Attempt the following.
1) Explain the importance of Planning
James Stoner: “Planning is the process of establishing goals and a suitable course of action for achieving these goals.”
Importance of Planning:
It is the fundamental function that gives an outline about where to go, how to go, and reduces the risk of an uncertain future with the help of forecasting. The importance of planning is as follows:
1) Helps to set clear objectives:
Planning is concerned with setting objectives, targets, and formulating plans to achieve them. It helps managers to analyze the present condition of the organization and on that basis to identify the ways of attaining the desired position in the future.
2) Provides path of action:
Planning ensures that the goals or objectives are clearly stated. They act as a guide and they provide direction for doing the right things at the right time with the right way. It helps employees to know what the organization has to do and what they must do for achieving the goals.
3) Planning improves performance:
It helps managers to improve future performances of employees by establishing objectives and selecting a course of action. It is beneficial for the organization. Planning leads to the efficient working of the employees. Due to proper planning, the employees can work according to time guidelines. This improvement in performances results in higher profitability of the organization.
4) Minimizes the risk:
Planning is based on forecasting techniques. It is the process of looking into the future and anticipating future changes. By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events. Changes or risks cannot be eliminated totally but they can be anticipated and can be tackled with preventive measures. It minimizes the risk of future or uncertainties of the future.
5) Planning leads to optimum utilization of resources:
Organizational plans are prepared by taking into consideration the availability of resources and the proper allocation of resources for various activities. It also facilitates optimum utilization of resources which brings higher efficiency and better results. One can avoid wastage of resources by proper planning.
6) Helps in decision making:
There are various alternatives in front of management. Achieving goals planning helps the management to select the best alternative by considering all the positive and negative outcomes of all the alternatives. Decisions are taken after selecting alternative courses of action to achieve a predefined goal. It helps the manager to make rational decisions.
7) Useful in setting the standards for controlling:
Planning sets out standards for controlling. So, the actual performance can be compared with the standards and managers can find out the deviation, if any between the actual and the standard performance. Such deviation can be bridged by taking controlling steps. Therefore, planning provides a basis for control. It is also important for maintaining discipline at the working place of the organization.
8) Facilitates Coordination of all activities:
Planning facilitates the coordination of activities. It reduces overlapping among activities.All activities of business organizations are closely linked with each other which is considered in the process of planning. Sound planning interrelates with all the activities and resources of an organization. Thus, various departments work as per the overall plan, and coordination is achieved.
9) Facilitates other management functions:
Every organization functions towards achieving goal and goal is set at the planning stage.Unless the plan is ready, other management functions such as organizing, staffing, etc. cannot be undertaken thus, planning facilitates all other functions of management.
10) Promotes innovative ideas:
Planning is the basic function of management. It is a process of decision making that involves the promotion of innovative ideas after critical thinking. Ultimately, these innovative plans result in the attainment of the goals of the organization. It is the most challenging activity for the management as it guides all future actions leading to the growth and prosperity of the organization.
In short, planning plays a vital role in every walk of life of an organization as well as of an individual. The future is highly uncertain and the business environment is changing. With the help of proper planning, the risks and uncertainties can be minimized definitely. Hence, planning is the basic requirement of any organization for survival, growth, and success.
2) Describe the Importance of Organizing.
The term ‘organization’ is used to denote the structure. It is a unit or a group of people who come together to achieve a common goal whereas ‘organizing’ is a process and a function. Some of the definitions are as follows:
Importance of Organizing:
Organizing is concerned with grouping and assigning the organizational activities among different departments and workforce. The importance of organizing can be stated as follows:
1) Facilitates Administration as well as Operation:
The organizing process leads to identify and to group the activities. Grouping and assigning the activities is the task of administration whereas processing according to it is operational activity. Thus, organizing facilitates administration as well as operation of the organization. Due to proper grouping of the tasks and the employees, there is increase in production and reduction in wastage. Duplication of work is restricted and effective delegation becomes possible.
2) Brings Specialization:
Organizational structure is a network of relationships in which the work is divided into units and departments. This division of work helps in bringing specialization in various activities of the organization. Specialization in activities leads to an increase in organizational efficiency.
3) Defines Jobs Properly:
Organizational structure helps in putting the right men on the right job which can be done by selecting people for various departments according to their qualifications, skill, and experience. This is helping in defining the jobs properly which clarifies the role of every person.
