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Enrollment No.

: PUGAZHENDI(MOORTHY)


MBA Information Systems Principles of Management P a g e | 1
MBA Information Systems 1
st
Year - Assignment
Annamalai University


1: Principles of Management


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I declare that the assignment submitted by me is not a verbatim/photo static copy from the
website/book/journals/manuscripts.


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Signature of the student



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Signature of the Faculty concerned

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MBA Information Systems Principles of Management P a g e | 2
Question #2: Co-ordination is the orderly arrangement of group effort to
provide unity of action in pursuit of common purpose Elucidate this
statement.

Answer:-
Brief about Co-ordination

In the organisation, there are many individuals, groups and departments. They perform many
different activities. Co-ordination means to integrate (i.e. bring together) these activities for
achieving the objectives of the organisation.
"Co-ordination means integration of activities."
Coordination is done to achieve the objectives of the organisation. Co-ordination is a process. It
is not fixed. It applies to group activities. It does not apply to individual activities. The managers
have to make special efforts to get coordination. Coordination does not come automatically.
Co-ordination leads to unity of action.
Coordination encourages team spirit. It gives proper direction to the organisation. It motivates
the employees. It makes proper use of the resources. Coordination affects all the functions of
management. Therefore, it is also called the "Essence of Management".
Co-ordination is regarded as the essence of the management rather than one of its functions. It
is a force which binds all other functions of management together. Management seeks to
accomplish co-ordination through its basic functions of preparation, organizing, staffing,
directing and controlling. Thats the reason why, co-ordination is not a separate function of
management. Achieving harmony between individual efforts towards achievement of group
goals is a key to accomplishment of management. Co-ordination is the core of management and
is inherent in all functions of management.

Co-ordination through Planning: Planning facilitates co-ordination by integrating the
various plans through joint discussion, exchange of ideas. Example: co-ordination
between finance budget and purchases budget.
Co-ordination through Organizing: Mooney considers co-ordination as the fundamental
nature of organizing. In fact when a manager groups and assigns various actions to
subordinates, and when he creates departments co-ordination topmost in his mind.
Co-ordination through Staffing: A manager should bear in mind that the right no. of
recruits in various positions with right type of education and skills are taken which will
make certain right men on the right job.
Co-ordination through Directing: The purpose of giving orders, instructions & guidance
to the subordinates is served only when there is a harmony between superiors &
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subordinates.
Co-ordination through Controlling: Manager ensures that there should be co-ordination
between actual performance & benchmark performance to achieve organizational
goals.

Necessary of Co-ordination
Co-ordination means to integrate (bring together) all the activities of an organisation. It is done
for achieving the goals of the organisation. There must be proper co-ordination throughout the
organisation.
According to management experts, co-ordination is necessary because:-
"Co-ordination is the Essence of Management." i.e. co-ordination effects all the
functions of management, viz., Planning, Organising, Staffing, etc.
Co-ordination is a function of management.
Co-ordination is a principle of management, and all other principles are included in this
one principle, i.e. co-ordination is the "Mother Principle".
According to Mary Parker Follett, Co-ordination is the "Plus value of the group". That is,
if there is good Co-ordination then the combined group achievement will be greater
than the total of the individual achievement, i.e. 2+2=5. This is impossible in the physical
world, but it is possible in human affairs through co-ordination.
Importance of Coordination
The need and importance of coordination can be judged from points below :-
Coordination encourages team spirit:- There exist many conflicts and rivalries between
individuals, departments, between a line and staff, etc. Similarly, conflicts are also between
individual objectives and organisational objectives. Coordination arranges the work and the
objectives in such a way that there are minimum conflicts and rivalries. It encourages the
employees to work as a team and achieve the common objectives of the organisation. This
increases the team spirit of the employees.
Coordination gives proper direction:- There are many departments in the organisation. Each
department performs different activities. Coordination integrates (bring together) these
activities for achieving the common goals or objectives of the organisation. Thus, coordination
gives proper direction to all the departments of the organisation.
Coordination facilitates motivation:- Coordination gives complete freedom to the employees.
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It encourages the employees to show initiative. It also gives them many financial and non-
financial incentives. Therefore, the employees get job satisfaction, and they are motivated to
perform better.
Coordination makes optimum utilisation of resources:- Coordination helps to bring together
the human and materials resources of the organisation. It helps to make optimum utilisation of
resources. These resources are used to achieve the objectives of the organisation. Coordination
also minimise the wastage of resources in the organisation.
Coordination helps to achieve objectives quickly:- Coordination helps to minimise the conflicts,
rivalries, wastages, delays and other organisational problems. It ensures smooth working of the
organisation. Therefore, with the help of coordination an organisation can achieve its objectives
easily and quickly.
Coordination improves relations in the organisation:- The Top Level Managers co-ordinates
the activities of the Middle Level Managers and develops good relations with them. Similarly,
the Middle Level Managers co-ordinates the activities of the Lower Level Managers and
develops good relations with them. Also, the Lower Level Managers co-ordinates the activities
of the workers and develops good relations with them. Thus, coordination overall improves the
relations in the organisation.
Coordination leads to higher efficiency:- Efficiency is the relationship between Returns and
Cost. There will be higher efficiency when the returns are more and the cost is less. Since
coordination leads to optimum utilisation of resources it results in more returns and low cost.
Thus, coordination leads to higher efficiency.
Coordination improves goodwill of the organisation: - Coordination helps an organisation to
sell high quality goods and services at lower prices. This improves the goodwill of the
organisation and helps it earn a good name and image in the market and corporate world.

