NATURE &

SIGNIFICANCE OF
MANAGEMENT
 INTRODUCTION
• Successful organizations do not achieve
their goals by chance but by following a
deliberate process called management.

• Management is essential for all

organizations big or small, profit or non-
profit, service or manufacturing.

• Management consists of a series of inter-

related functions that are performed by all
managers.
 CONCEPT OF
MANAGEMENT

PROCESS EFFECTIVENESS EFFICIENCY

Planning, Being effective or doing Efficiency involves cost benefit

organizing, staffing, work effectively means analysis. It focuses on deriving
directing, finishing the given task more benefits by using less
controlling or achieving the goal resources
 MODERN CONCEPT OF MANAGEMENT
According to modern concept “management is a
process of getting things done with the aim of
achieving goals effectively and efficiently.”
The concept of Management insists on three terms:

 Process: Process refers to series or sequence of

steps. Management is a process it performs a series
of functions to get the thins done. These functions
are planning, organizing, staffing, directing and
controlling.
 MODERN CONCEPT OF MANAGEMENT
 Effectiveness: It is concerned with doing the right task,
completing activities and achieving goal. In other words, it
is concerned with tend result. Being effective or doing
work effectively means finishing the given task or
achieving the goal on time.

 Efficiency: It refers to do the task in the right way, i.e.,

with minimum cost and optimum utilization of resources.
Efficiency involves cost benefit analysis. It’s focus is on
deriving more benefits by using less resources.
RELATION BETWEEN EFFECTIVENESS &
EFFICIENCY
 RELATION BETWEEN EFFECTIVENESS &
EFFICIENCY
• Effectiveness and efficiency are equally important as being
effective means completing the task but it is not enough to
just complete the task, it must be done correctly without
any wastage of resources.

• Effectiveness and efficiency are the two sides of a same

coin, one without other is of no use.

• Effectiveness and efficiency together lead to higher profit

and prosperity of an organization.
 Management is a
goal oriented Management is
process pervasive

Management is Management is
CHARACTERISTICS
an intangible
OF MANAGEMENT
multi-
force dimensional

Management is a Management is
dynamic function Management is a continuous
a group activity process
 CHARACTERISTICS OF MANAGEMENT
MANAGEMENT IS A GOAL-ORIENTED
PROCESS:

 Management always aims at achieving

organizational objectives.

 The functions and activities of manager lead to the

achievement of organizational objectives.

 Management unites the efforts of different

individuals in the organization towards achieving
common goals.
 CHARACTERISTICS OF MANAGEMENT
MANAGEMENT IS PERVASIVE:

 Managerial activities are performed in all types of

organizations, in all departments and at all levels.

 Management is required in all organization whether big

or small, manufacturing or service organization, profit
or non-profit making organization.

 Concept of management is used in whole world.

CHARACTERISTICS OF MANAGEMENT
MANAGEMENT IS MULTI-DIMENSIONAL:

Management does not mean one single activity but it includes three
main activities:

(a) Management of work

(b) Management of people
(c) Management of operations
 CHARACTERISTICS OF MANAGEMENT
(a) Management of work:
• All organizations are set up to perform some task or goal.

• Management activities aim at achieving goals or tasks to

be accomplished.

• The task or work depends upon the nature of business. e.g.

work to be accomplished in school is providing education,
in hospital is to treat patient, in industry to manufacture
some product.

• Management makes sure that work is accomplished

effectively and efficiently.
 CHARACTERISTICS OF MANAGEMENT
(b) Management of people:
• People refer to human resources and human resources
are the most important assets of an organization.

• Management has to get task accomplished through

people by making their strength effective and their
weakness irrelevant.

• Managing people has two dimensions:

 Taking care of employee’s individual needs.
 Taking care of group of people.
 CHARACTERISTICS OF MANAGEMENT
(c) Management of operations:
• Operations refers to activities of production
cycle such as buying inputs, converting them
into semi-finished goods and finished goods.

• Management of operations concentrates on

mixing management of work with management
of people, i.e. deciding what work has to be
done, how it has to be done and who will do it.
 CHARACTERISTICS OF MANAGEMENT
MANAGEMENT IS A CONTINUOUS PROCESS:

• Management is a continuous process or never ending

function.

• All the functions i.e. planning, organizing, staffing,

directing and controlling are performed by all the
managers all the time.

• Managers perform ongoing series of functions

continuously in the organization.
 CHARACTERISTICS OF MANAGEMENT
MANAGEMENT IS A GROUP ACTIVITY:

• Management always refers to a group of people involved

in managerial activities.

