CONCEPT

PAPER

































The Management Process

Management process is a continuous one and is handled by the
managers functioning at different levels. Management is now
recognized as a distinct process in which managers plan, organize,
lead, motivate and control human efforts in order to achieve well-
defined goals. The concept of management has acquired special
significance in the present competitive and complex business world.
Efficient and purposeful management is absolutely essential for the
survival of a business unit. Management concept is comprehensive
and covers all aspects of business. In other words, management
means utilizing available resources in the best possible manner and
also for achieving well-defined objectives. It is a distinct and dynamic
process involving use of different resources for achieving well-defined
objectives. The resources are: men, money, materials, machines,
methods and markets. These are the six basic inputs in management
process (six M's of management) and the output is in the form of
achievement of objectives. It is the end result of inputs and is
available through efficient management process also the term
management is used extensively in business. It is the core or life,
giving element in business. We expect that a business unit should be
managed efficiently. This is precisely what is done in management.
Management is essential for the conduct of business activity in an
orderly manner. It is a vital function concerned with all aspects of
working of an enterprise it is an administration where the act of
having the authority to handle or control an organization, the term
management is explained in many ways. Similarly, in the
management process, resources and human efforts are used in an
orderly manner for achieving specific objectives. The management
process suggests functions to be performed by the managers. For
example, it is said that management is what management does and
as for process it is a series of actions, activities, operations,
undertaken or conducted to achieve the best results. It is also a
manner of developing and solving a problem in order to attain the
adequate outcome of a structure in the future, but without all our
efforts we would not have any progress so management process, by
literal means, is a method of working with people. According to
McFarland, Management is the distinct process by which the
managers create, direct, maintain and operate purposive organization
through systematic, co-coordinated and cooperative human efforts.
Process management is the ensemble of activities of planning and
monitoring the performance of a process. The term usually refers to
the management of processes and manufacturing
processes. Business process management (BPM) and business
process reengineering are interrelated, but not identical. Process
management is the application
of knowledge, skills, tools, techniques and systems to define,
visualize, measure, control, report and improve processes with the
goal to meet customer requirements profitably. It can be differentiated
from program management in that program management is
concerned with managing a group of inter-dependent projects. But
from another viewpoint, process management includes program
management. In project management, process management is the
use of a repeatable process to improve the outcome of the project.
Significance of Management as follows: (1) Optimum utilization of
resources: Management facilitates optimum utilization of available
human and physical resources, which leads to progress and
prosperity of a business enterprise. Even wastages of all types are
eliminated or minimized. (2)Competitive strength: Management
develops competitive strength in an enterprise. This enables an
enterprise to develop and expand its assets and profits. (3)Cordial
industrial relation: Management develops cordial industrial relations,
ensures better life and welfare to employees and raises their morale
through suitable incentives.(4)Motivation of employees: It motivates
employees to take more interest and initiatives in the work assigned
and contribute for raising productivity and profitability of the
enterprise.(5)introduction of new techniques: Management facilitates
the introduction of new machines and new methods in the conduct of
business activities. It also brings useful technological developments
and innovations in the management of business activities.
(6)Effective management: Society gets the benefits of efficient
management in terms of industrial development, justice to different
social groups, consumer satisfaction and welfare and proper
discharge of social responsibilities. (7)Expansion of business:
Expansion, growth and diversification of a business unit are possible
through efficient management. (8)Brings stability and prosperity:
Efficient management brings success, stability and prosperity to a
business enterprise through cooperation among employees.
(9)Develops team spirit: Management develops team spirit and raises
overall efficiency of a business enterprise. (10)Ensures effective use
of managers: Management ensures effective use of managers so that
the benefits of their experience, skills and maturity are available to
the enterprise. (11)Ensures smooth functioning: Management
ensures smooth, orderly and continues functioning of an enterprise
over a long period. It also raises the efficiency, productivity and
profitability of an enterprise. (12)Reduces turnover and absenteeism:
Efficient management reduces labor turnover and absenteeism and
ensures continuity in the business activities and operations.
