Concept of Management and Communication

CONCEPT OF MANAGEMENT
[18MBA01]
UNIT-I
INTRODUCTION OF MANAGEMENT
MEANING
Management is the art of getting things done by a group of people with the effective utilization of
available resources.
DEFINITIONS
According to Taylor,
“Management is the art of knowing what you want to do and then seeing that it is done in the best
and cheapest way.”
According to Mary Parker Follett,
“Management is the art of getting things done through others.”
Nature of Management
A. Management is a science
• Science is systematically arranged branch of knowledge.
• Principles are formed continuous research.
• Principles are universally applicable.
• Scientific principles formulated on the basis of observation and logic.
B. Management is an Art
• Theoretical knowledge is systematically arranged in art.
• Art gives importance to individual difference.
• Artist perfection through constant practice.
C. Management is both Science and Art
Nature of Management
1. Management is an activity
2. Management is a purposeful activity.
3. Management is concerned with the efforts of a group
4. Management applies economic principles.
5. Management involves decision making.
6. Management is getting things done through others.
7. Management is an integrating process.
8. Management co-ordinates all activities and resources.
Importance of Management
1] Management is goal oriented:-
Management is concern with achievement of specific goals. It is always directed towards
achievement of objectives. The success of management is measured by the extent to which
objectives are achieved.
2] Management is associated with group efforts:-
The business comes into existence with certain objectives which are to be achieved by a group
and not by one person alone. Management gets things done by, with and through the efforts of
group members. It co-ordinates the activities and actions of its members towards a common goal.
CONCEPT OF MGT [18MBA01] Page 1

3] Management is intangible:-
It is an unseen force, its presence can be evidence by the result of its efforts up to date order but
they generally remain unnoticed, Where as mismanagement is quickly noticed.
4] Management is an activity and not a person or group of person:-
Management is not people or not a certain class but it is the activity, it is the process of planning,
organizing, directing and controlling to achieve the objectives of the organization.
5] Management is situational:-
Management does not advice best way of doing things. Effective management is always
situational. A manager has to apply principles, approaches and techniques of management after
taking into consideration the existing situations.
6] Management is universal:-
Most of the principles and techniques of management are universal in nature. They can be applied
to government organization, military, educational institutes, religious institutes etc. They provide
working guidelines which can be adopted according to situations.
7] Management is concern with people:-
Since management involves getting things done through others only human being performed this
activity with the help of planning and control. The element man cannot be separated from the
management.
8] Management is the combination of art, science and profession:-
Management makes use of science as well as art. It is science because it collects knowledge with
the methods and data, analyzes and measures it and decision is taken with the help of experiment.
It is a systematic body of knowledge. Art means application of knowledge for solving various
problems. In modern times there is separation of ownership and management, so professional
experts are appointed.
SCOPE OF MANAGEMENT
1. Subject-Matter of Management: Planning, organizing, directing, coordinating and
controlling are the activities included in the subject matter of management.
2. Functional Areas of Management: These include:
• Financial Management includes accounting, budgetary control, quality control,
financial planning and managing the overall finances of an organization.
• Personnel Management includes recruitment, training, transfer promotion, demotion,
retirement, termination, labor-welfare and social security industrial relations.
• Purchasing management includes inviting tenders for raw materials, placing orders,
entering into contracts and materials control.
• Production Management includes production planning, production control techniques,
quality control and inspection and time and motion studies.
• Maintenance Management involves proper care and maintenance of the buildings, plant
and machinery.
• Transport Management includes packing, warehousing and transportation by rail, road
and air.
• Distribution Management includes marketing, market research, price-determination,
taking market risk and advertising, publicity and sales promotion.
• Office Management includes activities to properly manage the layout, staffing and
equipment of the office.
• Development Management involves experimentation and research of production
techniques, markets, etc.

3. Management is an Inter-Disciplinary Approach: For the correct implementation of the
management, it is important to have knowledge of commerce, economics, sociology, psychology
and mathematics.
4. Universal Application: The principles of management can be applied to all types of
organizations irrespective of the nature of tasks that they perform.
5. Essentials of Management: Three essentials of management are:
• Scientific method
• Human relations
• Quantitative technique
6. Modern Management is an Agent of Change: The management techniques can be modified
by proper research and development to improve the performance of an organization.
FUNCTIONS OF MANAGEMENT
The major functions of management are discussed below:
Planning:
It includes forecasting, formation of objectives, policies, programmes, producer and budget. It is a
function of determining the methods or path of obtaining their objectives. It determines in
advance what should be done, why should be done, when, where, how should be done. This is
done not only for organization as a whole but also for every division, section and department.
Planning is thinking before doing.
Organizing:-
It includes departmentation, delegation of authority, fixing of responsibility and establishment of
relationship.
It is a function of providing everything useful to the business organization. There are certain
resources which are mobilize i.e. man, machine, material, money, but still there are certain
limitations on these resources. A manager has to design and develop a structure of various
relations. This structure, results from identification and grouping work, delegation of authority
and responsibility and establishing relationship.
Staffing:-
It includes man power planning, recruitment, selection, placement and training.
People are basically responsible for the progress of the organization. Right man should be
employed for right job. It also involved training of personnel and proper remuneration.
Directing:-
It includes decision making, supervising, guidance etc. It reflects providing dynamic leadership.
When the manager performs these functions, he issues orders and instructions to supervisors. It
also implies the creation of a favorable work, environment motivation, managing managers,
managing workers and managing work environment.
Communication:-
Communication provides the vital link in any organization. Every successful manager has to
develop an effective system of communication.
Communication means exchange of facts, ideas and information between two or more person. It
helps in building up high moral.
Controlling:-
It is a process of checking actual performance against standard performance. If there is any
difference or deviation then these differences should be detected and necessary steps should be
taken. It involves three elements:
1. Establishing standard of performance.

2. Measuring actual performance with establishment.
3. Finding out reasons for deviation.
Planning Organizing
Controlling Functions of Management Staffing
Communication Directing
Management includes planning, organizing, staffing and decision making, motivation, communication,
co-ordination and so on.
The other functions of management are as follows:
Motivation:-
In a well organization unforeseen problems are created. It becomes necessary for the workers to
have a leader, to whom they can consult for the guidance. One must help the worker to solve their
problems. The manager is the leader for them. So he should accept the problems, should
appreciate the workers for the work done by them. He has to act as a well motivation source for
the workers.
Decision Making:-
It is the process in which a lot of actions are involved and lot of alternatives are available. A
manager has to choose right alternative for attainment of his goals. There are many decisions
which include marketing decision, cost price decision and capital investment decision.
Forecasting:-
Correct sales forecasting is essential for manufacturing organization. This helps in production, by
making available right workers and right material at right place and at right time. It also helps
manager for purchasing of raw materials, equipments and labours. Many times production is
made in advance to meet future demands and forecasting is essential because of short supply of
raw material, lack of proper control, to fix up sales targets and to meet future financial needs. It
also helps to give ideas about expansion of business; and for giving training to the personnel of
the organization.
ROLES OF A MANAGER
1. Interpersonal Roles
Figurehead: In this role, every manager has to perform some duties of a ceremonial nature, such
as greeting the touring dignitaries, attending the wedding of an employee, taking an important
customer to lunch and so on.
Leader: As a leader, every manager must motivate and encourage his employees. He must also
try to reconcile their individual needs with the goals of the organization.
Liaison: In this role of liaison, every manager must cultivate contacts outside his vertical chain of
command to collect information useful for his organization.
2. Informational Roles

Monitor: As monitor, the manager has to perpetually scan his environment for information,
interrogate his liaison contacts and his subordinates, and receive unsolicited information, much of
it as result of the network of personal contacts he has developed.
Disseminator: In the role of a disseminator, the manager passes some of his privileged
information directly to his subordinates who would otherwise have no access to it.
Spokesman: In this role, the manager informs and satisfies various groups and people who
influence his organization. Thus, he advises shareholders about financial performance, assures
consumer groups that the organization is fulfilling its social responsibilities and satisfies
government that the origination is abiding by the law.
3. Decisional Roles
Entrepreneur: In this role, the manager constantly looks out for new ideas and seeks to improve
his unit by adapting it to changing conditions in the environment.
Disturbance Handler: In this role, the manager has to work like a fire fighter. He must seek
solutions of various unanticipated problems – a strike may loom large a major customer may go
bankrupt; a supplier may renege on his contract, and so on.
Resource Allocator: In this role, the manager must divide work and delegate authority among
his subordinates. He must decide who will get what.
Negotiator: The manager has to spend considerable time in negotiations. Thus, the chairman of a
company may negotiate with the union leaders a new strike issue, the foreman may negotiate with
the workers a grievance problem, and so on.
In addition, managers in any organization work with each other to establish the organization’s
long-range goals and to plan how to achieve them. They also work together to provide one
another with the accurate information needed to perform tasks. Thus, managers act as channels of
communication with the organization.
QUALITIES OF MANAGERS
1. Superior communication skills: A good manager is your classic communication expert.
Promoting a work environment where everyone feels valued and heard takes excellent
communication skills and practice. Frequent and effective communication through multiple
channels (in-person, email, phone, even voice-over IP) strengthens your ties with your employees
to encourage trust and limit conflict.
2. Leading with transparency and honesty: Whenever possible, update your team on anything
from small successes concerns to large restructuring possibilities so that they are aware of what’s
going on at all times. Even if the issue at hand does not pertain directly to them, it helps to assure
that they are an integral part of the company and that their support and understanding is valued.
3. Supporting your employees with clear direction and removing their roadblocks for them:
You are on their side and they need to feel that at all times. Be clear with your expectations for
them – have them create S.M.A.R.T. goals or something similar and go through it with them.
Then help them succeed with all the (reasonable) requests for technology or time that they need.
4. Embracing technology: A good manager always keeps an eye out of technology that will
promote the productivity of the team. Though some employees may be resistant to change, the
bottom line is that technology may be able to take care of the more tedious aspects of their job
responsibilities, which frees up time to be more strategic in their thinking.
5. Motivating with positive feedback and recognition: You can never praise someone too
much! If an employee is doing a great job, be sure to recognize it privately and in the general
office space so that he or she feels appreciated. At the same time, if there’s an employee that
needs some improvement, let them know that you’re aware of the situation and that you’re there
to help through constructive criticism. Never criticize in public
6. An expert in the field: Being a leader means also means that you need to have answers to
some, if not all, of the questions. A good manager is an authority in the industry and understands
each role of the company. Consider some training sessions for your team that allow you to share
some new strategies and refresh on methods to keep your team learning from you.
7. Mediating with productivity and calmness: Unfortunately, many managers report that a
large portion of their time goes toward conflict resolution and mediating between employees, and
sometimes between employees and clients. Even if it’s more personal than business-related, do
not ignore the emotions of your employees. Doing so will create unnecessary and possibly
harmful distance between you and the employee, eroding the trust in your relationship and
compromising productivity in the workplace. When approached with a situation, be sure to stay
calm and use the rules of effective communication to resolve the issue – listen, question,
facilitate, and direct. Allow your employees to address their emotions and issues so you can help
them move beyond it with an effective solution and get back to productivity.
8. Promoting cross-level and cross-functional collaboration: Many companies have their
teams “working in silos”, where they only immerse themselves in their whole process without the
greater understanding of what’s happening in the company as a whole. Encourage employees to
spend some time sharing their projects with other departments or implement a mentorship
program. On a recreational level, cross-team lunches or retreats do wonders for employees getting
to know each other.
9. Creating a productive and lively work environment: Team spirit is a wonderful thing. Make
sure to set aside time for your employees to get to know each other personally, such as small
office celebrations for birthdays, etc. At meetings, create team challenges to get their competitive
juices going – nothing bonds a team like a contest. Or have an employee set up a humor board
where employees can contribute jokes or funny pictures.
10. Trusting your employees: Micromanaging, unless specifically requested by your employee,
is rarely a good thing. After you’ve clearly laid the tasks and expectations, trust them to do the
best job they can. You are their leader and to acquire their trust, you must lead by example.
LEVELS OF MANAGEMENT
“Levels of Management’ refers to a line of demarcation between various managerial positions in
an organization.
The levels of management can be classified in three broad categories: -
• Top level / Administrative level
• Middle level management
• Low level / Supervisory
Top level / Administrative level
It consists of board of directors, chief executive or managing director.
o Top management lays down the objectives and broad policies of the enterprise.
o It issues necessary instructions for preparation of department budgets, procedures,
schedules etc. It prepares strategic plans & policies for the enterprise.
o It appoints the executive for middle level i.e. departmental managers.
o It controls & coordinates the activities of all the departments.
o It is also responsible for maintaining a contact with the outside world.
o It provides guidance and direction.
o The top management is also responsible towards the shareholders for the performance of
the enterprise
Middle level management

The branch managers and departmental managers constitute middle level.
o They execute the plans of the organization in accordance with the policies and directives
of the top management.
o They make plans for the sub-units of the organization.
o They participate in employment & training of lower level management.
o They interpret and explain policies from top level management to lower level.
o They are responsible for coordinating the activities within the division or department.
o It also sends important reports and other important data to top level management.
o They evaluate performance of junior managers.
o They are also responsible for inspiring lower level managers towards better performance.
Low level / Supervisory
Lower level is also known as supervisory / operative level of management. It consists of supervisors,
foreman, section officers, superintendent etc.
o Assigning of jobs and tasks to various workers.
o They guide and instruct workers for day to day activities.
o They are responsible for the quality as well as quantity of production.
o They are also entrusted with the responsibility of maintaining good relation in the
organization.
o They communicate workers problems, suggestions, and recommendatory appeals etc to
the higher level and higher level goals and objectives to the workers.
o They help to solve the grievances of the workers.
EVOLUTION OF MANAGEMENT THOUGHTS
Management started when man started living in groups. It relates to achieve certain objectives.
According to George management begin in family, and after that it is expanded in tribes & finally the
scope was increased up to urbanization.
The reference of management was found in Babylonia (civilization on the bank of Nile river).
After that Egypt provides us with an example of decentralized organization with little control.
Management thoughts are shown in planning and organizing in the construction of Pyramids.
The ancient philosopher first recognized the need for proper methodology for employees’ selection and
training.
Greek provides extensive documentation of management principles. These principles of
management are world wide famous. It is considered as management is an art. It includes employees’
selection, delegation of authority, time study, motion study etc.
Looking at the entire process of management thoughts, in the early period management was
based on trial basis. There was no exchange of ideas and no practice of communication. Management is
developing science. It grows accordingly to changes in the social & political & economic changes. There
are five stages of evolution of management thoughts.
CONTRIBUTION OF F.W. TAYLOR
F.W. Taylor and Henry Fayol are generally regarded as the founders of scientific management and
administrative management and both provided the bases for science and art of management.
Features of Scientific Management:
• It was closely associated with the industrial revolution and the rise of large-scale
enterprise.
• Classical organization and management theory is based on contributions from a number
of sources. They are scientific management, Administrative management theory,
bureaucratic model, and micro-economics and public administration.

