and perceptions. Information gets distorted. A grapevine can be synonymous with the spreading of false or wild stories.
(iv) Leakage:
Information may get leaked at the wrong time. The term ‘open secret’ in an organization can often is attributed to such leaks.
Effective use of informal channels of communication:
(i) The higher authorities should ensure that employees are well informed of the working of the organization. This will reduce the tendency for distortion.
(ii) Activities that update knowledge should be frequent. This will prevent the generation of rumours.
(iii) The higher authorities should not indulge in favoritism.
(iv) A manager should conduct regular meetings with the employees.
(v) The manager should make efforts to identify popular employees who can serve as leaders for other employees.
(vi) As far as possible, employees should be involved in the decision-making process.
(vii) Managers should not indulge in loose talk.
(viii) A manager should be a good listener,
(ix) A manager should try to get regular reviews about his style of work.
Interpersonal and non-verbal communication
Interpersonal communication
This type of communication takes place between two or more persons which can be in oral or written form.
Oral communication:
Oral communication is the process of expressing information or ideas by word of mouth. Learn more about the types and benefits of oral communication, and find out how you can improve your own oral communication abilities.
Definition and Types
Great communication skills are your ticket to success in the academic and business world. But have you ever been overcome by fear or anxiety prior to going on a job interview or speaking in front of an audience? Knowing when to choose oral communication and polishing your speaking skills can help you at every stage of your career.
Oral communication is the process of verbally transmitting information and ideas from one individual or group to another. Oral communication can be either Formal or Informal. Examples of informal oral communication include:
Face-to-face conversations
Telephone conversations
Discussions that take place at business meetings
More formal types of oral communication include:
Presentations at business meetings
Classroom lectures
Commencement speech given at a graduation ceremony
With advances in technology, new forms of oral communication continue to develop. Video Phones and Video Conferences combine audio and video so that workers in distant locations can both see and speak with each other. Other modern forms of oral communication include Podcasts (audio clips that you can access on the Internet) and Voiceover Internet Protocol (VoIP), which allows callers to communicate over the Internet and avoid telephone charges.
There are two main types of communication: oral and written. Written communication involves any type of message that makes use of the written word. Written communication is the most important and the most effective of any mode of business communication.
Examples of written communications generally used with clients or other businesses include:
Internet websites
Letters
Proposals
Telegrams,
Faxes
Postcards
Contracts
Advertisements
Brochures and
News releases.
Nonverbal communication is a very powerful medium of communication that entails sending and receiving messages through any of the human sense channels, without using language. Messages may occur on a conscious or unconscious level and may be intentional or not, and are usually, though are not limited to visual manifestations. Some forms of nonverbal communication include gestures, body language, facial expressions, eye contact, and posture, in addition to body temperature, movement, time and personal space. It is said that nonverbal communication comprises approximately two-thirds of all communication among people and groups.