(13)Creates sound organization: A dynamic and progressive
management guarantees development of sound Organization, which
can face any situation - favorable or unfavorable with ease and
confidence. The very survival of an enterprise depends on its
management. Ineffective management leads to disastrous
consequences. According to George Terry, "Ineffective management
cuts at the very roots of economy of an enterprises. This suggests
the importance of efficient management. In brief, management
occupies a unique position in the functioning of business enterprises.
Its importance and positive role is accepted in all sector-private,
public, joint and co-operative. Management is like a human brain. It is
an integral aspect of business itself. The significance of management
is not fully realized in many developing countries. The economic
progress of western countries is not merely due to abundant material
resources but because they are efficiently managed and utilized. In
other countries, resources are not utilized fully and properly due to
lack of managerial skills. This suggests that management is a key
factor in the working of business enterprises. There is no substitute to
efficient management. An inefficiently managed business enterprise
has no place in the present complex and competitive business world
groups. Management thought has a long history. It is as old as
human civilization itself. Management in one form or the other has
been a significant feature of economic life of mankind throughout
ages. Management thought is an evolutionary concept it has develop
along with and in line with the growth of social, political, economic
and scientific institutions. Management thought has its origin in the
ancient times. It developed gradually along with other socioeconomic
developments. The contributors to management though are many.
They include Management philosophers, management practitioners
and scholars. Modem management is based on the solid foundations
laid down by management thinkers from the early historical period.


First is Planning. Planning is the most basic of all management
functions, why? Because it is the very first appropriated step to think
what should be done and how it should be done, figuring out ideas,
having a target or a quota. Planning is the most basic of all
management functions. It involves selecting and the strategies,
policies, programs and procedures for achieving them. Either for
entire enterprise or for any organized part thereof. Planning is, of
course, decision making since it involves selecting among
alternatives. A plan is a determined course of action for achieving a
specific objective; it is the primary function of management and
occupies the first position in the management process. It is the
starting point of the whole management process as other
management functions are related to planning function. Planning, in
simple words, means to decide the objectives clearly and to prepare
a plan. Thereafter to take suitable steps for the execution of the plan,
or creating a plan, Managers at all levels perform planning function. It
is deciding the objective to be achieved and taking suitable follow-up
steps for achieving the same. Planning is now universally accepted
as a key or a passport to success, progress and prosperity in
business as well as in all other aspects of life. It acts as a base of all
purposeful human activities. The concept of planning is old enough.
Confucius said almost 2500 years ago a man who does not think and
plan long ahead would find trouble right at his door. Planning is
simply stated as the process of mapping out exactly on how to
achieve particular goals and objectives in a certain task and on how
its being done in relation with this process because it is the 1st step
in reaching a goal and also a function of a manager, which he should
have. There are three basic stages in planning. First stage is the
formulating objectives stage Stating precisely what results are to be
accomplished by some future date. Second stage is the taking action
stage Following predetermined plan of actions to fulfill objectives.
And lastly, the third stage is appraising results measuring the
results achieved against original goals. Take whatever corrective
action is necessary. The outputs of the planning process are called
plans. The importance of a plan for an organization cannot be over-
emphasized. The lack or excess of it could result to the failure of the
organization to attain its objectives. Hence, an effective plan mist
indicate certain essential requirements which involves a schedule of
implementation, specific people who are to implement the plan,
entities that will be involved in it, assessment of manpower, etc.
Planning, as pointed out, is pervasive activity of an organization. It is
subject to a classification of its outputs or what we call the plan and
planning as a management function involves 2 types which is the
strategic planning and the operational planning. Strategic planning
includes the responsibility of the top line management. It is more
comprehensive in scope and geographic in coverage than the
operational plans by effect through operating executives. Operational
plans are developed to carry out the responsibilities as set forth in
policy plans within the organization plans. They are made for the
purpose of getting jobs accomplished and determining on how to
handle the jobs in many ways. For effectiveness, checklists for
organizational services and activities prepared as directed by the top
management. A master operational plan is developed and published
for effectiveness of planned operation and to achieve and reach its
desired goal and objective. The importance of an operational plan is
primarily for stability in organization processes and on not to rely on
chance planning activities and officially published plan seeks to
secure a predictability of effective performance. In so doing, it
minimizes human relations happenings especially the error of
judgment. To do this, plans are developed to prescribe policy,
organization, operations and programs. Operational plans align the
companys strategic plan with the actual day to day running of the
company. This is where the macro meets the micro. Running a
successful company requires paying an equal attention to now just
the broad objectives, but also how the objectives are being met on an
everyday basis. Thus, they are classified as: norms, plans,
organization plans, operational plans and program plans. A plan
includes a consideration of broad organizational norms rules and
policies as well as the minutest detail of carrying them out. Single
Use plans are created for events or activities with a single
occurrence. This can be a one-time sales program, a marketing
campaign, a recruitment drive. Single use plans tend to be highly
specific. Ongoing Plans can be used in multiple settings on an
ongoing basis. Ongoing plans can be of different types, such as (1)
Policy - a general document that dictates how managers should
approach a problem. It influences decision making at the micro level.