• Each individual performs his/her role at his/her status

and department, then only management function can be
executed.

• Even the result of management affects every individual

and every department of the organization so it always
refers to a group effort and not the individual effort of
one person.
 CHARACTERISTICS OF MANAGEMENT
MANAGEMENT IS A DYNAMIC FUNCTION:
• Management has to make changes in goals, objectives and other
activities according to changes taking place in the environment.

• The external environment such as social, economical, technical and

political has great influence over the management.

• As changes take place in these environments, same are implemented

in organization to survive in the competitive world.
 CHARACTERISTICS OF MANAGEMENT
MANAGEMENT IS AN INTANGIBLE FORCE:

• Management function cannot be physically seen

but its presence can be felt in the way the
organization functions.

• The effect of management is noticeable in an

organisation where targets are met according to
plans, employees are happy and satisfied, and
there is orderliness instead of chaos.
 OBJECTIVES OF
MANAGEMENT

ORGANISATIONAL SOCIAL PERSONAL

OBJECTIVES OBJECTIVES OBJECTIVES
 OBJECTIVES OF MANAGEMENT
ORGANISATIONAL OBJECTIVES:
• These objectives aim at prosperity and growth of the
organization.

• Generally it is assumed that profit maximization is the main

objective of every organization but it is not true.

• The managers try to develop and attain variety of objectives

in all management areas.

• Three important organizational objectives of a manager are:

(a) Survival (b) Profit (c) Growth
 OBJECTIVES OF MANAGEMENT
(a) Survival:
 The basic purpose of every organization is to survive and
exist in the competitive market for a long period of time
and it is possible only when it is able cover its cost.

(b) Profit:
 The most important objective of every organization is
earning adequate amount of profit.
 Profit is essential for survival, growth and expansion of
business.
 Profit is the reward for bearing risk
 OBJECTIVES OF MANAGEMENT
(c) Growth:
 Business organization must grow and expand their activities.

 The success of an organization is measured by the growth rate and

growth is measured in terms of sales, number of branches, number
of products, number of employees, etc.
 OBJECTIVES OF MANAGEMENT
SOCIAL OBJECTIVES:
• Social objectives of the organizations deal with the commitment
of the organization towards the society.

• Business organizations are the part of the society.

• They earn by using the resources of the society so they must do

something for society also.
 OBJECTIVES OF MANAGEMENT
The major social objectives are:
 Supply of quality products at reasonable prices.

 Contribution towards desirable civic activities.

 Generation of economic wealth.

 Generation of employment opportunities.

 Financial support to community.

 OBJECTIVES OF MANAGEMENT
 Organizing educational, health and vocational
training programmes.

 Participating actively in social service projects of

Government and NGOs.

 Using environmental friendly methods of

production.

 Providing employment opportunities to weaker

section of society.
 OBJECTIVES OF MANAGEMENT
PERSONNEL/INDIVIDUAL OBJECTIVES:
• Individual objectives are related to the employees of the
organization.

• As employees are most important resources of every company, the

company must take care of the employee’s need.

• Management has to reconcile personal goals with organisational

objectives for harmony in the organisation.
 OBJECTIVES OF MANAGEMENT
The main individual objectives of management are:

 Competitive salary to fulfill financial needs of employees.

 Promotion, training, personal growth and development of employees

to fulfill esteem and other higher level needs of employees.

 Peer recognition, self respect for colleague to fulfill social need.

 Good and healthy working conditions for safety of employees.

 Creates
dynamic
organization

Helps in
Improves achieving
efficiency personal
IMPORTANCE
OF objectives
MANAGEMENT

Helps in Helps in
achieving development
group goal of society
 IMPORTANCE OF MANAGEMENT
Management helps in achieving group goal:
• Management tries to integrate the objectives of individuals along
with organizational goal.

• Management directs the efforts of all the individuals in the

common direction of achieving organizational goal.
 IMPORTANCE OF MANAGEMENT
Management increases efficiency:
• Managers try to reduce the cost and improve
productivity with minimum wastage of
resources.

• Management insists on efficiency and

effectiveness in the work through planning,
organizing, staffing, directing and
controlling.
 IMPORTANCE OF MANAGEMENT
Management creates a dynamic organization:
• Organizations have to survive in dynamic environment so
managers keep making changes in the organization to
match the environmental changes.

• The employees in the organizations are generally resistant

to change.

