PLANNING AND CONTROL

I. INTRODUCTION

Planning is important for socioeconomic development. It helps to conceive and

achieve results in an atmosphere and spirit of true democratic situation, wherein
different agencies at various levels are involved in the policies of the Government
for welfare of its people. Planning is essentially a process of making choice
between available alternatives at all levels of decision making. It is the exercise of
intelligence to deal with facts and solutions as they are find a way to solve
problems. So, planning is an essence, an organized, conscious and continual
attempt to select the best available alternative to achieve specific goods. Planning
is one of the major fundamental element of administration. In planning stage,
decisions are made about what needs to be done, how and when it has to be done,
by whom and with what resources. Planning is an intellectual process of making
decisions and it aims to achieve a coordinated and consistent set of operations
aimed at desired objectives. For any work, planning is very essential.

II. MEANING & DEFINITIONS

a) Planningis a process of determining the objectives of administrative effort
and devising the means calculated to achieve them.

Millet

b) Planning is a process of setting formal guidelines and constraints for the

behavior of the firm.

Assoff and Brundinharg

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 c) Planning is the systematic development of action programs aimed at
reaching agreed business objectives by the process of analyzing, evaluating
and selecting among the opportunities which are foreseen.
Certo S.C. 2003
III. IMPORTANCE OF PLANNING

Planning is considered important because

a. It attempts to offset uncertainty by foreseeing the future and bringing about

preparedness for the happening in the future.
b. It focuses attention on the objectives or goals of the organization and their
achievement.
c. It leads to economy in operation through the selection of the best possible
course of action.
d. It helps in controlling the activities by providing measures against which
performance can be evaluated.
e. It helps in coordinating the operations of an organizations since a well
considered plan embraces unifies all the divisions in an organization.
IV. PRINCIPLES OF PLANNING
1. Planning must focus on purposes. It should always be based on a clearly
defined objective.
2. Planning is a continuous and iterative process which includes series of steps,
so continuity and flexibility should be maintained in planning cycle.
3. Planning should be simple and there should be vision for proper analysis and
classification of actions.
4. In planning, there should be a good harmony with organization and
environment-political as well as economical, etc.

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5. Planning is hierarchical in nature and must have an organizational
identification.
6. Planning should be a pervasive activity covering the entire organization
with all its departments, sectors, and different levels of administration, and it
should be balanced.
7. Planning must be precise in its objective scope and nature. It should be
realistic in scope and pinpoint the expected results.
8. In planning the provision should be made to use all available resources.
9. Planning should always be documented so that all the concerned are fully
committed to the implementation of the program.
V. CHARACTERISTICS OF PLANNING

a. Primary: Planning is an important element in the administration that usually

precedes other elements or functions of administration. Obviously without

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 setting the goals to be reached and lines of action to be followed, there is
nothing to organize, to director to control in the enterprises.
b. Continuity: Planning is a continuous and never ending activity of an
administrator or manager to keep the enterprise as a going concern. One plan
begets another plan to be followed by a series of other plans in quick
succession. Actually, a hierarchy of plans operates in the enterprise at any
time. Planning gets used up where tomorrow becomes today and calls for
further planning day-in and day-out. Again, incessant changes make
replanning a continuous necessity.
c. Flexibility: Planning leads to the adoption of a specific course of action and
the rejection of other possibilities. This confinement to one course takes
away flexibility. But if future assumptions upon which planning is based
prove wrong, the course of action has to be adapted to altered situations for
avoiding any deadlock. Accordingly, when the future cannot be moulded to
conform to the course of action, flexibility is to be in grained in planning for
adapting the course of action to demands of current situation.
d. Unity: Planning is made by different administrators or managers at different
times. Maintenance of consistency or unity of planning is one of the
essential requirements. Objectives provide the common focus for unifying
managerial administrative action in planning. Moreover, policies and
procedures introduce consistency of executive behavior and action in matters
of planning.
e. Precision: Planning must be precise as to its meaning, scope and nature. As
guides for action, planning is to be framed in intelligible and meaningful
terms by way of pinpointing the expected results. According to the
capacities and facilities of the company/institution/hospital, planning must
be realized in scope rather than indicating pious desire. As planning errors
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 are far more serious than mistakes in other functions and cannot be offset by
effective organizing or controlling. Planning precision is of utmost
importance.
f. Pervasiveness: Planning is a pervasive activity covering the entire
enterprise with all its segments and every level of management. Planning is
not the exclusive responsibility of management only, but it extends to
middle and lower management as well. Although the top managers are
mostly preoccupied with planning work because of their wide jurisdiction of
operation and decision-making, planning is of equal necessity to every
manager.
VI. COMPONENTS OF PLANNING

1. Objectives: Objectives are basic plans which determine goals or end results
of the projected action of an enterprise. By setting goals, objectives provide
the foundation upon which structure of plan can be built.

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2. Policies: Policies are written statements or oral understanding. In some,
they are general terms for governing actions in repetitive situations.
Realization of objectives is made easy with the help of policies, as policies
provide standing solutions to problem.
3. Procedures: Procedures indicate the specific manner in which a certain
activity is to be performed. They are more definite and specific guides to
action, but only for fulfillment of objectives.
4. Program: Program welds together different plans for implementing them
into completely and orderly course of action. Programs are necessary for
both repetitive (routine planning) and non-repetitive (creative planning)
course of action.
5. Budget: Budgets are plans continuing statements of expected results in
numerical terms, i.e. rupees, man-hours, product units and so forth.
VII. STEPS OF PLANNING
Planning is essentially concerned with the future, means having a view of
the future and deciding in advance where we would like to be and what is
to be done in order to reach there. Since, the future conditions are
unknown, forecasts and estimates must be made to provide a basis of
planning. Preparing a plan is step by step exercise. Generally speaking
the following steps will be involved in planning.

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1. Analysis and Understanding of the System: Administrator or manager
needs to understand the system, where he/ she is working in and
consisting of their subordinates, community and higher authorities. Each
type in the system have to be made known to it.
2. Formulation of Operational Goals and Objectives: Objectives are the
short statements of outcome or what must be done. These set the pattern
of the proposed course of action and shape, the structure of other
subsidiary objectives in the organization. This implies the establishment
of goals. For the whole organization as also for each of its subunits, that
is major objectives are broken down into departmental, sectional and
individual objective, when derivative plans are developed throughout the
organization. As a guide of action, objectives must be specific,
informative, and clear enough to indicate what is to be done.

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3. Establishment of Planning Premises: Premises refers to the factor in
the environment that affect the achievement of goals. They are
assumptions about the future or understanding of the expected situation.
Planning premises supply pertinent facts and information relating to the
future, and as such, they are essential for the success of planning. Once
the objectives are clear, there is need to assess the resources available to
reach the goals. The staff strength, and other capabilities have to be taken
into account. Any gaps noticed have to be rectified before implementing
the plan. Forecasts and trend analyses provide informations required in
planning.
4. Selection and Formulation of the Operating Plan from Alternatives:
Planning rests on premises of the expected environmental conditions.
Such premises may be: (1) external, i.e. Business environment (2)
internal. For example, capital investment, values and beliefs of top
management and so on.

Business environment refers to the totality of economic, political,

social, cultural and technological conditions that affect the formulation of
plans of any organization. In business, there exist a number of alternative
courses of action for achieving the desired objective. The techniques of
decision-making are applied to choose the proposed course of action
from several alternatives. These different courses of action have to be
evaluated in terms of effectiveness and efficiency. The course of action
which can lead to attainment of objectives within the constraints of time
and resources have to be weighed and chosen of time and resources have
to be weighed and chosen. Timing is an essential consideration in

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 planning, and gives practical shape and concrete form to the program,
The starting and finishing timings are fixed for each work.

5. Securing Participation: For the effective implementation of the

program, the subordinate’s participation has been found to be extremely
essential. Plans must be communicated for increasing their understanding
of the proposed action and for enlisting their cooperation in proper
implementation of plan.
6. Implementation: Implementation is the key step in the planning process.
Here, the special attention is needed to the use of strategy. Strategy
means a set of decisions taken to achieve the objectives. Strategy in a
narrow sense has a significant contribution towards the implementation
or execution of a plan. Accordingly, consideration of different strategies
becomes an integral part of the planning process. Strategy implies an
approach to implementation of plan whereby all resistances and reactions
of workers are encountered. Strategy dictates some adjustments and
adaptation of the plan in accordance with changing situation or events.
So, it should be flexible enough to adjust to changed conditions and to
unusual and unexpected situation.
7. Follow-up to the proposed Course of Action: Since, all pertinent facts
are not available in most planning activities and since some guess work is
inevitable, there should be a prior provision for following up the
proposed program, when it is put into action. For this, should have
regular feedback both the way of written records and reports and by
direct observation. That is called control or monitoring.