Specific plans on hiring employees, terminating contractors, etc. are
examples of policies. (2) Rules are specific regulations according to
which an organization functions. The rules are meant to be hard
coded and should be enforced stringently. No smoking within
premises or Employees must report by 9:00 in morning, are two
examples of rules. (3) Procedure: A procedure describes a step-by-
step process to accomplish a particular objective. Ongoing plans are
created on an ad-hoc basis but can be repeated and changed as
required. Thus, planning is the Centre around which all business
activities move. In simple words, Planning answers the questions,
What? Who? Where? When? How? How Much?

Second is Organizing. It refers to the relationship between people,
work and resources used to achieve the common objectives or goals;
it is a step-by-step process. At each step, the administrators working
at the top-level of management perform an important task, this is like
is it what you do, before you do something, so when you do it, is not
mixed up. The process of organization includes directions. These
directions includes: (1) Identification of objectives Necessary in
structuring the organization. (2) Classification of activities to
accomplish objectives Result of a clear concept of the major duties
and activities to be involved in the accomplishment of the goals. (3)
Grouping of activities Maximize the use of the human and material
resources in the organization. (4) Delegation of authority Authority
to perform activities is delegated to the head of the group. (5)
Integration of the grouping of activities This is an instrument to
achieve unity of effort. Organizations are much alike in ways.
Although an organization is good in most respect, it still will always
have certain limitations. There are two types of organization The
formal and the informal. A formal organization is a planned structure
in which it deliberates attempt to establish patterned relationship
among the component parts of the organization. The formal structure
of the organization pattern should represent closely as possible the
deliberate intention of its framers for the process of interaction that is
to charge among its members. The informal organization arises out
of the activities of the participants within this organization. Thus, may
be adaptive. It serves to perform innovation functions which cannot
be done by the formal ones. In words, it is one of the best information
channels available in any organized effort. The following principles in
organization structure are: (1) decides on how many subordinates a
superior can manage productively. (2) Provide instant service at the
lowest cost possible. (3) It is allocated among the various units of the
organization to minimize the amount of required coordination,
communication and paperwork. (4) It is a logical harmonious grouping
of requirements for the fulfillment of the objectives of an organization.
(5) Therefore it must be performed in sequence that are located
closely together possible organizationally and physically. (6) Must be
delegated to organizational group. (7) Should carry out efficiently its
responsibilities as close as practicable to the sources of action.
(8)Probably is not made to overlap. (9) Control functions are allocated
to organizational units which are independent of the functions to be
controlled. (10) Each group is held accountable for the performance
to only one superior unit. (11) The delegation of responsibilities and
establishment of procedures are implemented without the effect of
special abilities, personalities, or peculiarities of individual members
of the organization. (12) Length and width of the organization
structure of the organizational span of administration is kept to a
minimum. Hence, the organizational procedures are tending to have
complications therefore it is inappropriate. According to Theo
Haimann, organizing is the process of defining and grouping the
activities of the enterprise and establishing the authority relationships
among them. According to Louis Allen, organizing is the process of
identifying and grouping the work to be performed, defining and
delegating responsibility and authority and establishing relationships
for the purpose of enabling people to work most effectively together in
accomplishing objectives. Yet there are also mistake in organizing
could be outlined as follows (1) Failure to plan property (2) Failure to
clarify relationships (3) Failure to delegate authority (4) Failure to
balance delegation (5) Confusion of lines authority and informations.