• Management thought focused on job content division of labour, standardization,
simplification and specialization and scientific approach towards organization.
Taylor's Scientific Management (USA 1856-1915):
The scientific method consists essentially of
(a) Observation
(b) Measurement
(c) Experimentation and
(d) Inference.
He summed up his approach in these words:
• Science, not rule of thumb
• Harmony, not discord
• Co-operation, not individualism
• Maximum output, in place of restricted output
• The development of each man to his greatest efficiency and prosperity.
Elements of Scientific Management
1. Scientific Task and Rate-setting, work improvement, etc.
2. Planning the Task.
3. Vocational Selection and Training
4. Standardization (of working conditions, material equipment etc.)
5. Specialization
6. Mental Revolution.
1. Scientific Task and Rate-Setting (work study): Work study may be defined as the systematic,
objective and critical examination of all the factors governing the operational efficiency of any specified
activity in order to effect improvement.
Work study includes.
(a) Methods Study:
(b) Motion Study:
(c) Time Study (work measurement):
(d) Fatigue Study:
(e) Rate-setting:
2. Planning the Task: Having set the task which an average worker must strive to perform to get wages
at the higher piece-rate, necessary steps have to be taken to plan the production .
3. Selection and Training: The procedure of selection will also have to be systematized. Proper attention
has also to be devoted to the training of the workers in the correct methods of work.
4. Standardization: Standardization may be introduced in respect of the following.
(a) Tools and equipment
(b) Speed
(c) Conditions of Work
(d) Materials
5. Specialization: The two functions of 'planning' and 'doing' are separated in the organization of the
plant.
(a) The Route Clerk
(b) The Instruction Card Clerk
(c) The Time and Cost Clerk
(d) The Shop Disciplinarian
(e) The Gang Boss

(f) The Speed Boss
(g) The Repair Boss
(h) The Inspector
6. Mental Revolution: Taylor has in mind the enormous gain that arises from higher productivity
Benefits of Scientific Management
1. Replacement of traditional rule of thumb method by scientific techniques.
2. Proper selection and training of workers.
3. Incentive wages to the workers for higher production.
4. Elimination of wastes and rationalization of system of control.
5. Standardization of tools, equipment, materials and work methods.
6. Detailed instructions and constant guidance of the workers.
7. Establishment of harmonious relationship between the workers.
8. Better utilization of various resources.
9. Satisfaction of the needs of the customers by providing higher quality products at lower
prices.
CONTRIBUTION OF HENRI FAYOL:
The Father of modern operational theory
Industrial Activities:
Fayol found that industrial activates could be divided into six groups as
1. Technical (Production)
2. Commercial (buying, Selling and exchanging).
3. Financial (Search for, and optimum use of capital).
4. Security (Protection of property and persons).
5. Accounting (including Statistics).
6. Managerial (Planning, organization, command, contribution and control).
14 Principles of Management:
Fayol listed Fourteen Principles based on experience.
1. Division of Work:-
Fayol applies the principle to all kind of work, management as well as technical.
2. Authority and responsibility:
Henri Fayol finds authority and responsibility to be related with the latter arising from the former.
He sees authority as a combination of official factors, manager’s position and personal factors,
“Compounded of intelligence, experience, moral worth, past services etc.
3. Discipline:
Fayol declares that discipline requires good superiors at all levels.
4. Unity of Command:
This means that employees should receive order from one superior only.
5. Unity of Direction:
According to this principal, each group of activities with same objective must have one head and
one plan.
6. Subordination of individuals to general interest:
When the two are found to differ, management must reconcile them.
7. Remuneration:
Remuneration and method of payment should b fair and have maximum possible satisfaction to
employees and employer.

8. Centralization:
Without using the term centralization of authority ‘’Fayol refers authority dispersed or
concentrated.
9. Scalar Chain:
Fayol thinks of this as “Chain of Superior” from beigest to low ranks should be short circuited.
10. Order:
Fayol classify this into “material” and “social” order. This is essential principle in arrangement of
things and people in an organization.
11. Equity:
Loyalty and devotion should be elected from personnel on biases of kindliness and justice, when
dealing with subordinate.
12. Stability of tenure:
In bad management, Fayol points out id dangers and costs.
13. Initiative:
Initiative is execution of a plan.
14. Esprit de corps:
This is the principle that in the union there is strength. This principle emphasis on work and unity
of communication, in order to accomplishment the objective.
UNIT-II
PLANNING & ORGANIZING
PLANNING DEFINITION
According to Koontz,“ Planning is an intellectually demanded process, it requires the conscious
determination of courses of action and the bases of decision on purpose, knowledge and considered
estimates.
Elements of planning
• What will be done
• What resources will be required
• How it will be done
• Who will do it
• When it will be done
NATURE/FEATURES/CHARACTERISTICS OF PLANNING
• Planning is goal oriented
o Planning is made to achieve desired objective of business.
o The goals established should general acceptance otherwise individual efforts & energies
will go misguided and misdirected.
o Planning identifies the action that would lead to desired goals quickly & economically.
o It provides sense of direction to various activities. E.g. Maruti Udhyog is trying to
capture once again Indian Car Market by launching diesel models.
• Planning is a primary function
o Planning lays foundation for other functions of management.
o It serves as a guide for organizing, staffing, directing and controlling.
o All the functions of management are performed within the framework of plans laid out.
o Therefore planning is the basic or fundamental function of management.

• Planning is a thinking process
o Planning is a mental exercise involving creative thinking, sound judgement and
imagination.
o It is not a mere guesswork but a rotational thinking.
o A manager can prepare sound plans only if he has sound judgement, foresight and
imagination.
o Planning is always based on goals, facts and considered estimates.
• Planning is flexible
o Planning is done for the future.
o Since future is unpredictable, planning must provide enough room to cope with the
changes in customer’s demand, competition, govt. policies etc.
o Under changed circumstances, the original plan of action must be revised and updated to
make it more practical.
• Planning is all-pervasive
o It is required at all levels of management and in all departments of enterprise.
o Of course, the scope of planning may differ from one level to another.
o The top level may be more concerned about planning the organization as a whole
whereas the middle level may be more specific in departmental plans and the lower level
plans implementation of the same.
• Planning is a continuous process
o Planning is a never ending function due to the dynamic business environment.
o Plans are also prepared for specific period f time and at the end of that period, plans are
subjected to revaluation and review in the light of new requirements and changing
conditions.
o Planning never comes into end till the enterprise exists issues, problems may keep
cropping up and they have to be tackled by planning effectively.
• Planning involves choice
o Planning essentially involves choice among various alternatives.
o Therefore, if there is only one possible course of action, there is no need planning
because there is no choice.
o Thus, decision making is an integral part of planning.
o A manager is surrounded by no. of alternatives. He has to pick the best depending upon
requirements & resources of the enterprises.
• Planning is rational
o Planning process is a rational approach to the achieving of organizational goals.
o An action is rational if it is objectively and intelligently decided.
o The aim of management is to reach the goals with the application of appropriate
resources.
o Planning suggests a number of alternatives for reaching the goals.
o Future is always uncertain but planning process provides a rational approach for
suggesting alternative approaches to various situations.
• Planning is an integrated process
o Plans made at different levels are inter-dependent and inter-related.
o The top level of an organization develops strategic plans, on the basic of the middle level
of management develops tactical plans.

oIn turn, the lower level of management develops operational plans on the basic of tactical
plans. Thus, plans constitute a hierarchy in the organization.
o Even though plans are made at different levels they should be in tandem with corporate
objectives.
• Planning is futuristic
o Planning is done for future.
o It requires peeping in future, analyzing it and predicting it.
o Thus planning is based on forecasting.
o A plan is a synthesis of forecast.
o It is a mental predisposition for things to happen in future.
IMPORTANCE / PURPOSE OF PLANNING
o Planning provides direction
o It states in advance, what should be done in future, so it provides direction for action.
o Planning minimizes risk & uncertainty
o There are many risks involved in any modern business. Planning helps to forecast these
business-related risks.
o It also helps to take the necessary precautions to avoid these risks and prepare for future
uncertainties in advance. Thus, it reduces business risks.
o Planning ensures coordination
o It facilitates the coordination of activities. Thus, reduces overlapping among activities
and eliminates unproductive work.
o Planning leads to economy
o Planning facilitates optimum utilization of available resources.
o It makes it possible for things to occur which would not otherwise happen.
o It improves the competitive strength of an organization by helping it to discover and
exploit opportunities a rational solution to problems, planning results in the use of most
efficient methods of work.
o “Planning minimizes costs because of the emphasis on efficient operation and
consistency.
o It substitutes joint directed efforts for uncoordinated piece-meal activity, even flow of
work for uneven flow and deliberate decision for snap judgment.”
o Planning facilitates decision making
o A manager makes many different plans.
o Then the manager selects or chooses the best of all available strategies.
o Making a selection or choosing something means to take a decision. So, decision-making
is facilitated by planning.
o Planning reduces overlapping & wastage of efforts
o Under planning, future activities are planned in order to achieve objectives.
o Consequently, the problems of when, where, what and why are almost decided. This puts
an end to disorder and suspicion.
o In such a situation coordination is established among different activities and departments.
It puts an end to overlapping and wasteful activities.
o Planning encourages innovation & creativity
o Planning helps managers to express their creativity and innovation. It brings satisfaction to
the managers and eventually a success to the organization.

o Planning facilitates control
o It sets out standards for controlling. It compares actual performance with the standard
performance and efforts are made to correct the same.
o Planning improves morale
o Planning motivates the workers and improves their morale.
o It defines the objectives of the business and provides suitable means of communication
throughout the organization.
o It facilitates delegation of authority and assists managers in providing consistent,
aggressive and confident leadership.
ADVANTAGES OF PLANNING
• Planning increases the efficiency of an organization.
• It reduces the risks involved in modern business activities.
• It facilitates proper coordination within an organization.
• It aids in organizing all available resources.
• It gives a right direction to the organization.
• It is important to maintain good control.
• It helps to achieve the objectives of the organization.
• It motivates the personnel of an organization.
• It encourages managers' creativity and innovation.
• It also helps in decision-making.
PLANNING PROCESS
The planning process is different from one plan to another and varies from company to company.
Common steps in planning are mentioned below:
1. Establishing Objectives:
o Establishing the objectives is the first step in planning. Plans are prepared with a view to achieve
certain goals. Hence, establishing the objectives is an important step in the process of planning.
Plans should reflect the enterprise’s objectives. Objectives should clearly define as to what is to
be achieved by policies, procedures, rules, strategies, budgets and programmes. Plan must make
sure that every activity undertaken contributes to the achievement of objectives.
o The objectives fixed must clearly indicate what is to be achieved, where action should take place,
who is to perform it, how it is to be undertaken and when it is to be accomplished. That is,
managers should be able to restate the objectives of the firm in definite and clear terms that will
motivate examination and evaluation of performance against targeted performance in the plan.
Objectives should be measurable.
2. Determining Planning Premises
o This is the second step in planning. Premises include actual forecast data, policies and plans of
the enterprise. Planning involves looking into the future which necessitates the enterprise to
know, how future conditions will affect its activities. Thus, forecasting is an important step in
planning.
o There are two types of forecasting namely,
o Prediction of general economic conditions.
o Prediction of market conditions for a specific product or service dealt with by the
enterprise.
Keeping the general economic conditions in mind, a study of the industry is made. Then the
manager proceeds to make a study of his company’s share of the market. Forecasting will reveal

those areas where control is lacking. Planning will be reliable when the forecast methods are
accurate. Hence, the success of the planning depends very much upon the forecasts.
3. Determining Alternative Courses
o Determining alternative courses is the third step in the planning process. The planner should
study all the alternatives, consider the strong and weak points of them and finally select the most
promising ones.
4. Evaluating Alternative Courses
o Alternative courses so selected should be evaluated in the light of premises and goals. Evaluation
involves the study of performance of various actions. Various factors such as profitability,
investment requirements, etc., of such alternatives should be weighed against each other. Each
alternative should be closely studied to determine its suitability.
o Many other factors such are uncertain future trend, problems faced financially, future
uncertainties renders the evaluation process, complex and difficult. Usually, alternative plans are
evaluated against factors such as cost, risks, benefits, organizational facilities, etc. Computer
based mathematical plans and techniques can also be utilized to identify best course of action.
5. Selecting the Best Course
o After having evaluated the various alternatives, the most suitable alternative is selected. With this,
the plan can be considered to have been adopted. It is exactly the point at which decisions are
made. Sometimes, in the best interests of the enterprise, several alternative courses can be
adopted.
6. Formulating Derivative Plans
o Planning is not complete as soon as the best course is selected. The main plan should be
supported by a number of derivative plans. Within the framework of a basic plan, derivative plans
are formulated in each functional area. Segregation of master plan into departmental, sectional
and individual plans, helps to understand the real nature of future uncertainties. To make the
planning process more effective, it should also provide for a feedback mechanism. These plans
are meant for the implementation of the main plan.
7. Implementation of Plans
o Implementation of plans is the final step in the process of planning. This involves putting the
plans into action so as to achieve the business objectives Implementation of plans requires
establishment of policies, procedures, standards, budgets, etc.
TYPES OF PLANS
1. Strategic Plans
o Strategic plans define the framework of the organization’s vision and how the
organization intends to make its vision a reality.
o It is the determination of the long-term objectives of an enterprise, the action plan to be
adopted and the resources to be mobilized to achieve these goals.
o Since it is planning the direction of the company’s progress, it is done by the top
management of an organization.
o It essentially focuses on planning for the coming years to take the organization from
where it stands today to where it intends to be.
o The strategic plan must be forward looking, effective and flexible, with a focus on
accommodating future growth.
o These plans provide the framework and direction for lower level planning.
2. Tactical Plans
o Tactical plans describe the tactics that the managers plan to adopt to achieve the
objectives set in the strategic plan.
o Tactical plans span a short time frame (usually less than 3 years) and are usually
developed by middle level managers.
o It details specific means or action plans to implement the strategic plan by units within
each division.
o Tactical plans entail detailing resource and work allocation among the subunits within
each division.
3. Operational Plans
o Operational plans are short-term (less than a year) plans developed to create specific
action steps that support the strategic and tactical plans.
o They are usually developed by the manager to fulfill his or her job responsibilities.
o They are developed by supervisors, team leaders, and facilitators to support tactical plans.
o They govern the day-to-day operations of an organization.
4. Single‐use plans
o Programs—a complex set of policies, rules, and procedures necessary to carry out a
course of action.
o Projects—specific action plans often created to complete various aspects of a program.
o Budgets—plans expressed in numerical terms.
5. Standing plans − Drawn to cover issues that managers face repeatedly, e.g. policies, procedures,
rules.
o Policies—general statements of understanding or intent; guide decision-making,
permitting the exercise of some discretion; guide behavior (for example, no employee
shall accept favors and/or entertainment from an outside organization that are substantial
enough in value to cause undue influence over one’s decisions on behalf of the
organization).
o Rules—guides to action that do not permit discretion in interpretation; specify what is
permissible and what is not permissible.
o Procedures—like rules, they guide action; specify a series of steps that must be taken in
the performance of a particular task.
6. Proactive plans
o Proactive planning involves designing suitable courses of action in anticipation of likely
changes in the relevant environment. In this approach, org do not wait for the
environment to change but take action in advance.
7. Reactive plans
o In reactive planning, organizations responses come after the environmental changes have
taken place. In such situation the org lose opportunities to those org which adopt
proactive approach.
8. Long term plan
o Long term planning is of strategic nature and involves long period say 3-5 yrs. The long
term plans usually encompass all the functional areas of the business and are affected
within the existing and long-term framework of economic, social and technological
factors.
9. Short term plan
o Short term planning is usually a plan made for one year.
o These are aimed at sustaining organization in its production and distribution of current
products or services to the existing markets. These plans directly affect functional
groups( production, marketing, finance)