Principles of Co-ordination

Simplified organization: authority, responsibility, duty and other job description
should clearly be described by the organization. Coordination may be simple and easy
when all duties and power are clearly simplified.

Harmonized programs and policies: an organization must set the programs and
policies. These programs and policies must be harmonized. Harmonized policies helps to
make coordination effective
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Well designed system of communication: without effective communication
coordination and harmonizing activities is not possible. Therefore, communication
system must be well designed.

Voluntary cooperation:- when all members of the organization are voluntarily
cooperated, then only coordination can be successful.


Coordination through supervision: -supervisors are most important actor to coordinate
the workers and their work. Mainly in all organization supervisors coordinate the
resources and activities.

Continuity: it is never ending process. When it is done continuously, the resources are
not used effectively and they cannot provide the contribution.


Direct contact: direct contact is necessary in effective coordination. Face to face
contact may provide more effectiveness.

Clearly defined goals: organizational goals and other departmental goals must be
clearly defined otherwise it isnt easy to coordinate the resources and activities.


Effective leadership: leadership must be effective. It helps o increase the confidence
of employees and it develops the morale of workers. In fact effective leadership helps in
effective coordination.


Techniques for effective Co-ordination

The basic objective of all managerial functions is to get things done by co-ordination efforts.
Different organizations adopt different mechanisms to achieve effective co-ordination. Since
there is no universally accepted method of performing co-ordinated managerial functions,
managers have to achieve co-ordination by making some special efforts. Some of them are as
follows


Well defined goals: the first means or technique of coordination is well defined goals.
The goals of the organization should be clear and well defined. Each individual in the
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organization should understand the overall goals. When the goals are not well defined
the coordination may not effective.

Sound organization structure: coordination is the essence of management. It is not
possible without sound organization structure. The authority and responsibility for each
and every positions and employees should be clearly defined.

Effective communication: coordination helps in creating proper understanding among
persons. Without effective communication, coordination may be effective. The ideas,
opinions should be interchanged freely. It is only through effective communication that
even individual understand his/her limitations, positions and responsibility in the
organization. Effective communication helps in coordination. Therefore, it is also an
important means of coordination.

Proper leadership: proper leadership leads the subordinates effectively and
efficiently. A good managerial leader uses the motivational tools to coordinate the
employees with effective communication system. In short, coordination is made
possible through proper leadership.

Proper supervision: supervisors coordinate the subordinates and their activities. Top
level management cannot coordinate all employees. In short, proper supervision helps
in effective coordination.

Better plans and policies: coordination is made according to plans and policies of the
organization and departments. When the plans and policies are not better coordination
is not effective in the organization.

Cooperation: without cooperation, coordination may not succeed because
coordination is related to employees and their activities. When they are not
cooperative, coordination may not be made. So, cooperation is essential in the
organization.

Meeting and conference: coordination may be possible when all employees their all
activities and departmental goals are involved in organizational planning and policies.
Their all problems and matters may be involved. When there is environment of
constructive discussion and debate with meeting and conference.

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Group decision: the group decision is a decision in which all members of the
organization are participated to make decisions. The ideas and feelings are mixed into
the decision and coordination may succeed.

Conclusion

In an organization every individual is related with others and his function affects others. Since
all individuals, ultimately contribute to the same end result, their contribution will be maximum
when there is positive effect of ones efforts over others. Without co-ordination the efforts of
some will be counter-productive for others. Hence 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. Co-ordination emphasises unity of efforts which is the heart of co-ordination.