• Efficient management motivates employees to adopt

changes willingly by convincing them that change is not
beneficial for organization but it improves the employee’s
work also in the competitive world.
 IMPORTANCE OF MANAGEMENT
Management helps in achieving personal objectives:
• An efficient manager is the one who brings maximum
prosperity for employer as well as employees.

• Managers lead the people in such a manner that along with

organizational goal, individual goal of employees is also
achieved. As organizational goal and individual goal are in one
direction only.

• Individual wants to earn more and organization wants

maximum production.

• Employees can earn more by producing more. This will fulfill

the objectives of both the groups.
 IMPORTANCE OF MANAGEMENT
Management helps in development of society:

• Efficient management always has multiple objectives, they

give due importance to social obligations, towards
different groups of people such as employees, customers,
suppliers, etc.

• It insists on providing quality goods, competitive salary,

create employment opportunity, etc.

• By increasing production management also contributes to

increase in GDP and leads to growth of nation.
 NATURE OF MANAGEMENT
Some authors regard management as science because there
are will tested and experimented principles of
management, some authors describe management as an
art because more practice is required in management and
some authors consider that management is going towards
the path of profession.
 NATURE OF MANAGEMENT
Management as a Science:

• Science can be defined as a systematic and

organized body of knowledge based on
logically observed findings, facts and events.

• Science comprises of exact principles which

can be verified and it can establish cause and
effect relations.
 MANAGEMENT AS A SCIENCE
(FEATURES)

Systematic Principles are

Universal
Body of based on
Validity
Knowledge experimentation
 MANAGEMENT AS A SCIENCE
Main features of Science are:

(a) Systematic body of knowledge:

• In Science organized and systematic study material is
available which is used to acquire the knowledge of
science.

• Like science in management also there is availability of

systematic and organized study material.

• So first feature of Science is present in Management.

 MANAGEMENT AS A SCIENCE
(b) Principles are based on experimentation:
• Scientific principles are developed through
observations and then tested through repeated
experiments.

• The management principles are also developed through

observation and experiments but since management
deal with human being and human behaviour cannot be
accurately predicted.

• This feature of science is partially present. So

management can be called as an inexact science.
 MANAGEMENT AS A SCIENCE
(c) Universal Validity:

• Scientific principles have universal application and validity.

• Management principles are not exact like scientific principles so

their application and use is not universal.

• They have to be modified according to the given situation.

• So this feature of science is not present in management.

 MANAGEMENT AS A SCIENCE
CONCLUSION:
On comparing the features of science we find that one features of
science is present in management whereas two are not present.
So, management cannot be considered as pure or exact science
but we can call it as an inexact science.
 NATURE OF MANAGEMENT
MANAGEMENT AS AN ART:

Art can be defined as systematic body of knowledge which requires

skill, creativity and practice to get perfection.
 MANAGEMENT
AS AN ART
(FEATURES)

Existence of
Personalized Based on Practice &
Theoretical
Application Creativity
Knowledge
 MANAGEMENT AS AN ART
The main features of Art are:
(a) Systematic body of knowledge/existence of theoretical
knowledge:
• In every art there is systematic and organized study
material available to acquire theoretical knowledge of the
art. For example, various books on different ragas are
available in music.

• In management also there is systematic and organized

body of knowledge available which can help in acquiring
managerial studies.

• So this feature of art is present in management also.

 MANAGEMENT AS AN ART
(b) Personalized Application:
• In the field of art only theoretical knowledge is not enough. Every artist must
have personal skill and creativity to apply that knowledge.

• For example, all musicians learn same ragas according to their personal skill and
creativity which makes them different.

• In management also managers learn same management theories and principles.

But their efficiency depends on how well they use these principles under different
situations by applying personal skill and creativity.

• So this feature of art is also present in management.

 MANAGEMENT AS AN ART
(c) Based on Practice and Creativity:
• The artist requires regular practice of art to become
more fine and perfect. Art requires creative practice,
i.e.., artist must add his creativity to the theoretical
knowledge he has learned.

• Same way with experience managers also improve

their managerial skills and efficiency.

• So this feature of art is also present in management.

 MANAGEMENT AS AN ART
CONCLUSION:

On comparing the features of art with management we

find all the features of Art are present in management,
so we can call management as an art of getting things
done by others.
 MANAGEMENT: BOTH ART & SCIENCE
• Management is both science as well as art.

• Like Science it has systematic and well-organized

body of knowledge and like art it requires personal
skill, creativity and practice to apply such
knowledge in the best possible way.