MBO [Management by Objectives]
DEFINITION
According to Peter Drucker,”MBO is a systematic and organized approach that aims to increase
organizational performance by aligning goals and subordinate objectives throughout the organization”.
Basic principles of MBO
o Clarification of organizational objectives
o Specific objectives for each members
o Participative decision making
o Explicit time period
o Performance examination & feedback
Features Of Management By Objectives MBO:-
o Superior-subordinate participation: MBO requires the superior and the subordinate to
recognize that the development of objectives is a joint project/activity. They must be jointly agree
and write out their duties and areas of responsibility in their respective jobs.
o Joint goal-setting: MBO emphasizes joint goal-setting that are tangible, verifiable and
measurable. The subordinate in consultation with his superior sets his own short-term goals.
However, it is examined both by the superior and the subordinate that goals are realistic and
attainable. In brief, the goals are to be decided jointly through the participation of all.
o Joint decision on methodology: MBO focuses special attention on what must be accomplished
(goals) rather than how it is to be accomplished (methods). The superior and the subordinate
mutually devise methodology to be followed in the attainment of objectives. They also mutually
set standards and establish norms for evaluating performance.
o Makes way to attain maximum result: MBO is a systematic and rational technique that allows
management to attain maximum results from available resources by focusing on attainable goals.
It permits lot of freedom to subordinate to make creative decisions on his own. This motivates
subordinates and ensures good performance from them.
o Support from superior: When the subordinate makes efforts to achieve his goals, superior's
helping hand is always available. The superior acts as a coach and provides his valuable advice
and guidance to the subordinate. This is how MBO facilitates effective communication between
superior and subordinates for achieving the objectives/targets set.
PROCESS OF MBO
1. Determining Organizational Goals
• The entire development of an organization depends on the set goals. A goal is the most critical
and necessary factor behind the effectiveness and efficiency of an organization, so it is important
to effectively manage set goals either single or many of different kinds. Prior to start working on
the set goals, the managers should determine organizational goals with the aim to create a
potential management that must be capable of handling different kinds of goals easily.
Determining goals don’t mean creating goals, as the preliminary goals are set by the top level
supervisors on the basis of in-depth analysis and judgment about what should be accomplished
and how to do so in a certain period.
2. Determining Employees’ Objectives
• After determining the organizational goals, the next thing to do is to know the individual’s goals
or more clearly employees’ goals. It is the responsibility of the manager to ask employees about
what goals they can accomplish within a specific time period and what resources will they use to
achieve the goal. Also, if needed, then managers and employees can classify the goals from the
most important to the least one in order to make the goal achieving process more easily and in
favor of the organization.
3. Constant Monitoring Progress and Performance
• The process of MBO is not just set for providing additional effectiveness to managers across the
organization, but it is also equally important for constantly monitoring the progress and
performance of the employees. There are certain things stated below that can help managers to
monitor performance and progress.
• Checking less-effective or ineffective programs by performing a comparison of performance with
already prepared objectives.
• Using ZBB (Zero Based Budgeting)
• For measuring plans and individuals, implementing MBO concepts
• Defining short and long term plans and objectives
• Installing efficient and effective controls
• Eventually, composing completely sound structure of the organization with all things at
appropriate places such as responsibilities, decision making and so on.
4. Performance Evaluation
• As per the basic concept of MBO, the performance evaluation comes under the responsibility of
concerned managers and is made by their participation. Keep in the mind, performance evaluation
is one the most important factors of the organization that can help operating certain objectives
smoothly.
5. Providing Feedback
• The psychologically influential factor of MBO is constantly providing feedback to employees
regarding their performance and individual goals, so that they can monitor, correct and extra
improve their skills and mistakes. Mostly, the feedback is provided in periodic meetings where
supervisors and their subordinates review the performance and progress towards achievement of
goals. At one point, feedback helps individuals know their weakness. While on the other hand, it
also motivates already potential individuals to enhance and develop their performance
additionally.
6. The Performance Appraisal
• Performance appraisals are the final step of the process of Management by Objectives. By
definition, a day by day review of the employee’s performance across the organization can be
called as performance appraisal. Performance appraisal is associated with the term performance
evaluation, but in some cases, both differ from each other.
Advantages of Management By Objective (MBO)
• Better Utilization of Resources
• Aid in Planning
• Better Team work
• Concentration on Key Result Areas
• Objective Evaluation
• Result orientation
• Sound Organizational Structure
Disadvantages of Management By Objective (MBO)
• Incurs Time and Cost
• Failure to teach MBO Philosophy to employees
• Problems in Objective Setting
• Emphasis on short-term Objectives
• Inflexibility

MBE [Management By Exceptions] F.W.Taylor
DEFINITION
According to F.W.Taylor, ”MBE/MBR [Mgt by result] is a policy by which management devotes
it’s time to investigating only those situations in which actual results differ significantly for planned
results”.
Types of Exceptions
• Problems
o Below standard performance and results need to be strategized and solved in time.
• Opportunities
o Above standard performance and results need to be identified and tapped.
PROCESS OF MBE

Advantages of Management By Exception (MBE)
• Time Saving
• Concentration
• Wider Span
• Effective Decision Making
• Data Base Management.
• Fuller Utilization of Talent.
• Identify Critical Problems.
• Facilitates Judgment
ORGANIZING
Definition
According to Theo Haimann ,”Organizing is the process of defining and grouping the activities
of the enterprises and establishing the authority relationships among them”.
FUNDAMENTAL CONCEPT OF ORGANIZING:
• DIFFERENTIATION: It means that an organization is composed of units that work on
specialized tasks using different work methods and requiring employees with unique
competencies.
• INTEGRATION: It means that the various units must be put back together so that work is
coordinated.
NATURE OF ORGANIZING
1. Group of Persons
Group of Persons: An organization is a group of people working together for the achievement of
common objectives. The group may be large or small. An organization is a system of cooperative
relationships of two or more persons.
2. Common Objectives
Every organization has a common objectives distinct from personal objectives of the members.
The common goal is the basis of cooperation among the members. The objectives of the
organization are usually are made explicit
3. Division of Work
An organization comes into existence when the total task is divided into the members of the
group. Division of work is necessary not only because one individual cannot do all the work but
specialization results in efficiency and effectiveness.
4. Cooperative Efforts
The members of an organization are willing to help each other for the achievement of desired
goals. Cooperative relationships are stabilized both vertically and horizontally among different
units of the organization
5. Communication
People who form an organization communicates with each other in order to integrate or
coordinate their efforts. The structure must be such that people can perform together efficiently.
6. Central Authority
In an organization, there is a central directing authority which controls the concerted efforts of the
group. The chain of authority- responsibility relationships is known as the chain of command.
7. Rules & Regulations
For the orderly and systematic working of the members, rules and regulations are laid down and
enforced by the central authority.

8. Dynamic Element
An organization is not a mere mechanical structure but a living organism arising out of the
sentiments, attitudes, and behavior of people. The people are the material of construction that
holds the structure together and gives it vitality.
IMPORTANCE OF ORGANIZING
1. Facilitates Administration: Achievement of the objectives of an enterprise by providing a

framework of coordination and control. It provides a system of authority and network for
effective communication. Individual goals can be coordinated towards group goals. A properly
balanced organization facilitated both management and operation of the enterprise.
2. Encourages Growth & Diversification: It has enabled organizations to grow and expand to
giant sizes. Systematic division of work and consistent delegation of authority facilitate taking up
of new activities and meeting new demands. It provides flexibility for growth without losing
control over various activities.
3. Optimum Use of New Technology: It is made through a sound structure manned with competent
employees. In addition, Optimum use of technology permits optimum utilisation of human
resources. Sound organization ensures that every individual is placed on the job for which one is
best suited.
4. Stimulates Innovation & Creativity: It stimulates creative thinking and initiative on the part of
employees. It provides for effective management of change and responds favourably to changes
in environment. It provides recognition for the professional and the specialist in terms of their
achievement.
5. Encourages Good Human Relations: The assignment of right jobs to right person improves job
satisfaction and inter-personal relations. Well-defined jobs and clear lines of authority and
responsibility ensure good human relations.

6. Ensures Continuity of Enterprise: It provides scope for the training and development of future
management. It provides avenues for development and promotions through delegation and
decentralisation.
7. Coordination: It facilitates order and cohesiveness in the enterprise. Division of labor, better
utility of technology and human talent helps to improve the efficiency and quality of work. Clear
channels of communication among the members of the organization leads to coordination.
PROCESS OF ORGANIZING
1. Identification of Activities: First step is to determine the tasks that must be performed to achieve
the established objectives. Activities and jobs are building blocks of any organization. The
activities to be performed depend upon the objectives, nature and size of the enterprise.
2. Grouping of Activities: The various activities are the grouped into departments or divisions
according to similarity and common purpose. Such grouping is necessary for the purpose of
specialization, coordination and control. It may be grouped on various basis i.e. functions
products, territories, customers etc depending on requirements.
3. Assignment of Duties: Groups of activities or departments are then allotted to different positions.
Every position is occupied by an individual best suited for it. The assignments of activities create
responsibility and ensure certainty of work performance. The process should be carried down to
the lowest levels. It is basically done to avoid duplication of work and over-lapping efforts.
4. Delegation of Authority: Every individual is given the authority required to carry out the
responsibility assigned to him. A chain of command is created through successive delegation of
authority. Different positions are linked vertically and horizontally by establishing formal
authority. Every individual must know to whom he is accountable and who are his subordinates.

ORGANIZATIONAL STRUCTURE
o An organizational structure is a system that outlines how certain activities are directed in
order to achieve the goals of an organization. These activities can include rules, roles, and
responsibilities.
o The formal organization in usually delineated by an organizational chart and job
descriptions. The official reporting relationships are clearly known to every manager.
o Alongside the formal organization exists are informal organization which is a set of
evolving relationships and patterns of human interaction within an organization that are
not officially prescribed.
Formal organizational structures are categorized as:
(i) Line organizational structure.
(ii) Staff or functional authority organizational structure.
(iii) Line and staff organizational structure.
(iv) Committee organizational structure.
(v) Divisional organizational structure.
(vi) Project organizational structure.
(vii) Matrix organizational structure and
(viii) Hybrid organizational structure.
1. Line Organizational Structure:
• A line organization has only direct, vertical relationships between different levels in the firm.
There is only line departments-departments directly involved in accomplishing the primary goal
of the organization. For example, in a typical firm, line departments include production and
marketing. In a line organization authority follows the chain of command.

Advantages:
1. Tends to simplify and clarify authority, responsibility and accountability relationships
2. Promotes fast decision making
3. Simple to understand.
Disadvantages:
1. Neglects specialists in planning
2. overloads key persons.
2. Staff or Functional Authority Organizational Structure
The jobs or positions in an organization can be categorized as:

(i) Line position:
• A position in the direct chain of command that is responsible for the achievement of an
organization’s goals and
(ii) Staff position:
• A position intended to provide expertise, advice and support for the line positions.
• The line officers or managers have the direct authority (known as line authority) to be exercised
by them to achieve the organizational goals. The staff officers or managers have staff authority
(i.e., authority to advice the line) over the line. This is also known as functional authority.
• An organization where staff departments have authority over line personnel in narrow areas of
specialization is known as functional authority organization.
3. Line and Staff Organizational Structure:
• Most large organizations belong to this type of organizational structure. These organizations have
direct, vertical relationships between different levels and also specialists responsible for advising
and assisting line managers. Such organizations have both line and staff departments. Staff

departments provide line people with advice and assistance in specialized areas (for example,
quality control advising production department).
• The line functions are production and marketing whereas the staff functions include personnel,
quality control, research and development, finance, accounting etc. The staff authority of
functional authority organizational structure is replaced by staff responsibility so that the
principle of unity of command is not violated.
• Three types of specialized staffs can be identified:
(i) Advising,
(ii) Service and
(iii) Control.
• Some staffs perform only one of these functions but some may perform two or all the three
functions. The primary advantage is the use of expertise of staff specialists by the line personnel.
The span of control of line managers can be increased because they are relieved of many
functions which the staff people perform to assist the line.

Some advantages are:
(i) Even through a line and staff structure allows higher flexibility and specialization it may create
conflict between line and staff personnel.
(ii) Line managers may not like staff personnel telling them what to do and how to do it even
though they recognize the specialists’ knowledge and expertise.
(iii) Some staff people have difficulty adjusting to the role, especially when line managers are
reluctant to accept advice.
(iv) Staff people may resent their lack of authority and this may cause line and staff conflict.
Features:
1. Line and staff have direct vertical relationship between different levels.
2. Staff specialists are responsible for advising and assisting line managers/officers in specialized
areas.
3. These types of specialized staff are (a) Advisory, (b) Service, (c) Control e.g.,
o Advisory: Management information system, Operation Research and Quantitative
Techniques, Industrial Engineering, Planning etc
o Service: Maintenance, Purchase, Stores, Finance, Marketing.
o Control: Quality control, Cost control, Auditing etc.
Advantages:
(i) Use of expertise of staff specialists.
(ii) Span of control can be increased
(iii) Relieves line authorities of routine and specialized decisions.
(iv) No need for all round executives.
Disadvantages:
(i) Conflict between line and staff may still arise.
(ii) Staff officers may resent their lack of authority.
(iii) Co-ordination between line and staff may become difficult.
4. Committee Organizational Structure
Features:
(a) Formed for managing certain problems/situations
(b) Are temporary decisions.
Advantages:
1. Committee decisions are better than individual decisions
2. Better interaction between committee members leads to better co-ordination of activities
3. Committee members can be motivated to participate in group decision making.
4. Group discussion may lead to creative thinking.
Disadvantages:
1. Committees may delay decisions, consume more time and hence more expensive.
2. Group action may lead to compromise and indecision.
3. ‘Buck passing’ may result.
5. Divisional Organizational Structure:
In this type of structure, the organization can have different basis on which departments are formed. They
are:
(i) Function,
(ii) Product,
(iii) Geographic territory,
(iv) Project and
(iv) Combination approach.
5. Project Organizational Structure:
o The line, line and staff and functional authority organizational structures facilitate establishment
and distribution of authority for vertical coordination and control rather than horizontal
relationships. In some projects (complex activity consisting of a number of interdependent and
independent activities) work process may flow horizontally, diagonally, upwards and downwards.
The direction of work flow depends on the distribution of talents and abilities in the organization
and the need to apply them to the problem that exists. The cope up with such situations, project
organizations and matrix organizations have emerged.
Feature:
• Temporary organization designed to achieve specific results by using teams of specialists from
different functional areas in the organization.
Importance of Project Organizational Structure:
• Project organizational structure is most valuable when:
(i) Work is defined by a specific goal and target date for completion.
(ii) Work is unique and unfamiliar to the organization.
(iii) Work is complex having independent activities and specialized skills are necessary
for accomplishment.
(iv) Work is critical in terms of possible gains or losses.
(v) Work is not repetitive in nature.
Characteristics of project organization:
1. Personnel are assigned to a project from the existing permanent organization and are under the
direction and control of the project manager.
2. The project manager specifies what effort is needed and when work will be performed whereas
the concerned department manager executes the work using his resources.
3. The project manager gets the needed support from production, quality control, engineering etc.
for completion of the project.

4. The authority over the project team members is shared by project manager and the respective
functional managers in the permanent organization.
5. The services of the specialists (project team members) are temporarily loaned to the project
manager till the completion of the project.
6. There may be conflict between the project manager and the departmental manager on the issue of
exercising authority over team members.
7. Since authority relationships are overlapping with possibilities of conflicts, informal relationships
between project manager and departmental managers (functional managers) become more
important than formal prescription of authority.
8. Full and free communication is essential among those working on the project.
6. Matrix Organizational Structure:
Feature:
• Superimposes a horizontal set of divisions and reporting relationships onto a hierarchical
functional structure
Advantages:
1. Decentralised decision making.
2. Strong product/project co-ordination.
3. Improved environmental monitoring.
4. Fast response to change.
5. Flexible use of resources.
6. Efficient use of support systems.
Disadvantages:
1. High administration cost.
2. Potential confusion over authority and responsibility.
3. High prospects of conflict.
4. Overemphasis on group decision making.
5. Excessive focus on internal relations.