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 8. Evaluation: Evaluation is measuring what has been done against what
had been planned to do. Any deviation or lacunae have to be explained
and necessary action has to be initiated to correct deviations.
9. Reanalysis and New Understanding of the System: Reanalysis and
new understanding of the system implies that one can take an overview
of the plan of work and visualize that what has been achieved. This helps
to new understanding of the system and proceeds with second cycle of
planning process.
VIII. TYPES OF PLANNING

a) Directional Planning: Directional planning is often called policy planning and

is concerned with the broad general direction of the program, ie. setting the
framework of intent and philosophy within which the program will proceed
and with relating the program to the broad planning of the community in which
the program will function. For example, state level planning at Directorate or
Secretariat of States Union (center).

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b) Administrative Planning: Administrative planning is concerned with the
overall implementation of the policies developed and with the mobilization and
coordination of the personnel and material available in the administrative unit
for the effectuation of the service. For example, Medical Superintendent of
major hospitals or District Surgeon of district hospitals or Medical
Superintendent of primary health center are responsible for administrative
planning.
c) Operational Planning: Operational planning is concerned with the actual
delivery of the service to the community, For example, nursing personnel of all
level are planning to deliver proper service to the society either in hospital or in
community.
IX. SKILLS NEEDED FOR PLANNING

Organization skills are those related to creating structure and order, boosting
productivity, and prioritizing tasks that must be completed immediately, versus
those that can be postponed, delegated to another person, or eliminated
altogether. Maintaining strong organizational skills can reduce the chance of
developing poor work habits such as procrastination, clutter,
miscommunication, and inefficiency. Managers look for employees who can
not only keep their work and their desk organized, but for those who can also
adjust quickly to the organization structure of a company.

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 Certain skills for planning includes:

DECISION –MAKING PROCESS

a) Introduction
A decision is the selection of course of action. It is a choice among set of
alternatives. Decision implies freedom to the decision maker regarding
final choice and contains conscious and unconscious aspects. Human
beings take innumerable decisions in their day to day life. In business
organizations also, decision making forms the core of all managerial
activities, be its planning, organizing, staffing, directing, coordinating
and controlling. In fact, whatever a manager does, he does through
decision making only; the end products of manager’s work are and are
viewed decision making as the core of planning.

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 b)Definition
According to Principal R.S.Davar, “Decision making is the selection
based on some criteria from two or more possible alternatives”.

c)Characteristics of Decision Making

1. Decision is the end process preceded by deliberation and
reasoning:
2. It is the choice between best course among alternatives.
3. It may be negative and may just be a decision not to decide.
4. It relates means to the end.
5. There is a concept of commitment in every decision.

d)Steps/process in decision making

STEP 1. Problem identification: Sound diagnosis is the crucial first phase of

decision making. A manager should proceed like a doctor who first takes into
account all symptoms before prescribing the medicine. The manager must become

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aware that a problem exists and that it is important enough for managerial action.
Problems generally arise because of the disparity between ‘what is’ and ‘what
should be. To identify the gaps between the current and desired state of affairs,
managers should look for problems that need solving. At this stage, the emphasis
should be on defining a problem in the right way rather than finding answers to the
questions.

STEP 2. Analysis of Problem: After defining the problem, the manager can then
set about to analyse the problem. The first step in the analysis of the problem is to
assemble the facts, data and information. Sound decisions are based upon proper
collection, classification and analysis of facts and figures. There are three
important principles of analysis and classification: (i) futurity of the decision (i.e.
to what extent of time does the decision commit the business to a course of action)
(ii) the impact of the decision on other areas and functions; and (iii) the qualitative
considerations which come into picture. The purpose of classification is to ensure
that the decision made takes a comprehensive view of the business as a whole
rather than immediate or local problem.

STEP 3. Developing of Alternatives: The next step for the manager, after having
defined and analysed the problem, is to develop alternative solutions. The main
aim of developing alternative solutions is to have the best possible decision out of
available alternative course of action. Techniques like operations research and
computer appliances, are immensely helpful in the development of alternative
course of action.

STEP 4. Evaluation of alternatives: In this step, the decision maker tries to

outline the advantages and disadvantages of each alternative. The consequence of
each alternative is considered. Sometimes the alternatives developed may meet the
internal demands but fail to meet the environmental conditions. The ‘opportunity
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cost method may be used to evaluate the various alternatives. The final decision in
most of the cases is the product of deliberation, evaluation and thought.

STEP 5. Selection of Best alternative: After the evaluation of various

alternatives, the manager selects the best alternative out of all the alternatives.
While selecting the best alternative, the risk element involved in each course is
compared with expected gain from it. Economy of effort involved in each
alternative is measured. Final selection of decision is also affected by limitation of
resources at our disposal. Human resources are always limited. There must be right
type of people to carry out our decisions. Their caliber, understanding, intelligence
and skill will finally determine what they can do and what they cannot do. Every
effort must be made, therefore, to raise the ability and standard of the people
working in the organization.

STEP 6. Implementation of the best alternative: At this step, the manager has to
convert the decision into effective action. For effective execution of the decision, it
is very important to communicate the decision to the subordinates. The decision
should be acceptable to the subordinates so as to encourage their involvement.
Correct timing of execution of decision minimizes the resistance to change,
therefore, implementation time also plays a vital role in the proper execution of
decision.

STEP 7. Feed back and Follow up: After implementation of the decision, the
manager must seek feedback regarding the effectiveness of the implemented
solutions. Feedback allows the managers to become aware of the recent problems
associated with the solution. It permits the managers to monitor the effects of their
acts to gauge their success. They can evaluate theft decision making capabilities. It
would be better to set follow up procedures to evaluate the decisions. Follow up is
indispensable to modify and improve decisions at the earliest opportunity.
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e)Types of decision

1. Routine and strategic decision: ‘Routine decisions are those which require
little deliberation or those which are made repetitively. These decisions do
not require much analysis and evaluation and can be carried out quickly. For
example – sending samples of a product to the government for investigation.
Strategic decision on the other hand, relate to policy matters and usually
involve large investments or expenditure of funds. These are non-repetitive
in nature and are taken after careful analysis and evaluation of many
alternatives.
2. Programmed and Non-programmed decision: Programmed decisions are
the decisions which deal with the routine and / or repetitive types of

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 problems and the latter are caused by unstructured problems which do not
have easy solutions. For example, if there is a habitual absentee in an
enterprise, you have a set procedure to deal with him and you do have to
refer the problem to personnel manager. The problem requires a
programmed decision; being repetitive in nature. On the other hand, if a
large number of employees suddenly start absenting themselves without
information, it would constitute a problem involving the non-programmed
decision.
3. Policy and operating decisions: The decisions which relate to various
policy matters of the organization are policy decisions. These decisions are
top management decisions and have long term impact on the functioning of
concern. Operating decisions relate to day to day operations or functioning
of the enterprise. These decisions are taken by middle or lower level
managers. For example, whether to give profit bonus to employees or not is
the matter of policy to be decided by top management; but calculating the
bonus in respect of each employee is an operating decision which can be
taken at middle or lower level.
4. Major and minor decisions: Decisions may be classified into major and
minor decisions. For example, if it relates to the purchase of big machine
worth, say ten lakh of rupees. It is a major decision. On the other hand,
purchase of a fountain pen and its ink are minor matters and may be decided
the office superintendent.
5. Organized and personal decisions: When an executive takes decision in
the official capacity, it is said to be an organizational decision. On the other
hand, personal decisions relate to the executive as an individual and not as a
member of organization. Some times these decisions may affect the
organization. For example, if an executive leaves the organization, it may
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 affect functioning of the organization also. It may be noted that the authority
for taking organization decision may be delegated whereas personal
decisions are not delegated.
6. Individual and group decisions: The decisions taken by a single person
are known as Individual decisions. Mostly, routine type of decisions are
taken up by single individuals within the broad policy frame work of the
organization. Whereas, the more important decisions of the organization are
not taken at individual level. These decisions are referred to standing
committees which is a collection of individuals. The decisions taken by
these committees are called group decisions. Group decisions ensures
participation of maximum number of individuals in decision making
process. It reduces conflicts and motivates the employees of the
organization.

f)Models of decision making

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1. Econological Model or “economic man”
It is an ideal view of· economic man’, in which a manager who is faced
with a problem weighs the economic aspects of all possible courses of
action and chooses the action that is expected to yield the greatest net
gain or the least loss. In this model, following steps have been observed
1. Discover symptoms of the problem or difficulty
2. Determine the goal to be achieved or define the problem to be solved.
3. Develop a criterion against which alternative solutions can be
evaluated.
4. Identify all alternative courses of action.
5. Consider the consequences of each alternative as well as the
likelihood of occurrence of each.
6. Choose the best alternative by comparing the consequences of each
alternative with decision criterion
7. Act or implement the decision.

Discover symptoms

Set goal or define problem develop criterion

Develop alternatives

Determine all outcomes select alternatives

Act or implement decision

Figure 1:Ecological Model

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 This model represents a useful prescription of how decisions should
be made; but it does not adequately portray how decisions are actually made. It
has following assumptions that makes about the capabilities of human beings:

 Human beings have the capability to gather all necessary information

for decision, i.e. people can have complete information.
 Human beings can mentally store this information in some stable form,
i.e. they can accurately recall at any time events.
 Human being can manipulate all this information in a series of complex
calculations designed to provide expected values.
 Human beings can rank the consequences in a consistent fashion for the
purposes of identifying the preferred alternative.