(6)Authority without responsibility (7) Responsibility without authority
(8) Careless application of the staff device (9) Misuse of functional
authority (10) multiple subordination (11) Misuse of service
departments (12) over organization. Also we have two simple
organizations, the formal and informal. (1)Formal Organization is
formed when two or more persons come together. They have a
common objective or goal. They are willing to work together to
achieve this similar objective, it has its own rules and regulation.
These rules must be followed by the members (employees and
managers). A formal organization has a system of co-ordination. It
also has a system of authority. It has a clear superior-subordinate
relationship. In a formal organization, the objectives are specific and
well-defined. All the members are given specific duties and
responsibilities. Examples of formal organization are: a company, a
school, a college, a bank, etc. A formal organization is formed by
the top level management. The members of a formal organization
have to follow certain rules and regulations. These rules are available
in writing (documented). They are made by a formal authority
(superiors). If the members follow these rules properly, then they will
be rewarded. However, if they do not follow these rules, they will be
punished. In a formal organization, the duties, responsibilities,
authority and accountability of each member is well-defined. In a
formal organization, the objectives or goals are specific and well-
defined. The main objectives of a formal organization are productivity,
growth, and expansion. This is stable. The members of the formal
organization get financial benefits and perks like wages or salaries,
bonus; travelling allowances and health insurance. (2) Informal
Organization exists within the formal organization. An informal
organization is a network of personal and social relationships. People
working in a formal organization meet and interact regularly. They
work, travel, and eat together. Therefore, they become good friends
and companions. There are many groups of friends in a formal
organization. These groups are called informal organization.
An informal organization does not have its own rules and regulation.
It has no system of co-ordination and authority. It neither has any
superior-subordinate relationship nor any specific and well-defined
objectives. Here in informal organization, communication is done
through the grapevine. An informal organization is formed by social
forces within the formal organization. The members of an informal
organization do not have to follow any rules and regulations. In an
informal organization, there are no fixed duties, responsibilities,
authority, accountability, etc. for the members. The main objectives of
an informal organization are friendship, security, common interest,
individual and group satisfaction, and this organization is not stable.
The members of informal organization get social and personal
benefits like friend circle, community or group. In other words,
organizing is also called as a part of human relationship with others.

Third is staffing, it is a job analysis, recruitment of an employee
because manpower is required, so this is one of the most significant
process in management functions why? If we will try to overview the
methods, we have to select the right person for the right post. They
have to undergo Training and development, Giving proper
remuneration and motivation, Performance appraisal of employees
and Proper promotions and transfers. Staffing, as managerial
function, involves recruitment, selection, appraisal, remuneration and
development of managerial personnel. The need of staffing arises in
the initial period and also from time to time for replacement and also
along with the expansion and diversification of business activities.
Every business unit needs efficient, stable and cooperative staff for
the management of business activities. Manpower is the most
important asset of a business unit. In many organizations, manpower
planning and development activities are entrusted to personnel
manager or HRD manager. Right man for the right job' is the basic
principle in staffing. According to Harold Koontz, Staffing means
filling and keeping filled, positions in the organization structure.The
internal factors affecting staffing: (1) Promotion policy: Staffing is
affected by the promotion policy of the organization. If the
organization has a good promotion policy with prospects to career
growth and development, only then efficient people will be attracted
to the organization. Internal promotions are better for lower and
middle-level jobs. This is because it increases the morale and
motivation of the staff. However, for top level jobs, the RIGHT
person must be selected. The right person may be from within the
organization, or he / she may be selected from outside. (2)Future
growth plans: Staffing is also affected by the future growth plans of
the organization. If the organization wants to grow and expand then it
will need many talented people. In order to grow and expand, the
organization must select experts and give them continuous training
and development. (3)Technology used: Staffing is also affected by
the technology used by the organization. If the organization uses
modern technologies then it must have a continuous training program
to update the technical knowledge of their staff. (4) Support from top
management: Staffing is also affected by the support from Top
Management. If the top management gives full support to it then the
organization can have scientific selection procedures, scientific
promotion and transfer policies, continuous training programs, career
development programs and such. (5)Image of organization: Staffing
is also affected by the image of the organization in the job market. If it
has a good image then staffing will attract the best employees and
managers. An organization earns a good image only if it maintains