7. Hybrid Organizational Structure:
Advantages:
1. Alignment of corporate and divisional goals.
2. Functional expertise and efficiency.
3. Adaptability and flexibility in divisions.
Disadvantages:
1. Conflicts between corporate departments and units.
2. Excessive administration overhead.
3. Slow response to exceptional situations.
Uses:
• Used in organizations that face considerable environmental uncertainty that can be met through a
divisional structure and that also required functional expertise or efficiency
• This type of structure is used by multinational companies operating in the global environment, for
example, International Business Machines USA. This kind of structure depends on factors such as
degree of international orientation and commitment.
• Multinational corporations may have their corporate offices in the country of origin and their
international divisions established in various countries reporting to the CEO or president at the
headquarters. The international divisions or foreign subsidiaries may be grouped into regions
such as North America, Asia, Europe etc. and again each region may be subdivided into countries
within each region.

DEPARTMENTATION
MEANING
Departmentation refers to the classification of activities on operations of an undertaking into
functionalized categories. It is created in product wise, process-wise or area wise. It ensures proper
direction to and control on them.
Need and Importance of Departmentation
• It increases the operating efficiency of the employees.
• It makes the executive to be alert and efficient in his duties.
• It increases the prestige and skill of the departmental heads.
• It makes the departmental heads efficient.
• Further expansion of the is possible.
• It gives advantages like facilitating budget preparation, effective control of expenditure, attaining
specialization, better coordination etc.
Types of Departmentation
1. Departmentation by Function
2. Departmentation by Product or Service
3. Departmentation by region or area
4. Departmentation by Customers
5. Departmentation by Process
6. Departmentation by Time
7. Departmentation by Numbers
8. Departmentation by Marketing Channels
9. Deparmentation by Function
Departmentation by Function
Advantages:
• It is scientific and time tested method.
• It follows the principles of specialization and division of labour
• Ensures performance control
• Preserves the importance of each of activities.
• Due weightage and prestige are given to managers and respected
• Facilitates coordination activity within departments
• Economical, simple and easy to understand
• Helps utilization of manpower and other natural resources

Disadvantages:
• It makes management control work more difficult
• Increases work load and responsibility of managers
• Does not offer scope for training for overall development of managers
• Managers may be experts but may not understand the problems of other departments.
Departmentation by Product or Service
Advantages:
• Maximum utilization of personnel efficiency of workers.
• Gaining economy in manufacturing and marketing of products
• Better services to customers
• Profitability of each product is known.
• Proper attention is given
• New line of product can be introduced without Difficulty
Disadvantages:
• Danger of duplication of work
• Increases number of personnel that leads to heavy cost
• Additional cost for maintaining a sales force for each product
• Control becomes more difficult
• Machines and equipment may not be used fully.
• Only for large scale diversified group
Departmentation by region or area
Advantages:
• Effective span of control.
• Reduces the cost of operation and gains saving in time.
• Intimate knowledge about the taste and preference of customers Win the confidence of customers
and reduce the competition
• Profitability of each area can be known.
• Gives opportunities to managers to improve their skills
• More suitable for large scale business unit
• Control process very easy to manager

Disadvantages:
• Increases number of personnel and heavy cost of operation
• Control of head office is less effective one
• Involves duplication of work
• Small business can’t manage the high cost.
Departmentation by Customers
Advantages:
• It fulfills the expectations and needs of customers
• It develops specialization among the al staff.
• Out of fashion products can be dispensed with
• Each section of customers gets better services.
Disadvantages:
• Duplication of activities.
• Achievement of coordination is very difficult
• Wastage of available of resources and facilities.
• Production activities can’t be done under this method due to heavy cost
Departmentation by Process
Advantages:
• Costlier machines can be used effectively.
• Economy of operation

• No duplication of activities
• Principle of specialization and division of labour is followed
• It helps top management to have effective performance control
• This is more suitable for a product manufacturing passes through more processes.
Disadvantages:
• Heavy cost of operation
• More specialist are essential to each process
• Lack of overall development of managerial talents
Departmentation by Time
• The business activities are grouped together on the basis of the time of the performance.
Departmentation by Numbers
• Similar type of duties performed by small groups and each group is controlled by a supervisor or
an executive. The principles of span of management span of control or span of supervision is used
under this type. E.g. Squads, battalions, companies, brigades and regiments in Army
Departmentation by Marketing Channels
• This type of departmentation is adopted on the basis of the channel of distribution chosen by the
particular business unit. This method of departmentation has grown in importance as business has
become increasingly market oriented
FORMAL ORGANIZATION
Definition of Formal Organization
According to Chester Banard “Formal organization is a system of consciously coordinated
activities of two or more persons towards common objectives”.
Characteristics of formal
• Structure stands on division of labor which brings efficiency in s’ operations.
• Policies and Objectives of s are determined
• Individual activities are limited
• s communicate messages through straight chain of command
• Arbitrary structure of

Formal al structure
Advantages of Formal Organization:

1. Systematic Working:
Formal organization structure results in systematic and smooth functioning of an
organization.
2. Achievement of Organizational Objectives:
Formal organizational structure is established to achieve organizational objectives.
3. No Overlapping of Work:
In formal organization structure work is systematically divided among various
departments and employees. So there is no chance of duplication or overlapping of work.
4. Co-ordination:
Formal organizational structure results in coordinating the activities of various
departments.
5. Creation of Chain of Command:
Formal organizational structure clearly defines superior subordinate relationship, i.e.,
who reports to whom.
6. More Emphasis on Work:
Formal organizational structure lays more emphasis on work than interpersonal relations.
Disadvantages of Formal Organization:
1. Delay in Action:
While following scalar chain and chain of command actions get delayed in formal
structure.
2. Ignores Social Needs of Employees:
Formal organizational structure does not give importance to psychological and social
need of employees which may lead to demotivation of employees.
3. Emphasis on Work Only:
Formal organizational structure gives importance to work only; it ignores human
relations, creativity, talents, etc.
INFORMAL ORGANIZATION
DEFINITION
The informal organization may be defined as “A network of personal and social relationships that
arise spontaneously as people associate with one another in a work environment. It is composed of all the
informal groupings of people within a formal organization.”
The informal organizational structure gets created automatically and the main purpose of such
structure is getting psychological satisfaction. The existence of informal structure depends upon the
formal structure because people working at different job positions interact with each other to form
informal structure and the job positions are created in formal structure. So, if there is no formal structure,
there will be no job position, there will be no people working at job positions and there will be no
informal structure.
Features of informal organization:
(1) Informal organizational structure gets created automatically without any intended efforts of
managers.
(2) Informal organizational structure is formed by the employees to get psychological satisfaction.
(3) Informal organizational structure does not follow any fixed path of flow of authority or
communication.
(4) Source of information cannot be known under informal structure as any person can communicate
with anyone in the organization.
(5) The existence of informal organizational structure depends on the formal organization structure.
Advantages of Informal Organization:
1. Fast Communication:
Informal structure does not follow scalar chain so there can be faster spread of
communication.
2. Fulfills Social Needs:

Informal communication gives due importance to psychological and social need of
employees which motivate the employees.
3. Correct Feedback:
Through informal structure the top level managers can know the real feedback of
employees on various policies and plans.
Disadvantages of Informal organization:
1. Spread Rumours:
According to a survey 70% of information spread through informal organizational
structure are rumors which may mislead the employees.
2. No Systematic Working:
Informal structure does not form a structure for smooth working of an organization.
3. May Bring Negative Results:
If informal organization opposes the policies and changes of management, then it
becomes very difficult to implement them in organization.
4. More Emphasis to Individual Interest:
Informal structure gives more importance to satisfaction of individual interest as
compared to organizational interest.
Types of Groups in the Informal Organization:
In general the informal organization consists of groups of people. Information groups are
of three categories — horizontal, vertical and mixed. These titles identify the composition of the
group by the levels of the formal organization, in which the positions of different members are
defined on the basis of similarity or dissimilarity of their work assignments.
a. Horizontal Groups:
Persons whose positions are on the same level of the organization belong to horizontal
groups. Such informal groups may consist of all the member (managers and non-managers) in the
same depart-ment or different members across departmental lines (by virtue of the case of
accessibility).
Since all members operate at the same organisational level, they do not have to cross any
inherent vertical barrier. Such groups are formed for common concern over security,
communication or equity.
Membership in a horizontal group is often found to be mutually beneficial to individuals
because it promotes information sharing and provides mutual support. People in the same or
related areas of work often share the same problems, interests and concerns. They attempt to
solve the problems themselves, without turning to the boss for instruction and guidance.
In this context one may cite the example of an interaction between an operating
department and another department, for which involvement is only supportive rather than
primary. For example, members from five departments — production, marketing and sales,
quality control, inventory, and finance — regularly meet at lunch intervals and share problems
and concerns together.
As a result of this alliance ongoing problems get solved informally, special orders are
expedited and coopera-tion in general at the operating level is created.
b. Vertical Groups:
Vertical groups are often the result of outside interest or various employment
relationships within the same department. Such groups include people on different levels of the
formal organization’s hierarchy. Usually these people voluntarily come together within the same
work areas. For example, in a production department a vertical group might include a supervisor
and one (or more) of his subordinates.
Alternatively a supervisor or group of supervisors might form a group with their bosses.
Moreover, such a group may be formed through skip-level relationships: a top level manager may
associate with a first level manager, or an operating employee with a second level manager.
This type of informal group relationship provides quicker access to problems that arise in
the structure and permits improved communication. But the danger is that the supervisor loses
objectivity with the subordinate and may be accused of favoritism.
c. Mixed Groups:
A mixed group may be formed by two or more people who belong to different levels of
the formal organization and in different work areas. For instance, the vice-president (finance)
may develop a close relationship with the director of computer services for getting preferential
treatment (i.e., greater and timely access to computer facilities).
For precisely the same reason a production manager, for instance, may attempt to
gradually develop an informal, social relationship with the director of maintenance or the
marketing manager.
Such groups are often formed because of common bonds outside the work place, e.g.,
common interests, club memberships, ethnic back-grounds, and so on.

DIFFERENCE BETWEEN FORMAL & INFORMAL ORGANIZATION
CENTRALIZATION & DECENTRALIZATION

CENTRALIZATION
According to L.D. White: “The process of transfer of administrative authority from a lower to a
higher level of government is called centralization; the converse, decentralization.”
Advantages of Centralization
1. A clear chain of command
A centralized organization benefits from a clear chain of command because every person
within the organization knows who to report to. A clear chain of command is beneficial
when the organization needs to execute decisions quickly and in a unified manner.
2. Focused vision
When an organization follows a centralized management structure, it can focus on the
fulfillment of its vision with ease. There are clear lines of communication and the senior
executive can communicate the organization’s vision to employees and guide them
towards the achievement of the vision.

3. Reduced costs
A centralized organization adheres to standard procedures and methods that guide the
organization, which help reduce office and administrative costs. The main decision-
makers are housed at the company’s head office or headquarters, and therefore, there is
no need for deploying more departments and equipment to other branches.
4. Quick implementation of decisions
In a centralized organization, decisions are made by a small group of people and then
communicated to the lower-level managers. The involvement of only a few people makes
the decision-making process more efficient since they can discuss the details of each
decision in one meeting.
5. Improved quality of work
The standardized procedures and better supervision in a centralized organization result in
improved quality of work. There are supervisors in each department who ensure that the
outputs are uniform and of high quality.
Disadvantages of Centralization
1. Bureaucratic leadership
Centralized management resembles a dictatorial form of leadership where employees are
only expected to deliver results according to what the top executives assigned them.
Employees are unable to contribute to the decision-making process of the organization,
and they are merely implementers of decisions made at the higher level.
2. Remote control
The organization’s executives are under tremendous pressure to formulate decisions for
the organization, and they lack control over the implementation process. The failure of
executives to decentralize the decision-making process adds a lot of work to their desk.
The executives suffer from a lack of time to supervise the implementation of the
decisions. It leads to reluctance on the part of employees. Therefore, the executives may
end up making too many decisions that are either poorly implemented or ignored by the
employees.
3. Delays in work
Centralization results in delays in work as records are sent to and from the head office.
Employees rely on the information communicated to them from the top, and there will be
a loss in man-hours if there are delays in relaying the records. It means that the
employees will be less productive if they need to wait long periods to get guidance on
their next projects.
4. Lack of employee loyalty
Employees become loyal to an organization when they are allowed personal initiatives in
the work they do. They can introduce their creativity and suggest ways of performing
certain tasks.
SPAN OF CONTROL
MEANING
Span of control is a span of supervision which shows the number of can be effectively handled
and controlled by a single manager.
There are two types of span:
1. Narrow
2. Wide.

Narrow span
• According to narrow span, the manager supervises a selected number of employees at one time.
• it is the difficult to get effective co-ordination.
• Also, due to this kind of span of control, number of managers is increases and hence the overall
costing of the company increases.
Merits
• Managerial efficiency is increased
• Fast communication between subordinates and managers
• More accountability
• More authorized structure
• Close supervisory control due to low span of managers
• Managerial efficiency is increased
• Fast communication between subordinates and managers
• More accountability
• More authorized structure
Demerits
• Employees are less motivated
• Less benefit and rewards for lower employees
• Creates complexity in communication
• Excessive distance between lowest and top level
• Decision making is slow
• More management levels are un-economical & time consuming
Wide span
• According to wide span, the manager supervises and control effectively a large group of persons
at one time.
• it is the easy to get effective co-ordination ,better communication.
• Also, due to this kind of span of control, number of managers required is few, so overall cost is
law.

Merits
• Fast and clear communication
• Direct contact with subordinates is possible
• Free from extra-strict supervision and control
• Flat organization is economical
• Enables taking quick decisions and actions
Demerits
• Chances of manager’s loss of control
• Requires exceptional quality of managers
• Quality of performance may decline
• Highly qualified and well experienced staff is needed
• Tendency to overload manager makes him decision bottleneck
• Close and informal relations may not be possible
Factors affecting the span of control
1. Managerial abilities
When managers are capable, qualified and experienced, wide span control is always
helpful to control more number of employees.
2. Competence of subordinates
Where the subordinates are capable and competent and understanding levels are proper,
the subordinates tend to very frequently visit the superiors for solving their problems. In
such cases, the manager can handle large number of employees. Hence, wide span is
suitable.
3. Nature of work
If the work is of repetitive nature, wide span of supervision is more helpful. On the other
hand, if work requires mental skill or craftsmanship, tight control and supervision is
required in which narrow span is more helpful.
4. Delegation of authority
When the work is delegated to lower levels in an efficient and proper way, confusions are
less and congeniality of the environment can be maintained. In such cases wide span of
control is suitable and the supervisors can manage and control large number of sub-
ordinates at one time.
5. Economic Consideration
Economic considerations also determine the span of control. As we know that small span
of control requires more economic resources and vice versa. So, when there is problem of
economic conditions, wide span of control is adopted. Economic Consideration.

Deciding Factors – Span of Control
Capacity of Manager
• Problems solving, decision making, communication skills & leadership traits
• Manager possessing such capacity can manage more subordinates
Capacity of Subordinates
• Well trained & efficient subordinates do not need much help from their manager, but
broad guidelines only
Nature of Work
• A routine / repetitive job does not require any special talent, as employees are well
versed with it and vice versa
Degree of Decentralization
• Subordinates not having enough authority frequently consult the manager for
clarifications
• Higher the degree of decentralization, wider the span of control
Planning
• Deliberate standing plans enable the employees to work without consulting the manager
• Planning reduces the burden of a manager and he can have a wider span of control Staff
Assistance
• Staff can assist by collecting info, processing communications etc
• Thus managers can save their time and the span of control can be wider
Supervision from Others
• Parallel supervision by staff personnel enables the manager to have a large number of
subordinates under him
Technique of Communication
• Face to face communication with each subordinate consumes a lot of time
• Written communication through staff personnel saves time
DELEGATION OF AUTHORITY
MEANING
The Delegation of Authority is an organizational process wherein, the manager divides his work
among the subordinates and gives them the responsibility to accomplish the respective tasks. Along with
the responsibility, he also shares the authority, i.e. the power to take decisions with the subordinates, such
that responsibilities can be completed efficiently.

