Technological Innovation Management And Entrepreneurship-2.pdf

Dr. Tanuja P Dr. Ambedkar Institute of Technology, Bengaluru 1
UNIT-2 Organizing and Staffing
Prepared by
Dr. TANUJA P B.Tech, M.tech, PhD, Post Doc
Email-Id: tanujaharish13@gmail.com/tanujapatgar.ec@drait.edu.in
https://vidwan.inflibnet.ac.in/profile/156217 ,
Orcid Id0000-0002-2130-5167 Scopus Id88126521564 ,
Researcher IdBBU-4356-2020, Google Scholar dVhDTUWAAAAAJ
Department of Electronics and Communication Engineering
Dr. Ambedkar Institute of Technology, Bangalore
(An Autonomous institution, Affiliated to VTU, Belgaum and Aided by Government of Karnataka)
Near Jnana Bharathi campus, Bangalore -560056

Organization
Organization is a process which integrates different type of activities to achieve
organizational goals and objectives, to achieve these goals there must be
competent management providing them all those factors to perform their job
efficiently and effectively. Organization is nothing but is a process of integrating
and coordinating the efforts of men and material for the accomplishment of set
objectives.
Every thinker is of the opinion that an organization is a process. They further
have added that this process leads identification of work to be performed which
for convenience sake should be objectively grouped and defined. Then the work
should be assigned to individuals according to their aptitude, technical
knowledge, skill and efficiency. For satisfactory working the individuals should
be given some right and authority. A mutual relationship between jobs (what to
be done) duties (to be performed) and authority (to be exercised) should be
established. Organization is just like a tool in the hands of management. Net
results will be perfect if the tool is well designed and handed properly.
CHARACTERISTICS OF ORGANISATION
Robbins defines Organization as ' a consciously coordinated social unit,
composed of two or more people that functions as a relatively continuous basis
to achieve common goals of set of goals. Agrawal defines organization as ' a
goal oriented open system composed of people, structure and technology.
1. Organization is an open system: An open system means open to
environment. Organization exists and functions in environment. Environment
compels the organization to acquire right type of people, technology and
structure so that the goals to serve the environment can be attained.

The organization is thus greatly influence the environment. Usually the
demands or wants of the people determines the strategies and goals of an
organization. What are the needs in the market and how an organization can
bring new and needy products to the market create an interaction between the
organization and the environment. Without interaction, organization cannot
fulfill required products or services to the users groups. This way, an
organization is an open system, without which it cannot survive.
2. Organization is goal oriented : Without goal or set of goals, organization is
useless. There is nothing for the organization to do. Therefore, the major
characteristic of any organization is its goal. Type of people or technology is
adopted so that the set goal can be achieved. The goal gives line of action;
acquire required type of people and uses type of technology so that the goal is
achieved in an anticipated time point. Without goal, organization cannot be
formed.
3. Organization is a collection of people : People are the main performers in
any organization. In other world, all the elements of any organization are the
same except the people. Even with the same age, qualification, experience and
facilities, the output of the people may vary, simply because the needs and
wants of all people are not the same. What makes them work by heart and
head is the one that differentiate organizations from one to others.
4. Organization consists of technology: Technology is the means of doing
works. There are various kinds of doing works. As an organization consists of
more people, its performance procedure should be of a fixed type so that each
individual in the organization can exercise them well. This is how technology
initiates. Technology eases the work and shortens the time. Technology
originates a certain policy necessary to keep organizational beliefs in doings of
the various people at different structural level. This saves the integrity of the
people in achieving goals.

5. Organization has continuity: As the organization involves people, and the
people generate different needs, they can leave the organization or some may
die too. This does not affect the organization to stop or decrease in size. Hence,
it is said that every organization has its own continuity. A good manager can
leave but other better man can take over the charge of the organization.
Organizational Process
Organizing, like planning, must be a carefully worked out and applied process.
This process involves determining what work is needed to accomplish the goal,
assigning those tasks to individuals, and arranging those individuals in a
decision‐making framework (organizational structure). A properly implemented
organizing process should result in a work environment where all team
members are aware of their responsibilities. If the organizing process is not
conducted well, the results may yield confusion, frustration, loss of efficiency,
and limited effectiveness
The stages or steps in the process of organization are
1. Fixing the objectives of the organization
At the top level, administrative management first fixes the common objectives
of organization. At the middle level, executive management fix the departmental
objectives. Lastly, at the lower level, supervisory management fix the day-to-
day objectives. All the objectives of the organization must be specific and
realistic

2. Finding activities must for achieving objectives
After fixing the objectives, the top-level management prepares a list of different
activities (or works) which are required to be carried out for achieving these
objectives. This list is prepared at random without following any sequence or
order. This is a very important step because it helps to avoid duplication,
overlapping and wastage of efforts.
3. Grouping the similar activities
All similar or related activities having a common purpose are grouped together
to make departments. For e.g. all activities or works which are directly or
indirectly connected with purchasing are grouped together to make the
Purchase Department. So various departments such as Purchase, Production,
Marketing, Finance, etc. are made. The grouping of similar activities leads to
division of labour and specialisation.
4. Defining responsibilities of each employee
The responsibilities (duties) of each employee are clearly defined. This will
result in the selection of a right person for the right post / job. He / she will
know exactly what to do and what not to do. Therefore, it will result in
efficiency.
5. Delegating authority to employees
Each employee is delegated (surrender or given) authority. Without authority,
the employees cannot carry out their responsibilities. Authority is the right to
give orders and the power to get obedience. The authority given to an employee
should be equal to the responsibility given to him.

6. Defining authority relationship
When two or more persons work together for a common goal, it becomes
necessary to clearly define the authority relationship between them. Each
person should know who is his superior, from who he should take orders, and
to whom he will be answerable. Similarly, each superior should know what
authority he has over his subordinates.
7. Providing employees all required resources
After defining the authority relationships, the employees are provided with all
the material and financial resources, which are required for achieving the
objectives of the organization. So in this step, the employees actually start
working for a common goal.
8. Coordinating efforts of all to achieve goals
This is the last stage or step in the process of organization. Here, the efforts of
all the individuals, groups, departments, etc. are brought together and
coordinated towards the common objectives of the organization.
Principles of Organization
The success of a business organization can be ensured if the following basic
principles are used. In order to develop a sound and efficient organization
structure, there is need to follow certain principles. In the words of E.F.L.
Brech, "If there is to be a systematic approach to the formulation of
organization structure, there ought to be a body of accepted principles". They
are as follows:

(1) Objectives: The objectives of the enterprise influence the organization
structure and hence the objectives of the enterprise should first be clearly
defined. Then every part of the organization should be geared to the
achievement of these objectives.
(2) Specialization: Effective organization must promote specialization. The
activities of the enterprise should be divided according to functions and
assigned to persons according to their specialization.
(3) Span of Control: As there is a limit to the number of persons that can be
supervised effectively by one boss, the span of control should be minimum as
far as possible, the minimum, that means an executive should be asked to
supervise a reasonable number of subordinates only, say six.
(4) Exception: As the executives at the higher level have limited time, only
exceptionally complex problems should be referred to them and routine matters
should be dealt with by the lower levels. This will enable the executives at
higher level to devote time to more important and crucial issues.
(5) Scalar Principle: This principle is sometimes known as the "chain of
command". The line of authority from the chief executive at the top to the front
line supervisor at the bottom, must be clearly defined.
(6) Unity of Command: Each subordinate should have only one supervisor
whose command he has to obey. Dual subordination must be avoided, for it
causes uneasiness, disorder, indiscipline and undermining of authority.
(7) Delegation: Proper authority should be delegated at the lower level of
organization also to carry out the work effectively.