• Science and art are not contrast to each other; both

exist together in every function of management.
 NATURE OF MANAGEMENT
MANAGEMENT AS A PROFESSION:

Profession can be defined as an occupation backed by

specialized knowledge and training, in which entry is
restricted.
 Well Defined Restricted
Body of Entry
Knowledge

MANAGEMENT AS A
PROFESSION (FEATURES)

Service Motive Presence of

Professional
Associations

Existence of
Ethical Codes
 MANAGEMENT AS A PROFESSION
The main features of profession are:

(a) Well-defined body of knowledge:

• In every profession there is practice of systematic body of
knowledge which helps the professionals to gain
specialized knowledge of that profession.

• In case of management also there is availability of

systematic body of knowledge. There are large number of
books available on management studies.

• So presently this feature of profession is present in

management also.
 MANAGEMENT AS A PROFESSION
(b) Restricted entry:
• The entry to a profession is restricted through an examination
or degree. For example, a person can practice as doctor only
when he/she is having MBBS degree.
• Whereas there is no legal restriction on appointment of a
manager, anyone can become a manager irrespective of the
educational qualification.
• But now many companies prefer to appoint managers only
with MBA degree.
• So presently this feature of profession is not present in
management but very soon it will be included with statutory
backing.
 MANAGEMENT AS A PROFESSION
(c) Presence of professional associations:
• For all the professions, special associations are established and
every professional has to get himself registered with his
association before practicing that profession.
• For example, doctors have to get themselves registered with
Medical Council of India, lawyers with Bar Council of India,
etc.
• In case of management various management associations are
set up at national and international levels which have some
membership rules and set of ethical codes, but it is not
compulsory for managers to register themselves.
• So presently this feature of profession is not present in
management but very soon this feature will be included.
 MANAGEMENT AS A PROFESSION
(d) Existence of ethical codes:
• For every profession there are set of ethical codes fixed by
professional organizations and are binding on all the
professionals of that profession.
• In case of management there is growing emphasis on ethical
behaviour of managers.
• All India Management Association (AIMA) has devised a code
of conduct for Indian managers. But legally it is not compulsory
for all the managers to get registered with AIMA and abide the
ethical codes.
• So presently this feature is not present in management but very
soon it will be included with statutory backing.
 MANAGEMENT AS A PROFESSION
(e) Service motive:
• The basic motive of every profession is to serve the
clients with dedication whereas basic purpose of
management is achievement of management goal, e.g. for
a business organization the goal can be profit
maximization.
• But nowadays only profit maximization cannot be the
sole goal of an enterprise.
• To survive in market for a long period of time, a
businessman must give due importance to social objective
along with economic objectives.
• So presently this feature of profession is not present but
very soon it will be included.
 MANAGEMENT AS A PROFESSION
CONCLUSION:
• On comparing the feature of management we can conclude that
presently all the features of profession are not present in
management but very soon these will be included in management
with statutory backing so we can say management is on the path of
becoming a profession.

• Today it may not be recognized as a full-fledged profession like

Doctor, Lawyer, etc. , but very soon it will be recognized as a full-
fledged profession.
 LEVELS OF MANAGEMENT
 Management does not refer to a single individual but it refers to a
group of persons.
 In companies large number of persons are employees and placed at
different places to perform different managerial activities.
 To carry on these activities these employees are given necessary
authority and responsibility.
 The grant of authority results in creation of claim of authority.
 The chain is divided into three levels which results in creation of
three levels of management.
 LEVELS OF MANAGEMENT

MIDDLE LOWER
TOP LEVEL
LEVEL LEVEL
 TOP LEVEL MANAGEMENT
• They consist of senior most executive of the organization.

• Top level consists of Chairman, Board of Directors,

General Manager, President, Vice President, Chief
Executive Officer (CEO), Chief Financial Officer (CFO),
Chief Operating Office, etc.

• It includes group of crucial persons essential for leading

and directing the efforts of other people.

• The managers working at this level have maximum

authority.
 FUNCTIONS OF TOP LEVEL MANAGEMENT
 Determining the objectives of the enterprise.
 Framing of plans and policies.
 Organizing activities to be preformed by persons working at middle
level.
 Assembling all the resources such as finance, fixed assets, etc.
 Responsible for welfare and survival of the organization.
 Liaison with outside world, e.g. meeting Government officials, etc.
 To integrate diverse elements and coordinate the activities.
 Analyze business environment its implication.
 They are responsible for all the activities of the business and for its
impact on society.
 MIDDLE LEVEL MANAGEMENT
• This level of management consists of departmental heads
such as purchase department head, sales department head,
finance manager, marketing manager, plant superintendent,
etc.

