First, you will understand What are Functions of Organizational; In order to produce and sell their product or service, most organizations will need to undertake six key functions.
[perfectpullquote align=”right” cite=”” link=”” color=”” class=”” size=””]Design and Production, Finance, Human Resources, Sales and Marketing, Administration, and Research and Development.[/perfectpullquote]
Each of the functions will need to work together so that the whole of the organization has the same aims and objectives. To achieve this communication across the various functions is the key activity. A starting point for this type of communication is the creation of a clear set of company objectives which each function is aware of. These objectives then need to be further broken down into specific objectives for each function. Regular reviews of firstly how each function is performing against its objectives and secondly how the company is performing against its overall objective should ensure that the whole company is pulling in the same direction.
Now start What is Functions of Organization; The Following Six Types Organization Functions
A. Determination of activities: It includes deciding and division of various activities required to achieve the objectives of an organization. The entire work is divided into various parts and again each part is sub-divided into various sub-parts. E.g. the purchase work may be divided into requisition of items, placing an order, storage etc.
B. Grouping of activities: Identical activities are grouped under one individual or one department. The activities of sales such as canvassing, advertisements, and debt collection are grouped under sales department.
C. Allotment of duties to specified persons: In order to ensure effective performance, the grouped activities are allotted to specified competent persons, specialized in their fields. Adequate staff members are appointed by them and are appropriately trained.
D. The delegation of authority: Assignment of duties or allotment of duties to specified persons is followed by the delegation of authority. While delegating authority, responsibility is also fixed. E.g. the production manager may be delegated with the authority to produce the goods and fixed with the responsibility of producing the quality of goods.
E. Defining relationship: When a group of persons is working together for a common goal, it becomes necessary to define the relationship between them in clear terms. Each person has to know as to who is his superior, from whom he has to receive orders, and to whom he is answerable. Each superior must know what authority he has and over which persons.
F. Co-ordination of various activities: The delegated authority and responsibility should be coordinated by the chief managerial staff. There must be a separate and responsible person to see whether all the activities are going on to accomplish the objectives of the organization or not.
Notes: Maybe You will read it; The definitions of all the seven Processes of Scientific Management; Planning, Organizing, Staffing, Directing, Coordinating, Motivating, Controlling. You will be reading this post about; What are Functions of Organization, do you read it about Organization.
Control is any process that guides activity towards some predetermined goals. Process of Controlling along with Benefits and Exception of Management. Thus control can apply in any field such as price control, distribution control, pollution control, etc. However, control as an element of management process can define as the process of analyzing whether actions are taking as plan and taking corrective actions to make these to conform to planning.
Here are explain; What is the Process of Controlling?
Controlling as a management function involves the following steps;
Establishment of standards:
Standards are the plans or the targets which have to achieve in the course of business function. They can also call the criterions for judging the performance. Standards generally are classifying into two:
Measurable or tangible: Those standards which can measure and express are called as measurable standards. They can be in the form of cost, output, expenditure, time, profit, etc.
Non-measurable or intangible: There are standards which cannot measure monetarily. For example; performance of a manager, deviation of workers, their attitudes towards a concern. These are called as intangible standards.
Controlling becomes easy through an establishment of these standards because controlling is exercised based on these standards; you will be reading Process of Controlling.
Measurement of performance:
The second major step in controlling is to measure the performance. Finding out deviations becomes easy through measuring the actual performance. Performance levels are sometimes easy to measure and sometimes difficult. Measurement of tangible standards is easy as they can express in units, cost, money terms, etc. Quantitative measurement becomes difficult when the performance of the manager has to measure. The performance of a manager cannot measure in quantities.
It can measure only by;
An attitude of the workers,
Their morale to work,
The development in the attitudes regarding the physical environment, and
Their communication with the superiors.
It is also sometimes done through various reports like weekly, monthly, quarterly, yearly reports; keep reading Process of Controlling.