4) Clarifies Authority and Responsibility:
Organizational structure defines the role of every manager. This can be done by delegating the authority to every manager and clarifying the way he has to exercise those powers. So that misuse of powers does not take place. Well defined jobs and responsibilities help in bringing efficiency into managers working. This helps in increasing productivity.
5) Establishes Coordination:
This function helps in establishing co-ordination among different departments of the organization. It creates clear cut relationships among positions and ensures mutual co-operation among individuals. Coordination or synchronization between all departments and different levels of managers is important for the smooth functioning of organizational activities.
6) Helps for Effective Administration:
This function determines different positions, departments, activities, and roles that are clearly structured. The utmost care is taken while placing the right person in the right job with the right authorities and responsibilities. It is achieved through the division of work and delegation of authorities. This all leads to efficient and effective administration.
7) Helpful for Growth and Diversification:
The growth of every organization depends on its smooth and efficient functioning. Clearly defined roles and responsibilities, coordination among all levels of management personnel, and the use of appropriate control techniques bring efficiency at the workplace, and organization grows well. This is possible only when the organization structure is well- defined.
8) Creates Sense of Security:
Organizational structure clarifies the job positions. It clearly states the duties and responsibilities of everyone. Everyone can work accordingly. The clarity in jobs and powers helps in increasing mental satisfaction and it creates a sense of security among the employees.
9) Scope for Innovation:
The organizing function clears the roles and activities to be performed. Employees can work by using their new ideas. This provides enough space for the manager to develop talent and flourish the knowledge. This scope for innovation into adopting new changes in methods of work is possible only through a set of organizational structures.
10) Helps in Optimum Utilization of Resources:
This function provides different jobs to different employees according to the job specification. Due to this, the specialization of work becomes possible. This right workforce utilizes other resources at its optimum level so that desired results are achieved within a defined period.
3) Explain the importance of Staffing
Meaning: Staffing is the function of execution according to plan and organizational structure. It is the process of attracting, recruiting, selecting, placing, appraising, remunerating, developing, and retaining the best workforce. The overall growth and success of every venture is based on the appropriateness of staffing function. It is very challenging for an organization to focus on the best utilization of the workforce by using their talents and skills, retaining them, and arranging training and development programs.
The function emphasizes managing human and not material or financial resources.
Importance of Staffing:
1) Effective Managerial Function:
Staffing is the key to the effective performance of other functions of management such as planning, organizing, directing, and controlling. Competent workforce can work effectively in different functional areas like production, sales, finance, etc. The outcome of other functions is based on the effectiveness of staffing.
2) Leads to Effective Utilization of Human Resources:
Staffing function leads to the effective utilization of human resources i.e. workforce. Proper care is taken at every stage such as recruitment, selection, placement, remuneration, training, development, etc. The excessive burden of work is avoided. Optimum utilization of human resources results in an improvement in the performance and progress of the organization.
3) Builds Cordial Relationship:
This function is helpful in building healthy relationships among all levels of employees in the organization. A smooth human relation is key to better communication and coordination of managerial efforts in an organization.
4) Helps Human Resource Development:
A skilled and experienced employee is an asset to a business organization. Staffing helps to inculcate the organizational culture into employees. It trains and develops the existing workforce. It also ensures the smooth functioning of all the managerial aspects of the business organization.
5) Helps in Effective use of Technology and Other Resources:
Trained employees can use the latest technology, capital, material, and methods of work effectively. It helps in building the competitive strength of the organization. It is also helpful in improving the standard of work and productivity in terms of quality and quantity.
6) Improves Efficiency:
Training and development programs are offered to the employees for self-development and organizational development. Through proper selection, the organization gets quality employees and through proper training, the performance level of the employees can be improved.
7) Long Term Effect:
A qualified, efficient, and skillful workforce is always an asset to the organization. Proper selection of employees leads the organization towards the path of success. Naturally, long term positive effects can be observed on the efficiency of an organization.
8) Essential Contribution:
Staffing ensures the continuity and growth of the organization through the development of employees. Selection is based on the ability of prospective employees. So that organization can meet future challenges wisely. Therefore, the contribution of the staff in their future roles is taken into account in the staffing function.
9) Provides Job Satisfaction:
Employees can be motivated through financial and non-financial incentives. Adequate remuneration increases job satisfaction and morale of the employees. Training and development programs, fair remuneration, and job security are factors that are important in providing job satisfaction.