good staffing policies and practices. This includes job security,
training and development, promotion, good working environment,
work culture and such. The external factors affecting staffing:
(1) Labor laws: Labor Laws of the government also affect the staffing
policy of the organization. For e.g. The organization has to support
Social equality and upliftment policies of the government by giving
job reservations to candidates coming from depressed classes like
scheduled castes (SC), scheduled tribes (ST), other backward
classes (OBC), and even to those who are physically handicapped
(PH). It is mandatory for an organization not to recruit children in their
workforce and stop child labor. The provisions of Minimum Wages
Act guide an organization to fix minimum salaries of employees and
stop their economic exploitation. (2) Pressure from socio-political
groups: Staffing is also affected by activities of socio-political groups
and parties. These groups and parties put pressure on the
organization to grant jobs only to local people (3) Competition: In
some country, there is a huge demand for highly qualified and
experienced staff. This has resulted in competition between different
organizations to attract and hire efficient staff. Organizations often
change their staffing policies, offer attractive salaries and other job
benefits in order to add the best minds in their workforce. (4)
Educational standards: Staffing is also affected by the educational
standards of an area. If the educational standard of a place is very
high then the organization will only select qualified and experienced
staff for all job positions. For example: Some I.T. companies in and
sometimes they only prefer skilled candidates with computer or I.T.
Engineering degree for the post of Software Developer. (5) Other
external factors: Staffing is also affected by other external factors
such as trade unions and social attitude towards work. Staffing
involves Recruitment and Selection, Training, Placement, Promotion
and transfer. All these steps must be properly coordinated. Similarly,
the efforts of all the individuals, groups and departments must be
coordinated for achieving the objectives of the business. Therefore,
Staffing is affected by Coordination. After an organization's structural
design is in place, it needs people with the right skills, knowledge,
and abilities to fill in that structure. People are an organization's most
important resource, because people either create or undermine an
organization's reputation for quality in both products and service. In
addition, an organization must respond to change effectively in order
to remain competitive. The right staff can carry an organization
through a period of change and ensure its future success. Because of
the importance of hiring and maintaining a committed and competent
staff, effective human resource management is crucial to the success
of all organizations. Human resource management (HRM),
or staffing, is the management function devoted to acquiring, training,
appraising, and compensating employees. In effect, all managers are
human resource managers, although human resource specialists
may perform some of these activities in large organizations. Solid
HRM practices can mold a company's workforce into a motivated and
committed team capable of managing change effectively and
achieving the organizational objectives. Understanding the
fundamentals of HRM can help any manager lead more effectively.
Every manager should understand the following three principles: (1)
All managers are human resource managers. (2) Employees are
much more important assets than buildings or equipment; good
employees give a company the competitive edge. (3) Human
resource management is a matching process; it must match the
needs of the organization with the needs of the employee. Among
others it is necessary for the manager to brief them on the following
subjects (1) Establishment of the Chain of command in the
organization (2) Effective staff management (3) Effective staff
procedure (4) Staff function and responsibility (5) Delegation of
authority (6) Staff behavior, relationship and coordination. Hence, all
of these concepts has guidance in covering implementation of the
new organization structure should be published in organization plan.

Fourth is Directing (Leading): Directing as a managerial function,
deals with guiding and instructing people to do the work in the right
manner. Also in this function the employees are motivated to work for
a common purposed. Directing or leading is the responsibility of
managers at all levels. They have to work as leaders of their
subordinates. Clear plans and sound organization set the stage but it
requires a manager to direct and lead his men for achieving the
objectives. Directing function is quite comprehensive. It involves
Directing as well as raising the morale of subordinates. It also
involves communicating, leading and motivating. Leadership is
essential on the part of managers for achieving organizational
objectives. It is said to be a process in which the managers instruct,
guide and oversee the performance of the workers to achieve
predetermined goals. Directing is said to be the heart of management
process. Planning, organizing, staffing has got no importance if
direction function does not take place. Directing initiates action and it
is from here actual work starts. Direction is said to be consisting of
human factors. In simple words, it can be described as providing
guidance to workers is doing work. In field of management, direction
is said to be all those activities which are designed to encourage the
subordinates to work effectively and efficiently. According to Human,
Directing consists of process or technique by which instruction can
be issued and operations can be carried out as originally planned
Therefore, Directing is the function of guiding, inspiring, overseeing
and instructing people towards accomplishment of organizational
goals.