Comparison of actual and standard performance:
Comparison of actual performance with the planned targets is very important. The deviation can define as the gap between actual performance and the planned targets. The manager has to find out two things here- the extent of deviation and cause of the deviation. An extent of deviation means that the manager has to find out whether the deviation is positive or negative or whether the actual performance is in conformity with the planned performance.
The managers have to exercise control by exception. He has to find out those deviations which are critical and important for the business. Minor deviations have to ignore. Major deviations like the replacement of machinery, an appointment of workers, quality of raw material, the rate of profits, etc. should look upon consciously.
Therefore it is said,
“If a manager controls everything, he ends up controlling nothing.”
For example, if stationery charges increase by a minor 5 to 10%, it can call as a minor deviation. On the other hand, if monthly production decreases continuously, it’s called the major deviation.
Once the deviation is identifying, a manager has to think about the various cause which has led to a deviation.
The causes can be;
Erroneous planning,
Co-ordination loosens,
Implementation of plans is defective, and
Supervision and communication are ineffective, etc.
Taking remedial actions:
Once the causes and extent of deviation are known, the manager has to detect those errors and take remedial measures for it. There are two alternatives here;
Taking corrective measures for deviations which have occurred; and
After taking the corrective measures, if the actual performance is not in conformity with plans, the manager can revise the targets. It is here the controlling process comes to an end. Follow-up is an important step because it is only through taking corrective measures, a manager can exercise control.
An exception of Management and Controlling:
One of the most important ways of tailoring controls for efficiency and effectiveness is to make sure that they are designed to point out exception. In other words, by concentrating on exceptions from planned performance, controls based on the time-honored exception principles allow managers to detect those places: where their attention’s require and should give.
This implies the use of management by exception particularly in controlling aspect. Management by exception is a system of identification and communication that signals to the manager when his attention’s need. From this point of view, management by exception can use in other management processes also though its primary focus revolves around controlling.
Their ingredients:
Management by exception has six basic ingredients:
Measurement assign values to past and present performances. This is necessary because, without a measurement of some kind, it would be impossible to identify an exception.
Projection analyses those measurements that are meaningful to organizational, objectives and extends them into future expectations.
Selection involves the criteria which management will use to follow progress towards organizational objectives.
Observation stage of management by exception involves the measurement of current performance so that managers are aware of the current state of affairs in the organization.
Comparison stage makes a comparison of actual and planned performance and identifies the exceptions that require attention and reports the variances to management.
Decision-making prescribes the action that must take in order to bring performance back into control or to adjust expectations to reflect changing conditions or to exploit the opportunity.
Thus it can observe that management by exception is inseparable from other management essentials in many ways. However, the major difference lies in the fact that the superior’s attention’s draw only in the case of exceptional differences between planned performance and actual performance. In other cases, the subordinate manager takes decisions. However, what is-exceptional requires the completion of the whole process.
Process of Controlling along with Benefits and Exception of Management. #Pixabay.
What is Benefits or Management by exception?
There are various areas where percepts of management by exception are using such as statistical control of product quality, economic order quantities and order points for control of inventories and supplies, break-even points for determining operating, levels, trends in ratios of indirect to direct labour used in apportioning overhead, attitude surveys for gauging employee morale, etc.
Important Points:
The use of management by exception is prevalent because of the following factors:
Management by exception saves executives’ time because they apply themselves to fewer important problems. Other details of the problems are left to subordinates.
It concentrates executives’ efforts on major problems. Instead of spreading managerial attention across all sorts of problems, it is placing selectively where and when they need. Thus it ensures better utilization’ of managerial talents.
It facilitates better delegation of authority, increases the span of management and consequently provides better opportunities for self-motivated personnel in the organization. It lessens the frequency of decisions at the higher levels of management, which can concentrate on strategic management rather than engaging themselves in operational management.
Management by exception makes better use of knowledge of trends, history; and available business data. It forces managers to review past history and to study related business data because these are the foundations upon which standards are deriving and from which exception’s note.