• People of this group are responsible for executing the plans

and policies made by top level. They act as linking pin
between top and lower level management.

• They exercise the functions of top level for their

department as they make plans and policies for their
department, organize and collect resources, etc.
 FUNCTIONS OF MIDDLE LEVEL MANAGEMENT
 Interpretation of policies framed by top management to lower
management.
 Organizing the activities of their department for executing plans
and policies.
 Finding out or recruiting/selecting and appointing the required
employees for their department.
 Monitoring the persons to perform to their best ability.
 Cooperate with other departments for smooth functioning.
 Responsible for all the activities of first line managers.
 LOWER LEVEL MANAGEMENT
• This level consists of supervisors, foreman, sub-department executives, clerk, etc.

• Managers of this group actually carry on the work or perform the activities
according to the plans of top and middle level management. The authority is
limited.

• The quality and quantity of output depend upon the efficiency of this level of
managers.

• They pass on the instruction to workers and report to the middle level
management.

• They are also responsible for maintaining discipline among the workers.
 FUNCTIONS OF LOWER LEVEL MANAGEMENT

 Representing the problems and grievances of workers.

 Maintaining good working conditions and developing healthy

relations between superior and subordinate.

 Looking to safety of workers.

 They try to maintain precise standard of quality and ensure steady

flow of output.
 FUNCTIONS OF LOWER LEVEL MANAGEMENT
 They are responsible for boosting the morale of the workers and
developing the team spirit in them.

 Minimizing the wastage of materials and maintain safety standards.

 Interact with the actual work force and pass on instruction of middle
level management.

 Responsible for quality , quality of output and loyalty of workers.

FOCUS OF MANAGEMENT FUNCTION AT DIFFERENT
LEVELS
Any person who performs managerial function, i.e., planning,
organizing, staffing, directing and controlling, is considered as a
manager. The focus of different levels is at different functions such
as:

• Top level concentrate on planning and organizing.

• Middle level keep their focus on staffing and coordination.

• Lower level focus on directing and controlling as they give

direction to workers.
 Planning

Controlling
Organizing
FUNCTIONS OF
MANAGEMENT

Directing Staffing
 FUNCTIONS OF MANAGEMENT
PLANNING:
• Planning is always the first function performed by every
manager.

• Planning refers to “deciding in advance what to do, how to

do, when to do, and who is going to to it. Planning bridges the
gap between where we stand today and where we want to
reach.”

• Every manager starts with deciding in advance the objectives

of an enterprise and how to accomplish these objectives.

• Planning is base for all other functions of management.

 FUNCTIONS OF MANAGEMENT
ORGANISING:
• After setting up of plans next function of every manager is to
organize the activities and establishing an organization structure
to execute the plan.

• Setting up organizational structure means deciding the

framework of working how many units and sub-units or
departments are needed, how many posts or designations are
needed in each department, how to distribute the authority and
responsibility among different people.

• Once these decisions are taken, an organizational structure gets

set up.
 FUNCTIONS OF MANAGEMENT
STAFFING:

• Staffing is the third step or function of a manger.

• It refers to recruiting, selecting, appointing the employees,

assigning then duties, maintain cordial relations and
taking care of grievances of employees.

• It also includes training and developing the employees,

deciding their remuneration, promotion, increments, etc.,
evaluating performance, maintaining personal records of
employees.
 FUNCTIONS OF MANAGEMENT
DIRECTING:
• Once the employees are appointed there is need to
instruct them and get the work done.
• Directing refers to giving directions or instructions
to employees by motivating them, supervising the
activities of employees, communicating with them.
• Managers acts as leaders and guide them right to
direction, so directing function includes,
supervision, motivation, communication and
leadership.
 FUNCTIONS OF MANAGEMENT
CONTROLLING:

• This is the last function of managers.

• In this function managers try to match the actual performance
and if there is no match between both then managers try to
find out the reasons of deviation and suggest corrective
measures to come on path of plan.
• Controlling functions refer to all the performance
measurements and follow up actions.
• Controlling functions refer to all the performance
measurements and follow up actions that keep the actual
performance on the path of plan.
 COORDINATION
• Apart from the five functions, there is one more important
function which every manager has to perform. This is called
coordination.

• It is not only a function but it is the essence of management.

• Coordination is the force that binds all the other functions of

management.