Direction has got following characteristics: (1) Pervasive Function -
Directing is required at all levels of organization. Every manager
provides guidance and inspiration to his subordinates. (2) Continuous
Activity - Direction is a continuous activity as it continuous throughout
the life of organization. (3) Human Factor directing function is related
to subordinates and therefore it is related to human factor. Since
human factor is complex and behavior is unpredictable, direction
function becomes important. Directing or Direction function is said to
be the heart of management of process and therefore, is the central
point around which accomplishment of goals take place. A few
philosophers call Direction as a life spark of an enterprise. It is also
called as on actuating function of management because it is through
direction that the operation of an enterprise actually starts. Being the
central character of enterprise, it provides many benefits to a concern
which are as follows: (1) It Initiates Actions - Directions is the function
which is the starting point of the work performance of subordinates.
(2) It is from this function the action takes placed; subordinates
understand their jobs and do according to the instructions laid.
Whatever are plans laid, can be implemented only once the actual
work starts. It is there that direction becomes beneficial. (3) It Ingrates
Efforts - Through direction, the superiors are able to guide, inspire
and instruct the subordinates to work. For this, efforts of every
individual towards accomplishment of goals are required. It is through
direction the efforts of every department can be related and
integrated with others. This can be done through persuasive
leadership and effective communication. Integration of efforts brings
effectiveness and stability in a concern. (4) Means of Motivation -
Direction function helps in achievement of goals. A manager makes
use of the element of motivation here to improve the performances of
subordinates. This can be done by providing incentives or
compensation, whether monetary or non - monetary, which serves as
a morale booster to the subordinates Motivation is also helpful for the
subordinates to give the best of their abilities which ultimately helps in
growth. (5) It Provides Stability - Stability and balance in concern
becomes very important for long term sun survival in the market. This
can be brought upon by the managers with the help of four tools or
elements of direction function - judicious blend of persuasive
leadership, effective communication, strict supervision and efficient
motivation. Stability is very important since that is an index of growth
of an enterprise. Therefore a manager can use of all the four traits in
him so that performance standards can be maintained. (6) Coping up
with the changes - It is a human behavior that human beings show
resistance to change. Adaptability with changing environment helps in
sustaining planned growth and becoming a market leader. It is
directing function which is of use to meet with changes in
environment, both internal as external. Effective communication helps
in coping up with the changes. It is the role of manager here to
communicate the nature and contents of changes very clearly to the
subordinates. This helps in clarifications, easy adaptations and
smooth running of an enterprise. For example, if a concern shifts from
handlooms to power looms, an important change in technique of
production takes place. The resulting factors are less of manpower
and more of machinery. This can be resisted by the subordinates.
The manager here can explain that the change was in the benefit of
the subordinates. Through more mechanization, production increases
and thereby the profits. Indirectly, the subordinates are benefited out
of that in form of higher remuneration. (7) Efficient Utilization of
Resources - Direction finance helps in clarifying the role of every
subordinate towards his work. The resources can be utilized properly
only when less of wastages, duplication of efforts, overlapping of
performances, dont take place. Through direction, the role of
subordinates become clear as manager makes use of his
supervisory, the guidance, the instructions and motivation skill to
inspire the subordinates. This helps in maximum possible utilization
of resources of men, machine, materials and money which helps in
reducing costs and increasing profits. From the above discussion,
one can justify that direction, surely, is the heart of management
process. Heart plays an important role in a human body as it serves
the function pumping blood to all parts of body which makes the parts
function. In the similar manner, direction helps the subordinates to
perform in best of their abilities and that too in a healthy environment.
The manager makes use of the four elements of direction here so
that work can be accomplished in a proper and right manner.
According to Earnest Dale, directing is what has to be done and in
what manner through dictating the procedures and policies for
accomplishing performance standards. Therefore, it is rightly said that
direction is essence of management process.