Features of Delegation of Authority
• Delegation means giving power to the subordinate to act independently but within the limits
prescribed by the superior. Also, he must comply with the provisions of the organizational policy,
rules, and regulations.
• Delegation does not mean that manager give up his authority, but certainly he shares some
authority with the subordinate essential to complete the responsibility entrusted to him.
• Authority once delegated can be further expanded, or withdrawn by the superior depending on the
situation.
• The manager cannot delegate the authority which he himself does not possess. Also, he cannot
delegate his full authority to a subordinate.
• The delegation of authority may be oral or written, and may be specific or general.
• The delegation is an art and must comply with all the fundamental rules of an organization.
Process of Delegation of Authority
1. Assignment of Duties to Subordinates: Before the actual delegation of authority, the

delegator must decide on the duties which he wants the subordinate or the group of subordinates
to perform. Here, the manager lists the activities to be performed along with the targets to be
achieved, and the same is spelled out to the subordinates. Thus, in the first stage, the duties are
assigned to the subordinates as per their job roles.
2. Transfer of Authority to perform the duty: At this stage, an adequate authority is delegated
to the subordinate which is essential to perform the duty assigned to him. A manager must make
sure; that authority is strictly delegated just to perform the responsibility, as more authority may
lead to its misuse by the subordinate.
3. Acceptance of the Assignment: At this stage, the subordinate either accepts or rejects the
tasks assigned to him by his superior. If the subordinate or the delegate, refuses to accept the duty
and the authority to perform it, then the manager looks for the other person who is capable of and
is willing to undertake the assignment. Once the assignment gets accepted by the subordinate, the
delegation process reaches its last stage.

4. Accountability: The process of delegation of authority ends at the creation of an obligation on
the part of the subordinate to perform his responsibility within the powers assigned to him. Once
the assignment is accepted by the subordinate, then he becomes responsible for the completion of
the duty and is accountable to the superior for his performance.
Thus, the process of delegation of authority begins with the duties assigned to the
subordinates and ends when the subordinate is obliged to carry out the operations as intended.
UNIT-III
DIRECTING & CONTROLLING
DIRECTING MEANING
Directing refers to a process or technique of instructing, guiding, inspiring, counselling,
overseeing and leading people towards the accomplishment of organizational goals. It is a continuous
managerial process that goes on throughout the life of the organization.
DEFINITION
According to Koontz and O ‘Donnel; “directing is a complex function that includes all those
activities which are designed to encourage subordinate to work effectively and efficiently in both the
short and long-run.”
Main characteristics of Directing are as follows:
1. Initiates Action
A directing function is performed by the managers along with planning, staffing, organizing and
controlling in order to discharge their duties in the organization. While other functions prepare a
platform for action, directing initiates action.
2. Pervasive Function
Directing takes place at every level of the organization. Wherever there is a superior-subordinate
relationship, directing exists as every manager provides guidance and inspiration to his
subordinates.
3. Continuous Activity
It is a continuous function as it continues throughout the life of organization irrespective of the
changes in the managers or employees.
4. Descending Order of Hierarchy
Directing flows from a top level of management to the bottom level. Every manager exercises this
function on his immediate subordinate.
5. Human Factor
Since all employees are different and behave differently in different situations, it becomes
important for the managers to tackle the situations appropriately. Thus, directing is a significant
function that gets the work done by the employees and increases the growth of the organization.
Importance of Directing
1. Initiates Action
Each and every action in an organization is initiated only through directing. The managers direct
the subordinates about what to do, how to do when to do and also see to it that their instructions
are properly followed.
2. Ingrates Efforts
Directing integrates the efforts of all the employees and departments through persuasive
leadership and effective communication towards the accomplishment of organizational goals.
3. Motivates Employees

A manager identifies the potential and abilities of its subordinates and helps them to give their
best. He also motivates them by offering them financial and non-financial incentives to improve
their performance.
4. Provides Stability
Stability is significant in the growth of any organization. Effective directing develops co-
operation and commitment among the employees and creates a balance among various
departments and groups.
5. Coping up with the Changes
Employees have a tendency to resist any kind of change in the organization. But, adapting the
environmental changes is necessary for the growth of the organization. A manager through
motivation, proper communication and leadership can make the employees understand the nature
and contents of change and also the positive aftermaths of the change. This will help in a smooth
adaptation of the changes without any friction between the management and employees.
6. Effective Utilization of Resources
It involves defining the duties and responsibilities of every subordinate clearly thereby avoiding
wastages, duplication of efforts, etc. and utilizing the resources of men, machine, materials, and
money in the maximum possible way. It helps in reducing costs and increasing profits.
Principles of Directing
1. Maximum Individual Contribution
One of the main principles of directing is the contribution of individuals. Management should
adopt such directing policies that motivate the employees to contribute their maximum potential
for the attainment of organizational goals.
2. Harmony of Objectives
Sometimes there is a conflict between the organizational objectives and individual objectives. For
example, the organization wants profits to increase and to retain its major share, whereas, the
employees may perceive that they should get a major share as a bonus as they have worked really
hard for it.
Here, directing has an important role to play in establishing harmony and coordination between
the objectives of both the parties.
3. Unity of Command
This principle states that a subordinate should receive instructions from only one superior at a
time. If he receives instructions from more than one superiors at the same time, it will create
confusion, conflict, and disorder in the organization and also he will not be able to prioritize his
work.
4. Appropriate Direction Technique
Among the principles of directing, this one states that appropriate direction techniques should be
used to supervise, lead, communicate and motivate the employees based on their needs,
capabilities, attitudes and other situational variables.
5. Managerial Communication
According to this principle, it should be seen that the instructions are clearly conveyed to the
employees and it should be ensured that they have understood the same meaning as was intended
to be communicated.
6. Use of Informal Organization
Within every formal organization, there exists an informal group or organization. The manager
should identify those groups and use them to communicate information. There should be a free
flow of information among the seniors and the subordinates as an effective exchange of
information are really important for the growth of an organization.
7. Leadership
Managers should possess a good leadership quality to influence the subordinates and make them
work according to their wish. It is one of the important principles of directing.
8. Follow Through
As per this principle, managers are required to monitor the extent to which the policies,
procedures, and instructions are followed by the subordinates. If there is any problem in
implementation, then the suitable modifications can be made.
ELEMENTS OF DIRECTING
1] Issuing Orders and Instructions to Subordinates
o The first and foremost element of direction is to issue orders and instructions which are
considered an essential step in the process of directing subordinates. An order is a fundamental
tool for getting things done. Therefore, the orders and instructions reflect managerial decisions
and initiate action on the part of subordinates. Orders may be general or specific, formal or
informal, written or oral.
o Thus an order should serve the following characteristics:
• The order should be clear and complete.
• It should be reasonable and attainable.
• The order must be in tune with the various other objectives of the organization and also
for the interests of the subordinates.
• All order should follow the chain of command.
• Face-to-face suggestions are preferable to long- distance orders.
2] Supervision in an overall manner
o It refers to monitor the progress of routine work of one’s subordinates and guiding them properly.
Supervision is an important element of the directing function of management. Supervision has an
important feature which includes face-to-face interaction between the supervisor and his
subordinates.
o It involves direct personal contact with subordinates. Supervision converts plans into action. Thus
supervision is considered as an essential step in the process of directing.
3] Motivating Subordinates
o The term motivation can be referred to as that process which excites people to work for the
attainment of the desired objective. Among the various factors of production, it is only the human
factor which is dynamic and provides mobility to other physical resources.
o Thus, in an overall sense, it becomes essential so as to motivate the human resources so as to keep
the employees dynamic, aware and eager to perform their duty. Both the monetary and non-
monetary incentives are given to the employees for motivation. Thus through motivation, the
employees will perform better. Hence, it will help to achieve the organizational goals and
objectives.
4] Providing Leadership
o The term Leadership defines as to influence others in such a manner as to guide them to do what
the leader wants them to do. Leadership plays an important role in directing.
o Only through this leadership skill, a manager can develop trust and zeal among his subordinates.
Therefore it leads to guide and provide overall counseling to subordinates in the best way for
achieving their objectives and also for the organization.

5] Communicating with Subordinates
o It refers to an act of transferring facts, ideas, feeling, etc. from one person to another and making
him understand them. A manager has to continuously t guides and also at the same time, monitors
his subordinates about what to do, how to do, and when to do various things.
o Also, it is very essential to know their reactions. To do all this it becomes essential to develop
effective telecommunication facilities. Therefore, the essential feature is to communicate with
itself can be called by developing mutual understanding inculcates a sense of cooperation which
builds an environment of coordination in the organization.
6] Maintaining discipline and Rewarding Effective People
o By maintaining an atmosphere of discipline and trust in the organization, the manager can easily
give directions. So that the work done by his employees is in most efficient and effective manner.
o In return, the employees will get a reward in the form of bonus, incentives and other perks so as
to get themselves associated with the organization on a long-term basis. Therefore, this element
of direction also plays a very important role in achieving overall objectives of an organization.
TECHNIQUES OF DIRECTING
Consultative direction:
o In this method executive consults with his subordinates concerning the feasibility, the work
ability and the extent and content of a problem before the superior makes a decision and issues a
directive.
o The following advantages are claimed in this type of method:
 Participation occurs on every level of organisation.
 Better communication.
 Least resistance from subordinates, experience and knowledge of subordinate also can be
used to arrive at right directives.
 It induces better motivation and morale.
 It leads to better co-ordination and effective results.
 This method has the following disadvantages:
 It is time consuming.
 Subordinates may consider it their right and prerogative to be consulted before a directive
is given to them by their superiors.
 Sometimes unnecessary arguments arise leading to wastage of time.
Free rein direction:
o The free rein technique encourages and enables the subordinate to contribute his own initiative,
independent thought, drive, perspicacity and ingenuity to the solution of the problem. The free
rein technique of direction will probably show the best and quickest results, if the subordinate is
highly educated, brilliant young man a sole performer, who has a sincere desire to become a to p
level manager.
Automatic direction:
o In this method manager gives direct, clear and precise orders to his subordinates, with detailed
instructions as how and what is to be done allowing no room for the initiative of the subordinate.

CONTROLLING
MEANING
Controlling is a process of comparing the actual performance with the set standards of the
company to ensure that activities are performed according to the plans and if not then taking corrective
action.
DEFINITION
According to Koontz And O’Donnell, “Managerial control implies the measurement of
accomplishment against the standard and the correction of deviations to assure attainment of objectives
according to plans”.
Importance of Controlling:
The significance of the controlling function in an organisation is as follows:
1. Accomplishing Organisational Goals:
o Controlling helps in comparing the actual performance with the predetermined standards,
finding out deviation and taking corrective measures to ensure that the activities are
performed according to plans. Thus, it helps in achieving organisational goals.
2. Judging Accuracy of Standards:
o An efficient control system helps in judging the accuracy of standards. It further helps in
reviewing & revising the standards according to the changes in the organisation and the
environment.
3. Making Efficient Use of Resources:
o Controlling checks the working of employees at each and every stage of operations.
Hence, it ensures effective and efficient use of all resources in an organisation with
minimum wastage or spoilage.
4. Improving Employee Motivation:
o Employees know the standards against which their performance will be judged.
o Systematic evaluation of performance and consequent rewards in the form of increment,
bonus, promotion etc. motivate the employees to put in their best efforts.
5. Ensuring Order and Discipline:
o Controlling ensures a close check on the activities of the employees. Hence, it helps in
reducing the dishonest behaviour of the employees and in creating order and discipline in
an organization.
6. Facilitating Coordination in Action:
o Controlling helps in providing a common direction to the all the activities of different
departments and efforts of individuals for attaining the organizational objectives.
PROCESS OF CONTROLLING
1. Establishing goals and standards
o The task of fixing goals and standards takes place while planning but it plays a big role in
controlling also. This is because the main aim of controlling is to direct a business’s
actions towards its goals. If the members of an organization know their goals clearly, they
will invest their entire focus in achieving them.
2. Measuring actual performance against goals and standards
o Once managers know what their goals are, they should next measure their actual
performance and compare. This step basically helps them in knowing whether their plans
are working as intended.
o After implementing a plan, managers have to constantly monitor and evaluate them. They
must always be ready to take corrective measures if things are not working properly. In
order to do this, they should keep comparing their actual performance with their ultimate
goals.
3. Taking corrective action
o In case there are discrepancies between actual performances and goals, managers need to
take corrective actions immediately. Timely corrective actions can reduce losses as well
as prevent them from arising in the future again.
o Sometimes, business organizations formulate default corrective actions in the form of
policies. This, however, can be difficult to do when it comes to complicated problems.
o In such cases, managers need to first quantify the defect and prepare a course of action to
remedy it. Sometimes, they may have to take extraordinary measures for unpredictable
problems.
4. Following up on corrective action
o Just taking corrective measures is not enough; managers must also take them to their logical
conclusion. Even this step requires thorough evaluations and comparisons.
o Managers should stick to the problem until they solve it. If they refer it to a subordinate, they
must stay around and see to it that he completes the task. They may even mentor him
personally so that he may be able to solve such problems by himself later.
TYPES OF CONTROLLING
Management theorists and experts have devised several techniques over the years. They often
divide these techniques into two categories: traditional and modern. Traditional types of techniques
generally focus on non-scientific methods. On the other hand, modern techniques find their sources in
scientific methods which can be more accurate.
1. Budgetary Control
2. Standard Costing
3. Financial Ratio Analysis
4. Internal Audit
5. Break-Even Analysis
6. Statistical Control
Budgetary Control
o Budgeting simply means showcasing plans and expected results using numerical information. As
a corollary to this, budgetary control means controlling regular operations of an organization for
executing budgets.
o A budget basically helps in understanding and expressing expected results of projects and tasks in
numerical form. For example, the amounts of sales, production output, machine hours, etc. can be
seen in budgets.
o There can be several types of budgets depending on the kind of data they aim to project. For
example, a sale budget explains selling and distribution targets. Similarly, there can also be
budgets for purchase, production, capital expenditure, cash, etc.
o The main aim of budgetary control is to regulate the activity of an organization using budgeting.
This process firstly requires managers to determine what objectives they wish to achieve from a
particular activity. After that, they have to lay down the exact course of action that they will
follow for weeks and months.
o Next, they will translate these expected results into monetary and numerical terms, i.e. under a
budget. Finally, managers will compare actual performances with their budgets and take
corrective measures if necessary. This is exactly how the process of budgetary control works.