This model focuses on the decision-maker as an optimizer. Where an alternative is

optimal, i.e. (a) there exists a set of criteria that permits all alternatives to be
compared and (b) the alternative in question is preferred, by these criteria to all
other alternatives.

2. Bounded Rationality Model or “administrative man”

It is the pragmatic view of “Administrative man”. As the name implies, this
model assumes that people, while they may seek the best solutions, usually
settle for much less, because the decisions they confront typically demand
greater information processing capabilities than they possess. They seek a
kind of bounded (or limited) rationality in decisions. The concept of
bounded rationality attempts process three mechanisms as given below:
i. Sequential attention to alternatives: Here, persons examine possible
solutions of a problem sequentially, i.e. if first solution fails to work
it is discarded and next solution is considered till he gets acceptable
solutions and discontinued after acceptable one.
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 ii. Heuristics: A heuristic is a rule which guides the search for
alternatives into areas that have a high probability for yielding
satisfactory solutions. Accordingly, the decision-makers use
heuristics to reduce large problems to manageable proportions, so
that decisions can be made rapidly. They look for obvious solutions
or previous solutions that worked in similar situations.
iii. Satisfying: This model sees decision-maker in a satisficer. “Where an
alternative is satisfactory if: (a) there exists a set of criteria that
describes minimally satisfactory alternatives; and (b) the alternative
in question meets or exceeds all these criteria.

This model is descriptive that describes how decision makers actually arrive at the
identification of solutions to organizational problems. This model consists of eight
steps as follows:

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g) Theories of decision making
1. GAME THEORY
Game theory is quite helpful in making decisions under competitive
situations. Fundamentally the game theory attempts to provide an answer to
the question: What may be considered a rational course of action for an
individual confronted with situations whose outcome depends not only on
his own actions but also on the actions of others.
The term game, represents a conflict between two or more parties.
Therefore, game theory is basically a science of conflict. A game is
described by its set of rules. These rules specify clearly what each person,
called player, is required to do under all possible set or circumstances. The
rules also define the amount of information, if any, each person receives. .A
game is finite when each player has a finite number of moves and finite
number of choices at each move, Thus, game theory is not concerned with
finding an optimum or winning strategy for a particular conflict situation but
it provides general rules concerning the logic that underlies strategic
behavior in competitive situation. A competitive situation is called game if it
has the follows features:
1. Is a conflict of interests between two or more opponents usually referred
to as players. Because of conflict of interests, the interest of one player
will be served at the cost of the other.
2. The strategies adopted by each player affect the respective outcome of
the game.
3. Each player chooses his courses of action. The choices are supposed to
be made simultaneously so that no player knows his opponent’s choice
until he has decided his own course of action.

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 4. Players act rationally, intelligently, and are well informed about the
decision situation except the opponent’s actions in a particular period.
5. For each player, the outcome may represent a gain, a loss, or a draw.
Each outcome of the game may be represented by a single payoff number
such as gain or loss in

There are several types of games depending on the competitive situations.

However, the basic objective of all these games is to provide a basis for making
decisions in the light of actions taken by the competitors. Thus, game theory can be
used in competitive situations like elections, advertising and marketing strategies,
military battles, etc.

2.QUEUING THEORY OR WAITING LINE THEORY

Queuing theory involves the mathematical study of ‘queues’ or ‘waiting

lines. A group of items waiting to receive service, including those receiving
the service, is known as queues. The formation of waiting lines is a common
phenomenon. It may happen at the service station, booking window, retail
store, etc. At some point of time, there may be a long queue while at other
time, there may not be a single person waiting to get service. In waiting line
situations, problems arise because of either (i) too much demand on the
facilities, in which case we may say that there is an excess of waiting time or
that there are not enough service facilities, or (ii) too little demand, in which
case there is either too much idle facility time or too many facilities. One
would like to obtain balance between the costs associated with waiting
waiting time and idle time. Queuing theory helps in achieving this balance.

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 The balance between the costs associated with waiting time and idle
time is necessary because non-provision of enough facilities would cause the
waiting line to become excessively long at times. Excessive waiting is costly
because it may result in loss of customers leading to the achievement of
objectives adversely. Similarly if too much facilities have been provided,
some of the facilities Will remain underutilized resulting in non-achievement
of objectives.
A large portion of waiting line problems that arise in practice
involve making one or a combination of the following decisions: (i) number
of servers at a service facility, (ii) efficiency of the servers, and (iii) number
of service facilities. Such problems can be solved by simple observations if
the number involved in each case is limited. However, when number is large
enough, waiting line models have to be built. There are several such models
which solve the problems of waiting lines.
X. CONTROL AS A FEED BACK SYSTEM

CO-ORDINATION
a) Introduction

Managerial control is essentially the same basic process as it is found in

physical, biological, and social system. Many systems control themselves
through information feedback which shows deviations from standards and
initiatives changes. In other words, systems are some of their energy to feed
back information that compares performance with a standard and initiates
corrective action.

b) Definition of coordination

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According to Ordway Tead “Co-ordination is the effort to assure a smooth
interplay of the functions and forces of all the different component parts of an
organization to the end that its purpose will be realized with a minimum of friction
and maximum of collaborative effectiveness”.

c) Concept of co-ordination
The reasons for treating coordination as the essence of management may be as
follows:
1. Concept of essence relates to intrinsic nature of an object. Coordination,
being synchronization of efforts of human beings in an organization, is
intrinsic to management as management also tries to synchronise group
efforts for achieving organizational goals. For realizing organizational
goals, it is necessary that each effort is purposeful, constructive, and
contributes to achievement of the predetermined results. Each such effort
should tend to help others in the group in achieving the composite effort
deemed essential for goal accomplishment. Therefore, managers through
their various functions try to achieve this synchronization so that each
effort contributes positively to another effort.
2. A management function is different from its essence. A function is a
composite of duties closely related in harmonious character and in
operational similarity, which for the purpose of execution has to perform
some important and some less significant functions. Thus, a function has
some objectives and to arrive at that objectives, some more and some less
important activities are to be performed. This is true for various
management functions of planning, organizing, staffing, directing, and
controlling. Each of them has some objectives as well as various
subfunctions. In fact, various managerial functions taken individually

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 serve a particular purpose in achieving total managerial goals, that is,
getting things done by others. For example, planning element of
management decides what is to be done. Similarly, organizing element
decides who will do. Coordination, on the other hand, involves the
integration of human efforts for achieving the goals which is not a
particular function but the basic objective of all managerial functions.
3. When various managerial functions are performed properly and adequate
consideration is given to their interdependence, the result is integrated,
well balanced composite effort by the group. The coordination is achieved
automatically. When there is poor execution of various functions by
various departments or individuals, the problems of coordination arise and
special coordination efforts are required. Probably this is the reason that
coordination has been recognized as a management function by classical
authors and not by authors of modern era. In classical school of
management, coordination has been treated as a central problem of
management because authors were not sure about the interdependence of
various individuals and proper execution of various management functions.
In the systems approach of management, execution of management
functions proceeds on integrative basis and problem of coordination does
not arise but it becomes automatic process. Therefore, all management
functions try to achieve integration of efforts and coordination becomes
essence of management rather than a function of management.
d) Need for co-ordination
Performance of various managerial functions in an integrated way ensures fair
degree of coordination among individuals and departments. However,
problems of coordination arise because of the presence of constant change,
weak or passive leadership, and complexities inherent in large-scale
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organizations. In a large organization, there are three types of such
complexities which require special efforts for coordination:
1. Large Number of Personnel: The increasing number of persons involved
in large organizations complicates the problems of coordination. Each
individual is unique, acting to serve his own needs as well as those of the
organization. Each has his own habits of work, his own background,
approaches to situations, and relationships with others. Moreover, the
individual does not always act rationally. His behavior is not always well
understood nor completely predictable. Therefore, it is not necessary that
human beings perform their actions without regard to others and
synchronization in efforts may be lacking. Further, problems of
coordination of a quite different character arise out of the perverseness of
human beings in organizational settings. Individuals join the organization
as its members to fulfil their needs.
2. Specialization: There is high degree of specialization in modern
organizations. Specialization arises out of the complexities of modern
technology as well as from the diversity of tasks and persons needed to
perform them. Specialisation is reflected in the use of specialists of various
types. It is the nature of training of specialists that they are made to feel
that they are the best judge of the scope, nature, and kind of work they
perform. Specialists think that they are qualified to judge each other
according to professional criteria, but outsiders cannot have adequate basis
for such judgements. If the specialists are allowed to work without
coordination, the results can be costly. Therefore, some mechanism is
required to coordinate the efforts of various specialists in the organization.
3. Functional Differentiation: Functions of an organization are frequently
divided into departments, divisions, sections, and the like. Coordination is,
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 therefore, necessary to link the functions together and assure their
contribution to the total result. Coordination problems arise because
domains become solidified, with barriers between them becoming rigid.
Each unit tries to perform its mission in isolation from the others.
Sometimes, this happens because functions are grouped illogically, or
managers take the expedience rather than the logical route.
4. Interdependence: The need for coordination arises because of
interdependence of organizational units and subunits and people working
within these. Because of this interdependence, performance of one unit is
affected by others but at the same time affects others. Therefore, in order to
optimize effective use of the organizational resources, the efforts of all the
units have to integrated. There can be three types of interdependence:
pooled, sequential, and reciprocal. In pooled interdependence, various
units of the organization, either located at the same place or at different
places, contribute to the organizational objectives though they may not be
directly related.
5. Individual Versus Organizational Interests: There may be a clash
between individual and organizational interests. Individuals join the
organization to fulfil their desires and expectations. In turn, the
organization expects certain things from the individuals. When there is
incompatibility between these two expectations, often clash of interests
takes place. In such a case, individual efforts may not contribute to the
achievement of organizational objectives. Therefore, there is a need for
coordination and integration of both interests.