It identifies crises and critical problems and thus avoids uninformed, impulsive pushing of the panic button. They help in the identification of crises because the moment any exceptional deviation occurs, the attention of higher-level manager’s draw. In this way, it also alerts management to opportunities as well as difficulties.
Management by exception provides qualitative and quantitative yardsticks for judging situations and people. Thus it helps in performance appraisal by providing more objective criteria and provides better motivation to people in the organization.
What is Controlling?Introduction; Controlling is the last step of the management process but plays a crucial role without which the whole management process is incomplete. It can define as a function through which the actual and desired output are measuring. All organizations, business or non-business, face the necessity of coping with, problems of control. The relationship of Controlling with other Functions of Management.
Here are explain; What is Controlling? Introduction, Meaning, and Definition.
Like other managerial functions, the need for control arises to maximize the use of scarce resources and to achieve purposeful behavior of organization members. In the planning stage, managers decide how the resources would utilize to achieve organizational objectives; at the controlling stage; managers try to visualize whether resources are utilizing in the same way as planned.
Thus control completes the whole sequence of the management process. If the actual output differs from the desired output, the deviations are altogether removing or minimizing. There are basically two types of control mechanisms, viz. pro-active and reactive. The pro-active mechanism tries to predict future hurdles and solves them then and there. The reactive approach tries to rectify the damage done to prevent any similar loss in the future.
Definition of Controlling:
Control is any process that guides activity towards some predetermined goals. Thus control can apply in any field such as price control, distribution control, pollution control, etc. However, control as an element of management process can define as the process of analyzing whether actions are being taken as planned and taking corrective actions to make these to conform to planning. Thus control process tries to find out deviations between planned performance and actual performance and to suggest corrective actions wherever these are needed.
For example,
According to Henry Fayol,
“Control consists of verifying whether everything occurs in conformity with the plan adopted, the instructions issued, and the principles.”
Terry has defined control as follows;
“Controlling is determining what is being accomplished, that is evaluating the performance and, if necessary, applying corrected measures so that the performance takes place according to plan.”
The Main Steps in Control Function Include;
Establishing performance standards.
Measuring actual performance.
Determining the gap between set standards and achieved performance.
Taking corrective measures.
An integral activity in the controlling function is feedback. Without appropriate and valid feedback, no control measures can be successfully implemented. Feedback about a particular plan can help in identifying areas of improvement.
The Controlling Function Involves Following Activities;
Bringing actual results nearer to the desired results.
Improving the performance level of all activities being performed.
Regulating the use of all the resources for achieving planned objectives and goals.
The regulating working behavior of employees for maintaining order and discipline.
Checking distortions and deviations taking place in occurs in conformity the system to make it more cost-effective.
If in the controlling step, there is a huge gap in the actual and desired performance, the whole management process is revising.
What is Controlling? Introduction, Meaning, and Definition, #Pixabay.
Features of Controlling:
Based on the definition of control, its following features can identify:
Control is forward-looking because one can control future happenings and not the past. However, on the control process always the past performance is measuring because no one can measure the outcome of a happening which has not occurred. In light of these measurements, managers suggest corrective actions for the future period.
Control is both an executive process and, from the point of view of the organizations of the system, a result. As an executive process, each manager has to perform the control function in the organization. It is true that according to the level of a manager in the organization, the nature, scope, and limit of his control function may different as compare to a manager at another level. The word control is also preceding by an adjective to designate a control problem, such as quality control, inventory control, production control, or even administrative control. In fact, it is administrative control, which constitutes the most comprehensive control concept. All other types of control may subsume under it.
Control is a continuous process. Though managerial control enables the manager to exercise control at the point of action, it follows a definite pattern and timetable, month after month and year after year on-a continuous basis.
A control system is a coordinated-integrated system. This emphasizes that, although data collected for one purpose may differ from those with another purpose, these data should be reconciled with one another. In a sense, the control system is a single system, but it is more accurate to think of it as a set of interlocking sub-systems.