Standard Costing
o Standard costing is similar to budgeting in the way that it relies on numerical figures. The
difference between the two, however, is that standard costing relies on standard and
regular/recurring costs.
o Under this technique, managers record their costs and expenses for every activity and compare
them with standard costs. This controlling technique basically helps in realizing which activity is
profitable and which one is not.
Financial Ratio Analysis
o Every business organization has to depict its financial performances using reports like balance
sheets and profit & loss statements. Financial ratio analysis basically compares these financial
reports to show the financial performance of a business in numerical terms.
o Comparative studies of financial statements showcase standards like changes in assets, liabilities,
capital, profits, etc. Financial ratio analysis also helps in understanding the liquidity and solvency
status of a business.
Internal Audit
o Another popular traditional type of control technique is internal auditing. This process requires
internal auditors to appraise themselves of the operations of an organization.
o Generally, the scope of an internal audit is narrow and it relates to financial and accounting
activities. In modern times, however, managers use it to regulate several other tasks.
o For example, it can also cover policies, procedures, methods, and management of an organization.
Results of such audits can, consequently, help managers take corrective action for controlling.
Break-Even Analysis
o Break-even analysis shows the point at which a business neither earns profits nor incurs losses.
This can be in the form of sale output, production volume, the price of products, etc.
o Managers often use break-even analysis to determine the minimum level of results they must
achieve for an activity. Any number that goes below the break-even point triggers corrective
measures for control.
Statistical Control
o The use of statistical tools is a great way to understand an organization’s tasks effectively and
efficiently. They help in showing averages, percentages, and ratios using comprehensible graphs
and charts.
o Managers often use pie charts and graphs to depict their sales, production, profits, productivity,
etc. Such tools have always been popular traditional control techniques.
UNIT-IV
COMMUNICATION
MEANING
Communication is a process of creating and sharing ideas, information, views, facts, feelings, etc.
among the people to reach a common understanding.
DEFINITION
According to William Scott in his book organizational theory “ Administrative communication is
a process which involves the transmission and accurate replication of ideas ensured by feedback for the
purpose of eliciting actions which will accomplish organizational goals”
COMMUNICATIONS PROCESS
o Communications is a continuous process which mainly involves three elements viz. sender,
message, and receiver.
o The elements involved in the communication process are explained below in detail:
1. Sender
➢ The sender or the communicator generates the message and conveys it to the receiver. He is the
source and the one who starts the communication

2. Message
➢ It is the idea, information, view, fact, feeling, etc. that is generated by the sender and is then
intended to be communicated further.
3. Encoding
➢ The message generated by the sender is encoded symbolically such as in the form of words,
pictures, gestures, etc. before it is being conveyed.
4. Media
➢ It is the manner in which the encoded message is transmitted. The message may be transmitted
orally or in writing. The medium of communication includes telephone, internet, post, fax, e-mail,
etc. The choice of medium is decided by the sender.
5. Decoding
➢ It is the process of converting the symbols encoded by the sender. After decoding the message is
received by the receiver.
6. Receiver
➢ He is the person who is last in the chain and for whom the message was sent by the sender. Once
the receiver receives the message and understands it in proper perspective and acts according to
the message, only then the purpose of communication is successful.
7. Feedback
➢ Once the receiver confirms to the sender that he has received the message and understood it, the
process of communication is complete.
8. Noise
➢ It refers to any obstruction that is caused by the sender, message or receiver during the process of
communication. For example, bad telephone connection, faulty encoding, faulty decoding,
inattentive receiver, poor understanding of message due to prejudice or inappropriate gestures,
etc.
IMPORTANCE OF COMMUNICATION
1. The Basis of Co-ordination
➢ The manager explains to the employees the organizational goals, modes of their achievement and
also the interpersonal relationships amongst them. This provides coordination between various
employees and also departments. Thus, communications act as a basis for coordination in the
organization.
2. Fluent Working
➢ A manager coordinates the human and physical elements of an organization to run it smoothly
and efficiently. This coordination is not possible without proper communication.
3. The Basis of Decision Making
➢ Proper communication provides information to the manager that is useful for decision making.
No decisions could be taken in the absence of information. Thus, communication is the basis for
taking the right decisions.
4. Increases Managerial Efficiency
➢ The manager conveys the targets and issues instructions and allocates jobs to the subordinates.
All of these aspects involve communication. Thus, communication is essential for the quick and
effective performance of the managers and the entire organization.
5. Increases Cooperation and Organizational Peace
➢ The two-way communication process promotes co-operation and mutual understanding amongst
the workers and also between them and the management. This leads to less friction and thus leads
to industrial peace in the factory and efficient operations.
6. Boosts Morale of the Employees
➢ Good communication helps the workers to adjust to the physical and social aspect of work. It also
improves good human relations in the industry. An efficient system of communication enables the
management to motivate, influence and satisfies the subordinates which in turn boost their morale
and keeps them motivated.
OBJECTIVES OF COMMUNICATION
1. Stronger Decision Making
o Your ability to communicate effectively increases productivity, both yours and your organization.
2. Increased Productivity
o With good communication skills, you can anticipate problems, make decisions , co-ordinate work
flow , supervise others , develop relationships and promote products and services.
3. Steadier Work Flow
o Communication acts as tool for the effective work related flow of information.
4. Strong Business Relationships & Enhanced Professional Image
o You can shape the impressions you and your company make on colleagues , employees
,supervisors , investors ,and customers in addition to perceiving and responding to the needs of
these stakeholders(the various group you interact with ) without effective communication , people
misunderstand each other and misinterpret information. Ideas misfire or fail to gain attention and
people and companies flounder.
5. Clearer Promotional Materials
o Your organizations need for effective reach of company name and public promotions are based
on effective promotional material such as advertisements , bill boards , online add , posters etc are
all communicated for effective message delivery and meaning.
6. Provide Advice
o Giving advice is based on individual-oriented and work-oriented ,advice should not given to the
person for pinpointing his mistakes rather it should be helpful for his improvement. Effective
advice promotes understanding and it can be a two way process if the subordinate staff given
freedom.
7. Provide Order
o Order is an authoritative communication pattern and it is directive to somebody always a
subordinate to do something.
o Orders will be written and oral orders, general and specific orders, procedural and operational
orders , mandatory and discretionary order.
o Order should be clear and complete, execution should be possible and given in a friendly way.
8. Suggestion
o Suggestion is supposed to be very mild and subtle form of communication.
o Suggestions are welcomed for it is not obligatory to accept them, it can be voluntary and
anonymous and submitted through suggestion boxes.
9. Persuasion
o Persuasion may be defined as an effort to influence the attitudes, feelings, or beliefs of others, or
to influence actions based on those attitudes, feelings, or beliefs. Persuasion can be done to others
if you are convinced, you do not impose, you are not rigid are prepared to meet half-way and you
can look at the situation from the other person’s angle also.
10. Education
o Education is a very conscious process of communication, it involves both teaching and learning
by which organizations provide to their employees in the form of training. Education is given for
management, employees and outside public.
12. Warning
o If the employees do not abide by the norms of the organization warning is a power
communication tool and it can be general and specific. Specific warning should be administered
in private and after thorough investigation. The aim of the warning should be the organization
betterment.
13. Raising Morale and Motivation
o Morale stands for mental health and it is a sum of several qualities like courage, resolution,
confidence .High morale and effective performance go hand to hand. Motivation is a process that
account for an individual intensity, direction, and persistence of effort towards attaining a goal.
14. To Give and Receive Information
o Communication’s main idea is to give and receive information because managers need complete,
accurate and precise information to plan and organize employee need it to translate planning in to
reality. Information will cover all aspects of the business.
15. To Provide Counselling
o Counseling is given to solve employee mental stress and improve the employee productivity.
16. To Improve Discipline
o Finally discipline is the foremost part of any business communication. The various disciplinary
codes are effectively communicated to employees through disciplinary codes.
BARRIERS TO COMMUNICATION
The communication barriers may prevent communication or carry incorrect meaning due to
which misunderstandings may be created. Therefore, it is essential for a manager to identify such barriers
and take appropriate measures to overcome them. The barriers to communication in organizations can be
broadly grouped as follows:
1. Semantic Barriers
o These are concerned with the problems and obstructions in the process of encoding and decoding
of a message into words or impressions. Normally, such barriers result due to use of wrong
words, faulty translations, different interpretations, etc.
o For example, a manager has to communicate with workers who have no knowledge of the English
language and on the other side, he is not well conversant with the Hindi language. Here, language
is a barrier to communication as the manager may not be able to communicate properly with the
workers.
2. Psychological Barriers
o Emotional or psychological factors also act as barriers to communication. The state of mind of
both sender and receiver of communication reflects in effective communication. A worried
person cannot communicate properly and an angry recipient cannot understand the message
properly.
o Thus, at the time of communication, both the sender and the receiver need to be psychologically
sound. Also, they should trust each other. If they do not believe each other, they cannot
understand each other’s message in its original sense.
3. Organizational Barriers
o The factors related to organizational structure, rules and regulations authority relationships, etc.
may sometimes act as barriers to effective communication. In an organization with a highly
centralized pattern, people may not be encouraged to have free communication. Also, rigid rules
and regulations and cumbersome procedures may also become a hurdle to communication.
4. Personal Barriers
o The personal factors of both sender and receiver may act as a barrier to effective communication.
If a superior thinks that a particular communication may adversely affect his authority, he may
suppress such communication.
o Also, if the superiors do not have confidence in the competency of their subordinates, they may
not ask for their advice. The subordinates may not be willing to offer useful suggestions in the
absence of any reward or appreciation for a good suggestion.
The Seven Cs of Communication helps to overcome barriers:
1. Consideration: consideration states that every message should be prepared keeping in mind the person
who will be the receiver of the message. Receiver's interest should be kept in mind while drafting the
message. Specific ways to indicate candidness are: -
• Focus on "you" attitude instead of "I" on "We"
• Material or content of the message should be from reader's point of view.
• Use of positive words should be allowed so that positive reaction could be received by the
readers.
• Benefits of readers should be the prominent part of message.
Examples:
• We Attitude: I am delighted to announce that there will be extra classes for the students in
college to clarify their problems.
• You Attitude: You will be able to clarify your problems in the extra classes organized in college.
2. Clarity: Clarity is most important characteristic of communication especially in case or oral
Communication/Presentation. Clarity in words, language of expression is very important to ensure proper
presentation of ideas, message one wants to communicate during conversation.
Clarity can be achieved through following ways:
• Precise, familiar use of words or language during communication, Effective sentences should be
framed,
• There should be unity in all one words of message so that the main idea of message can be
properly communicated.
• Short length sentences of average 17 to 20 words should be preferred.
3. Completeness: Complete message is very important to communicate the main idea or information
behind the message. Oral presentations should be as far as possible planned on restructured and all the
information related to message should be properly communicated.
Guidelines for ensuring completeness are as follows:
• Provide all necessary information required for accurate understanding of message.
• All Questions asked by the audience should be properly answered by presenter during oral
presentation/communication.
• Some extra information when ever desirable should be given to audience to make the presentation
topic clearer, specific of complete.
4. Conciseness: Conciseness is the essential requirement of oral communication. Concise message saves
time on expense for both senders on receiver concise means brief, short on informative message which is
able to explain the idea of message with minimum words. Words in message should not be repetitive in
nature & only relevant information should be communicated in message.
5. Correctness: In oral communication grammatical errors should be avoided. Right level of language
should be used both in formal & informal communication. Use of accurate words and spellings should be
considered.
6. Concreteness: it means specific, definite on valid use of information than vague or general. Concrete
facts on figures should be used to make the receivers know exactly what is required or desired. Concrete
language on information helps in interpreting the message in same way as communicate intend to
communicate the message.

7. Courtesy: A proper decorum of speaking should be maintained while making oral communication/
presentation. One should say things with force of assertive without being rude. Polite or humble language
shall be used which should not be insulting, against the religious, social as personal values of listener.
Discriminatory language based, on gender, race, age, colour, cost creed, religion etc should be avoided.
DIFFERENCE BETWEEN FOEMAL & INFORMAL COMMUNICATION

TYPES OF COMMUNICATION
1. FORMAL COMMUNICATION
According to Bartoal and Martin, “Formal communication refers to vertical and horizontal
communication that flow path specified by the official hierarchical organizational structure and related
task requirements.”
Features or characteristics of formal communication:
o Well defined rules and regulations: Formal communication has well-defined rules and
regulations.
o Bindings: Employees of the formal organization is bounded to follow formal rules and
regulations.
o Chain of command: Proper chain of command is followed by formal communication.
o Delegation of authority: Authority is delegated by the superiors to the subordinates through this
communication.
o Use as a reference: Documents of the formal communication is recorded by the organization. S,
these recorded documents are used as a source of the employees.
o Recognition: Formal communication occurs among the employees of the organizational
structure. So it has recognition.
o Task-related: All types of formal compunction within the employees should be task related.
o Routine Communication: Generally formal communication is a routine communication of the
employees.
o Cooperation and co-ordination: Formal communication is a part of cooperation and
coordination.
o Status symbol: Formal communication of the employees shows the status symbol.
Types of formal communication
Downward Communication:
o The downward communication is when the information passes from the management level to the
subordinate level. This is the most common form of formal communication wherein
communication flows downwards, i.e. from the people occupying top positions in the
organization to the people at lower levels.
Objectives of Downward Communication
o 1. Information
o 2. Instruction
o 3. Requests
o 4. Advice
o 5. Counseling
o 6. Persuasion
o 7. Warning and Notice
o 8. Appreciation
o 9. Motivation
o 10. Raising Morale
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Upward Communication:
o The upward communication is when the message passes from the subordinate level to the
management level. Here, the communication flows upwards i.e. from the subordinates to the
managers in the form of request, reports, suggestions, complaints, and instructions.
Objectives of Upward Communication
1. Reports
2. Information
3. Requests
4. Appeals
5. Demands
6. Representations
7. Complaints
8. Suggestions
9. Importance of Upward Communication
Horizontal or Lateral Communication:

o Horizontal communication means when the Co-workers with different areas of responsibilities,
but at the same level in the organization communicate with each other. The communication
between the managers of a different department, such as marketing, finance, production, HR, is
the best example of horizontal communication.
Importance of Horizontal Communication
1. Co-ordination
2. Problem Solving
3. Conflict Resolution
4. Communication by Objectives
5. Effective Control
6. Speed Flow
7. Useful to Subordinates
8. Balance Downward and Upward
Limitations
• Creates Confusion
• Leads to Disruption
• Creates Conflicts
Diagonal or Crosswise Communication:
o When the employees of different departments at different levels communicate with each other
irrespective of the chain of command, then the communication is said to be a diagonal or a cross-
wise communication. The communication between the floor manager and the sales team is the
example of diagonal communication.
Advantages of diagonal communication
• Spread information more quickly than the traditional forms of communication.
• Serve to link groups that otherwise would either have to communicate through the much slower
upward downward organization communication channels or not communicate at all.
• Enable individuals with diverse knowledge is different parts of the organization to contribute to
problem solution, enhancing the effectives of resources use within the organization.
Disadvantage of a diagonal communication
• These interfere with the normal organizational routine, & they cannot be effectively controlled by
the, organization.
• It leads to the formation of a grapevine.

• The way in which the formal communication can be facilitated is called as the formal
communication network. There are several forms of Formal Communication Network
that individuals use to get their message transmitted to others.
INFORMAL COMMUNICATION
The communication which does not follow any pre-defined channel for the transmission of
information is known as informal communication. This type of communication moves freely in all
directions, and thus, it is very quick and rapid. In any organization, this type of communication is very
natural as people interact with each other about their professional life, personal life, and other matter.
Example: Sharing of feelings, casual discussion, gossips, etc.
The informal communication is of four types:
Single Strand Chain:
o The communication in which one person tell something to another, who again says something to
some other person and the process goes on.
Cluster Chain:
o The communication in which one person tells something to some of its most trusted people, and
then they tells them to their trustworthy friends and the communication continues.
Probability Chain:
o The communication happens when a person randomly chooses some persons to pass on the
information which is of little interest but not important.

Gossip Chain:
o The communication starts when a person tells something to a group of people, and then they pass
on the information to some more people and in this way the information is passed on to everyone.
UNIT-V
COMMUNICATION MEDIA
COMMUNICATION MEDIA
Communication media refers to the means of delivering and receiving data or information. In
telecommunication, these means are transmission and storage tools or channels for data storage and
transmission.
Forms of Communication Media
• Analog: Includes conventional radio, telephonic and television transmissions
• Digital: Computer-mediated communication, computer networking and telegraphy
The most commonly used data communication media include:
• Wire pairs
• Coaxial cable
• Microwave transmission
• Communication satellites
• Fiber optics
The communication media acts as a channel for linking various computing devices so that they may
interact with each other. Contemporary communication media facilitate communication and data
exchange among a large number of individuals across long distances via email, teleconferencing, internet
forums and many other forms of communication.