e) Purposes of co-ordination

28
1. Reconciliation of Goals: This can be done by co-ordination only. The
conflicts of goals arise because everybody perceives the organizational goals
differently and tries to achieve them in his own way. This may lead to
confusion and chaos in the organization. Therefore, co-ordination is
necessary to bring unity of action in the organization.
2. Total accomplishment: Through co-ordination, it is possible to bring about
total accomplishment which will be for in excess of the sum of the
individual parts. It has been observed that the total accomplishment of ten
employees of a department whose efforts are properly co-ordinated will be
far greater than the mathematical sum of their individual accomplishment.
This is because through co-ordination, duplication of efforts is prevented and
the time and energy thus saved one better utilized in more creative tasks.
3. Economy and Efficiency: Co-ordination will avoid duplication of efforts
due to which there will be economy in labour, time and equipment. When
the activities are properly integrated, there will be least delays which will
bring efficiency in the business organization.
4. Good personal relations: Co-ordination is achieved through systematic
efforts. Good co-ordination gives job satisfaction to the employees which
keeps this morale high. Moreover, there are good human relations because
the authority-responsibility relationships are clear. The conflict between line
and staff personnel can also be avoided through proper co-ordination of their
efforts.
5. Retension of Managerial and other Personnel: It has been pointed out that
sound co-ordination has a significant effort on the development and
retention of good personnel in business. If the total organization is so
designed and patterned that each executive and employee deserves job
satisfaction, there will be a tendency on the part of the executives and
29
 employees to stay with the organization. The absence of this will create
suffocating conditions in which it would be difficult for any person to stay
for long in the organization.
f) Significance of co-ordination
1. Acquaintance of Management: In a sense, management is primarily a task
of coordination of all efforts, forces and activities that affect the enterprise
from within and without it.
2. Creative force: Group efforts, when co-ordinated, create a result greater
than the sum total of individual and isolated. This composite effort is
brought about by executive action on human relation and leadership.
3. Unity of direction: Co-ordination ensures unity if direction by way of
securing spontaneous collaboration on the part of different departments.
4. High employee morale: Co-ordination tones up the general level of
employee morale and provides job satisfaction.
g) Characteristics of Co-ordination
1. Coordination is a continuing activity: Managers in every organization
should perform this activity of co-ordination. It is to be performed on the
beginning, in the process and at the end regularly for all types of
organizational activities. As it is a continuous process, it will accomplish the
unity of objectives in the organization.
2. Co-ordination is a dynamic process: Co-ordination has to be done at all
levels. It provides positive and dynamic element to the entire organization. It
will smoothen the process of administration.
3. It is an orderly synchronization of group efforts: Co-ordination involves
all such efforts which are involved in the harmonious blending of different
component parts of an organization. Such an orderly arrangement should
result in minimum of conflicts, confusion and friction and maximum of
30
 collective effectiveness. Co-ordination helps in proper timing, balancing and
integrating different activities of an organization.
4. It is the task of the management: As an executive leader, manager has to
perform this task of co-ordinating. A manager cannot escape from this
responsibility of coordination.
5. It is based on unity of objectives: The very purpose of co-ordination is to
accomplish the objectives of the organization. So, all the efforts of different
groups should be directed towards the accomplishment of the common
objectives.
6. It should provide for unit of action: the actions of the individuals are to be
blended and directed towards a productive action. Every member should
work together with a sense of team spirit.
7. Co-ordination is relevant for group efforts and not individual efforts: It
involves the orderly pattern of group efforts because an individual who is
working in isolation does not affect functioning of others and no need for co-
ordination arises.
8. Co-ordination emphasizes unity of efforts: Which is the heart of co-
ordination. This involves the fixation of time and manager of performing of
various functions in the organization and makes the individual efforts
integrated with the total process
h) Principles of co-ordination

31
1. Principle of early start: This principle states that it is very easy and
convenient, to achieve co-ordination in the early stages of planning and
policy making, once this stageis over, and the execution of the tasks starts, it
becomes difficult to secure co-ordination.
2. Principle of continuity: Co-ordination should be an ever flowing and
continuous process. Starting from planning upto the control, co-ordination is
essential in the entire process of management. It cannot be a temporary
factor. It has to go on forever. It is a continuing process. Every manager
should co-ordinate in all big managerial activities.
3. Principle of direct contact: It is always better for a manager to have direct
contact with the people to have effective co-ordination. It also will provide
proper feed back and understanding. The problems and potentials can be
understood better and undue delay can be avoided.
4. Principles of direct contact: It is always better for a manager to have direct
contact with the people to have effective co-ordination. It also will provide
proper feed back and understanding. The problems and potentials can be
understood better and undue delay can be avoided.
5. Principle of reciprocal relationship: the objectives and efforts of different
sectors in an organization should be properly blended with manpower,

32
 materials, machinery, money, market and methodology, which are
interrelated. There should be proper co-ordination among such factors.
i) Techniques of co-ordination
1. Co-ordination of hierarchy: Every manager will have authority and he can
delegate authority into his subordinates. This is a chain of command and all
the subordinates are responsible to this executives. This technique was
popularized by traditional management school, particularly by Max weber
and Herbert A Simon. They stated that the superior because of his authority
position in the hierarchy over the subordinates can bring about co-ordination
easily.
2. Co-ordination by ideas: This concept has been developed by Luther
Gulick. He stated that co-ordination can be better achieved by motivation
and persuation rather than by command. He also stated that co-ordination
can be achieved by effective leadership and through planning boards and
committees.
3. Co-ordination by committees: A committee is a group of experts for whom
some matter is committed for consideration, advice or decision. Such
collective decisions can provide better co-ordination as they are taken after a
careful study of the problem. But committee members must be selected
carefully, the number of members should be reasonably less. The committee
should be well informed, functional and a decision making. Now-a days in
almost all the organization for all major decision of tasks, committees are
appointed. But in many cases, committee can postpone the decisions
unnecessarily, delay or shift the responsibility.
4. Co-ordination by communication: Better and effective communication can
bring about greater understanding within the organization. Direct contact
and positive communication will minimize the chances of misunderstanding.
33
 An effective manager can make use of all the available channels of
communication to ensure proper co-ordination.
5. Voluntary co-ordination: When people working in the same department or
in other department develop a desire to have mutual tasks and mutual trust, it
may provide a good system of co-ordination. If the objectives,
departmentalization, communication systems, superiors concern for co-
ordination are favourable and effective, naturally it will ensure effective
voluntary co-ordination.
6. Special co-ordination: Generally, in big organizations special co-ordinators
are appointed. They normally work in staff capacity to facilitate the working
of main managers. A co-ordination cell may also be created. The basic
responsibility of the cell is to collect relevant information and to send this to
various heads of sections of departments so that interdepartmental work and
relationship is to co-ordinate the work of a particular nature. For example, in
a particular project, along with various functionaries, a project coordinator
can also be appointed. His basic function is to co-ordinate various activities
of the project and to keep information about the development of the project.
7. Self co-ordination: The basic principle of self co-ordination is modification
of functioning of a department in such a way that each department works
with other departments. Each department or section on unit is also affected
by others. Therefore, if those departments, sections or individuals apply a
method of working with families others, self co-ordination is achieved.
8. Co-ordination by leadership: co-ordination cannot be achieved by more
exercise of authority, managers can use their leadership to bring co-
ordination among their subordinates. Leadership is the process of inducing
subordinates to co-operate willingly. Leadership brings individual
motivation and persuades the group to have identify of interests and outlook
34
 in group efforts. Thus, many conflicting situations can be overcome by
inducing people to work in harmony by exercising leadership.
9. Co-ordination through staffing: The staffing function of management
involves manpower planning, employment, training, wage determination,
performance appraisal etc. All these sub functions are performed in such a
manner that there are right persons on different job. This will help in
achieving co-ordination in assigning tasks to various individuals.
j) Types of co-ordination
Co-ordination can be classified into two broad categories, on the basis
of its shape in the organization and the other on the basis of its scope
and coverage.