(8) Responsibility: The superior should be responsible for the acts of his
subordinates.
(9) Authority: Authority is a tool by which a manager accomplishes the desired
objectives, which should be clearly defined.
(10) Efficiency: The organization structure should help enterprise to function
efficiently to accomplish the objectives at lowest cost.
(11) Simplicity: The organization structure should be simple and the levels
should be as minimum as possible.
(12) Flexibility: Should be flexible, adaptable to changing circumstances,
permit expansion, replacement, without dislocation and disruption of the basic
design.
(13) Balance: There should be a reasonable balance in the size of various
departments, between centralization and decentralization, between the
principle of span of control and short chain of command and among all types of
factors such as human, technical and financial.
(14) Unity of Direction : Should be one objective and one plan for a group of
activities having same objectives. Unity of direction facilities unification and
coordination of activities at various levels.
(15) Personal Ability: As people constitute an organization, there is need for
proper selection, placement and training of staff. Organization structure must
ensure optimum use of human resources and encourage management
development programme.

Span of Management
The Span of Management refers to the number of subordinates who can be
managed efficiently by a superior. Simply, the manager having the group of
subordinates who report him directly is called as the span of management.
Span of management is Span of control -the number of subordinates a
supervisor has—is used as a means of ensuring proper coordination and a
sense of accountability among employees. It determines the number of levels of
management an organization has as well as the number of employees a
manager can efficiently and effectively manage. In the execution of a task,
hierarchical organizations usually have different levels of task processes.
Workers at various levels send reports on their progress to the next levels until
the work is completed.
In the past it was not uncommon to see average spans of one to four (one
manager supervising four employees). With the development of inexpensive
information technology in the 1980s, corporate leaders flattened many
organizational structures and caused average spans to move closer to one to
ten. As this technology developed further and eased many middle-managerial
tasks (such as collecting, manipulating, and presenting operational
information), upper management found they could save money by hiring fewer
middle managers.
Research Studies of management have found that this number (span) is
usually 4-8 subordinates at the upper levels of organization and 8-15 or more
at the lower levels. However this is not definite

Committees
Committee can be defined as a group of organizational members who discuss
and develop solutions to problems. It can be either line or staff and can be
established on a standing (permanent) or an adhoc basis. In business
enterprises, the board of directors constitutes the committee at the highest
level. The purpose of such committees is to discuss various problems and
recommend solutions to the management. It is generally found to co-exist with
line and staff type of organization.
The Board of Directors of a company is an example of a committee
organization. This form of organization is suitable for taking decisions on policy
matters or laying down broad objective for the enterprise.
Types of Committees
Ad-Hoc committee – The word ad-hoc is derived from the Latin language,
which means ‘for a specific purpose’. An ad hoc committee is therefore a
committee that is set up for the main purpose of performing a specific task or
dealing with a specific situation. Having completed the specific task and
submitted its report, the ad hoc committee is then dissolved. Majority of
committees in business organizations and other places are ad hoc types.
For example, an ad hoc committee could be formed by the management of an
organization to investigate into the causes of a particular problem bedeviling
the organization. After the completion of the task and submitting a report, the
ad hoc committee is dissolved.

Executive committee – The committee is made up of people occupying top
positions in an organization who have the powers to administer the day to day
affairs of the organization. Executive committees are mainly made up of senior
management personnel, and just like any other committee in a business
organization, the executive committee is given the mandate to perform special
assignments or tasks.
Sub-Committee – It is basically a subsidiary committee. This means that it is
connected with a larger committee that is more powerful and important than it.
A sub-committee is said to be a child of a parent committee. A large committee
can appoint one or more of its members to form another committee under it in
the name of a sub-committee. The large committee underneath which the sub-
committee is formed is the parent committee.
Coordinating or Joint Committee – The committees which act as a link
between two committees and joins or coordinates their actions together. Such
committee would normally be composed of representatives from the other
committees whose activities it is coordinating. Committees are very important
in business organizations since they help in resolving problems and also
promotes the exchange of opinions among members for the betterment of the
organization.
Advantages:
1. Pooling of Opinions:
The members of committees come from different background and areas of
expertise and have different viewpoints and values. When persons with varied
abilities sit together and discuss a problem, various aspects of the case are
highlighted and pros and cons are assessed. The pooled opinion will help in
taking a realistic view of the problem.

2. Better Co-Ordination:
Committee form of organization brings more co-ordination among different
segments of the organization when representatives of different departments sit
together, they understand and appreciate the difficulties faced by others. This
type of frank discussions help on fixing the targets of different departments
and better co-ordination is achieved through this type of decision making.
3. Balancing of Views:
This type of organization helps in balancing the views expressed by different
persons. There is a tendency to over emphasize the aspects of one’s own
department by ignoring the inter dependent character of problems of different
departments. A committee helps to bring out an agreed view of the problem by
taking into account divergent views expressed in such meetings.
4. Motivation:
The committees consist of managers as well as subordinates. The views of
subordinates are given recognition and importance. It gives them
encouragement and makes them feel as an integral part of decision making
process. Such committees boost the morale of subordinates and motivate them
to improve their performance.
5. Dispersion of Power:
The concentration of power in few persons may lead to misuse of authority and
wrong decisions. By spreading powers among committee members this problem
can be solved.
6. Better Acceptance of Decisions:
The decisions taken by committees are better accepted by subordinates. The
decisions of an individual may be autocratic whereas committees decide in
wider perspective of organization. Since various shades of people are
represented in committees, these decisions are better accepted.

7. Better Communication:
It is a better forum for discussing matters of mutual interest and reaching
certain conclusions. These decisions can be properly communicated to
subordinates through committee members. The members will transmit correct
and authentic information and also convey the background of taking those
decisions.
8. Executive Training:
Committees provide a good forum for training executives. They learn the value
of interaction, group dynamics and human relations. They are exposed to
various view points and learn the art of reaching decisions and solving
organizational problems.
Weakness of Committee Form of Organization:
This form of organization suffers from the following weaknesses:
1. Delay: The main drawback of committee form of organization is delay in
taking decisions. A number of persons express their viewpoints in meetings
and a lot of time is taken on reaching a decision. The fixing of committee
meetings is also time consuming. An agenda is issued and a convenience date
is fixed for the meeting. The decision making process is very slow and many
business opportunities may be lost due to delayed decisions.
2. Compromise:
Generally, efforts are made to reach consensus decisions. The view point of the
majority is taken as a unanimous decision of the committee. The thinking of
the minority may be valid but it may not be pursued for singled out. They may
accept less than an optimal solution, because of a fear that if their solution
proves wrong then they will be blamed for it.

