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    • Leadership-Coordination and Controlling

    Leadership-Coordination and Controlling

    • 18-11-2022
    • 3110
    • 1

    Coordinating

    Introduction

    Coordination is the function of management which ensures that different departments and

    groups work in sync. Therefore, there is unity of action among the employees, groups, and

    departments.It also brings harmony in carrying out the different tasks and activities to achieve

    the organization’s objectives efficiently. Coordination is an important aspect of any group effort.

    When an individual is working, there is no need for coordination.Therefore, we can say that the coordination function is an orderly arrangement of efforts providing unity of action in pursuance of a common goal. In an organization, all the departments must operate a part of a cohesive unit to optimize performance.Coordination implies synchronization of various efforts of different departments to reduce conflict. Multiple departments usually perform the work for which an

    organization exists

    Definition

    Mooney and Reiley defines Coordination is an orderly arrangement of group efforts to provide

    unity of action in the pursuit of common goals.

    Charles Worth defines Coordination is the integration of several parts into an orderly hole to

    achieve the purpose of understanding.

    Brech defines Coordination is balancing and keeping together the team by ensuring suitable

    allocation of tasks to the various members and seeing that the tasks are performed with the

    harmony among the members themselves.

    Ø Features of coordination

    Coordination is the integration, unification, synchronization of the efforts of the departments to

    provide unity of action for pursuing common goals. A force that binds all the other functions of

    management.

    · It is relevant for group efforts and not for individual efforts. Coordination involves an

    orderly pattern of group efforts. In the case of individual efforts, since the performance of

    the individual does not affect the functioning of others, the need for coordination does

    not arise.

    · It is a continuous and dynamic process. Continuous because it is achieved through the

    performance of different functions. Also, it is dynamic since functions can change

    according to the stage of work.

    · Most organizations have some sort of coordination in place. However, the management

    can always make special efforts to improve it.

    · Coordination emphasizes the unity of efforts. This involves fixing the time and manner in

    which the various functions are performed in the organization. This allows individuals to

    integrate with the overall process.

    · A higher degree of coordination happens when the degree of integration in the

    performance of various functions increases.

    · It is the responsibility of every manager in the organization. In fact, this is integral to the

    role of a manager because he synchronizes the efforts of his subordinates with others.

    Ø Principles of coordination

    1. Early Beginning:

    The first principle is that coordination must be attempted and arranged in the early stage of

    the management process and policy making. It may be impossible to secure co – ordination in

    an enterprise if not started at the planning stage. Early coordination improves the quality of

    plans and influences timely decisions on matters of policy.

    2. Direct Personal Contact:

    Direct personal contact removes misunderstanding and conflict between departments or

    between personnel. It involves direct face to face communication, personal discussion,

    settlement of differences, exchanges of ideas between the personnel.

    3. Reciprocal Relationship of Factors:

    No department can work in isolation from the other departments. That is, when purchase

    department works with sales department, which in turn works with finance department and

    personnel department, each of the four departments finds itself influenced by the other

    department in the total situation.

    Similarly, in a group every person influences all others and is in turn influenced by others.

    When reciprocal relationships are maintained cordially, adequate coordination can be secured

    in an enterprise.

    4. Continuous Process:

    Coordination is a continuous process and must go on all the time. In contrast to the principle

    of continuity, difference of opinions and information gap may appear and misunderstanding

    in inter departmental operations may crop up in the absence of coordination. By keeping the

    process of coordination as a continuous flow of information, sound coordination can be

    ensured in an enterprise.

    5. Action Plan is the Fundamental Element of All Coordination Activities:

    Most individual human interactions are modeled by an action plan in which a performer

    delivers a condition satisfying a customer. The action plan has a requester, performer and

    four time segments culminating in request, promise, delivery, and acceptance. Each of the

    four segments can be linked to further action plans that respond to requests from components

    of the segment. The resulting network of action plan is called an action process or workflow.

    6. Coordination Tasks Can Be Delegated to Computational Processes:

    Humans delegate tasks to agents by designing computational processes to perform the task

    There are three categories of coordination systems according to the amount of task

    delegation:

    i. Human-human with computer assistance- all interaction is between humans, but

    computational processes track their joint progress states to assist them to complete tasks.

    (Known as Computer Supported Cooperative Work, CSCW.)

    ii. Human-computer- the performer role is delegated to a computational system. Humans

    interact with the system through an interaction language and interaction interface.