10) Maintains Harmony:
In the staffing process, individuals are recruited, selected, and placed as well as their performance is regularly appraised and promotions are given on the basis of merit. For this, criteria are made and duly communicated to concerned employees. It brings peace and harmony to the organization.
4) Explain the importance of Directing
Theo Haimann : “Direction consists of the process and techniques utilizing in issuing instructions and making certain that operations are carried out as planned.”
Earnest Dale: “Directing is what has to be done and in what manner through dictating the procedures and policies for accomplishing performance standards”.
Importance of Directing:
Directing refers to a process or technique of instructing, guiding, inspiring, counseling, overseeing, and leading people towards the accomplishment of organizational goals. Supervision is an integral part of the direction function. The director supervises employees by observations, examining the reports and behavior of employees.
On the basis of the above definitions, the importance of directing can be stated as follows:
1) Initiates Action:
The direction is the function which supports to activate the plans with the help of employees. Every action is initiated in a timely direction. Proper instructions are given to subordinates while completing their assigned task. The managers direct the subordinates about what to do, how to do, when to do, and also to see that their instructions are properly followed.
2) Integrates Efforts:
Communication is one of the elements of direction. It helps in integrating the efforts of all the employees and departments which results in the achievement of organizational goals. Integration of efforts is possible through persuasive leadership and effective communication towards the accomplishment of organizational goals.
3) Means of Motivation:
While directing the subordinates, their opinions are also considered. 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. It boosts the morale of subordinates.
4) Provides Stability:
Stability plays a significant role in the growth and survival of the organization. Effective leadership, communication, supervision, and motivation develop co-operation and commitment among the employees. It provides stability and creates balance among various departments and groups.
5) Coping up with the Changes:
Factors of the business environment are always changing. Adapting to environmental changes is necessary for the growth of the organization. With the help of motivation, proper communication, and leadership, the employees can clearly understand the nature of change and also the positive outcome of adapting to the change. For example, e-filing, the use of Robots at the workplace, etc.
6) Effective Utilization of Resources:
Direction involves assigning duties and responsibilities to everyone. Proper instructions and systems are developed to avoid wastages, duplication of efforts, etc. Subordinates are guided to utilize the resources i.e. men, machines, materials, and money in the maximum possible way. It helps in reducing costs and increasing profits.
7) Creates Team Spirit:
Direction focuses on motivating the subordinates for group efforts. Group efforts or team spirit plays a vital role in the success of an organization than individual efforts. Therefore, the role of the manager as a director plays a very important role in guiding and motivating the employees to achieve the predetermined goals.
8) Explores the Capabilities of Individuals:
Every individual has various capabilities or potentials in addition to their formal qualifications. Direction helps to identify and utilize their abilities for best performance by encouraging and motivating them just like a leader.
9) Increases Efficiency Level:
Guidance and motivation is given to subordinates to perform at their best level. Being a leader, team spirit is created by the manager as well as proper techniques of supervision are used. It works positively and results in enhancing the efficiency level of the whole organization.
Co-operation is necessary for smooth flow of organizational activities. It should be created by the manager i.e. director from the top level to the bottom level of management. Healthy cooperation, teamwork, and higher efficiency level lead to the attainment of goals.
Thus, Directing to subordinates is a basic management function that includes building an effective work climate through motivation.
5) Explain the importance of Coordinating
Henry Fayol: “To co-ordinate is to harmonize all the activities of a concern to facilitate its working and its success.”
Importance of Co-ordinating:
The need for coordination arises out of the fact that different elements and efforts of an organization are to be harmonized and unified to achieve the common objectives. The importance of coordination can be discussed as follows:
1) Encourages Team Spirit:
In organizations, a group of individuals works together. There may be the existence of conflicts, disputes between individuals, departments, and employers, and employees regarding organizational policies, roles, and responsibilities, etc. Coordination arranges the work in such a way that minimum conflicts are raised. It increases the team spirit at the workplace.
2) Gives Proper Direction:
Coordination integrates departmental activities for achieving the common goal of the organization. The work is arranged in a very systematic way. The interdependence of departments gives proper direction to the employees.
3) Facilitates Motivation:
Coordination motivates the employees to take initiative while completing their assigned tasks.Effective coordination increases efficiency and results in the growth and prosperity of the organization. A prosperous organization ensures job security, higher income, promotion, and incentives. Such monetary and non- monetary incentives provide job security and motivate the employees for hard work.