3. No Accountability:
No individual accountability to be fixed if these decisions are bad. Every
member of the committee tries to defend himself by saying that he solves a
different solution. If accountability is not fixed then it is the weakness of the
organization.
4. Domination by Some Members:
Some members try to dominate in the committee meetings. They try to thrust
their view point on others. The aggressiveness of some members helps them to
take majority with them and minority view is ignored. This type of decision
making is not in the interest to the organization.
5. Strained Relations:
Sometimes relations among committee members or with others become
strained. If some members take divergent stands on certain issues, some may
feel offended. In case some issue concerning other persons is discussed in a
committee and members taking stand not liked by those persons may offend
them. The discussions in the meetings are generally leaked to other employees.
Some unpleasant decisions may not be liked by those who are adversely
affected. It affects relations of employees not only on the job but at personal
level also.
6. Lack of Effectiveness:
The role of committees is not effective in all areas. The committees may be
useful where grievance re-dressal or inter personal departmental matters are
concerned. Committees may not be effective where policies are to be framed
and quick decisions are required. Individual initiative will be more effective in
these cases. So committees have a limited role to play.

Guidelines for Committee Members:
In order to make the working of committees effective, the members should
follow these guidelines:
1. The members should ensure that the atmosphere at the meetings is cordial
and informal.
2. The members should express their views clearly and logically and listen to
the reactions calmly.
3. Disagreement should not be ignored. They should not compromise just for
the sake of harmony. Criticism should be directed on the issues and not on
persons.
4. It should be ensured that chairman does not excessively dominate. His views
should also be treated in same way as that of others. His views should not be
taken as final.
5. The disagreement in meeting should not be taken in personal level. The
spirit of competition should be avoided and co-operation should be enhanced.
All these guidelines will not only smoothen the working committees but will
also make them an effective instrument of the organization.
Departmentalization
Departmentalization is the process of grouping individuals into departments
and grouping departments into total organizations. Horizontal differentiation of
tasks or activities into discrete segments is called departmentalization. There
are several bases for departmentalization depending upon the nature and size
of organization, goals, strategies and environment.

1. Departmentalization based on Products
This is more suitable for a large organization that manufactures a vast variety
of products. Under this separate groups or departments are created and each
department is controlled by a manager who will be responsible for all the
activities of that sub group. Each subgroup will have its own facilities required
for manufacture, purchase, marketing and accounting etc. This type is
advantageous where variety of products are manufactured for example (i)
Godrej, that manufactures soaps, cosmetics, refrigerators, machines, furniture
etc., (ii) HMT that manufactures machines, watches, tractors, bearings etc. (iii)
TATAs that make trucks, cars, steel, machines etc.
Advantages
1. Top management is relieved of operational task enabling them to
concentrate more on common goals.
2. Performance of different product groups can be easily compared
enabling the top management to invest more and more in profitable
product groups and exercise better control on non- performers.
3. Managers of individual products put better effort to improve his area
compared to others.
Disadvantages
1. This calls for duplication of staff and facilities.

2. Separate work force is required in sales, marketing and finance,
resulting in extra expenditure.
3. More managers are required.
4. May result in underutilization of facilities and equipment.
2. Departmentalization based on functions
It is based on each major function of the organization. Depending on the
nature of organization the various functions are as follows: Marketing,
Engineering, Production, Finance, Personnel, Purchase etc. Functional
departmentalization is most widely employed basis of organizing activities - and
is present in almost every organization at some level in its structure.
Advantages
1. It is logical reflection of functions.
2. Maintains power and prestige of major functions.
3. Follows principle of occupational specifications and thereby facilitates
efficient utilization of people.
4. Simplifies training.
5. Provides means of right control at top.
Disadvantages
1. De-emphases overall company objectives
2. Leads to over specialization of people.
3. Reduces coordination between functions.
4. Slow adoption to changes in environment
5. Limits development of general managers.

3. Departmentalization based on time
One of the oldest forms of generally used departmentalization at lower levels of
an organization is grouping of activities on the basis of time. The use of shifts
is common in some organizations due to economic or technological reasons.
For service organizations like hospitals, fire department, security, steel mills,
chemical plants, round the clock work is essential. All these call for 3 shift
working of organization. Then under such circumstance, the departmentation
is made on the basis of shifts as first shift, second shift etc.
Advantages
1. Service can be rendered, that goes beyond the normal 8 hours shift/day.
2. Facilitates use of processes that cannot be stopped or interrupted.
3. Expensive capital equipment can be better utilized.
4. Provides part time jobs for people who are otherwise busy during day time
5. Higher and continuous production per day.
Disadvantages
1. Lacks good and efficient supervision during night shifts.
2. Inconvenient for people to work in night shifts and more difficult during
shift changes from day to night.
3. Lack of effective coordination and communication from people of one shift to
next shift.
4. Loss of product or service may increase owing to higher payment/ over time
payment during night shift.
4 .Departmentalization based on Territory and Geography
Departmentalization by Territory is common in organizations that operate over
a wide geographical area. The activities of an enterprise are divided into
territories like, western region, northern region, eastern region, southern region
etc.

They may be further divided into sub regions in main regions like Karnataka
region, Kerala region, Andhra Region, Tamil Nadu region within southern
region etc. Territorial is especially attractive to large-scale firms or other
enterprises whose activities are physically or geographically spread over a large
area. Banks, Railways and big manufacturing companies like petroleum
companies (HP, Indian Oil etc.), cosmetic companies are some of the examples
of this.
Advantages
1. Places responsibility at lower level.
2. Places emphasis on local problems and markets.
3. Ensures a better coordination within a region.
4. Facilitates direct communication within a region.
5. Better involvement of people to achieve higher targets.
6. Provides a region-wise comparison of performance.
.
Disadvantages
1. Requires more persons with General Manager abilities.
2. Requires maintaining similar functional people at all regions.
3. Difficult to control from top management.
5. Departmentalization based on simple numbers
This was one of the most widely used ancient methods of departmentalization.
This is achieved by tolling of persons performing the same job and grouping
them together under one supervisor. This is not in common use now.
Authority
It is the formal right given to an individual to command (the action of others).
According to Koontz, it is the tool by which a manager is able to exercise
discretion and to create an environment for individual performance.