    (Known as Human Computer Interaction, HCI.)

    7. Coordination is a Solution to the Concurrency Control Problems of Arbitration,

    Synchronization, Serialization, Determinacy, and Deadlock:

    Concurrency means that tasks can be executed in parallel. A concurrent system is a set of

    tasks, some of which are- ordered and the rest concurrent (unordered). Ordered tasks can

    never be executed at the same time; concurrent tasks can. Arbitration arises when a task is

    required to select only one of two (or more) potentially simultaneous activities, deferring

    action on the unselected ones without losing them.

    Ø Techniques of coordination

    Every manager must remove the obstacles that determines coordination by adopting the

    following specific techniques:

    1. Chain of Command:

    This technique also emphasizes that an employee should receive orders form one superior

    only because dual command is a continuous source of conflict. Management has to exercise

    authority to regulate the performance of different departments because clear cut authority

    relationship help in reducing conflicts among different departments.

    2. Leadership:

    Co-ordination becomes possible through leadership as it provides individual motivation and

    persuades the group to have an identity of interests and outlook in group efforts. To achieve

    the common objectives of an enterprise, the manager must guide and co-ordinate the

    activities of his subordinates.

    3. Committees:

    This Technique of achieving co-ordination is used in most organisations by forming a

    committee. Which helps to promote unity of purpose and uniformity of action among

    different departments. A committee is a group of persons and the decisions of the committee

    are group decisions which provide co-ordination among various activities and persons

    through information, advice interchange of ideas etc., while forming the committee utmost

    care must be taken by the management, otherwise, the decisions taken by the group may not

    be effective to achieve co-ordination in an enterprise.

    4. Communication:

    Effective communication conveys ideas, opinions or decisions of managers to subordinate at

    different levels of the organization and carries back information, suggestions’ and responses

    from subordinates. It regulates the flow of work, co-ordinates the efforts of the subordinates

    of an enterprise.

    To be effective, communication must be as direct as possible so as to minimize the chances

    of misinterpretation. To ensure proper co-ordination, various kinds of communication

    channels may be used, such as verbal relay of information, written reports memos or other

    forms of documents, mechanical devices such as teletypes, intercommunication system, etc.

    5. Voluntarily Coordination:

    Self-co-ordination or voluntary co-ordination is possible in a climate of mutual co-operation,

    when two or more persons working within the same or different departments, mutually

    discuss their problems and arrive at a coordinated action. This can be easily achieved in any

    organization, when the supervisor gives his consent without any hesitation for such a mutual

    consultation among subordinates.

    6. Sound Planning and Clear-Cut Objectives:

    The objectives of the organization and policies must be clearly defined by the management.

    A well-conceived plan must clearly define the goals of the organization so that interdepartmental

    objectives can be accomplished. Thus to ensure co-ordination, clear formulation

    of policies in the field of production, sales, finance, personnel, etc., must be correlated.

    7. Incentives:

    Incentives have a tendency to ignite action and bring about co-ordination. In order to infuse

    enthusiasm in a worker for greater and better work, incentives have a distinct and significant

    role. Financial incentives which include wage, bonus, salary, etc., and no-financial incentives

    which include job security of interest, to achieve co-ordination and to reduce conflicts.

    Ø Types of coordination

    1. Vertical Coordination:

    Vertical coordination is the coordination between different levels of the organization to

    ensure that all levels of organization are in harmony with the organizational policies and

    programmes. This is achieved through delegation of authority by directing and by controlling.

    2. Horizontal Coordination:

    Horizontal coordination is the coordination between departments on the same level of

    managerial hierarchy. Coordination between production and marketing departments at the

    same level or organizational hierarchy is an example of horizontal coordination. This is

    achieved by forming cross-functional teams and self-managed teams.

    3. Internal Coordination:

    Vertical and horizontal types of coordination, if carried out within an organization, are called

    internal coordination. Internal coordination is achieved through following techniques:

    4. External Coordination:

    Success or failure of an organization also depends on number of external forces. No

    organization can operate in isolation, it has to continuously interact with dynamic

    environmental forces and devise its strategies to respond to such forces to survive

    Ø Problems of coordination

    In practice, coordination in the organisation faces certain problems listed below:

    1. Natural hindrance: Due to lack of knowledge, the superior and subordinate

    communication gap will be raised. Therefore, it prevents effective coordination in the

    organisation.