VERBAL COMMUNICATION
• Verbal communication is the expression or exchanged of information or messages through
written or oral words.
Forms of verbal communication are as follows:
o Oral communication: Oral communication is the process of communication in which messages
or information is exchanged or communicated within sender and receiver through the word of
mouth. It can be divided into two ways: a. Speaking b. Listening.
o Written communication: Written communication is the process of communication in which
messages or information is exchanged or communicated within sender and receiver through
written form. It can be divided into two ways: a. Writing b. Reading.
Oral communication is used:
1. By choice:
o Managers transmit messages orally when they want speedy transmission of ideas.
2. Nature of information:
o Highly confidential information where evidence in writing is not to be retained is generally
transmitted orally.
3. Situation:
o When receiver of information does not want to read long notices, managers transmit information
orally. Oral communication can be formal and informal.
o Formal oral communication takes place through formal presentations, group discussions,
meetings, interviews etc.
o Informal oral communication takes place through face-to-face conversation or telephone.
Informal communication helps in maintaining healthy interpersonal relationships.
Merits of oral communication:
Oral communication has the following merits:

1. Speed:
o It is a fast medium of communication. It takes long to write, despatch and receive a letter while
orally, messages can be transmitted and received simultaneously. Messages can be instantly
encoded, transmitted and decoded.
2. Feedback:
o The sender can receive immediate feedback from the receiver. Doubts and clarifications can be
sought at the point of discussion, thus, enhancing efficiency of the message. Message can be
reframed for better understanding and action. While feedback is more apparent in two-way
communication, in one-way communication, feedback can be provided through gestures.
3. Synergy:
o Two brains can think faster and better than one. ‘One plus one makes eleven.’ When people
discuss matters orally, they arrive at better proposals and solutions than can be thought of by one
man alone.
4. Economical:
o It is an economical means of communication. It saves time and money on stationery and
administrative staff. People at distant places can be immediately connected and actions can be
initiated without delay.
5. Flexible:
o If the message is not clear, sender can change his voice, words or tone to make it clear to the
audience. Written words cannot be easily changed.
6. Personal touch:
o It adds personal touch to communication. When managers personally talk to subordinates, it
carries more meaning than transmitting the same message in writing.
7. Secrecy:
o Secrecy can be maintained in oral communication. Confidential information is transmitted orally
so that no evidence is maintained in writing.
8. Non-verbal clues:
o Actions speak louder than words. The speaker can make out through actions of the receiver
whether or not he has understood the message.
9. Inter-personal relations:
o It is an effective medium of communication to develop healthy inter-personal relations amongst
superiors and subordinates. Personal meetings and discussions create healthy climate in business
organisations.
Limitations of oral communication:
Oral communication suffers from the following limitations:
Lack of evidence:
o Oral communication has no proof as nothing is evidenced in writing. Matters discussed cannot be
used for future reference. Thus, where references are required for decision-making, this is not a
suitable medium of communication.
Limited time:
o Though immediate feedback is a positive feature of oral communication, receiver has very little
time to think. He may immediately say ‘yes’ to the proposal while actually it may not be possible
for him to act upon it.
Costly:
o Sometimes, meetings run for hours and end up without conclusions. This results in waste of time,
money and energy. People deviate from the agenda and discuss issues not relevant to the frame of
decided subject matter. It wastes time and energy to come to the point and take relevant decisions.
Lengthy messages:
o When messages are lengthy, it is not a suitable medium of communication. Human memory
cannot retain things for long. Both sender and receiver may not be able to recall the message, it is
always better to write lengthy messages.
Geographical locations:
o It is not a suitable form of communication where sender and receiver are separated by
geographical distances. Talking on phone is costly and noisy. Travelling long distances for
personal meetings may be costlier.
Attitudinal problems:
o If sender and receiver have personal biases and prejudices against each other, oral communication
becomes ineffective. They tend to find faults with others’ suggestions rather than arrive at
consensus.
6. Misunderstanding:
o Fraction of inattentiveness can result in loss of important information. This results in
misunderstanding and varying perception about the message conveyed.
7. Noise:
o Oral communication is prone to noise. Disturbance in telephone lines, mike connections, faxes,
interference by the third person etc. reduces the effectiveness of oral communication.
9. Assigning responsibility:
o It is difficult to assign responsibility and hold people accountable for mistakes and inaccuracies in
carrying out the messages as they are not recorded for reference.
WRITTEN COMMUNICATION:
o Written communication transmits messages, ideas and thoughts in writing with documentary
proof in the form of notices, letters, circulars, hand-outs, manuals etc. In a large organisation,
managers interact with various stakeholders, like consumers, suppliers, Government, labour
unions, shareholders etc.
o These stakeholders are separated by wide geographical distances and, therefore, managers cannot
communicate with them orally. They adopt written means of communication for smooth conduct
of the organisation.
o It needs lot of deliberation, effort and thinking to put a message in writing. Similar to oral
communication, written communication can be used in formal and informal channels. Fax, letters,
reports, notices, etc. are the usual means for transmitting messages in writing.
Merits of written communication:
Written communication has the following merits:
1. Documentary evidence:
o Written communication is a record on paper. It, therefore, has evidence for future reference.
Reference to any point can be made at any point of time if matters are put in writing.
2. Legal evidence:
o If disputes arise that require judicial interpretations, written information helps in maintaining
legal defence.
3. Better understanding:
o Messages in writing can be read as many times as the reader wants to understand the message.
4. Well stated message:
o The sender can think, analyse and take time to put the message in writing. The message is more
balanced than oral communication.
5. Wider access:

o It can reach a much larger audience and geographical coverage than oral communication. In case
of mass communication, letters and newspapers can be read by a large number of people.
6. Responsibility:
o Responsibility can be fixed in written communication as against oral communication. People can
be held liable for mistakes, errors and omissions.
7. Uniformity:
o It maintains uniformity of policies and procedures. Oral communication is liable to different
interpretations but written facts clearly specify what is expected of whom.
8. Lasting impact:
o What one reads is more lasting than what one hears. Reading messages has a lasting impact on
readers.
9. Noise free:
o It is free from noise. One can write and read at convenience. Internal (fans, people talking to each
other) and external (loudspeakers, telephone disconnection) disturbances do not affect the
efficiency of written communication.
10. Suitable for lengthy messages:
o Lengthy and complex messages can be better encoded and decoded when put in writing.
Limitations of written communication:
Written communication suffers from the following limitations:
1. Writing skills:
o Writing is an art. Everybody cannot put messages in writing. If the sender does not have writing
skills, written communication will be of little value.
2. Paperwork:
o Putting messages in writing requires huge amount of paper work. In many departments, files get
misplaced which delays the processing of information.
3. Time:
o It is a time-consuming means of communication. It is not suitable where immediate feedback is
required.
4. Different interpretations:
o Choice of words should be carefully made when messages are put in writing. Receiver’s
understanding of the words and language should be same as that of the sender.
5. Costly:
o It is a costly means of communication. Lot of time and money are spent on drafting and sending
the message. In big organisations, separate mailing departments are maintained. Stationery and
administrative costs are huge. The message should be so drafted that benefits outweigh the costs.
6. Lack of personal touch:
o It lacks personal touch between the sender and the receiver.
7. Lack of secrecy:
o Written messages cannot remain secret as they pass through a number of levels and departments.
8. Non-verbal clues:
o Sender cannot read facial expressions and gestures of the receiver. He cannot understand how
well the receiver appreciates what he wants to convey.
9. Lack of flexibility:
o Written messages lack flexibility as they cannot be easily changed. Lot of time and money have
to be spent on changing the message. The above discussion makes it clear that oral or written
medium of communication depends upon the situation.

o If information is formal that does not require personal link of sender with the receiver, it is
lengthy and needs to be preserved for future reference, or is required for legal interpretations,
written communication is more appropriate than oral.
o If, on the other hand, information has to be given to a small number of people who are centrally
located, it is confidential and does not need to be stored for future or legal reference, oral
communication is more appropriate than written. Daily, routine and informal matters are
generally communicated orally while important, formal and non-routine matters are
communicated in writing.
Differences between Oral and Written Communications:
Oral Communication:
o It is flexible.
o Responsibility cannot be easily fixed.
o It is liable to different interpretations.
o It has no documentary proof.
o It can reach a limited number of audience.
o It is less costly in terms of time and money.
o It does not have a lasting impact.
o It is suitable for sending short messages.
o It helps the sender to receive immediate feedback on the message.
o It adds personal touch to communication process.
Written Communication:
o It is rigid or non-flexible.
o Responsibility can be fixed.
o It maintains uniformity of action.
o It has documentary proof.
o It has wide access to receivers.
o It is expensive.
o It has a lasting impact.
o It is suitable for sending lengthy messages.
o Feedback cannot be immediately received.
o It does not promote personal relationships between the sender and the receiver.
VISUAL COMMUNICATION
MEANING
Visual Communication is the language of visual perception and visual expression. It is
visualization of pictures in the mind’s eye or the naked eye, which are transported to the unconscious
mind. It enables vision as well as envisioning.
Methods of Visual Communication
1. Image formation:
A picture consists of different image planes: foreground, background, lower and upper areas, left
and right sides, center and all visible sectors along the perspective from the fore- to the
background. Every position has a special meaning for the picture’s expression and also the
viewer’s.
2. Art work:
Every picture is designed with relation to its specific content. Presentation and position define the
importance of the objects and people shown. The interaction of dimension, color, focus,
presentation (foreground, background, etc.) gives persons and objects their special meaning.
3. Picture language:
Pictures or series of pictures tell stories and communicate different contents. Picture language can
have a documentary character if it is transported, for example, with media such as photography or
movies; it can also have a symbolic or abstract expression if media such as painting, collage, or
graphics are used.
4. Facial expression, gesture, body language:
The oldest and most widespread expression of Visual Communication is body language. The
facial expression transports our emotional condition, our wants and needs, and gives our speech
special meaning. Gesture defines our individual style of communication, underlines the dynamic
of our storytelling and visualizes situations with the body. Second, some gesture is part of
collective understanding.
5. Image analysis:
Image analysis consists of image formation, artwork, and picture language. It describes and
interprets the individual and cultural expression and effectiveness of visual presentations. In
addition to this knowledge, results of analysis are also influenced by individual knowledge and
experiences that are reflected based on previously learned methods.
Elements of Visual Communication
This brief tutorial introduces the foundational elements of visual communication. The emphasis is
on techniques to graphically communicate
(A) hierarchy,
(B) grouping and
(C) sequence
Three concepts that is critical for designing effective figures, posters, and slides.
Here is an overview of the strategy:

o Position, color, size, shape, and orientation are variables applied to individual graphic elements.
Graphic elements are the units of information that go into making a figure, slide, or poster. These
include photos, icons, paragraphs of text, and titles.

o Next, the graphic elements are combined into compositions where contrast, repetition, proximity,
and alignment, defined below, are created. A figure, poster, or slide is a composition of individual
graphic elements.
o Contrast: Elements have noticeably different visual characteristics then others in the
composition. Created using the variables of color, size, shape, orientation.
o Repetition: Elements have consistent visual characteristics within the composition. Created
using color, size, shape, and orientation.
o Alignment: Elements have been arranged to create an imaginary line within the composition.
Uses the variable of position.
o Proximity: Elements are close together within the space of a composition. Uses the variable of
position.

o By wisely using visual variables and creating contrast, repetition, alignment, and proximity
within the composition, you can communicate to the viewer the relationships among the elements
of your composition.
o Clearly establishing hierarchy, grouping, and sequence through visual methods allows the viewer
to quickly understand how the pieces of information in your figure, slide, or poster relate to each
other—and therefore to more quickly understand the information itself.
o Hierarchy: A dominant-subordinate relationship among elements.
o Grouping: A relationship that specifies the elements to be associated together.
o Sequence: A relationship among elements that specifies first, second, third…
o As you examine the examples in the figure below, consider which of the compositions would
communicate differently if it was turned on its side or upside down.
o In the top row (the four compositions demonstrating hierarchy), the first three compositions could
be turned without changing what is communicated. But the fourth could not because it relies on
the variable of position to communicate hierarchy.
▪
o Using position as a way to communicate hierarchy works because we associate dominance in a

hierarchy with the physical position of being “above” or “at the top”. Similarly, how we interpret
a sequence (demonstrated in the last row) relies on position, following convention of reading
English from left-to-right and top-to-bottom.
o Now that you have seen these principles of visual communication demonstrated using simple
shapes and without any context, it is time to apply this thinking to a real design. Below is a flyer I
designed for a visual communication workshop.

o First, identify all the uses of alignment. Which of these alignments simply serve to give the poster
a tidy appearance, and which have a role in helping to communicate the information in the
poster?
o I chose to use two fonts are used in the flyer (Trajan Pro toward the top, Gill Sans at the bottom).
Where is contrast used in the typography? Where is repetition used? What purposes do they
serve?
o Next, describe how hierarchy, grouping, and sequence were created within the flyer:
Finally, here are some tips to help you avoid common mistakes in your designs:
• You must create a clear hierarchy within the composition so that the viewer knows what is most
important and where they should initially focus their attention. If you try to emphasize
everything, you end up emphasizing nothing.
• If you have created contrast, the viewer expects the contrast to mean something. Therefore, if you
have several elements in a composition that are similar, keep them visually consistent. Don’t
choose different colors for each one simply because your software makes it easy to do so.
• Use alignment within your composition wherever it makes sense. Sometimes this alignment helps
to communicate with the viewer (for example, “these are a group”, “these are a sequence”). Other
times it simply helps to reduce visual clutter, so the viewer can more easily direct his or her
attention to elements of importance.
• Limit your color palette and use highly saturated colors sparingly. As you can see in the examples
I provided, color is a powerful way to attract attention to individual elements. But when used
carelessly it is a way to overwhelm and confuse your viewer.
Advantages of visual communication:
o Effective for illiterate receiver: If the receivers are illiterate, the visual communication will be
more effective to exchange information. They can easily understand the information that is
presented visually.
o Helps in oral communication: Visual techniques can be used with oral communication. Oral
communication becomes more meaningful if graphs, pictures and diagrams are used with it.
o Easy explanation: Everyone can explain the meaning of it very easily. Easy explanation has
made the visual techniques more popular.
o Simple presentation: Complex information, data and figures can be easily presented very simply
on graphs, pictures and diagrams.
o Prevents wastage of time: Visual techniques help to prevent the wastage of time. Written and
oral communication takes much time to exchange information. But number of receivers can be
communicated at a time through visual methods.
o Helps in quick decision: Visual communication helps to take quick decision. So management
prefers visual techniques to communicate with others.
o Popular: Visual communication is very much popular because people do not like much speech
and long explanation rather than a chart of a diagram.
o Others: Artful presentation, Ads impact to the information, quicker understanding.
o Disadvantages of visual communication:
o There are some limitations of visual communication as follows:
o Costly: The visual methods of communication are more costly than those of other methods. To
draw maps, charts, diagram is costly. That is why only large company or organization can use this
technique.
o Complex presentation: Sometimes visual presentation of information becomes complex. The
receivers cannot understand the meaning of the presentation.