Notes: You will come to know the definitions of all the seven Processes of Scientific Management; Planning, Organizing, Staffing, Directing, Coordinating, Motivating, Controlling.
Coordinating is a horizontal function. It creates linkages between different verticals. Coordination is a choice whereas directing is a compulsion of the job.
Processes of Scientific Management Coordinating
All the activities divided group-wise or section-wise under organizing function. Now, such grouped activities coordinated towards the accomplishment of organizational objectives and goals. The difficulty of coordination depends upon the size of the organization. It increases with the increasing size of the organization.
According to Knootz and O’Donell, “The last coordination occurs when individuals see how their jobs contribute to the dominant goals of the enterprise. This implies knowledge and understanding of enterprise objectives”.
Coordination is the management of interdependence in work situations. It is the orderly synchronization or fitting together of the interdependent efforts of individuals. For example, in a hospital, the activities of doctors, nurses, ward attendants, and lab technicians must properly synchronized if the patient is to receive good care.
Similarly, in a modern enterprise, which consists of a number of departments, such as production, purchase, sales, finance, personnel etc., there is a need for all of them to properly time their interdependent activities and to effectively reunite the subdivided work. To coordinate is to keep expenditure proportional to financial resources; equipment and tools to production needs; stocks to the rate of consumption; sales to production. It is to build the house neither too big nor too small; adapt the tool to its use; the road to the vehicle; the safety precaution to the risks.
In a well-coordinated enterprise, the following facts observed
Each department works in harmony with the rest. Stores know what has to supplied and at what time; production knows its target; maintenance keeps equipment and tools in good order.
Each department, division, and subdivision is precisely informed about the share it must take in the common task.
The working schedule of the various departments is constantly tuned to the circumstances.
The example of the process: Coordinating is a horizontal function. It creates linkages between different verticals. Coordination is a choice whereas directing is a compulsion of the job. Not many people like to coordinate the activities between various sections. It involves talking to persons across the line to get certain things done. It creates linkages between dissimilar functions, It unifies the work of one section with some other section.
Meaning and Definition
Coordination refers to the process of organizing people or groups so that they work together properly and efficiently. It involves aligning and synchronizing the activities of different sections or departments to achieve the overall objectives of the organization.
Definition: According to Knootz and O’Donnell, “The last coordination occurs when individuals see how their jobs contribute to the dominant goals of the enterprise. This implies knowledge and understanding of enterprise objectives.”
Examples
Healthcare: In a hospital, the coordination between doctors, nurses, ward attendants, and lab technicians ensures that patients receive timely and comprehensive care.
Manufacturing: Coordination between the production, purchasing, sales, and maintenance departments ensures smooth operations and timely delivery of products.
Importance
Efficiency: Proper coordination improves operational efficiency by ensuring that different parts of the organization work together seamlessly.
Resource Utilization: It helps in the optimal utilization of resources by avoiding duplication of work and reducing wastage.
Goal Achievement: Coordination aligns the activities of various departments with the overall goals of the organization, making it easier to achieve these goals.
Conflict Reduction: Provides clarity of roles and responsibilities, thus reducing misunderstandings and conflicts between departments.
Adaptability: Enhances the organization’s ability to adapt to changes and uncertainties in the business environment.
Advantages
Improved Performance: Coordinated efforts lead to better performance as the collective efforts are aligned with the goals.
Enhanced Communication: Facilitates better communication among different departments, leading to a clearer understanding of tasks and responsibilities.
Synergy: Creates synergy by combining the strengths of different departments and making the whole greater than the sum of its parts.
Flexibility: Increases the organization’s ability to respond to changes quickly and efficiently.
Employee Morale: Boosts employee morale as everyone understands their role and how it contributes to the organization’s success.
Disadvantages
Complexity: The need for coordination increases with the size and complexity of the organization, making it a challenging task.