An authority may be defined as the "right to act". It may also be referred to as
the power to take necessary steps or decisions in order to achieve
organization's goals. An enterprise may have the best of plans, sound
organization structure and efficient management, yet nothing happens or is
achieved. As nothing is done i.e., the 'act' is missing and it is the act that
influences in the body structure. Thus, "Authority is the right to act" the most
appropriate definition given to it.
Responsibility
It is also called as Accountability or Answerability. It may be considered as the
obligation of a subordinate to his superior to do a work assigned to him. Each
person who is given responsibility must recognize that the executive above him
will hold him responsible for the quality of his performance.
Authority and responsibility exist together in a business organization. They
represent the two sides of the same coin while authority is right to command;
responsibility is an obligation to performance as someone with authority has
directed. It accompanies the assignment of work to a subordinate and becomes
increasingly important at successive higher levels in the hierarchy. It is not
merely a desire to cooperate or to advance group objectives but is recognition of
the obligation to perform managerial functions.

One major and important aspect of responsibility is that a manager can part
with authority but not with responsibility, which is an inherent property of his
position in the organization. The terms "responsibility"' and "accountability" are
often used dischargeable Strictly speaking accountability is used to denote a
special kind of responsibility. As employed in military, an officer is said to be
"accountable" for equipment, but responsible for the action of troops reporting
to him.
Centralization VS Decentralization
Organization authority is merely the degree of discretion conferred on people to
make it possible for them to use their judgment by giving them power to use
their own decisions and issue instructions, how much authority should be
concentrated or dispersed throughout the organization. Decentralization is the
tendency to disperse decision, making, authority in an organization structure.
It is a fundamental aspect of delegation, to the extent the authority is not
delegated it is centralized. There can be absolute centralization of authority in
one person; this implies that no subordinate managers, and therefore no
structured organization.
Some decentralized authority exists in all organizations. On the other hand
there cannot be absolute decentralization, for if managers should delegate all
their authority, their status as managers would cease, their position will be
eliminated and again there would be no organization structure. Centralization
and decentralization are qualities with various degrees in practice.
When work of an executive increases so much in volume that he cannot hope
to cope with it, he has to divide it among his subordinates. In doing so he
naturally expects that each subordinate will do the job as he himself would

have done. This process of dividing the job is referred to as 'delegation'.
Delegation is simply a matter of entrusting part of the work operations or
management to others. "It is the ability to get results through others" - "It is the
dynamics of management". It is a process a manager follows in dividing the
work assigned to him so that he performs that part which only he, because of
his unique organizational placement, can perform effectively, so that he can get
others to help him with what remains.
The primary purpose of delegation is to make organization possible. Just as no
one person in an enterprise can do the entire job necessary for accomplishing a
group purpose, so it is impossible as an enterprise grows for one person to
exercise all the authority for making decisions. There is a limit to the number
of persons that a manager can effectively supervise and for whom they can
make decisions. Once this limit has been passed, authority must be delegated
to subordinates, who will make decisions within the area of their assigned
duties.
Process of Delegation
Authority is delegated when superior gives a subordinate, discretion to make
decisions. The entire process of delegation involves:
1. Determination of results expected (MBO)
2. Assignment of tasks.
3. Delegation of authority for accomplishing these tasks.
4. Holding of people responsible for accomplishment of tasks.

In practice it is impossible to split this process, since expecting a person to
accomplish goals without the authority to achieve them is meaningless, as the
delegation of authority without knowing for what results it will be used.
Clarity of Delegation
Delegation of authority can be specific or general, written or unwritten. If the
delegation is unclear, a manager may not understand the nature of the duties
or the results expected. Specific written delegations of authority are extremely
helpful both to the manager who receives them and to the person who
delegates. Sometimes, especially, in the upper levels of management, it is too
difficult to make authority delegation specific and the subordinate, robbed of
flexibility, will be unable to develop in the best way. Recovery of Delegated
Authority A manager who delegates authority, does not permanently dispose it off;
delegated authority can always be regained.
A shuffle in an organization means that rights are recovered by the responsible
head of the firm to a department and then re-delegated to new managers to
modified departments, so that head of a new department may receive the authority
held by other managers.

Staffing
Staffing comprises of a broad scope of activities. The word "hiring" is sometimes
used interchangeably with "staffing". However, staffing is much broader in
scope than hiring. Hiring is precisely the selection phase of the overall process
of staffing. Similarly, "recruiting" is sometimes used for "staffing". Again, many
people believe that "recruiting" refers more specifically to the sourcing and
advertising phases of the overall process of staffing. Let us see what staffing
exactly entails.
The term staffing may be defined as the managerial function of hiring and
developing the required personnel to fill in various positions in an organization.
This function includes the determination of the size and categories of staff
requirement. It is also concerned with hiring the right type of people and
amplifying their skills through training. The staffing function focuses on
maintaining and improving the manpower in an organization. According to
Theo Haimann, “Staffing pertains to recruitment, selection, development and
compensation of subordinates.” The managerial function of staffing comprises
of manning the organization structure through suitable and effective selection,
appraisal and development of the personnel to fill the roles assigned to the
employers/workforce.

Nature of Staffing
The managerial function of staffing is of a continuous nature. The managers
have to give attention to the staffing needs of the organization. The staffing
policy of the organization has to be developed on the basis of long term
requirements of the organization.
Nature of Staffing can be explained by the following characteristics:
1. Staffing is an important managerial function: Staffing function is the
most important managerial act along with planning, organizing, directing and
controlling. The operations of these four functions depend upon the manpower,
which is available through staffing function.
2.Staffing is a pervasive activity: As the function of staffing is carried out by
all mangers and in all types of concerns where business activities are carried
out.
3.Staffing is a continuous activity: This is because staffing function
continues throughout the life of an organization due to the transfers and
promotions that take place.
4. The basis of staffing function is efficient management of personnel:
Human resources can be efficiently managed by a system or proper procedure,
that is, recruitment, selection, placement, training and development, providing
remuneration, etc.
5. Staffing helps in placing right men at the right job:
It can be done effectively through proper recruitment procedures and then
finally selecting the most suitable candidate as per the job requirements.
Staffing is performed by all managers contingent to the nature of business, size
of the company, qualifications and skills of managers, etc. In small companies,

the top management generally performs this function. In medium and small-
scale enterprise, it is executed especially by the personnel department of that
concern.
Importance of Staffing
Importance of staffing can be explained with the help of the followings:
1. Key to other managerial functions: It is seen that function of staffing is
closely related to managerial business areas which influences direction and
control in organization.
2. Building healthy human relationships: It builds the required man-power
relationships in an organization. With smooth human relation, excellent
coordination and communication takes place.
3.Human resources development: For any business establishment,
hardworking and skilled man-power is welcomed prerequisite which serves as
an asset of a business concern.
4.Long Term effect: The work operations of the company depend upon the
effective decision making quality. It is noted that skilled, laborious and well-
motivated people becomes an asset to an organization.
5. Potential contribution: The idea about staff selection depends upon the
ability of effective employees which can manage future challenges which is
needed by an organization.

Staffing Process of a firm
Staffing Process
Following are the steps involved in staffing:
1. Manpower requirements: It is seen that the first step towards staffing is
planning of good manpower which will match the need of particular work.
2. Recruitment: As per the demand from the organization, the applications of
concerned workers are entertained as per invitations by company to the desired
candidate.
3. Selection: After receiving applications from candidates, they are scanned as
per suitability of position and candidature.