TYPES

HORIZONTAL
VERTICAL 35 COORDINATION
COORDINATION
 1. VERTICAL COORDINATION: The ten vertical co-ordination is used
when co-ordination is to be achieved between various links or different
levels of the organization. Vertical co-ordination is needed to ensure that all
the levels in the organization act in harmony and in accordance with
organizational policies and programmes. It is the function of the top
executives to bring about this co-ordination. Vertical co-ordination is
secured through –delegation of authority and with the help of directing and
controlling. There is no doubt that the delegated authority will carry great
weight, but vertical co-ordination cannot be achieved by the more weight of
authority itself. This should rather come about as a by product of the
superior’s efficient and expert performance of the managerial functions.
2. HORIZONTAL CO-ORDINATION: It is the co-ordination between
departments or positions or persons at the same level of an organization. Co-
ordination between the production department, purchase department,
material department and research department can be considered as horizontal
co-ordination. Superior officers should exercise a skill in bringing about
such a co-ordination. It can be achieved by regular meetings and co-
operation.
k) Process of co-ordination
36
The Coordination Process

An agencies and individuals must see some added value from participating in the
coordination process and the benefits must outweigh the costs – and there are costs
to coordination, as it requires time and dedicated resources. As a consequence,
coordination is far from a sure thing. The coordinating organization,  must
establish a coordination process based on certain qualities. To achieve the best
possible coordination outcomes the process should be:

 Participatory: Coordination occurs through the legitimacy derived from

involvement. The tasks of coordination must occur within a structure and
process agreed to and supported by the actors in the DG OFFICE. The
coordinator must secure and maintain the confidence of the others,
fostering an atmosphere of respect and good will. Organizations need to
participate in deciding the policies, procedures, strategies and plans that will
affect them.
 Impartial: The coordination process should not be seen to favour one
department/ program over another, but rather to identify the distinctive
competencies of each. Coordination should advocate the principle of
impartiality, provided by the ORG most likely to achieve the desired
outcomes.
 Transparent: Coordination requires trust and trust requires transparency –
the willing flow of information, open decision-making processes and
publicly stated, sincere and honest rationales for decisions. This will include
the need to admit failure, or at least falling short of objectives.
 Useful: The coordination process must produce, share and disseminate
useful products, processes and outcomes. These may include a platform for

37
 decision-making, an opportunity to use shared resources, a venue for donor
recognition and support, or a comfortable place to share frustrations and try
out new ideas

l) Skills in effective co-ordination

1. Direct Contact: One of the most effective means of achieving coordination
is direct contact. Written communication, modern electronic, mechanical
devices, etc., can also be used.
2. Group Meetings: Group meetings are said to be an effective means of
achieving coordination. At the time of meeting, superior comes into personal
contact with those connected with the actual problems. Such meetings
encourage the people to integrate their efforts. Coordination can be achieved
through regular meetings of superiors and subordinates.
3. Organizational Structure: Coordination can be achieved only when the
authority and responsibility of each and every person are clearly defined. In
other words, the organizational structure should be designed properly so as to
permit coordination among various activities along the line itself.
4. Effective Communication: In achieving coordination, effective
communication plays a vital role. Communication greatly helps in
coordination. The purpose of communication is to promote deep
understanding among members by bringing and maintaining coordination in
order to achieve the ultimate goals.
Effective Communication is a process whereby ideas and images of one
person are transmitted to another person. Coordination between various
individuals and activities is brought out by communication. Effective
communication facilitates information and exchange of ideas which helps to

38
 achieve the common purpose. Coordination is facilitated by exchange of such
ideas and information and brings people together.
5. Committees: In order to coordinate the various activities, various types of
committees may be appointed. Committees provide the means for
synchronizing various efforts. Committees develop better understanding and
morale among the members. They are greatly advisory in nature and make use
of the best efforts of the members.
The success of the committee depends very much on its composition and the
manner in which it functions. Examples of such committees are – committees
on manufacturing methods, complaint committee, suggestion committee on
welfare work, etc.
6. Staff Meetings: Staff meetings at regular intervals helps in achieving
effective coordination because such meetings provides opportunities for frank
discussions and better exchange of ideas of people from different sections.
This infuse a feeling of unity among the members which makes them to
jointly work for the organization.
7. Effective Leadership: Leader inculcates a feeling of collectivism in the
employees and forces them to work as a team. Individuals within the group,
may possess varied interests and multiple goals. Leader reconciles these
conflicting goals and restores equilibrium. A good leader can achieve
coordination at all stages. Hence, effective leadership is essential for
achieving coordination.
8. Informal Coordination: Many organizations adopt informal means of
coordination through processes of social, unofficial interactions, relationship
and mutual adjustments. They are very often more effective than formal
means.
m) Barriers of effective co-ordination
39
1. Lack of well defined authority: An organization with clear cut and well
defined authority and responsibility can ensure effective coordination.
Authority usually flows from top to bottom through various departments and
levels. This line of authority will determine who should report to whom.
This will minimize misunderstanding conflicts and improve co-ordination. If
there is lack in well defines authority this will lose the responsibility and
relationship.
2. Improper organizational structure: The organizational structure should
not be functional and if it is oversized also will affect the effective
coordination. If the organization is top-sided on unweild, it will affect the
smooth operation and co-ordination becomes difficult. So, modern
enterprises are emphasizing on optimum or proper organization and old
organizations are recognizing themselves for securing better co-ordination.
3. Ineffective communication: intelligent manager will try to secure
maximum coordination through effective and positive communication. The
channels selected for communications should be reliable and regular. The
communications should help in accomplishing the objectives, personal
conversation, direct contacts are always better for effective co-ordination.
4. Lack of co-operation: Co-operation is the voluntary willingness on the part
of the workers. If the workers are not co-operating well this may affect in
improving the effectiveness of co-ordination. Co-operation can create
harmony and perfect understanding which will smoothen the process of co-
ordination.
5. Lack of well defined objectives: Management by objective will be of much
use to accomplish perfect co-ordination. All the workers should try to
understand the overall objective of the organization and provide maximum

40
 contribution through this efforts to achieve such objectives. This unity of
action and unit of objectives will make the co-ordination job easy.
6. Ineffective supervision: Ineffective leadership may lose to achieve co-
ordination from the planning level itself. Continuous and effective
supervision will help to achieve co-ordination at the execution stage.

XI. DELEGATION

Delegation involves sharing of work between a superior and his

subordinates.

a. Introduction
Delegation of authority is one of the important factors in the
process of organizing as well in formal organization. Delegation of authority
refers to authorization of a person to make certain decision. To delegate
means to grant or confer and delegation means conferring authority from one

41
 person to another to accomplish a particular work or activity, it is small slice
of the authority of a line superior.
Delegation is the transferring of responsibility to subordinates on
behalf of the manager. It is an act through which a manager gives authority to
others to attain certain assignments. Delegating is a major element of the
directing function of nursing management. Competency by which nurse
managers get the work done through their employees. Delegation is part of
management; it requires professional training and development to accept the
hierarchical responsibilities of delegation.
b. Meaning and Definition
i) Meaning
Delegation of authority refers to authorization of a person to make
certain decision. Delegate- “to entrust to another; to appoint as one’s
representative; to assign responsibility or authority”.
Delegation - “the act of empowering to act for another”.

ii) Definition

a) Delegation is defined as the transfer of responsibility for the performance of a

task from one person to another.
b) Delegation can be defined as getting work done through others, or as directing
the performance of one or more people to accomplish organizational goals.

c) Delegation is the process of assigning responsibility and authority to co-

worker and ensuring his accountability

42
c)Need for delegation

The chief administrator of an institution cannot accomplish the entire

work through his own personal efforts. One person constitutes only one
man power. Wherever a person’s job grows beyond his capacity, he has
to multiply himself through other personnel. So delegation is necessary
for extending the limited personal capacity of the individual manager.
Delegation is the means by which he can share his duties with his
immediate subordinates who in turn delegate to their subordinates and the
process is continued until the work reaches the lower level managers. An
organization cannot exist without delegation and management becomes
impossible without delegation.
Process of dividing work among people creates a number of jobs for
managers and operators. Delegation acts as the cement that holds the jobs
together and establishes relationship between superiors and subordinates.
Thus delegation holds the key to synchronized and co-ordinated
operations in an organization.

d) Characteristics of delegation

1. Delegation of authority can be exercised only by higher authority:

Higher authority are responsible for delegating the authority to its
subordinates. Delegation is the division of work to the superiors and
subordinates. So that all the employers can equally understand the work
and functioning of the organization. So this work is equally dividing
giving by the higher authority to the employers. The work can be reduced
with this.