(1) Creative Activity - Direction function helps in converting plans into
performance. Without this function, people become inactive and
physical resources are meaningless. (2) Executive Function -
Direction function is carried out by all managers and executives at all
levels throughout the working of an enterprise; a subordinate receives
instructions from his superior only. (3) Delegate Function - Direction
is supposed to be a function dealing with human beings. Human
behavior is unpredictable by nature and conditioning the peoples
behavior towards the goals of the enterprise is what the executive
does in this function. Therefore, it is termed as having delicacy in it to
tackle human behavior.


Fifth is Coordinating: Effective coordination and also integration of
activities of different departments are essential for orderly working of
an Organization. This suggests the importance of coordinating as
management function. A manager must coordinate the work for which
he is accountable. Co-ordination is rightly treated as the essence of
management. It may be treated as an independent function or as a
part of organisms function. Coordination is essential at all levels of
management. It gives one clear-cut direction to the activities of
individuals and departments. It also avoids misdirection and
wastages and brings unity of action in the Organization. Co-ordination
will not come automatically or on its own Special efforts are
necessary on the part of managers for achieving such coordination.
Co-ordination is the Essence of Management "Co-ordination is the
Essence of Management." The meaning of this sentence implies,
Co-ordination affects all the functions of management. In other words,
Co-ordination affects Planning, Organizing, Staffing, Directing,
Communication, Leading, Motivating and Controlling. (1) Planning
and Coordination- According to Harold Koontz and Cyril O'Donnell,
"Planning is deciding in advance what to do, how to do it, when to do
it and who is to do it." There are many departmental plans in a
business. These include, Purchase Plan, Sales Plan, Production
Plan, Finance Plan, etc. All these plans must be coordinated (brought
together) and one Master Plan must be made for the full business.
Therefore, Planning is affected by Coordination. (2) Organizing and
Coordination-There are many steps in Organizing. All these steps
must be coordinated, for achieving the objectives of the business.
The Top Level Managers must coordinate the efforts of the Middle
Level Managers. Similarly, the Middle Level Managers must
coordinate the efforts of the Lower Level Managers. Furthermore, the
Lower Level Managers must also coordinate the efforts of the
workers. Therefore, Organization is affected by Coordination. (3)
Staffing and Coordination- Staffing involves Recruitment and
Selection, Training, Placement, Promotion, Transfer, etc. All these
steps must be properly coordinated. Similarly, the efforts of all the
individuals, groups and departments must be coordinated for
achieving the objectives of the business. Therefore, Staffing is
affected by Coordination.(4) Directing and Coordination-Directing
means giving necessary information, proper instructions and
guidance to sub-ordinates. This results in coordination. Therefore,
Direction is affected by Coordination.(5) Communicating and
Coordination-Many types of communication methods are used in a
business. These methods include, Formal communication, Informal
Communication, Upward Communication, Downward
Communication, Oral Communication, Written Communication, etc. It
is important to note that, all these types of communication must be
properly coordinated. Lack of proper coordination will hinder the
smooth functioning of the communication process. Furthermore, it will
also restrict the important information flow and cause many economic
problems to the business. Thus, Communication is affected by
Coordination. (6) Motivating and Coordination-There are many types
of Motivation. These are, Positive Motivation, Negative Motivation,
Financial Motivation, and Non-Financial Motivation. All these types of
Motivation must be properly coordinated. Therefore, Motivation is
affected by Coordination. (7) Leading and Coordination-Every
manager must be a good leader. He must coordinate the efforts of his
subordinates for achieving the objectives. That is, he must coordinate
the human resource. He must also coordinate the material and
financial resources of the organization. In short, a leader cannot
survive without coordination. In other words, leadership cannot be
performed without coordination. Therefore, Leadership is affected by
Coordination. (8) Controlling and Coordination-In Controlling the
standards are first fixed. Then the performances are measured.