o Incomplete method: This technique is considered as an incomplete method. Visual presentation
is not sufficient to communicate effectively and clearly but also it can be successfully used with
oral communication.
o Wastage of time: Sometimes visual techniques take much time to communicate. Whereas oral
communication takes no time to exchange information.
o Difficult to understand: Difficult to understand and requires a lot of repetitions in visual
communication. Since it uses gestures, facial expressions, eye contact, touch etc. for
communicating with others which may not be understandable for the simple and foolish people.
o Problem for general readers: General people are not prefers to communicate through visual
communication with others. Sometimes it cannot create an impression upon people or listeners. It
is less influential and cannot be used everywhere.
BUSINESS LETTERS
A written message used to transact business which cannot be conveniently conducted orally. It is
formal and direct, with no literary pretentions.
PURPOSES:
• To serve as a record.
• An attempt to secure action from the reader.
COMPONENTS OF A BUSINESS LETTER
1. Heading
2. Date Line
3. Inside Address
4. Attention Line
5. Salutation
6. Subject Line
7. Body of the Letter
8. Complimentary Closing
9. Signature Lines
10. Identification Initials
11. Inclosure Reference
o Attention Line, Subject Line and Inclosure Reference are used whenever needed; the rest
must be included in every letter.
o As a general rule, double spacing between each part of a letter should be observed
1. The Heading: consists of the name of the firm or the individual and the address. These are the
essentials for a printed letterhead, although there may be additional printed data.
2. The Date Line: consists of the month, the day of the month, and the year. The date may be
centered, typed flush with the margin, started at the center point of the page, or, in full-block
letters, started at the left margin.
3. The Inside Address: consists of the name and address of the person or the firm to whom the
letter is written and should correspond in essentials to the envelope address.
o It is written below the date at the left margin in letters addressed to government officials and
also in personal letters of a rather formal and dignified character.
o It is sometimes placed in the lower-left-hand portion of the sheet, beginning flush with the
left hand margin, two to five spaces below the last item of the signature, depending upon the
amount of space between the signature and the bottom margin.

o For reasons of courtesy, we use a title with every name, such as: Mr., Mrs., or Miss. If the
addressee holds some special title like Doctor, Professor, or Honorable, we use the title.
Honorable is employed in addressing a person prominent in affairs of government.
o The generic name of a thoroughfare such as Street, Avenue, Boulevard, Drive, or Road
should not be omitted.
Examples:
101 Doroteo Rizal Street,
333 Claro M. Recto Avenue
4. The Attention Line: is used when it is important that the letter reach quickly the person who is
best qualified to take care of it. A number of positions and forms for this information are used,
but as a general rule, the attention line should be centered.
5. The Salutation: always starts at the left margin, followed by a colon. The correct salutation for a
firm composed of men or of men and women is Gentlemen. For a firm composed entirely of
women, Mesdames.
o Salutation for individuals, from formal to informal:
o Note: Do not use a salutation beginning with My when responsibility for the letter is
to be assumed by an organization rather than by an individual.
6. The Subject Line: enables the reader to know at a glance what the letter is about. It may be placed
in various positions (sometimes above the inside address).
7. The Body of the Letter: contains the message. As a general rule, single spacing should be
employed within paragraphs of the letter body. The two most important sentences of the letter
body are the first and the last. The first sentence should be utilized for a constructive purpose.
o Examples of positive openings:
o It is a pleasure to answer your interesting letter of October 10.
o We appreciate your giving us an opportunity to correct a misunderstanding.
o The last sentence often “makes” or “breaks” a letter.
o It should clinch the objective of the letter, and leave the reader pleasantly
impressed. It should direct, forceful, and complete in itself, so as it draws a
clean-cut dividing line between the letter body and the complimentary close.
o Examples of positive closing:
a) We hope that this arrangement will prove both convenient and profitable to
you.
b) We deeply appreciate your kindness and hope that we may soon have an
opportunity to return it.
8. The Complimentary Closing: is the leave taking line of the letter and should be consistent with
the salutation and the message contained in, the letter in representing the same degree of
formality.
The following complimentary close are arranged in the order of decreasing formality:
o Respectfully—should be used only when special respect is intended (indicates difference

position, rank or authority).
o Yours truly—was the standard form used very widely in letters calling for a medium degree
of formality. Very truly yours and Yours very truly are generally considered preferable to it
and appropriate with the salutations Gentlemen, Dear Sir, My dear Mr. Zamora, and Dear Mr.
Zamora.
o Sincerely and cordially—are commonly employed when the writer is well acquainted with
the addressee together with the salutation Dear Mr. Zamora.
o Dear Joey—when the writer is intimately acquainted with the addressee. He can omit yours in
the complimentary close.
9. The Signature: applies to the entire signature unit which usually consists of two to four lines
containing the following:
a. The typewritten name of the business organization in behalf of which the letter is written.
b. The pen-written signature of the dictator.
c. The typewritten name of the dictator.
d. The designation of the dictator’s business rank or position within the organization.

10. Identification Initials: the initial of the stenographer, and either the name or the initials of the
dictator are usually placed in the lower left-hand corner of the letter, ordinarily one or two spaces
below the last line of the signature group.
11. Inclosure Reference: when other material besides the letter included in the envelope, it should be
noted in the left-hand corner on a line with the bottom margin. (it is spelled with an initial i
though enclosure is permissible; the number beyond one is indicated before the abbreviation: 2
incls. )
ELEMENTS OF BUSINESS LETTERS
1. Sender
2. Receiver
3. Message
GOLDEN RULE:
“Adapt the message to the reader” in substance, in language, and in tone;
o The substance of the message must be adapted to the reader’s character. The message must be
familiar to the reader.
o The colloquial, jocular tone would not fit a message concerning an important business
transaction.
TYPES OF BUSINESS LETTERS
1. Inquiries and Replies
2. Order and Acknowledgments
3. Letters Giving Instructions
4. Claim and Adjustment Letter
5. Letter of Application
6. Sales Letters
7. Endorsement Letter
1. Inquiries and Replies: these letters which ask or answer questions are usually brief and present no
special difficulty. It consists of four steps:
a. State carefully the circumstances which necessitate the inquiry.
b. State any facts needed by the reader in making a complete reply.
c. Ask for the information, or state the questions.
d. Express gratitude for the favor requested.
Note: It is customary to inclose postage for a reply; a note of thanks should follow a letter of this sort.
The reply should do the following things:
a. Acknowledge the inquiry, or state the circumstances necessitating the reply.
b. Answer the questions fully.
c. Build goodwill and pave the way for further contact.
Note: In handling replies, the writer should be prompt and systematic. If the material is not immediately
available, the inquiry should be acknowledged and a date set for the final reply.
EXAMPLE OF ENQUIRY & REPLY
2. Order and Acknowledgment: the order letter, as well as its acknowledgment and acceptance,
constitutes a contract enforceable by law; therefore, every statement included in either should be
scrutinized carefully with that in mind.
An order letter should consists the following elements:
a. Name of the article ordered.
b. Description of each item, giving size, style, finish, quality, material, weight, or whatever
will help in identifying the article wanted.
c. Catalog number of the item, if it is available; if not, the page number of the catalog (It is
well also to include the number or date of the catalog.)
d. Quantity of each item wanted.
e. Price of each item, and the total price of the order
f. Method of payment to be used by the buyer (Occasionally, the conditions of acceptance
of the order should be included.)
g. Method of shipment desired by the buyer.

h. Address to which the goods are to be shipped, especially important if shipping address
differs from post-office address.
i. Date at which goods are desired.
EXAMPLE OF ORDER LETTER
o Items (g), (h), and (i) are usually included in the first paragraph and item (f) in the last paragraph.
o the actual goods to be purchased is properly placed in tabular form, indented slightly from the left
margin and so arranged that prices form the last column on the right.
o The acknowledgment should be written in such a way that the customer will be desirous of
continuing his business relations with the firm. It should never be negative or merely perfunctory.

EXAMPLE OF AKNOWLEDGEMENT
3. Letters Giving Instructions: a usual preoccupation of the engineer or the architect is giving written
instructions by means of a letter to subordinates, to other technical men, or to laymen who write for
information or advice.
o These should show careful adaptation to the reader, as well as clearness and courtesy in giving
orders.
o The writer should know the reader to whom the instructions are given so that he may adapt his
letter to his needs, capacity and interest; and the language understood by the reader.
o The elements of a letter of instructions are as follows:
a. A general statement which gives the reason for the letter and paves the way for the
detailed instructions.
b. The detailed instructions.
c. A request for a report, an expression of cooperation or thanks for the service to be
rendered, or a statement opening the way for further correspondence to clear up obscure
points.
o In tone the letter of instructions should be tolerant, polite, and courteous, never patronizing or
overbearing; harsh imperatives should be softened and an air of impersonality should surround
the letter. Such expressions such as:
a. “Please see that…”
b. “You are expected to…”
c. “The work is to be performed as follows…”

EXAMPLE OF LETTER OF INSTRUCTION
4. Claim and Adjustment Letter: are used whenever a misunderstanding arises between two parties
which cannot be easily handled by word of mouth.
Claim Letter—attempts to put before the reader exactly what the writer thinks has been wrong or unfair
in a given transaction. He should not ask for more than he is entitled to, nor misstate facts in an effort to
deceive the other party. Claim Letter consists of four steps, arranged in the following order:
a. A complete and careful statement of what is wrong
b. A statement showing the inconvenience to which the claimant has been put, to arouse the
interest of the adjuster.
c. A request for an explanation, an adjustment, or whatever is needed to make good the
error.
d. A further appeal adapted to the reader’s pride, self-interest, sense of fair play, or fear.
In the adjustment letter, the functional order is as follows:
a) An expression of interest and sympathy or an apology
b) A clear and complete statement of the facts so that the claimant may understand the adjuster’s
point of view
c) An offer of an adjustment which is fair to both parties (may modern adjustment letters begin
with this section and is often combined with part a)
d) An assurance that the situation will not happen again to build up damaged goodwill.

EXAMPLE OF CLAIM LETTER

EXAMPLE OF ADJUSTMENT
5. Letter of Application: it tries to sell the writer’s services; attempting to secure a position through this
letter.
Two Types:
a. The Letter Replying to an advertisement
b. The Unsolicited Letter
A data form should contain the following items of information:

o Physical data such as age, height, weight, etc.
oEducation, schools, colleges, and universities with dates of attendance and degrees. Sometimes, it
is worthwhile to list important specialized courses studied or to mention grade average.
o Experience, with dates employed, type of work, addresses of firms, etc.
o Special qualifications which fit the applicant for the work, record of honors, prizes, etc.
o Salary desired. It is often wise to omit this information entirely, especially in unsolicited letters.
o References, with names and addresses.
o Salary Desired: this is best stated in a modest form rather than a definite, arbitrary or high figure,
such as:
a. “Not less than I am now earning, P______”.
b. “salary of secondary importance, but enough to live on ”.
c. “whatever is customary for this type of work”
EXAMPLE OF APPLICATION LETTER

6. Sales Letters: a tremendous volume of sales letters goes out every day, and every professional is sure
to be circularized with many of them.
Four Steps of the Sales Letters called ABCD’s:
o Attracting favorable attention by making the letter attractive in appearance, easy to read,
simple in language; by appealing to the reader’s interests or exciting his curiosity, by
being apt, natural, specific, concrete, not trite nor negative, and by having the “you
attitude”.
o Building interest and desire: by knowing the product and the customer, choosing talking
points that show a distinctive feature or a real need and are fitted to the class of buyers,
by describing the article either physically or emotionally, and by inclosing folders or
samples to stimulate interest.
o Convincing the reader by quoting facts, figures, data, by inclosing curves and graphs,
photographs—concrete evidence; by testimonials, by samples and suggested tests,
sending goods on approval, by specific guaranties and money-back offers, by evidence of
scientific construction, and by a tone of confidence.
o Directing favorable action by overcoming obstacles to action such as habits of
procrastination or lack of ready money by offering inducements such as premiums, low
price for a limited period; by using coin cards, order blanks, return envelopes, and by
using definite commands, strong suggestions, or pertinent questions as closing sentences.
7. The Endorsement Letter: according to Webster’s New International Dictionary, endorse comes from
dorsum, Latin for back.
o (to many people) it means to sign on the back of a check, bill, or commercial note.
o (popular meaning) is to support, approve, or recommend.
o (In military, legal, government and some business offices) it means reply, comment, or
forwarding note added to a letter of document.
EXAMPLE OF ENDORSEMENT LETTER

MODERN COMMUNICATION TOOLS
Communication combined with technology is called as backbone of social interactions. Some of
the technology based communication tools are:
o Blogs
o Bots
o Chat rooms, Private & Group messaging
o Discussion Forums
o Email
o Fax
o Gamification
o Internet
o Intranet/ Social intranet
o Instant messaging(IM)
o New media
o Phones
o Podcasts
o SMS
o Social Networking
o Tweeting
o Video Conferencing
Blog:
➢ Shortcut for the word web log.
➢ Good way to review a product or service by the blogger .
➢ Prepared by professionals and customers & competitors does not have the access .
➢ Informal and quick.
➢ Primary communication channel from sole proprietorship to large corporations.
Bots:
➢ A software that can interact with users using chat mechanisms.
➢ Very handy when tackling projects and troubleshooting issues.
➢ Improves customer service.
➢ Customers can get instant replies that provide resolutions to their issues & inquiries.
Chat rooms, Private & group messaging:
➢ Forums for specific group of people to interact and receive notification.
➢ Based on shared topic or characteristic.
➢ Specially designed for team/group based information sharing and messaging.
Discussion forums:
➢ Brings together manager and employees and allows for an open discussion on any topic.
➢ Facilitates knowledge sharing.
➢ Helps in knowledge dissemination and bring the workforce together.
➢ Provides information whenever required by the persons when they need it
Email:
➢ Cheapest ways a business can use to communicate both internally & externally.
➢ Allows the companies to efficiently & effectively spread information.
Fax:
➢ Combination of photocopier and a phone.
➢ Quickly sends documents that are not available in digital form.
➢ Substantially cheaper than sending through standard mail.
Gamification
➢ Concept of applying game mechanics and game design techniques to engage and motivate people
to reach company or business goals.
➢ Used to motivate better performance, drive business results and generate a competitive advantage.
Internet
➢ Enormous communication tool.
➢ Provides ability for peoples computer to interface with one another via phone lines.
➢ Internet applications are wide ranging from emails to instant messaging.
➢ Range from static information-giving websites to dynamic new media websites
Intranet/Social intranet:
➢ Private hub that can be accessed by any authorized users within a business organization.
➢ Mainly used for internal communication and collaboration.
➢ Results in more flexible workplace.
➢ Ensures all employees working towards same goals.
Instant messaging:
Commonly used for recreation.
➢ Widely used within business organisation for employee-employee/ employee-management
messaging.
➢ Provides an interface to communicate one-toone.
New Media:
➢ Describes social media websites
➢ Encourages users to put their own content up.
➢ Differs from old websites as they encourage participation from and interaction with the viewer.
Phones:
➢ Uses technology and have become more portable for the last 10 yrs.
➢ Changed the way people communicate by giving them ability to make calls when they are on
move.
Podcasts:
➢ generally presented as audio files available to stream or download.
➢ Earlier used In desktops/laptops & now it became famous and used in mobiles.
➢ Business organizations use this to reach internal workforce.
SMS:
➢ Shortened communication between people and delivered information far efficiently than a phone
conversation can.
➢ Since text messages are limited in length, users often shorten words and phrases to meet the
character limit.
Social networking:
➢ These are places to do relationship marketing.
➢ More informal approach.
➢ Gathering friends in these sites.
➢ Example-Facebook & MySpace.
Tweeting:
➢ Allows to broadcast very short messages called tweets to people who have elected to follow your
posts.
➢ Results in awareness of your company in the marketplace.

Video conferencing:
➢ Face-to-face meeting without having to be in one location.
➢ Effective communication tool as we can use physical gestures & facial expressions.
➢ If 2 persons have a camera and right software,
➢ they can see and talk to each other on computer.

Concept of Management and Communication

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CONCEPT OF MANAGEMENT

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Controlling Functions of Management Staffing

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1. Facilitates Administration: Achievement of the objectives of an enterprise by providing a

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The jobs or positions in an organization can be categorized as:

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Advantages of Formal Organization:

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CENTRALIZATION & DECENTRALIZATION

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1. Assignment of Duties to Subordinates: Before the actual delegation of authority, the

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DIFFERENCE BETWEEN FOEMAL & INFORMAL COMMUNICATION

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Horizontal or Lateral Communication:

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include photos, icons, paragraphs of text, and titles.

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o Using position as a way to communicate hierarchy works because we associate dominance in a

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