4) Optimum Utilization of Resources:
Managers try to integrate all the resources systematically. It helps in utilizing all available resources at its optimum level. Co-ordination also helps to minimize the wastage of resources and control the cost of work.
5) Achieve Organizational Objectives:
Co-ordination leads to minimizing the wastages of materials, idle time of employees, delay in completion of targets, departmental disputes etc.to a great extent. It ensures smooth working of the organization in the process of achieving the objectives of the organization.
6) Improves Relation:
Co-ordination develops cordial relations between all the levels of management of an organization. Every department depends on the functioning of other departments. For example, the sales department works according to the production department, the Production department depends on Purchase department, and so on. Coordination helps the employees to build strong relations among them and achieve the given targets.
7) Leads to Higher Efficiency:
With the help of optimum utilization of resources and effective integration of resources, the organization can achieve high returns in terms of high productivity, high profitability as well as can reduce the cost. Thus, coordination leads to higher efficiency.
8) Improves Goodwill:
Higher sales and higher profitability can be achieved due to synchronized efforts of organizational people, strong human relations, and lower costs. It directly results in creating goodwill for the organization in the market. It reflects on the market value of shares as well as it helps in building a good image in society.
9) Unity of Direction:
Different activities are performed by different departments. Coordination harmonizes these activities for achieving the common goal of the organization. Thus, coordination gives proper direction to all departments of the organization
All departments of the organization are headed by experts in their respective fields. The specialized knowledge of these departmental heads helps in managerial decisions. It leads the organization to march towards growth and success in the competitive world of business.
6) Explain the importance of controlling.
Philip Kotler: “Control is the process of taking steps to bring actual results and desired results closer together.”
Importance of Controlling: Controlling is important in maintaining standards and to achieve desired goals effectively and efficiently. it is a function of checking the performances of employees at every stage of their work in process. The Importance of controlling function in an organization is as follows:
1) Fulfilling Goals of Organization:
Controlling is the function of measuring the performances at every possible stage, finding out the deviations, if any; and taking corrective actions according to planned activities for the organization. Thus, it helps in fulfilling the organizational goals.
2) Making Efficient Utilization of Resources:
Various techniques are used by managers to reduce wastage of material and spoilage of other resources. Standards are set for every performance. Employees have to follow these standards. As the effect of this, the resources are used by employees In the most efficient and effective manner so as to achieve organizational objectives.
3) Accuracy of Standards:
An efficient control system helps management In Judging the accuracy of standards whether they are accurate or not. Controlling measures are flexible to some extent. So after reviewing them according to changing circumstances, they are revised from time to time which is beneficial for checking performances accurately.
4) Motivates Employee:
After setting standards of checking performance, they are communicated to employees in advance. Due to this, employees get an Idea about what to do and how to do. Performances are evaluated and on that basis employees are rewarded in the form of Increment, bonus, promotion etc. It motivates the employees to perform at their best level.
5) Ensures Order and Discipline:
Controlling is the function of order and maintaining discipline. It works for reducing unprofessional behavior of the employees. Discipline is maintained by continuous checking of performances by the superiors and preventive actions are taken to minimize the gap between actual and standards.
6) Facilitates Co-ordination:
Control is a function in which the roles and responsibilities of all departmental managers and the subordinates are designed clearly. Coordination between them helps to find out the deviations in their respective departments and to use remedial measure for desired results of the organization.
7) Psychological Pressure:
The performances are evaluated with the standard targets. The employees are very well aware that their performance will be evaluated and they will be rewarded accordingly. This psychological pressure works as a motivational factor for empolyees to give their best performance.
8) Ensures Organizational Efficiency and Effectiveness:
Factors of control Include making managers responsible, motivating them for higher performance and achieving departmental coordination. It ensures about organizational efficiency and effectiveness.
9) Builds Good Corporate Image:
Controlling function helps to Improve the overall performance of the organization. Minimum deviation in predetermined standards and actual performance results into the progress of business. It can be achieved with the help of proper control. This builds good corporate Image and brings goodwill for the business.
10) Acts as a Guide:
Controlling function provides set of standard performance. Managers as well as subordinates-work according to It. Wherever necessary, they can take the help of these standards and can achieve desired results. Thus, controlling function acts as a guide for everyone. The steps taken for controlling an activity guide the management while planning the future activities.