    2. Lack of administrative talent: Lack of administrative talent is widely applicable for the

    superiors in the organisation such as autocratic attitudes and non-acceptance of feedback

    from the subordinates.

    3. Lack of techniques of coordination: Without mutual respect among the subordinates, the

    coordination may not survive. Moreover, the managers must respect the feelings and

    emotions of the employees.

    4. Ideas and objectives: Every manager in an organisation must know the objectives very

    clearly. If he cannot understand the objectives, then the coordination will not be successful

    and effective

    Ø Characteristics of coordination

    A good system of co-ordination should satisfy the following characteristics:

    (1) Co-Ordination is a continuous process carried on by the managers. In involves an orderly

    arrangement of group efforts. Its purpose is to secure unity of action towards common

    objectives.

    (2) Co-Ordination should not be made through orders. It should not come from the above.

    Instead it should come through co-operation and willingness. Coordination through cooperation

    and willingness ensures better results.

    (3) Co-Ordinating activities must respond to time, policies, programmes and objectives. They

    should always be in tune.

    (4) Co-Ordinating approach should be balanced and as far as possible it should be of both the

    types – vertical as well as horizontal.

    (5) It should be based on personal contact, Mumbai co-operation, mutual confidence, good

    human relations and above all on the continuity principles.

    (6) It should aim at morale boosting of the workers.

    Controlling

    Meaning and definition

    Controlling is one of the important functions of a manager. In order to seek planned results from

    the subordinates, a manager needs to exercise effective control over the activities of the

    subordinates. In other words, the meaning of controlling function can be defined as ensuring that

    activities in an organization are performed as per the plans. Controlling also ensures that an

    organization’s resources are being used effectively & efficiently for the achievement of

    predetermined goals.

    · Controlling is a goal-oriented function.

    · It is a primary function of every manager.

    · Controlling the function of a manager is a pervasive function.

    Ø Importance of controlling

    1. Accomplishing Organizational Goals

    The controlling function is an accomplishment of measures that further makes progress towards

    the organizational goals & brings to light the deviations, & indicates corrective action. Therefore

    it helps in guiding the organizational goals which can be achieved by performing a controlling

    function.

    2. Judging Accuracy of Standards

    A good control system enables management to verify whether the standards set are accurate &

    objective. The efficient control system also helps in keeping careful and progress check on the

    changes which help in taking the major place in the organization & in the environment and also

    helps to review & revise the standards in light of such changes.

    3. Making Efficient use of Resources

    Another important function of controlling is that in this, each activity is performed in such

    manner so an in accordance with predetermined standards & norms so as to ensure that the

    resources are used in the most effective & efficient manner for the further availability of

    resources.

    4. Improving Employee Motivation

    Another important function is that controlling help in accommodating a good control system

    which ensures that each employee knows well in advance what they expect & what are the

    standards of performance on the basis of which they will be appraised. Therefore it helps in

    motivating and increasing their potential so to make them & helps them to give better

    performance.

    5. Ensuring Order & Discipline

    Controlling creates an atmosphere of order & discipline in the organization which helps to

    minimize dishonest behavior on the part of the employees. It keeps a close check on the

    activities of employees and the company can be able to track and find out the dishonest

    employees by using computer monitoring as a part of their control system.

    6. Facilitating Coordination in Action

    The last important function of controlling is that each department & employee is governed by

    such pre-determined standards and goals which are well versed and coordinated with one

    another. This ensures that overall organizational objectives are accomplished in an overall

    manner.

    Ø Process of Control:

    Following are the steps involved into the process of control:

    1. Establish the Standards:

    Within an organization’s overall strategic plan, managers define goals for organizational

    departments in specific, precise, operational terms that include standards of performance to

    compare with organizational activities. However, for some of the activities the standards

    cannot be specific and precise.Standards, against which actual performance will be compared,

    may be derived from past experience, statistical methods and benchmarking (based upon best

    industry practices). As far as possible, the standards are developed bilaterally rather than top

    management deciding unilaterally, keeping in view the organization’s goals.

    2. Measure Actual Performance:

    Most organizations prepare formal reports of performance measurements both quantitative

    and qualitative (where quantification is not possible) that the managers review regularly.

    These measurements should be related to the standards set in the first step of the control

    process.For example, if sales growth is a target, the organization should have a means of

    gathering and reporting sales data. Data can be collected through personal observation

    (through management by walking around the place where things are happening), statistical

    reports (made possible by computers), oral reporting (through conferencing, one-to-one

    meeting, or telephone calls), written reporting (comprehensive and concise, accounting

    information – normally a combination of all. To be of use, the information flow should be

    regular and timely.