4. Orientation and Placement: After a job proposal is given to the candidate,
the initial work is to make the candidate familiar with working style and
environment.
5. Training and Development: Training is part of inducements which is
provided to worker so as to frame and grow as per the concern. It involves
working capability and scope.
6. Remuneration: It is the sort of compensation which is paid by the concern
to the new joiners. It depends on nature of job skilled or unskilled, physical or
mental, etc.
7. Performance Evaluation: Performance evaluation is a method which will
record candidate behavior, attitudes and progress. It involves regular
assessment based on reports from different departments.
8. Promotion and transfer: It involves transfer in job sector and level which
depends on past performance of the candidate. It is non- monetary incentive.
Recruitment
“Recruitment is the process of searching the candidates for employment and
stimulating them to apply for jobs in the organization.” Recruitment is the
activity that links the employers and the job seekers.
According to Dale Yoder of Stanford University, recruitment can be defined as:
“It is the process to discover sources of manpower to meet the requirement of
staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient
working force”. “Recruitment of candidates is the function preceding the

selection which helps to create a pool of perspective employees for the
organisation so that the management can select the right candidate for the
right job from this pool. The main objective of the recruitment process is to
expedite the selection process”.
Recruitment Process
Recruitment process is the first step towards crafting the competitive strength
and the strategic advantage for the organizations. Recruitment process
encompasses a systematic procedure from narrowing down on the candidates
to arranging and conducting the interviews and requires many resources and
time.
1. Identify vacancy.
2. Prepare job description and person specification.
3. Advertise the vacancy.
4. Manage the response.
5. Short-list candidates.
6. Arrange interviews.
7. Conduct interview and decision-making analysis activities.

Factors Affecting Recruitment
The internal forces or factors are the factors that can be organized by the
administration. In addition, the external factors are those factors, which
cannot be controlled by the organization implementing recruitment programs
and procedures by filling up vacancies with best qualified people.
A) Internal Factors Affecting Recruitment
The internal forces i.e. the factors that can be controlled by the organization
are:
1. Recruitment Policy
2. Human Resource Planning
3. Size of the firm
4. Cost
5. Growth and Expansion
B) External Factors Affecting Recruitment
The external forces are the forces, which cannot be controlled by the
organization. The major external forces are:
1. Supply and Demand
2. Labour Market
3. Unemployment rate
4. Competitors
Types and Sources of Recruitment
Recruitment is of two types:
1. Internal Recruitment
It is a recruitment, which takes place within the concern or organization.
Internal sources of recruitment are readily available to an organization.
Internal recruitment may leads to increase in employee’s productivity as their

motivation level increases. It also avoids wastage of time, money and efforts.
But a drawback of internal recruitment is that it restricts the organization from
inviting new blood. In addition, not all the manpower requirements can be met
through internal recruitment. Hiring from outside has to be done.
There are primarily three internal sources for recruitment:
1. Transfers
2. Promotions
3. Re-employment of ex-employees
2. External Recruitment
External sources of recruitment have to be solicited from outside the
organisation. External sources are external to a concern. However, it involves
lot of time and money. The external sources of recruitment include:
1 Employment at Factory Level
2. Advertisement
3. Employment Exchanges
4. Employment Agencies
5. Educational Institutions
6. Recommendations
7. Labour Contractors
Selection
Selection is the process of hiring the right candidates for the right job. It is a
technique of corresponding organizational requirements with the skills and
qualifications of people. Effective selection can be done only when there is
effective matching.

On selecting appropriate candidate for a particular job, the organization will
receive quality performance and more output. It saves time and increases
productivity with less wastage. A screening of candidate is done at the time of
selection procedure. It is seen that a selection is different from recruitment
since both are related with employment process. With recruitment, the
motivation exists with several candidates applying for particular job profile. On
the other hand, selection exists as reverse process which is not correct as it
detained candidates.
Distinction between Recruitment and Selection
Recruitment precedes selection in staffing process. Selection involves choosing
the best candidate with best abilities, skills and knowledge for the required job.
Employee Selection Process
The employee selection process takes place in the following order:
1.Preliminary Interviews
2.Application blanks
3.Written Tests
4.Employment Interviews

5.Medical examination
6.Appointment Letter
Direction
In the process of management, the planning organizing and staffing are not
enough. These are to be supported by effective directing and efficient
controlling. Every manager must direct his subordinates, to get things done.
The directing is considered as an initiating function.
Organization is the sum-total of human and non-human resources. These
resources are utilized in apt ways in order to achieve the desired results.
Through direction, the management conveys and motivates individuals in the
organization to function in the desired way to get organizational objectives.
Without direction, other managerial activities like planning, organizing, and
staffing become ineffective.
Here the manager will direct, instruct, guide and oversee the presentation of
every workers so as to obtain already defined goals. It is the main part of the
management process which is responsible for planning, organizing, staffing.
Direction would primarily include human factors that explain guidance to
workers in order to do work. In case of management, direction refers to
activities that are shaped to inspire subordinates in order to work efficiently
and professionally.

Thus directing involves, issuing orders and instructions, overseeing of the
subordinates and supervising the work being performed by them. In the words
of Urwick and Brech, “directing is the guidance, the inspiration, the leadership
of those men and women that constitutes the real core of the responsibility of
management.” According to Haiman, “Directing consists of a process or
technique by which instruction can be issued and operations can be carried
out as originally planned.” Broadly, the process of directing involves the
following elements:
1. Issuing orders and instructions to the subordinates regarding the work
being performed by them.
2. Guiding, counseling and educating the subordinates and telling them the
way of doing the given job.
3. Supervising the work being performed by them on the regular basis to
ensure that they have been working according to the plan.
Nature of Directing
There are certain characteristics related to directing which are:
1. Pervasive Function: As directing is essential at every level in an
organization, so it is the duty of the manager to give related guidance and to
boost his subordinates.
2. Continuous Activity: In an organization, direction serves as continuous
activity throughout life in an organization.
3. Human Factor: It is seen that directing is associated with subordinates and
as human factor. As both are complex and unpredictable, hence direction
serves as an important part.
4. Creative Activity: With direction, you can alter any plans into performance
as in the absence of this; people will become stationary and physical resources
results in no meaning.