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Question #3: Direction function of management involves dealing with human
factor Explain this statement.

Answer:

Directing - Introduction
DIRECTING is said to be a process in which the managers instruct, guide and oversee the
performance of the workers to achieve predetermined goals. Directing is said to be the heart of
management process. Planning, organizing, staffing has got no importance if direction function
does not take place.
Directing initiates action and it is from here actual work starts. Direction is said to be consisting
of human factors. In simple words, it can be described as providing guidance to workers is doing
work. In field of management, direction is said to be all those activities which are designed to
encourage the subordinates to work effectively and efficiently. According to Human, Directing
consists of process or technique by which instruction can be issued and operations can be
carried out as originally planned Therefore, Directing is the function of guiding, inspiring,
overseeing and instructing people towards accomplishment of organizational goals.
Direction has got following characteristics:
Pervasive Function - Directing is required at all levels of organization. Every manager
provides guidance and inspiration to his subordinates.
Continuous Activity - Direction is a continuous activity as it continuous throughout the
life of organization.
Human Factor - Directing function is related to subordinates and therefore it is related
to human factor. Since human factor is complex and behaviour is unpredictable,
direction function becomes important.
Creative Activity - Direction function helps in converting plans into performance.
Without this function, people become inactive and physical resources are meaningless.
Executive Function - Direction function is carried out by all managers and executives at
all levels throughout the working of an enterprise; a subordinate receives instructions
from his superior only.
Delegate Function - Direction is supposed to be a function dealing with human beings.
Human behaviour is unpredictable by nature and conditioning the peoples behaviour
towards the goals of the enterprise is what the executive does in this function.
Therefore, it is termed as having delicacy in it to tackle human behaviour.
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Importance of Directing Function

Directing or Direction function is said to be the heart of management of process and therefore,
is the central point around which accomplishment of goals take place. A few philosophers call
Direction as Life spark of an enterprise. It is also called as on actuating function of
management because it is through direction that the operation of an enterprise actually starts.
Being the central character of enterprise, it provides many benefits to a concern which are as
follows:-
It Initiates Actions - Directions is the function which is the starting point of the work
performance of subordinates. It is from this function the action takes place,
subordinates understand their jobs and do according to the instructions laid. Whatever
are plans laid, can be implemented only once the actual work starts. It is there that
direction becomes beneficial.
It Ingrates Efforts - Through direction, the superiors are able to guide, inspire and
instruct the subordinates to work. For this, efforts of every individual towards
accomplishment of goals are required. It is through direction the efforts of every
department can be related and integrated with others. This can be done through
persuasive leadership and effective communication. Integration of efforts bring
effectiveness and stability in a concern.
Means of Motivation - Direction function helps in achievement of goals. A manager
makes use of the element of motivation here to improve the performances of
subordinates. This can be done by providing incentives or compensation, whether
monetary or non - monetary, which serves as a Morale booster to the subordinates
Motivation is also helpful for the subordinates to give the best of their abilities which
ultimately helps in growth.
It Provides Stability - Stability and balance in concern becomes very important for long
term sun survival in the market. This can be brought upon by the managers with the
help of four tools or elements of direction function - judicious blend of persuasive
leadership, effective communication, strict supervision and efficient motivation. Stability
is very important since that is an index of growth of an enterprise. Therefore a manager
can use of all the four traits in him so that performance standards can be maintained.
Coping up with the changes - It is a human behaviour that human beings show
resistance to change. Adaptability with changing environment helps in sustaining
planned growth and becoming a market leader. It is directing function which is of use to
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meet with changes in environment, both internal as external. Effective communication
helps in coping up with the changes. It is the role of manager here to communicate the
nature and contents of changes very clearly to the subordinates. This helps in
clarifications, easy adaptions and smooth running of an enterprise. For example, if a
concern shifts from handlooms to power looms, an important change in technique of
production takes place. The resulting factors are less of manpower and more of
machinery. This can be resisted by the subordinates. The manager here can explain that
the change was in the benefit of the subordinates. Through more mechanization,
production increases and thereby the profits. Indirectly, the subordinates are benefited
out of that in form of higher remuneration.
Efficient Utilization of Resources - Direction finance helps in clarifying the role of every
subordinate towards his work. The resources can be utilized properly only when less of
wastages, duplication of efforts, overlapping of performances, etc. doesnt take place.
Through direction, the role of subordinates become clear as manager makes use of his
supervisory, the guidance, the instructions and motivation skill to inspire the
subordinates. This helps in maximum possible utilization of resources of men, machine,
materials and money which helps in reducing costs and increasing profits.
From the above discussion, one can justify that direction, surely, is the heart of management
process. Heart plays an important role in a human body as it serves the function pumping blood
to all parts of body which makes the parts function. In the similar manner, direction helps the
subordinates to perform in best of their abilities and that too in a healthy environment. The
manager makes use of the four elements of direction here so that work can be accomplished in
a proper and right manner. According to Earnest Dale, Directing is what has to be done and in
what manner through dictating the procedures and policies for accomplishing performance
standards. Therefore, it is rightly said that direction is essence of management process.