Time-Consuming: Effective coordination requires time and effort, which can be resource-intensive.
Resistance to Change: Employees or departments may resist changes that are necessary for better coordination.
Cost: Implementing coordination mechanisms, such as meetings, software tools, and communication systems, can increase operational costs.
Over-Reliance: Too much focus on coordination can lead to over-reliance on structure, potentially stifling creativity and innovation.
By understanding and implementing effective coordination, organizations can enhance efficiency, achieve their objectives, and foster a harmonious working environment. Nonetheless, it is crucial to acknowledge and address the potential challenges to maintain a balanced approach.
Staffing is the important function of management that involves employing the right number of people at the right place with right skills and abilities.
Processes of Scientific Management Staffing
It also involves training and development of the people so that organizational objectives and goals can achieved successfully. It comprises the activities of selection and placement of competent personnel.
Definition
“Staffing is the process of hiring, positioning and overseeing employees in an organization”.
In addition to selection, training, development of personnel, it also comprises of promotion of best persons, a retirement of old persons, performance appraisal of all the personnel, and adequate remuneration of personnel. The success of any enterprise depends upon the successful performance of the staffing function.
Meaning
Staffing is the process within an organization that involves the careful selection, training, development, and placement of competent individuals in appropriate roles. This ensures that the organization achieves its objectives efficiently and effectively.
Examples
Recruitment: Finding suitable candidates and encouraging them to apply for positions within the organization. This can be done through advertisements, referrals, and placement agencies.
Training Programs: Offering training programs to new hires to help them understand their roles and enhance their skills.
Performance Appraisals: Regularly evaluating employees’ performance to ensure they meet the organization’s standards and identifying areas for improvement.
Promotion and Transfers: Moving employees to higher positions or different roles within the organization based on their performance and skills.
Importance
Efficient Operations: By placing the right people in the right roles, organizations can ensure smooth and effective operations.
Employee Development: Ongoing training and development help employees stay current with industry standards and improve their performance.
Retention: Proper staffing measures can help retain talented employees by providing growth opportunities and fair remuneration.
Organizational Success: Successful staffing practices lead to an overall improvement in organizational performance and help achieve business goals.
Advantages
Talent Acquisition: Effective staffing helps in acquiring skilled and competent employees that add value to the organization.
Better Productivity: Well-staffed organizations typically experience higher productivity levels as employees are well-trained and motivated.
Reduced Turnover: By selecting and nurturing the right candidates, staffing can significantly reduce turnover rates.
Enhanced Employee Morale: Adequate staffing and fair promotion practices contribute to high employee morale and job satisfaction.
Disadvantages
High Costs: The staffing process, which includes recruitment, training, and development, can be costly.
Time-Consuming: Finding the right candidates and adequately training them is a time-consuming process.
Potential for Bias: Improper staffing practices can lead to biases in hiring and promotions, which may affect the organization’s diversity and inclusivity.
Mismatch: There is always a risk of hiring individuals who do not fit well with the organizational culture or their roles, which could lead to inefficiencies.
Understanding the intricacies of staffing can help organizations optimize their human resources for improved performance and longevity.
The staffing function involves
Determining human resource requirements of the organization.
Recruiting individuals with required skills and competence.
Providing placement and orientation to individuals
The example of the process: Recruitment is the process of finding proper candidates and inducing them to apply for the jobs in the organization. The recruitment should be sound one. If it is not so, the morale of the staff will be very low and the image of the company will tarnished.
Recruitment is done through advertisements, word of mouth publicity and with the help of placement agencies.
The success of any recruitment depends upon policies and procedures followed by the company while recruiting the staff members.
Jobs with low salary, uninteresting and difficult jobs are challenging to be filled up easily.
Recruitment means the discovery of the staff members for the present and future jobs.
Notes: You will come to know the definitions of all the seven Processes of Scientific Management; Planning, Organizing, Staffing, Directing, Coordinating, Motivating, Controlling.