5. Executive Function: As seen, direction is done with all managers and
executives at certain levels without working of an enterprise.
6. Delegate Function: It is a function which is related to direction that deals
with human beings.
Need and Importance of Directing
Directing is at the core of managing process. The presentations of various
accomplishments in organization revolve around it. In spite of sound planning,
a suitable organizational structure, effective staffing and efficient controlling,
the desired results may not be obtained without proper directing. It is only
through directing process, the organizational actions are commenced for
attaining its objectives. In detail, the importance of directing can be understood
on the basis of the following factors.
1. Directing helps in achieving Co-ordination: The Co-ordination is
considered as a by-product of effective directing. In the process of directing,
every manager assimilates the activities of all the subordinates through
supervision, guidance and counseling for achieving pre-set organizational
goals.
2. It is a means of motivation: To accomplish the-objectives of organization, it
is necessary to encourage the workforce there. The employees are motivated to
work willingly and efficiently, through the process of directing. The superior
who guides the activities of underlings stimulates them to follow given orders
and instructions whole-heartedly.
3. Directing supplements other managerial functions: In the process of
managing, the manager has to perform many management functions such as
planning organizing, staffing and controlling etc. To achieve desired results
from all these functions, the directing function is crucial. Through directing,
other managerial functions are initiated and actuated. With ineffective

directing, the managerial functions remain less effective or completely
ineffective.
4. Directing helps in coping with changing environment: The changing
business environment may force the organization to initiate change in its
functioning, structure or goals. Such changes can be presented and managed
effectively with the help of directing. Through directing, the manager provides
vibrant headship and free and frank communication with subordinates as to
convince them regarding the positive side of change. They may be taken into
confidence and persuaded for accepting the change and giving their full
cooperation for implementing it.
5. Directing facilitates order and discipline among employees: Disciplined
workforce is needed for the effective organizational operations. Through the
process of directing briefings and instructions are given to the subordinates
and they are inspired and motivated to follow them. The main purpose of
directing is to get things done by subordinates. By supervising, guiding,
educating and overseeing the activities of subordinates, they are made to work
in a disciplined manner.
Principles of Directing
In order to make directing more effective and meaningful, certain principles are
followed. Some important principles of directing are as follows:
1. Harmony of objectives: The establishment is a collective entity of the
people. It embodies the interest of various groups of the people such as owners,
employees, customers, financiers and the society etc.According to this
principle, to secure maximum prosperity for the organization and to work for
the interest of other groups in a better way, all conflicting objectives must be
synchronized so that they strengthen and promote each other. In this regard,

F.W.Taylor has painted out that an effective direction depends on the harmony
of objectives. Interestingly enough, Henri Fayol talks about the sacrifice of their
personal interest for achieving the objectives of organization, because their
personal interest may be served better only if a common goal of organization is
achieved efficiently.
2. Unity of command: According to this principle while directing subordinates,
every subordinate should get all orders and instructions regarding the work
only from one superior. An application of this principle implies unified direction
of subordinates‟ activities by one superior. In doing so, discipline can be
maintained among them their activities can be controlled effectively and dual
command is avoided.
3. Direct supervision: Directing becomes more effective if it is complemented
by the personal touch of the superior. The superior maintains direct contact
with subordinates, looks into their needs and requirement, helps them in
performing their job and solve their difficulties promptly. The subordinates who
are content tend to contribute more for the accomplishment of organizational
goals.
4.Participative leadership: It is interesting to observe that participative
leadership on the part of superior helps in making directing more effective. If
the superior respects and listens to the views of subordinates, they become
more loyal and sincere and give more cooperation to him. According to this
principle to encourage the performance levels, subordinates should be taken
into confidence and must be consulted at least on the matters that are related
to them before making decision by the superior.
5. Follow up: Issuing orders and instructions is the chief task of direction. In
order to make directing, more effective it is necessary to take up some follow up
actions by the superior. He should motivate subordinates to follow given
directives and work accordingly. He must be vigilant when he oversees the

working of subordinates, check their performance and guide them to follow
suitable course of action for doing the Job.
6.Unity of direction: In order to get the entire organization functional is
absolutely quintessential to make the whole process of directing more
meaningful which makes it imperative to follow the principle of unity of
direction. According to this principle, there should be one head and one plan
for a group of activities, which are similar and have same objective. For
example, all activities related to production should have one plan i.e. the
production plan and this plan should be implemented under the command of
production manager. By adopting this principle, duplication and repetition of
activities is curtailed and benefits of specialization are secured.
Giving Orders
The order is a devise employed by a line manager in directing his immediate
subordinates to start an activity, stop it and modify it. A staff executive does
not issue orders. To some men the matter of giving orders and having them
obeyed seems a very simple affair but the fact is that it is surrounded by many
difficulties.
Mary Parker Follett lays down the following principles which should be followed
in giving orders:
1. The attitude necessary for the carrying out of an order should be prepared in
advance. People will obey an order only if it appeals to their habit patterns.
Therefore, before giving orders, it should be considered how to form the habits
which will ensure their execution.
2. Face-to-face suggestions are preferable to long distance orders.
3. An order should be depersonalized and made an integral part of a given
situation so that the question of someone giving and someone receiving does
not come up. Thus the task of the manager is to make the subordinates

perceive the need of the hour so that the situation communicates its own
message to them.
Chester Barnard lays down four conditions which make an order acceptable.
These are:
1. Order should be clear and complete;
2. Order should be compatible with the purpose of the organization;
3. Order should be compatible with the employee's personal interest; and
4. Order should be operationally feasible.
Orders may be communicated verbally or in writing.
Written orders are appropriate when
1. Subject is important;
2. Many details are involved; and
3. There is geographical distance between the order giver and the recipient.
A manager may follow four types of methods to ensure compliance to his
orders:
1. Force
2. Paternalism
3. Bargain, and
4. Harmony of objectives.
Motivation
Generally, motivation refers to the state within an individual that determines
his behaviour towards some goals. The drive comes from the need or state of
deprivation or „sense of not having in simple terms „lacking‟ which coerces the
individuals to perform in a particular manner. Thus, the basis of motivation
may be basic needs like hunger and thirst or may be social and psychological
needs of belongingness and achievement, self-development, etc. “Any emotion

or desire which so conditions one’s will that the individual is propelled in to
action.” Stanley Vence.
The term motivation has been defined by management authors as “a general
inspirational process which gets the members of the team to pull their weight
effectively, to give their loyalty to the group, to carry out properly the tasks that
they accepted and generally to play an effective part in the job that the group
has undertaken”-Brech. “The complex of forces starting and keeping a person
at work in an organization”: Robert‟s Encyclopaedia of Management
Nature of Motivation
On the basis of the above definitions, the following observations can be made
regarding motivation:
1. Motivation is an inner psychological force, which activates and compels the
person to behave in a particular manner.
2. Motivation process is influenced by personality traits learning abilities,
perception and competence of an individual.