43
 2. Delegation can be of any kind: There is no rule that delegation to be
a particular kind. It can be differentiate and allot to any employers in the
organization. The work should be given according to the qualification of
the employee. The objective is only to achieve the common goal.
3. Delegation does not mean transfer of final authority: Delegation
doesn’t mean that it is the transfer of final authority, it means delegating
the works among individuals to achieve the organization goal. It helps to
function the institution properly.
4. Does not involve surrender of power: There is no surrender or power
when delegation of work done. Sometimes the superiors may feel
complex in doing work with their subordinates but the only aim of
delegation is to achieve the particular goal in the organization within the
particular time.
e) Aspects of delegation/ Elements of delegation
 Assignment of duties and tasks: The administrator must allocate
a part of his work to his subordinates. This sharing of work can be
done only when the work is suitably sub divided into parts.
Manager has to decide what part of work he will do for himself
and what part of work he will delegate to his subordinates.
 Grant of authority: Duties cannot be effectively discharged by
the subordinates without the grant of necessary authority.
Authority has a precise means in management. It does not indicate
power over the people. It means the right to act, to utilize the
resources available to make decision related to the
accomplishment of the work.
 Creation of accountability: Delegation of duty and authority
creates an accountability from the side of the subordinate.
44
 Subordinate has an obligation to do the concerned task.
Subordinates performance must always be measured and
appraised by the delegating manager. Duties can be delegated,
authority can be delegated but it is not the same with
accountability. Whether the work is delegated or not the
administrator ever remains accountable to the superior. Manager
delegates duty and authority downwards or side ways, he has
accountability upward to his superior. For this administrator has to
direct, regulate and control the course of actions, done by
subordinates.

Elements of delegation

The process of delegation involves three essential elements or aspects:

 Entrustment of responsibility (duties or work) to another for performance;

 Granting of authority to make use of resources, take necessary decisions and
so on for carrying out the responsibility
 Creation of an obligation or accountability on the part of the person accepting
the delegation to perform in terms of the standards established.

It is important to point out that these three elements are inseparable

parts of the process of delegation. A brief explanation of the components of
delegation is given below:

(i) Entrustment of Responsibility or Duty. Responsibility means the work

or duties assigned to a person by virtue of his position in the organization. In
order to enable the subordinate perform his responsibility well, the superior

45
must clearly tell the former as to what is expected of him. In other words, the
superior must determine clearly the task or duty to be assigned to the
subordinate. The duty must be expressed either in terms of functions or in
terms of objectives. If a subordinate is asked to control the operations of a
machine, the duty is in terms of function. But if he is asked to produce a
number of pieces of a product, the duty is in terms of target or objectives.
Determination of duties in terms of objectives will enable the subordinate to
know by what standards his performance will be evaluated.

(ii) Graning of Authority. Authority is the right or power granted to an

individual to make possible the performance of work assigned. Power to
produce or use raw materials, spend money, or ask for allotment of money to
hire and fire people, etc. has to be delegated to individuals to whom the work
is assigned. For instance, if the General Manager of a plant assigns to the
Production Manager the production of particular goods and services he will
also grant him the authority to use materials, money and machinery hire
workers and so on to fulfill the production schedule prescribed as his duty.

(iii) Creation of Obligation or Accountability. According to Louis A. Allen,

"Accountability is the obligation to carry out responsibility and exerted
authority in terms of performance standards established”. It means holding an
individual answerable for final results. The subordinate is held accountable to
the superior. Accountability originates because the manager has a right to
require accounting for the authority delegated and task assigned to a
subordinate. The process of delegation of authority is incomplete unless
accountability is created.

The term 'accountability' should not be confused with 'responsibility.

Responsibility denotes the work to be done. It can be assigned to the
46
subordinates; subordinate will perform his responsibility well if he is give
sufficient authority along with it. When the authority is accepted by the
subordinate, he commits himself to account for the use of authority. Thus,
accountability is the obligation for the performance of work assigned and
authority delegated. In other words, it is the responsibility to account for
results.

Authority can be delegated but accountability cannot be delegated.

When a senior executive assigns some duties to a junior executive, he has to
delegate corresponding authority also. The junior executive may, in turn, take
the help of a foreman working under him in performing the work assigned.
But the junior executive will continue to be accountable for performance to
the senior executive. That means if the foreman does not do the job properly,
it is the junior executive who is responsible to the senior executive. Thus,
accountability can't be delegated, it always moves upward. In simple words,
an executive cannot escape the responsibility (or answerability for the
performance of tasks assigned to him by delegating authority to his
subordinates). However, he can take action against the subordinate for his
carelessness or negligence in doing the job.

Accountability moves upward because a person who is delegated the

authority is always accountable to the superior who delegated him the
authority. However, as is obvious from the mechanism of the delegation
process, responsibility and authority move downward.

The extent of accountability depends upon the extent delegation of

authority and responsibility. A person cannot be held answerable for the jobs
not assigned to him by his superior. For instance, if the production manager is
given responsibility and authority to produce a specified quantity and quality
47
 of certain product and the personnel department is given responsibility and
authority for the development of workforce, the production manager cannot
be held accountable for the development of workforce. "Accountability is, by
the act which creates it, of the same quality and weight as the accompanying
responsibility and authority."

What can be delegated ?

Authority is delegated when a superior grants some discretion to

subordinate. Superiors can neither delegate authority they do not have and nor
they can delegate all their authority without, in effect, passing on their
position to their subordinates. The authority of a top executive can be divided
into three broad categories:

(i) Authority which must be delegated such as authority to take routine decisions
for the accomplishment of tasks;
(ii) Authority which call be delegated such as implementation of policies
(iii) Authority which cannot be delegated at all such as authority to take policy
decisions.

A manager must delegate the authority to do the routine work which does not
involve any policy decision. A part of work in every management position
consists of activities which are subsidiary to the primary task of the position
itself. The power to perform subsidiary activities must be delegated to others
so that the concerned executive concentrates on the primary task. For
instance, the sales manager of a concern is responsible for selling its products.
In order to sell the products, the sales manager has to perform many functions
like market research, employment of sales force, training of sales-force,
development of means of sale promotion and so on. The sales manager cannot

48
 perform all these functions himself. So he can entrust certain operations to his
subordinates and give them authority to perform them.

There are certain other activities which a manager can entrust to his
subordinates provided the manager has the necessary skill to delegate and the
subordinates have been trained to accept these assignments. These activities
relate to execution of policies. The manager can keep the control mechanism
in his hands and let others execute the policy decisions. However, he cannot
delegate the authority to take policy decisions, develop plans and establish
appropriate organization for the execution of plans. These are managerial
functions of higher order on which the manager must concentrate himself.
Similarly, control function is also to be performed by the manager himself. A
manager who delegates his authority to others must keep the authority to
control their activities with himself. He should evaluate the functioning of
various subordinates himself and take necessary action wherever necessary.

f) Principles of delegation
1. Assignment of duties in terms of expected results: A clear cut out
of duties, responsibilities and relationship must be given to the
subordinates. They should know what they are expected to do and
what they have to achieve. The objectives must be made known to the
subordinates in advance. The criteria by which the work performance
is evaluated must be given to the subordinates. So the subordinates
direct their efforts for realization· of goals and avoids aimless activity.
2. Parity of authority and responsibility: The authority to carry out the
duties and responsibilities must be delegated. If authority is given they
have an obligation to do it properly. Obligations are attitudes
49
 involving moral compulsions. There are three kinds of authority
vested in the administrator.
 Authority of technical knowledge
 Authority of position
 Personal authority

Positional authority can be delegated to the subordinates. Other

two can be retained by the manager.

3. Classification of limits of authority: Subordinates should know the

limits of their authority. He is given authority to act. He has no power
over people to take disciplinary action and the like. But he can report
to the superior. He has authority to make specific decision related to
his work.
4. Unity of command: Command, orders or guidance should always
come from one superior. The subordinates may have relations with
many people and can accept their advice on certain matters or respond
to a variety of influences. But he will be controlled and supervised by
one superior.
5. Unnecessary influence of the superior must be avoided: It
establishes structural relationship throughout the organization and
leads to co-ordination and unity. Downward, sideways and upward
relationship of line, staff and functional authority builds the various
parts and position into an integrated whole.
g) Types of delegation

Delegation of authority may be specific or general, written or unwritten,

precise or vague.

50
1.General and specific delegation: In general delegation, the superior tells his
subordinate to do whatever the latter feels necessary. This is a case of unclear
delegation under which the subordinate does not fully understand the nature of
duties and limits of authority. Actually, the usefulness of delegation will be lost in
such cases. There will be overlapping of activities and misunderstanding among
the people. On the other hand, if delegation is specific ie, precise and clear, there
will be no need for the subordinates to wonder how far their authority goes and to
experiment by hit or miss. It will also help the boss to hold the subordinates
accountable. Therefore, it is advisable that delegations of authority should be
precise and clear and it would be better if they are in writing.

2.Written and unwritten: Some people suggest that especially in the upper levels
of management, if the authority delegations are specific and written, they will
bring rigidity in the organization. Sometimes, particularly for new jobs at the top,
delegations cannot be very specific, at least at the outset. But this situation can be
remedied with the passage of time. If the delegations are not specific, there may be

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organizational frictions, unnecessary meetings and negotiations and overlapping of
activities. Therefore, delegations should be specific as far as possible. The fear that
specific delegations result in inflexibility can be best met by developing a tradition
of flexibility in an organization.