Role of a Supervisor
Supervisor has got an important role to play in factory management. Supervision means
overseeing the subordinates at work at the factory level. The supervisor is a part of the
management team and he holds the designation of first line managers. He is a person who has
to perform many functions which helps in achieving productivity. Therefore, supervisor can be
called as the only manager who has an important role at execution level. There are certain
philosophers who call supervisors as workers. There are yet some more philosophers who call
them as managers. But actually he should be called as a manager or operative manager. His
primary job is to manage the workers at operative level of management.
A supervisor plays multiplinary role at one time like -
As a Planner - A supervisor has to plan the daily work schedules in the factory. At the
same time he has to divide the work to various workers according to their abilities.
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As a Manager - It is righty said that a supervisor is a part of the management team of an
enterprise. He is, in fact, an operative manager.
As a Guide and Leader - A factory supervisor leads the workers by guiding them the way
of perform their daily tasks. In fact, he plays a role of an inspirer by telling them.
As a Mediator - A Supervisor is called a linking pin between management and workers.
He is the spokesperson of management as well as worker.
As an Inspector - An important role of supervisor is to enforce discipline in the factory.
For this, the work includes checking progress of work against the time schedule,
recording the work performances at regular intervals and reporting the deviations if any
from those. He can also frame rules and regulations which have to be followed by
workers during their work.
As a Counselor - A supervisor plays the role of a counselor to the workers problem. He
has to perform this role in order to build good relations and co-operation from workers.
This can be done not only by listening to the grievances but also handling the grievances
and satisfying the workers.
Therefore, we can say that effective and efficient supervision helps in serving better work
performance, building good human relations, creating a congenial and co-operative
environment. This all helps in increasing productivity.

Functions of a Supervisor
Supervisor, being the manager in a direct contact with the operatives, has got multifarious
function to perform. The objective behind performance of these functions is to bring stability
and soundness in the organization which can be secured through increase in profits which is an
end result of higher productivity. Therefore, a supervisor should be concerned with performing
the following functions -
Planning and Organizing - Supervisors basic role is to plan the daily work schedule of the
workers by guiding them the nature of their work and also dividing the work amongst the
workers according to their interests, aptitudes, skills and interests.
Provision of working conditions - A supervisor plays an important role in the physical setting of
the factory and in arranging the physical resources at right place. This involves providing proper
sitting place, ventilation, lighting, water facilities etc. to workers. His main responsibility is here
to provide healthy and hygienic condition to the workers.
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Leadership and Guidance - A supervisor is the leader of workers under him. He leads the
workers and influences them to work their best. He also guides the workers by fixing
production targets and by providing them instruction and guidelines to achieve those targets.
Motivation - A supervisor plays an important role by providing different incentives to workers
to perform better. There are different monetary and non-monetary incentives which can
inspire the workers to work better.
Controlling - Controlling is an important function performed by supervisor. This will involve
Recording the actual performance against the time schedule.
Checking of progress of work.
Finding out deviations if any and making solutions
If not independently solved, reporting it to top management.
Linking Pin - A supervisor proves to be a linking pin between management and workers. He
communicates the policies of management to workers also passes instructions to them on
behalf of management. On the other hand, he has a close contact with the workers and
therefore can interact the problems, complaints, suggestions, etc to the management. In this
way, he communicates workers problems and brings it to the notice of management.
Grievance Handling - The supervisor can handle the grievances of the workers effectively for
this he has to do the following things :-
He can be in direct touch with workers.
By winning the confidence of the workers by solving their problems.
By taking worker problems on humanitarian grounds.
If he cannot tackle it independently, he can take the help and advice of
management to solve it.
Reporting - A supervisor has got an important role to report about the cost, quality and any
such output which can be responsible for increasing productivity. Factors like cost, output,
performance, quality, etc can be reported continually to the management.
Introducing new work methods - The supervisor here has to be conscious about the
environment of market and competition present. Therefore he can innovate the techniques of
production. He can shift the workers into fresh schedules whenever possible. He can also try
this best to keep on changing and improving to the physical environment around the workers.
This will result in
Higher productivity,
High Morale of Workers,
Satisfying working condition,
Improving human relations,
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Higher Profits, and
High Stability
Enforcing Discipline - A supervisor can undertake many steps to maintain discipline in the
concern by regulating checks and measures, strictness in orders and instructions, keeping an
account of general discipline of factory, implementing penalties and punishments for the
indiscipline workers. All these above steps help in improving the overall discipline of the
factory.