    3. Compare Performance with the Standards:

    This step compares actual activities to performance standards. When managers read computer

    reports or walk through their plants, they identify whether actual performance meets,

    exceeds, or falls short of standards.Typically, performance reports simplify such comparison

    by placing the performance standards for the reporting period alongside the actual

    performance for the same period and by computing the variance—that is, the difference

    between each actual amount and the associated standard.

    4. Take Corrective Action and Reinforcement of Successes:

    When performance deviates from standards, managers must determine what changes, if any,

    are necessary and how to apply them. In the productivity and quality-centered environment,

    workers and managers are often empowered to evaluate their own work. After the evaluator

    determines the cause or causes of deviation, he or she can take the fourth step— corrective

    action.

    Ø Requirements of effective control system

    It is the duty of the manager to improve the effectiveness of organization’s control system. Ø

    Controlling is the last steps of management where how the implemented plan is working is

    assessed and evasive actions are taken.

    1. Suitable

    The control system must be suitable for the kind of activity intended to serve. A system of

    control useful at a higher level of management will be different in scope and nature from that

    in use at the operative level. Several techniques are available for control purposes such as

    budgets, break-even points, financial ratios and so on. The manager must be sure that he is

    using the technique appropriate for control of the specific activity involved.

    2. Understandable

    The system must be understandable, i.e., the control information supplied should be capable

    of being understood by those who use it. A control system that a manager cannot understand

    is bound to remain ineffective. It is the duty of the manager concerned to make sure that the

    control information supplied to him is of a nature that will serve his purpose. In this sense,

    the data supplied as information must be understandable and helpful

    3. Economical

    The cost of a control system should not exceed the possible savings from its use. Undue

    complexity of the control system should be avoided to keep a check on the costs of control.It

    is necessary to concentrate the control system on factors, which are strategic to keep the costs

    down and the system economical.

    4. Flexible

    The system of control must be flexible, i.e. workable even if the plans have to be changed. In

    case the control systems can work only on the basis of one specific plan, it becomes useless if

    the plan breaks down and another has to be substituted. A good control system would be

    sufficiently flexible to permit the changes so necessitated. The control system should report

    failures and should contain sufficient elements of flexibility to maintain managerial control of

    operations in spite of such failures.

    5. Expeditious

    The control system should report deviations from plans expeditious. No useful purpose can

    be served by a deviation detected months after its occurrence. The objective of the control

    system should be to correct deviations in the immediate future. The lime-lag between the

    occurrence of a deviation and its reporting be kept at the minimum possible.

    6. Forward Looking

    The control system must be forward looking, as the manager cannot control the past. Cash

    forecasts and cash control is an example in point where a financial manager can forecast the

    future cash requirements and provide for them in advance.

    7. Organizational Conformity

    It is necessary that the control data and system must conform to the organizational pattern.

    The control data must be so prepared that it is possible to fix responsibility for the deviations

    within the areas of accountability. organization and control are difficult to separate, being

    dependent on one another for effective management.

    8. Indicative of Exceptions at Critical Points

    The management principle of exception should be used to show up not only deviations but

    the critical areas must also be fixed for most effective control

    9. Objectivity

    · The measurements used must have objectivity.

    · The use of indefinite terms can frustrate the subordinate like being told that he is not

    doing a good job.

    10. Suggestive of Corrective Action

    An effective control system will disclose where failures are occurring and who is/are

    responsible for the failures and it will ensure that some corrective action is taken. Control is

    justified only if deviations from plans are corrected by an appropriate authority. As a matter

    of fact, taking the proper corrective action necessitates sufficient authority to accomplish this

    task.

    Ø Techniques of controlling

    1. Direct Supervision and Observation

    'Direct Supervision and Observation' is the oldest technique of controlling. The supervisor

    himself observes the employees and their work. This brings him in direct contact with the

    workers. So, many problems are solved during supervision. The supervisor gets first hand

    information, and he has better understanding with the workers. This technique is most

    suitable for a small-sized business.

    2. Financial Statements

    All business organisations prepare Profit and Loss Account. It gives a summary of the

    income and expenses for a specified period. They also prepare Balance Sheet, which shows

    the financial position of the organisation at the end of the specified period. Financial

    statements are used to control the organisation. The figures of the current year can be

    compared with the previous year's figures. They can also be compared with the figures of

    other similar organisations.