3.Shared and Splintered Authority: Authority is shared when it is delegated to

two or more persons together. These persons are responsible for making decisions
without following the chain of command. For instance, the chief executive of a
company may delegate his authority to production manager, marketing manager
and finance manager for diversification of company's products. In such a case, the
authority is shared by three persons who will take the decisions jointly for
diversification of company's products.

Splintered authority exists wherever a problem cannot be solved without

pooling the authority delegations of two or more persons. For instance, if the
incharge of Plant A thinks that costs can be reduced through minor modifications
in procedures in Plan B. he cannot bring about this change. He will have to contact
the incharge of Plant B for taking any decision. The change will take place if they
pool their authority. Individually, their authority is said to be "splintered". It
should- also be noted that the same decision could also be taken by their boss.
Such practice should not be encouraged as the superior will be over-burdened. The
managers incharge of both the plants who have splintered authority can meet and
pool their authority delegated to them and can quickly take the decision jointly.

h) Prerequisite/Strategies of delegation

1. Plan ahead: Before starting the programme, the effective planning should be
done by stating the objectives and time. While planning, it should include the
objectives and how those objectives will be achieve.

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2. Identify necessary skill and level: The authority have to identify the necessary
skills needed to complete the task. The subordinates should be trained and the
functioning of the organization should be monitored by the superiors.
3. Select most capable person: According the nature of work the most capable
person should be selected to complete the task. The selection of the employers will
be according to the qualification and experience. The most talended person should
be controlling the workers and all the members should be trained adequately.
4. Communicate goal clearly: The objectives or the goals must be stated clearly
and they have to communicate each other so that synchronization of activity is
possible which helps to achieve the goal. It is important to maintain proper
communication between the superiors and subordinates.
5. Empower the delegate: The delegates should be provided with needed support
and supervision. It helps in proper functioning of the organization and reduce the
workload in the wokers.
6. Set deadlines and monitor progress: The deadlines should be set before
starting the programme, and that should be monitored continuously inorder to
avoid unwanted dues in completing the programme.
7. Model the role: Provide guidance to the delegates to accomplish the goals. The
employers should be monitored and supervise by the authority will be helpful to
achieve the goal adequately.
8. Evaluate performance: The performance should be evaluated at the end of the
programme by assessing the goals achieved or not. Then only the authority can
understand whether the goal was achieved or not.
9. Reward accomplishment: The best performance should be given with reward
for more motivation and support. This will helps to motivate the other employers
to function more efficiently at next time.
i) Limitations of delegation
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 1. Superior-subordinate conflict: When subordinates go beyond the limits of
their authority, some subordinates become autocrats and try to improve their
status of position.
2. Incapacity of subordinates: As authority of technical knowledge and
personal authority cannot be transferred by superior to subordinate overnight,
e degree of delegation shrinks. Subordinates are to be trained for assuming
responsibilities. Subordinates who lack initiative and self confidence
contribute a real bar to delegation.
3. Unfavorable attitude of superiors: Some managers, even after delegation
interferes with work of subordinates. They get involved in minute things and
make delegates absolutely dependent.
4. Incapacity of superiors: Lack of proper control measures, inability to direct
and guide subordinates, lack of assertiveness, lack of decision making skill
etc. They may depend on the subordinates for each and everything.

XII. DECENTRALIZATION
a) Introduction

Decentralization of authority can be defined as a position where the ultimate

authority to command or control as well as the ultimate responsibility for results is
placed as far down in the organization.

b) Definition

Decentralization is dispersing the pushing down of authority and power of

decision making to lower levels of organization.

W.Haynes

c) measurement of decentralization

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Fiscal decentralization

Fiscal decentralization means decentralizing revenue raising and/or expenditure of

moneys to a lower level of government while maintaining financial responsibility.
While this process usually is called fiscal federalism it may be relevant to unitary,
federal and confederal governments. Fiscal federalism also concerns the "vertical
imbalances" where the central government gives too much or too little money to
the lower levels. It actually can be a way of increasing central government control
of lower levels of government, if it is not linked to other kinds of responsibilities
and authority.

Fiscal decentralization can be achieved through user fees, user participation

through monetary or labor contributions, expansion of local property or sales taxes,
intergovernmental transfers of central government tax monies to local governments
through transfer payments or grants, and authorization of municipal borrowing
with national government loan guarantees. Transfers of money may be given
conditionally with instructions or unconditionally without them.

Fiscal decentralisation (or fiscal federalism) refers to “how much governments

cede fiscal impact to non-central government entities” (Schneider). A more
articulated definition is provided by pointing out that, from a broader economic
perspective, the scope of state rescaling involves four main activities; namely,
regulation, financing, administration, and service delivery (Philip, 1954). However,
panel data on regulation can not easily be used for cross-countries studies.
Therefore, this concept is of little significance in empirical studies. Analysis based
on remaining three roles of government can be synthesised as the analysis of the
scope of the relative roles of levels of government in financing, administration, and
service deliver. Furthermore, these processes are “encapsulated” in the state’s
activities dealing with revenue collection and public expenditure. Hence, according

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to Martinez-Vazquez and Timofeev. fiscal decentralization consists of an increased
role of sub-national governments “in the vertical government distribution of
powers for raising and spending public resources”.

d) Factors bring about decentralization

1. Size of the organization: Large organisation makes a lot of decisions. Their

decisions are taken at different levels. So large organisations are more
decentralised. Small organisation makes few decisions. All their decisions are
taken at the top level. So small organisations are less decentralised. Thus, we can
say, the bigger the organisation, the more the decentralisation and vice-versa.

2. Cost and Importance of decisions: The most costly and important decisions are
made by the top level of management. So, there is less decentralisation of costly
and important decisions. Thus, we can say, the higher the cost and importance of
the decision the lesser the decentralisation and vice-versa.

3. Uniformity: If the management wants more uniformity, then there will be more

centralisation and less decentralisation.

4. History of organization: An organisation which expands from within has more

centralisation. For e.g. Henry Ford made most of the decisions for Ford Motors.
However, an organisation which expands with the help of business combinations
has more decentralisation.

5. Management Philosophy: The management philosophy also influences

decentralisation. If the management wants to make all the decisions themselves,
then the organisation will be more centralised and vice-versa.

6. Availability of efficient managers: If more efficient managers are available,

then there will be more decentralisation. However, if there is a shortage of efficient
managers then there will be more centralisation.
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7. Control Systems: If there is a good control system in the organisation, then
there will be more decentralisation. This is because authority cannot be
decentralised and delegated without proper control techniques.

8. Types of Business: If a business is old and slow moving, then it will have more
centralisation. However, if the business is new and fast moving, then it will have
more decentralisation.

9. Branches of organization: If an organisation has many branches at different

places, then it will have more decentralisation. However, if the organisation does
not have any branches, it may have more centralisation.

10. Type of organization: Joint-stock companies are generally more decentralised

compared to sole trading concerns and partnership firms.

e) Basic goals of decentralization

Decentralization in any area is a response to the problems of centralized systems.

Decentralization in government, has been seen as a solution to problems like
economic decline, government inability to fund services and their general decline
in performance of overloaded services, the demands of minorities for a greater say
in local governance, the general weakening legitimacy of the public sector and
global and international pressure on countries with inefficient, undemocratic,
overly centralized systems. The following four goals or objectives are frequently
stated in various analyses of decentralization.

1.Participation: In decentralization the principle of subsidiarity is often invoked.

It holds that the lowest or least centralized authority which is capable of addressing
an issue effectively should do so. According to one definition: "Decentralization,
or decentralizing governance, refers to the restructuring or reorganization of
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authority so that there is a system of co-responsibility between institutions of
governance at the central, regional and local levels according to the principle of
subsidiarity, thus increasing the overall quality and effectiveness of the system of
governance, while increasing the authority and capacities of sub-national levels.

2.Diversity: Diversity plays an important role in decentralized systems

like ecosystems, social groups, large organizations, political systems. "Diversity is
defined to be unique properties of entities, agents, or individuals that are not shared
by the larger group, population, structure. Decentralized is defined as a property of
a system where the agents have some ability to operate "locally." Both
decentralization and diversity are necessary attributes to achieve the self-
organizing properties of interest.

3.Efficiency: Decentralization leads to a management by results philosophy which

focuses on definite objectives to be achieved by unit results. Decentralization of
government programs is said to increase efficiency – and effectiveness – due to
reduction of congestion in communications, quicker reaction to unanticipated
problems, improved ability to deliver services, improved information about local
conditions, and more support from beneficiaries of programs.