Direction function of management involves dealing with human factor

Organization are social system, compose of roles, interactions and relationship among people
occupying various positions in its structure. Success of an organization is in accomplishing its
goals significantly depend on the nature and patterns of cooperation among individuals and
formal and informal groups. As such, people, as individuals as well as group members,
constitute the pillars of organising effort. Technological product or strategic superiority of an
organization over its competitors provides it only a temporary gain as all these things lend
themselves to adaptation by competitors. But employee motivation, capabilities and climate of
human endeavour are the things which one organization cannot copy from another.

The importance of human factor in the success of organization effort also arises from the fact
that people are not subject to manipulation like machines, as they have their attitudes,
motives, feelings, apprehensions, aspirations, etc. No doubt, these all are influenced by
organizational policies and practices but not determined and governed by it. Human assets of
organization, unlike physical assets, continuously appreciate in value, as knowledge, abilities
and skills all grow with training and experience.

Direction is one of the most complex function of the management as it ideals with people
whose nature itself is quite complex and unpredictable. Directing is the function of guiding,
inspiring, overseeing and instructing people towards accomplishment of organizational goals.
Direction represents one of the essentials functions of management works on the following
principles which deals with human relations directly.

Principle of Harmony of Objectives: Individuals join an organization to achieve certain
objectives. They want to satisfy their physiological and psychological needs while
working in the organization. The organization has its own objectives which it wants to
achieve with the help of individuals. Through proper direction techniques the
management should try to integrate these two objectives. Common interest must
prevail upon personal objectives.

Principle of Maximum Individual Contribution: Every individual in the organization has
some capability and ability to perform the task. These capabilities should be harnessed
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so as to achieve maximum contribution to the organization through individuals. The
management should adopt such direction technique that may elicit maximum possible
contribution from each subordinate. This needs effective leadership and motivation.

Principle of Efficiency of Direction: Direction should be efficient to lead to
accomplishment of objectives without adversely affecting needs satisfaction of
individuals. To provide adequate satisfaction to subordinates, it is necessary to develop
correct direction techniques, effective communication system and leadership etc.
suitable to the situation.

Principle of Unity of Command: According to this principle a person in the organization
must get orders and instructions only from one superior. If he gets orders and
instructions from more than one superior, it will create confusion and instability in the
organization.

Principle of Managerial Communication: The success of an organization depends very
much on the effectiveness of communication system between the superior and his
subordinates. There should be two-way communication, downward carries the orders,
ideas, instructions to the subordinates and upward enables a manager to understand
the subordinates performance and opportunity to express their feelings. Two-way
communication makes direction effective.

Principle or Comprehension: Direction conveys to subordinates what to do? how to
do? And when to do? The manager should ensure that subordinates understand his
instructions and orders correctly in the same sense in which they are conveyed. Clear
understanding or direction enables them to get clear situation and avoid unnecessary
explanation from superior.

Conclusion

Directing is the process of integrating the people with the organization so as to obtain their
willing and zealous cooperation for the achievement of its goals. This requires integration of
organizational goals with individual and group goals. Employees as individual and as group
members will contribute their abilities and efforts for the achievement of organizational goals
to the extent that they perceive that it simultaneously results advancement towards their own
individual and group goals. Without proper direction and supervision employees become
inactive, dull and inefficient and consequently the physical assets like machinery and plant will
be put to ineffective use.

Directing is the interpersonal aspects of managing by which subordinates are led to understand
and contribute effectively and efficiently to the attainment of enterprises objectives. Human
factor is very dynamic and is conditioned by a complex of forces about which not much is
known and over which management has little control.
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From above we can say direction, is the heart of management process. Heart plays an
important role in a human body as it serves the function pumping blood to all parts of body
which makes the parts function. In the similar manner, direction helps the subordinates to
perform in best of their abilities and that too in a healthy environment. The manager makes use
of the four elements of direction here so that work can be accomplished in a proper and right
manner.





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