Performances are compared with the standards, and the deviations
are found out. Then the deviations are corrected. So, controlling
involves many steps. All these steps must be properly coordinated. If
coordination is not proper, Control will surely fail. Therefore, Control
is also affected by Coordination. Hence, Controlling is the
measurement of accomplishments against set standards and the
corrective measures to be applied so that the deviations from the
standard are minimized. It is a management action to adjust the
operations. So coordination is a sub-process of controlling which
includes reports, the principal device of the manager for retaining
control of delegated responsibility and authority to subordinate
executives is the systemized reporting and internal checking while
budgets is the critical process of allocating resources; revenues and
borrowed funds. It is primary objective is to attain socio-political and
economic goals, maintain national security, provides social and the
governmental services and pay for the countrys debt. Now, we can
conclude that all the functions of management are affected by
coordination. Hence coordination is essential for achieving the
objectives of the organization. It is also required for the survival,
growth and profitability of the organization. Coordination encourages
team spirit, gives right direction, motivates employees, and makes
proper utilization of resources. Therefore, Coordination is rightly
called the essence of management. With all of these, Coordination is
the arrangement of activities, responsibilities, and command
and control structures to ensure that the resources of
an organization are used most efficiently and effectively in pursuit of
the specified objectives.


Sixth is Reporting, Reporting is a self-explanatory statement of facts
relating to a specific subject and serves the purpose of providing
information for decision making and follow up actions. It is a
systematic presentation of ascertained facts about a specific event or
subject. Report is a summary of findings and recommendations about
a particular matter or problem. Report is for the guidance of higher
authorities including company executives and directors. A report
facilitates timely decisions and follows up measures. (1)Complete and
Compact Document: Report is a complete and compact written
document giving updated information about a specific problem.
(2)Systematic Presentation of Facts: Report is a systematic
presentation of facts, figures, conclusions and recommendations.
Report writers closely study the problem under investigation and
prepare a report after analyzing all relevant information regarding the
problem. Report is supported by facts and evidence. There is no
scope for imagination in a report which is basically a factual
document. (3)Prepared in Writing: Reports are usually in writing.
Writing reports are useful for reference purpose. It serves as
complete, compact and self-explanatory document over a long
period. Oral reporting is possible in the case of secret and
confidential matters. (4)Provides Information and Guidance: Report is
a valuable document which gives information and guidance to the
management while framing future policies. It facilitates planning and
decision making. Reports are also useful for solving problems faced
by a business enterprise. (5) Self-explanatory Document: Report is a
comprehensive document and covers all aspects of the subject
matter of study. It is a self-explanatory and complete document by
itself. (6)Acts as a Tool of Internal Communication: Report is an
effective tool of communication between top executives and
subordinate staff working in an organization. It provides feedback to
employees and to executives for decision making. Reports are
generally submitted to higher authorities. It is an example of upward
communication. Similarly, reports are also sent by company
executives to the lower levels of management. This is treated as
downward communication. In addition, reports are also sent to
shareholders and others connected with the company. It may be
pointed out that report writing / preparation acts as a backbone of any
system of communication. (7)Acts as Permanent Record: A report
serves as a permanent record relating to certain business matter. It is
useful for future reference and guidance. (8)Time Consuming and
Costly Activity: Report writing is a time consuming, lengthy and costly
activity as it involves collection of facts, drawing conclusion and
making recommendations. So this is where the functions will conduct
a debate.

Seventh is Budgeting, Government has several policies to implement
in the overall task of performing its functions to meet the objectives of
social & economic growth. For implementing these policies, it has to
spend huge amount of funds on defense, administration, and
development, welfare projects & various other relief operations.
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. It is
therefore necessary to find out all possible sources of getting funds
so that sufficient revenue can be generated to meet the mounting
expenditure. Planning process of assessing revenue & expenditure is
termed as Budget. The term budget is derived from the French word
"Budgette" which means a "leather bag" or a "wallet". It is a statement
of the financial plan of the government. It shows the income &
expenditure of the government during a financial year, which runs
generally from 1stApril to 31st March. Budget is most important
information document of the government. One part of the
government's budget is similar to company's annual report. This part
presents the overall picture of the financial performance of the
government. The second part of the budget presents government's
financial plans for the period up to its next budget.
So, every citizen of a nation from the common man to the politician is
eager to know about the budget as they would like to get an idea of
the:
(1) Financial performance of the government over the past one year.
(2) To know about the financial programmed & policies of the
government for the next one year.
(3) To know how their standard of living will be affected by the
financial policies of the government in the next one year. Thus, we
see that the budget mirrors projected receipts and expenditures.