• Coordination is the base or primary function of every manager

because various departments of an organization are working
independently and there is need to relate and integrate their
activities.
 COORDINATION: THE ESSENCE OF MANAGEMENT

Coordination is needed to perform all the functions of

management:
 The process of coordination begins at planning stage when top
management plans for whole organization.
 Based on plan then organizational structure is developed.
 Staffs are recruited, selected and trained as per organizational
structure and plan.
 To ensure right execution of plan directions are given.
 Controlling ensures no discrepancy between planned and actual
performance.
 COORDINATION: THE ESSENCE OF
MANAGEMENT
Coordination is required at all the levels:

 Top level requires coordination to integrate all the activities of

organization.

 Coordination is required at middle level to balance the activities

of different departments.

 Lower level requires coordination to integrate the activities of

workers.
 COORDINATION: THE ESSENCE OF MANAGEMENT
Coordination is the most important function of an organization:

 Any company which fails to coordinate its activities cannot survive and run
successfully for a long period of time.
 It is through the process of coordination that a manager ensures orderly
arrangement of individual and group efforts in realization of common objectives.
 Coordination involves synchronization of different actions of various units or
departments.
 Coordination makes sure that planned objectives are achieved with minimum
conflicts.
 FEATURES OF COORDINATION

Coordination integrates
group efforts Coordination is a pervasive
function

Coordination ensures unity

of action Coordination is the
responsibility of all
managers
Coordination is a
continuous process
Coordination is a deliberate
function
 FEATURES OF COORDINATION
COORDINATION INTEGRATES GROUP
EFFORTS:

• Coordination unifies unrelated or diverse

interests into purposeful work activity.

• It gives a common focus to group effort to ensure

that performance is as it was planned and
scheduled.
 FEATURES OF COORDINATION
ENSURES UNITY OF ACTION:
• The purpose of coordination is to secure unity of
action in the realisation of a common purpose.

• It acts as the binding force between departments and

ensures that all action is aimed at achieving the goals
of the organisation.

• At Namchi Designer Candles, the production and

sales department have to coordinate their work, so that
production takes place according to the demand in the
market.
 FEATURES OF COORDINATION
CONTINUOUS PROCESS:

• Coordination is a non-ending function.

• It is a continuous function although its degree

may vary.

• The managers work continuously to achieve and

maintain coordination because with coordination
companies cannot function efficiently.
 FEATURES OF COORDINATION
COORDINATION IS A PERVASIVE FUNCTION:

• Coordination is a universal function, it is required at all the levels,

in all the departments and to perform all the functions due to
interdependence of various activities on each other.

• Business as well as non-business organization require

coordination.
 FEATURES OF COORDINATION
COORDINATION IS THE RESPONSIBILITY OF ALL
MANAGERS:

• Coordination is not the task of only top level managers but

managers working at different levels try to coordinate the activities
of organization.

• The top level try to coordinate the overall plans and policies of
organization, middle level try to coordinate departmental activities
and lower level coordinates the activities of workers.
 FEATURES OF COORDINATION
COORDINATION IS A DELIBERATE FUNCTION:

• Every manager tries to coordinate the activities of organization to

avoid confusion and chaos.

• Without coordination efforts of individuals cannot be unites and

integrated; that is why while performing various activities in the
organization managers deliberately perform coordination function.
 IMPORTANCE OF
COORDINATION

Growth in Functional
Specialization
Size Differentiation
 IMPORTANCE OF COORDINATION
GROWTH IN SIZE:
• The need of coordination increases with the increase in size
of organization because in large organization there are more
number of persons working, each individual has his own
needs and objectives, so there is more need to bring together
or synchronize the efforts of these employees towards
common goal.

• Employee may have their individual objectives.

• For organizational efficiency it is important to harmonize

individual goals and organizational goals through
coordination.
 IMPORTANCE OF COORDINATION
FUNCTIONAL DIFFERENTIATION:

• The functions of an organization are divided into different

departments, sections or divisions and each department works in
isolation by giving more importance to its objective.
• But in actual practice these departments are interlinked and
interdependent. So there is more need to relate and bring together
the activities of different sections as they are the part of one
organization only.
• The coordination is needed to minimize the differences among
departments.
 IMPORTANCE OF COORDINATION
SPECIALISATION:
• In large and modern organization there is high degree of
specialization and the specialists or experts feel that they are the
only qualified people and they always take right decision in right
direction.
• There are number of specialists working in the organization. If all
them work in their own way it will result in chaos and confusion.
• So there is need to coordinate the activities of all the specialists in a
common direction and get maximum benefit of these specialists.