3. Highly motivated employee works more efficiently and his level of production
lends to be higher than others.
4. Motivation originates from the wants of an individual. It is a tension of
lacking something in his mind, which forces him to work more efficiently.
5. Motivation is also a process of stimulating energy of an individual for
achieving set goal.
6. Motivation also plays a crucial role in determining the level of performance.
Highly motivated employee will get higher satisfaction, which may lead to
higher efficiency.
7. Motivating force and its degree may differ from individual to individual
depending on his personality, needs, competence and other factors.
8. The process of motivation helps the manager in analyzing and
understanding human behaviour and finding out that how an individual can
be inspired to produce desirable working behaviour.
9. Motivation may be positive as well as negative. Positive motivation includes
incentives, rewards and other benefits while negative motivation implies some
punishment, fear, use of force, etc.
10. The process of motivation contributes to and boosts up the morale of the
employees. Further, high degree of motivation may lead to high morale.
Theories of Motivation
No organization can thrive without highly dedicated team of employees. It is
only through them that all other physical resources, like land, building capital,
machine, etc. are going to be used for the achievement of prearranged goals.
Due to the enormous effect of motivational factors on the working behavior and
level of performance of the employee, lot of research work has been done and
because of that, many theories of motivation have been developed. Few
important and well-known theories are explained below:

A) Maslow’s hierarchy of needs theory Abraham Maslow, an eminent US
psychologist, has classified human needs in a logical convenient way that has
an important implication for managers making his theory the most popular
amongst the managers. In this theory, he has pointed out and explained how
needs influence human behaviour. Maslow viewed human motivation as a
hierarchy of five needs ranging from most basic physiological needs to the
highest needs for self-actualization.
Physiological needs: These comprise the basic components: food, shelter,
and clothing. These needs are most powerful motivators, as no individual
can survive without them. Physiological needs must be satisfied to some
level or these should be partially satisfied, before the individual moves to
satisfy other higher category needs. Maslow observed that man lives by
bread alone, when there is no bread.
Safety needs: Once level one has been accomplished and the physiological
needs satisfied, one feels concerned about safety from future uncertainty,
enemies and other threats. These are essentially needs of self-preservation.
At this stage, an individual begins to think for future and makes efforts to
provide for rainy days. It is concluded by Maslow that, employees need
sufficient wage to feed, to take shelter, to protect them and their families

and a safe working environment before attempting to satisfy other needs of
the higher order.
Social needs: Maslow focuses next on satisfying needs of love and affection,
which are known as social needs. Social needs include the need to love and
be loved and the need to belong and be identified with a group. Although not
written as pre-requisite it is an essential need. Family life invariably affects
work environment. As for the first two levels of need, relative satisfaction of
social needs gives rise to next higher-level need.
Esteem needs: Employees in the organization who perceive themselves as
worthwhile are said to possess esteem needs. Self-respect is a key to such
needs. Much of our self-respect stems from acceptance in society and
commanding the respect of fellow members within society. . Esteem needs
include need for self-respect and appreciation from others, status and
prestige in the society etc.
Self-actualization needs: At the top of Maslow‟s hierarchy of needs, there
lies the need of self-actualization. It is an open-ended need, because it
relates to the need to become more and more what one is to become
everything that one is capable of becoming. It includes need for realization
one’s full potentials of development, maturity and autonomy. On the relative
satisfaction of this need, an individual becomes growth-oriented.
Self-directed, detached and creative but in organization he hardly achieves
self-realization. However, the creativity of an individual in producing new
and practical ideas, in bringing about productivity and innovation and in
reducing cost that might satisfy some of the needs of self-actualization.

B) Herzberg's Two-Factor Theory Herzberg's Two-Factor Theory is the
brainchild of Frederick Herzberg. This is a type of motivation theory based on
content motivation. It is a theory which motivates individual by means of
finding and satisfying of individual requirements, desires and further works to
satisfy individual expectations. According to Frederick Herzberg, who studied
clinical psychology in Pittsburgh, believed that the theory is related to work
which motivates several employees. The theory was published under Motivation
to Work during the year 1959.
This theory is based upon notion that motivation can be split into hygiene
factors and motivation factors. He concluded that there were two types of
motivation:
1. Hygiene factor
Hygiene factor shows dissatisfaction level which is the real creators of job
satisfaction which covers:
 Supervision
 Interpersonal relations
 Physical working conditions

 Salary
2. Motivation Factors
It cover motivation aspect in case of Job which includes:
 Achievement
 Advancement
 Recognition
 Responsibility such factors are basically the requirements that will
avoid nasty goings-on and uneasiness while motivational scale is the
requirement for personal development.
Importance of Motivation
Importance of motivation in management may be judged based on the following
factors.
Effective use of resources: In business, all physical resources are to be used
through human force. Effective and competent use of these resources depends
on the ability and reading of work force. If this work force is inspired to work
professionally, they use the resources properly and strive to yield good results.
Higher efficiency: Motivation is directly related to the level of efficiency. Highly
motivated employees make full use of their energy and other abilities that raise
the existing level of efficiency. They produce more as compared to other
employees.
Accomplishment of organizational goals: The process of motivation helps in
shaping the working behaviour of the employees and making it desirable for
achieving objectives. Highly motivated employees would make goal directed
efforts. They are more committed and cooperative for seeking organizational
goals.

Reduced labour turnover and absenteeism: Highly motivated employees are
the most important and valuable assets of the organization. They are more
loyal and sincere therefore they are meticulous in their work schedule and
prefer to stay on the job for longer periods. These factors help in reducing slack
behaviour and labour turnover.
Healthy industrial relation: Motivation forms the base of good industrial
relation. The employees who lack motivation will be unproductive and be
unwilling to obey any rules. This might cause unrest amongst them. However,
if they are inspired to work they will work efficiently and maintain discipline.
Improved corporate image: Motivation also helps in improving an image of
organization. If employees are motivated, they produce more, they maintain
self-discipline and productive internal environment in the organization, which
ultimately gives better impression to the outsiders dealing with an organization
and its image is enhanced.
Leadership
Leadership is a process by which a person influences others to accomplish an
objective and directs the organization in a way that makes it more cohesive and
coherent. Leadership is a process of giving purpose (meaningful direction) to
collective effort and causing willing effort to be expended to achieve purpose.
(Jacobs and Jaques) It is the process of influencing the activities of an
individual or a group in efforts toward goal achievement in a given situation.”
(Hersey and Blanchard)
Characteristics of Leadership
Some important characteristics of leadership are as follows.

1. Leadership implies the existence of followers
We appraise the quality of a person's leadership in practice by studying his
followers. We ask: How many and what kind of followers does he have? How
strong is their commitment as a result of his leadership? How long will their
commitment last? By answering questions of this nature we get to know the
quality of leadership. We must not, however, forget that leaders within
organizations are also followers. The supervisor works for a branch head, who
works for a division manager, who works for the vice president of a department
and so on. Thus, in formal organizations of several levels, a leader has to be
able to wear both hats gracefully, to be able to relate himself both upward and
downward.
2. Leadership involves a community of interest between the leader and
his followers
In other words, the objectives of both the leader and his men are one and the
same. If the leader strives for one purpose and his team of workers for some
other purpose, it is no leadership. In the words of G.R. Terry, "Leadership is the
activity of influencing people to strive willingly for mutual objectives."
3. Leadership involves an unequal distribution of authority among leaders
and group members

Leaders can direct some of the activities of group members; that is the group
members are compelled or are willing to obey most of the leader's directions.
The group members cannot similarly direct the leader's activities, though they
will obviously affect those activities in a number of ways.
4. Leadership implies that leaders can influence their followers or
subordinates in addition to being able to give their followers or
subordinates legitimate directions
In other words, leaders not only tell their subordinates what to do by way of
command but also influence by their behaviour and conduct. The use of
command by leaders succeeds only in bringing about a temporary behavioural
change in the followers. Permanent attitudinal change in followers comes
through the use of influence only. According to Hersey and Blanchard6
leadership of the first type though successful is not effective. The second type
of leadership is both successful and effective.
Behavioral approach
Several studies have been made did not agree as to which traits are leadership
traits or their relationship to actual instances of leadership. It is found that
most of these so called traits are really pattern of behavior. There are several
theories based on leadership behavior and styles. Some of them are:
(i) Leadership based on the use of authority.
(ii) Likert's four systems of managing.
(iii) The managerial grid and
(iv) Leadership involving a variety of styles and level of use of power and
influence.
Style based on authority:
Based on how the authority is used, the leaders are styled into 3 groups.