4.Conflict resolution: Economic and/or political decentralization can help prevent

or reduce conflict because they reduce actual or perceived inequities between
various regions or between a region and the central government.  However, the
likelihood this will be done depends on factors like how democratic transitions
happen and features like a regional party's proportion of legislative seats, a
country's number of regional legislatures, elector procedures, and the order in
which national and regional elections occur.

f) Advantages of Decentralization

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1. Reduces the burden of top executive: The authority may have reduced
their responsibility because the works are dividing and giving to the lower
level employers. So each person may have the responsibility work hard.
2. Motivates subordinates for high performance: The lower level
employers will understand the difficulties faced by the superiors. So that
they will motivated to function properly.
3. Promotes employee participation: All the employees can get a leadership
quality and which helps in active participation of the employee.
4. Paves the way for better decision: The employers will works together
and will have their opinions in the functioning of the works. So best
possible solution can be taken from the alternative solutions.
5. Secures better co-ordination of operation: the delegates may have good
co-ordination with each other. Interdepartmental co-ordination can be
improved.
6. Excises effective control: Each employers may feel like an authorized
personnel so that each have control over their own responsibilities.
7. Brings decision making closer to the scene of action: The decision
making capacity may improve and suggestions from each employers mat
considered.
8. Promotes learning by doing: The employers can be promoted with
efficiency by doing the works.
9. Facilitates managerial development: Employers works together and they
may develop organizational goals in an effective way. So that the
organizational development may occur in an effective way.
10.Individuals have clear guide for work: leadership quality may improve
and inorder to that the guidance also may improve. This will helps in
giving motivation to the works.
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 11.Individuals have clearly defined responsibility and authority; Each
individual may have their own responsibility and authority with their
works.
12.Individuals are protected from unfair treatment by the rules and
procedures.
13.Individuals have reasonable job security.
g) Disadvantages of Decentralization
1. High cost: Increased costs are needed because when each person is
considering as the authorized person so that wages may increase.
2. Policy Control: Creates need for control at policy level. While works the
policy of the organization should be considered and within that limitation
only they can made the decisions.
3. Personal conflicts: Conflicts among the personnel may arise due to
positioning.
4. Complexity among employers: Increases the complexity of co-
ordination due to human thinking.
5. Makes it difficult to have a uniform policy.
6. Disintegration tendency may appear in some organization.
h) Decentralization in Nursing

Nurse manager should be aware of the following-principles and should

utilize these for effective centralization or decentralization of nursing service
department.

1. A working knowledge of the organizational structure of the health agency

in which the nurse manager works promotes appropriate delegation of
authority, for organizational structure determines the amount and degree
of authority that can be delegated.

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2. Delegation of authority to the managerial level closest to the job to be
done leads to overall organizational effectiveness and decision making.
3. Understanding the categories and roles of nursing personnel enables the
delegates to select the type and number of personnel appropriate for the
job.
4. Staff member participation in the formulation of policies, job description
and procedures increases the use of policies and improves job
satisfaction.
5. The philosophy and policies of a health agency determines the pattern of
nursing care delivery system to be provided.
6. Guidelines such as established channels, methods, and provision for
communication within an agency enable the nurse manager to delegate
tasks and authority appropriately.
7. Clear lines of communication promote morale among organization
members and enhance goal accomplishment.
8. Reactions to stress influence efficiency of performance in the work
situation.
9. An adequate supply of appropriately prepared personnel enables
delegation of authority in response to client and agency needs.
10.Centralization of information storage and retrieval system allows for
efficient assignment, delegation and implementation of tasks.
11.Clear and concise directions enhance task delegation.
12.A balance between variety and continuity of assignment increases
workers motivation and productivity.
13.Consideration for each care giver’s preference and areas of expertise
influence morale.

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 14.Assignments that have clearly defined goals, standards and criteria
provide basis for measurement of outcomes.
XIII. CENTRALIZATION VS DECENTRALIZATION

Centralization and Decentralization are the two types of structures, that can be
found in the organization, government, management and even in
purchasing. Centralization of authority means the power of planning and decision
making are exclusively in the hands of top management. It alludes to the
concentration of all the powers at the apex level. A pivot location or group of
managerial personnel for the planning and decision-making or taking activities of
the organization is known as Centralization. In this type of organization, all the
important rights and powers are in the hands of the top level management.

In earlier times, centralization policy was the most commonly practiced in every
organization to retain all the powers in the central location. They have full control
over the activities of the middle or low-level management. Apart from that
personal leadership and coordination can also be seen as well as work can also be
distributed easily among workers.

However, due to the concentration of authority and responsibility, the subordinate

employee’s role in the organization is diminished because of all the right vests with
the head office. Therefore, the junior staff is only to follow the commands of the
top managers and function accordingly; they are not allowed to take an active part
in the decision-making purposes. Sometimes hotchpotch is created due to excess
workload, which results in hasty decisions. Bureaucracy and Red-tapism are also
one of the disadvantages of centralization

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BASIS FOR
CENTRALIZATION DECENTRALIZATION
COMPARISON

Meaning The retention of powers The dissemination of

and authority with respect authority, responsibility and
to planning and accountability to the various
decisions, with the top management levels, is
management, is known as known as Decentralization.
Centralization.

Involves Systematic and consistent Systematic dispersal of

reservation of authority. authority.

Communication Vertical Open and Free

Flow

Decision Making Slow Comparatively faster

Advantage Proper coordination and Sharing of burden and

Leadership responsibility

Power of Lies with the top Multiple persons have the

decision making management. power of decision making.

Implemented Inadequate control over Considerable control over

when the organization the organization

Best suited for Small sized organization Large sized organization

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XIV. DIFFERENTS BETWEEN DELEGATION AND
DECENTRALIZATION

Delegation Vs Decentralization

Delegation Decentralization
1. Is a process or an act. It is a policy and result of
delegation and result which is
achieved when delegation is
systematically repeated up to
the lowest level.
2. Develops relationship Relationship between top
between a superior and a management and various
subordinate. depts.or divisions.
3. It is essential for It is optional depends upon
management process. the organization structure and
poltcy
4. Delegator exercises The control may be delegated
control on subordinates. to department heads.
5. Technique of Philosophy of management
management creates results in diffusion of
64
 superior – subordinate decision making authority
relations. throughout the organization.
6. Delegation of authority There cannot be
can take place without decentralization without
decentralization. delegation.

XV. SUMMARY
Planning, the foremost of management functions which enables the
orgnisation to deal with the present and anticipate the future, is a
process whereby management decides where it is at present, and
where it wants to be at some time in the future. The process is one of
forecasting, because forecasting seeks to provide the manager with
information about the future. The purpose of planning is to assure the
most efficient utilization of resources and economy of Performance.
The need for planning is felt because a particular situation presents an
opportunity to do something and achieve something positive or. The
need for planning is felt because a particular situation poses a problem
and draws attention to that problem.

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XVI. CONCLUSION
Planning is the most fundamental function of management. It is basic
to all other management functions. It provides the foundation upon
which organizing, staffing, directing and controlling functions can be
carried out. Planning is the process of deciding in advance what to do,
how to do it, when to do it and who is to do it. It is a process which
involves the determination of future course of action. Planning is a
process and plan is the outcome of this process. A plan is the blue
print for the future course of action. Planning involves selecting
mission and objectives and the action to achieve them. It requires
decision making. Planning involves selecting missions and objectives
and the action to achieve them. It requires decision making. Planning
bridges the gap from where we are to where we want to go. A plan is
a commitment to a particular course of action believed necessary to
achieve specific results. Nursing service administrators cannot control
the actions of staff members without realistic plans. Through the
planning process, both administrators and staff discover where they
want to go, and through the controlling process, they know if they are
going in the desired direction.

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 XVII. BIBLIOGRAPHY
1. Kumari neelam. (2017). Management of Nursing Services & Education. 6th
Edition. S Vikas and company Medical Publishers:India,40-44, 360-370
2. JoshiD C, Joshi mamta. (2009). Hospital administration. 1st Edition. Jaypee
publications. Haryana,72-83
3. Dr.Thomas Kochuthresiamma. (2011). Nursing Management and
Administration. 1st Edition. V publishers press. Kottayam,43-65
4. Tripathy P C. (2006). Principles of Management. 3 rd Edition. Tata McGraw-
Hill Publishing company limited: New Delhi,138-146
5. Basavanthappa BT. (2009). Nursing Administration. 2nd Edition. Jaypee
publication. New Delhi,119-141
6. Sakharkar B M. (1998). Principles of Hospital administration and
management. 1st Edition. Jaypee publications: New Delhi,108-117
7. Prasad L.M. (2007). Principles and practice of management. 7 th Edition.
Sulthan Chand & Sons: New Delhi,330-335
8. Watti Jogindra. Principles and practice of nursing management and
administration. 1st Edition. Jaypee Publications: New Delhi,194-197
9. Robbins.P.Stephen. (2009). Management. 10th Edition. Dorling Kindersley
publishers:New Delhi,147-155

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10. K. Deepak. (2013). A Comprehensive textbook on Nursing Management. 1 st
Edition. EMMESS medical publishers: Bangalore,75-87

Journal reference

1. RAM, Rev. Adm. Mackenzie, decision-making at the first management

level: the interference of the organizational cultur,vol.19 no.3 São
Paulo  2018  Epub July 19, 2018

Internet sources

1. https://www.cliffsnotes.com/study-guides/principles-of-
management/organizational-planning/detailing-types-of-plans
2. https://www.accipio.com/eleadership/mod/wiki/view.php?id=1639

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