    Ratio analysis can be used to find out and analyse the financial statements. Ratio analysis

    helps to understand the profitability, liquidity and solvency position of the business.

    3. Budgetary Control

    A budget is a planning and controlling device. Budgetary control is a technique of managerial

    control through budgets. It is the essence of financial control. Budgetary control is done for

    all aspects of a business such as income, expenditure, production, capital and revenue.

    Budgetary control is done by the budget committee.

    4. Break Even Analysis

    Break Even Analysis or Break Even Point is the point of no profit, no loss. For e.g. When an

    organisation sells 50K cars it will break even. It means that, any sale below this point will

    cause losses and any sale above this point will earn profits. The Break-even analysis acts as a

    control device. It helps to find out the company's performance. So the company can take

    collective action to improve its performance in the future. Break-even analysis is a simple

    control tool.

    5. Return on Investment (ROI)

    Investment consists of fixed assets and working capital used in business. Profit on the

    investment is a reward for risk taking. If the ROI is high then the financial performance of a

    business is good and vice-versa.

    ROI is a tool to improve financial performance. It helps the business to compare its present

    performance with that of previous years' performance. It helps to conduct inter-firm

    comparisons. It also shows the areas where corrective actions are needed.

    6. Management by Objectives (MBO)

    MBO facilitates planning and control. It must fulfill following requirements :-

    · Objectives for individuals are jointly fixed by the superior and the subordinate.

    · Periodic evaluation and regular feedback to evaluate individual performance.

    · Achievement of objectives brings rewards to individuals.

    7. Management Audit

    Management Audit is an evaluation of the management as a whole. It critically examines the

    full management process, i.e. planning, organising, directing, and controlling. It finds out the

    efficiency of the management. To check the efficiency of the management, the company's

    plans, objectives, policies, procedures, personnel relations and systems of control are

    examined very carefully. Management auditing is conducted by a team of experts. They

    collect data from past records, members of management, clients and employees. The data is

    analysed and conclusions are drawn about managerial performance and efficiency.

    8. Management Information System (MIS)

    In order to control the organisation properly the management needs accurate information.

    They need information about the internal working of the organisation and also about the

    external environment. Information is collected continuously to identify problems and find out

    solutions. MIS collects data, processes it and provides it to the managers. MIS may be

    manual or computerised. With MIS, managers can delegate authority to subordinates without

    losing control.

    9. PERT and CPM Techniques

    Programme Evaluation and Review Technique (PERT) and Critical Path Method (CPM)

    techniques were developed in USA in the late 50's. Any programme consists of various

    activities and sub-activities. Successful completion of any activity depends upon doing the

    work in a given sequence and in a given time.

    Importance is given to identifying the critical activities. Critical activities are those which

    have to be completed on time otherwise the full project will be delayed.

    So, in these techniques, the job is divided into various activities / sub-activities. From these

    activities, the critical activities are identified. More importance is given to completion of

    these critical activities. So, by controlling the time of the critical activities, the total time and

    cost of the job are minimised.

    10. Self-Control

    Self-Control means self-directed control. A person is given freedom to set his own targets,

    evaluate his own performance and take corrective measures as and when required. Selfcontrol

    is especially required for top level managers because they do not like external control.

    The subordinates must be encouraged to use self-control because it is not good for the

    superior to control each and everything. However, self-control does not mean no control by

    the superiors. The superiors must control the important activities of the subordinates.

    Ø Limitations of Controlling:

    The defects or limitations of controlling are as following:

    1. Difficulty in Setting Quantitative Standards:

    It becomes very difficult to compare the actual performance with the predetermined

    standards, if these standards are not expressed in quantitative terms. This is especially so in

    areas of job satisfaction, human behaviour and employee morale.

    2. No Control on External Factors:

    An organization fails to have control on external factors like technological changes,

    competition, government policies, changes in taste of consumers etc.

    3. Resistance from Employees:

    Often employees resist the control systems since they consider them as curbs on their

    freedom. For example, surveillance through closed circuit television (CCTV).

    4. Costly Affair:

    Controlling involves a lot of expenditure, time and effort, thus it is a costly affair. Managers

    are required to ensure that the cost involved in installing and operating a control system

    should not be more than the benefits expected from it.



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