1. Autocratic leader- who commands and expects compliance, is dogmatic and
positive, and leads by the ability to withhold or give rewards and punishment.
2.Democratic or participative leader- who consults with subordinates on
proposed actions and decisions and encourages participation from them. This
type of leaders include the person who does not take action without the
concurrence of subordinates and who makes decisions but consults with
subordinates before doing so.
3. Free-rein- leader who uses his power very little and gives a high degree of
independence to his subordinates to carry out their work. Such leaders depend
largely on subordinates to set their own goals and the means to achieve
Communication
Communication has been variously defined by a number of writers. According
to Newman and summer, it is an exchange of facts, ideas, opinions or emotions
by two or more persons. Allen Louise defines it as the sum of all the things one
person does when he wants to create understanding in the minds of another.
Simply stated, communication means the process of passing information and
understanding from one person to another.
A proper understanding of information is one very important aspect of
communication. If the information is not understood by the receiver in the
same meaning in which its sender wants him to understand it, the purpose of
communication is defeated. This may result in confusion, chaos and
organizational inefficiency, leading to non-fulfillment of business goals. In
short, communication is not merely transmission of information from one
person to another but also correct interpretation and understanding of the
information. It is not to get something off the mind of the person transmitting
it, but to get something into the mind and actions of the person receiving it.

Importance of Communication
The importance of communication can be elaborated as under:
1) Communication is fundamental to accomplish work
In any organization, a manager spends most of his time communicating i.e.,
reading, writing' Speaking or listening. Communication is the means by which
he persuades, informs, motivates and leads his employees towards
organizational goals through communication that there is a transmission of
information among employ • It is without communication no work can get
accomplished.
2. Communication facilities planning
Planning, the most important function of management requires extensive
communication among the rank and file of the organization. Planning is done
after inputs from key executives and other personnel.
3. Communication helps in decision-making
Managers rely heavily on the quality and quantity of information that is
available in order to take decisions. It is communications which provides the
right type of information to a manager and enables him to consider the pros
and cons thoroughly before taking a decision.

4. Communication is the basis of co-ordination
If all the departments and divisions of an organization have to co-ordinate their
efforts to achieve the common goals, communication is highly essential. A good
communication system is the basis of all inter-dependent activities. It is the
foundation of all group activity. It is only through communication that people
can attain a common view point and therefore co-operate with each other to
achieve organizational objectives. According to Hick, “When communication
stops, then organization activity are comes to an end.
5. Communication improves relationships between employees.
Communication builds bridges of relationships between employees. It binds
individuals to a common purpose. A good communication system helps
exchange of facts, ideas, feelings and sentiments among the employees. This
results in in a better understanding among the employees which is what an
organization exactly wants.
6. Communication improves morale and motivation:
When manager listens carefully to employee’s grievances and take necessary
action, it improves morale and motivation of the workers. Without
communication, it is impossible to understand others and make them
understand. Good communication helps in addressing workers problems and
therefore keeps their morale and motivation high.
7. Communication is key to managerial-efficiency:
Good communication skills are a must for modern-day managers. The growth
success or the growth of a manager largely depends on his communication
skills.

Purposes of Communication
Some important purposes which communication servers are as under:
1. Communication is needed in the recruitment process to persuade potential
employees of the merits of working for the enterprise. The recruits are told
about the company's organization structure, its policies and practices.
2.Communication is needed in the area of orientation to make people
acquainted with peers, superiors and with company's rules and regulations.
3. Communication is needed to enable employees to perform their functions
effectively. Employees need to know their job's relationship and importance to
the overall operation. This knowledge makes it easy for them to identify with
the organizational mission. If a nurse in a hospital knows why she is to follow
certain procedures with a patient and how this relates to the total therapy
programme for him, it is much easier for her to develop an ideological
commitment to the hospital.
4. Communication is needed to acquaint the subordinates with the evaluation
of their contribution to enterprise activity. It is a matter of some motivational
importance for the subordinates to know from their superior how they stand
and what the future may hold for them. This appraisal, if intelligently carried
out, boosts the subordinates' morale and helps them in building their career.
5. Communication is needed to teach employees about personal safety on the
job. This is essential to accidents, to lower compensation and legal costs and to
decrease recruitment and training tor replacements.
6. Communication is of vital importance in projecting the image of an
enterprise in the society. The amount of support which an enterprise receives
from its social environment is affected by the information which elite groups
and the wider public have acquired about its goals, activities and
accomplishments. During the 1982 blowout at Bombay High, ONGC took care
to keep the country informed about the steps that were being taken to combat

the crisis. Contrast this with Union Carbide which did nothing to refurbish its
image after the Bhopal Gas leak.
7. Communication helps the manager in his decision process. There is a spate
of varied information produced in an enterprise. The manager must make a
choice of useful and essential information which should reach him. The
important question before him is 'what do I need to know?' It should be
remembered that no two successive managers of the same plant will give the
same answer to this question.
8. Communication helps in achieving coordination. In a large organization,
working on the basis of division of labour and specialization, there is need for
coordination among its component parts. This can be achieved only through
communication. A good communication system is the basis of all
interdependent activities which we find being carried out in different
departments of an organization.
9. Communication promotes cooperation and industrial peace. Most of the
disputes in an enterprise take place because of either lack of communication or
improper communication. Communication helps the management to tell the
subordinates about the objectives of the business and how they can help in
achieving them. Similarly, communication helps the subordinates in putting
forth their grievances, suggestions, etc. before the management. Thus
communication helps in promoting mutual understanding, cooperation and
goodwill between the management and workers.
10. Communication increases managerial efficiency. It is said that the world of
modem management is the world of communication and the success of a
manager in the performance of his duties depends on his ability to
communicate. Administrators in business and industry reportedly spend
between 75 and 95 per cent of their time communicating (either sending or
receiving messages.

Technological Innovation Management And Entrepreneurship-2.pdf

Recommended

Recommended

More Related Content

Similar to Technological Innovation Management And Entrepreneurship-2.pdf

Similar to Technological Innovation Management And Entrepreneurship-2.pdf (20)

Recently uploaded

Recently uploaded (17)

Technological Innovation Management And Entrepreneurship-2.pdf