2.

Functions of Management

Q.l) (A) Select the correct option and rewrite the sentence.
1) The functions of management start with ............... function.
a) organizing b) planning c) coordinating

2) The functions of management end with ...............

a) directing b) staffing c) controlling

3) ............... sets out standards for controlling.

a) Staffing b) Planning c) Coordinating

4) Organization function is important for execution of the plans which have been
prepared by
............... management.
a) top level b) middle level c) lower level

5) ............... is the function which supports to activate the plans with the help of
employees.
a) Staffing b) Directing c) Co-ordinating

6) ............... is the function of execution according to the plan and the organizational
structure.
a) Controlling b) Directing c) Staffing

7) __ arranges the work in such a way that minimum conflicts are raised.
a) Co-ordinating b) Organizing c) Controlling

(B) Match the followings.

Group ‘A’ Group 'B'

A) Planning 1.It is the process of instructing, guiding,
communicating and motivating.
B) Organizing 2.It is an integration and synchronization of
the efforts of group.
C) Staffing 3.Deciding in advance what to do, how to do,
when to do and who is to do it.
D) Directing 4.Management is what manager does.
E) Coordinating 5.To focus on the role of manager.
6.Decides the ways and means to achieve
what has been planned
7.It is the process of comparing the actual
performance with the predetermined
standard performance.
8.It is a set of principles.
9.It is the process of recruiting, selecting,
placing and remunerating.
10.To manage is to forecast and plan.

Ans: A-3, B-6, C-9, D-1, E-2

(C) Give one Word / Phrase / Term for the following statements.
1) The right person at the job with right pay.
Ans: Staffing

2) A person who shows the correct path as well as guides employees in solving the
problems.
Ans: Director

3) First function of management.

Ans: Planning

4) Last function of management.

Ans: Controlling

5) It is an intellectual process of logical thinking and rational decision making.

Ans: Planning

6) The term that is used to denote the structure.

Ans: Organization

7) It is the process of attracting, recruiting, selecting, placing, appraising and

remunerating the
people.
Ans: Staffing

8) The process that leads the employees towards the accomplishment of

organizational goals.
Ans: Directing
9) It increases the team spirit of work place.
Ans: Co-ordinating

10) It is the process of comparing the actual performance with the predetermined
standard
performance.
Ans: Controlling

(D) State whether following statements are true or false.

1) Every function of management is not based on planning.
Ans: False

2) Specialization in activities leads to increase in organizational efficiency.

Ans: True

3) Qualified, efficient and skilled work force is always an asset of the organization.
Ans: True

4) Cooperation is not necessary for smooth flow of organizational activities.

Ans: False

5) Coordination motivates the employees to take initiative while completing their

assigned task.
Ans: True

6) Standards are not set for every performance in controlling function.

Ans: False

(E) Answer in one sentence.

1. What is management ?
Ans: Management is a set of principles which relate to the various functions such as
planning, organizing, staffing, directing, coordinating, controlling etc. which are
helpful in achieving organizational goals.

2. What is Planning?
Ans: Planning is an intellectual process of logical thinking and rational decision
making.In short, planning is a detailed programme of future courses of action.

3. What is Staffing?
Ans: staffing is the process of attracting, recruiting, selecting, placing, appraising,
remunerating, developing and retaining the best workforce.
4. What is directing?
Ans: Directing is the process of instructing, guiding, communicating, inspiring,
motivating and supervising the employees to achieve predetermined goals of an
organization.

5. What is controlling?
Ans: Controlling is a function of comparing the actual performance with the
predetermined standard performance.

(I) Correct the underlined word and rewrite the following sentences.
1) Factors of business environment are always fixed.
Ans: Factors of business environment are always changing.

2) Staffing is concerned with machines.

Ans: Staffing is concerned with humans.

3) Directing is a function of comparing the actual performance with the

predetermined
performance.
Ans: Controlling is a function of comparing the actual performance with the
predetermined
performance.

4) Co-ordination helps to maximize the wastage of resources and controls the cost
of work.
Ans: Co-ordination helps to minimizes the wastage of resources and controls the
cost of work.

5) Controlling measures are rigid to some extent.

Ans: Controlling measures are flexible to some extent.

(J) Arrange in proper order.

1) Controlling, Organizing, Planning.
Ans: Planning, Organizing, Controlling.

2. Directing, Co-ordinating, Staffing.

Ans: Staffing, Directing, Co-ordinating.

Q.2 Explain the following terms/concept

1. Management.
Ans: Management is a set of principles which relate to the various functions such as
planning, organizing, staffing, directing, coordinating, controlling etc. which are
helpful in achieving organizational goals. According to Henry Fayol, "To manage is to
forecast and to plan, to organize, to command and to control."

2. Planning:
Ans:Planning is the basic function of management. Every function of management is
based on planning. It includes deciding the things to be done in advance. Planning is
an intellectual process of logical thinking and rational decision making. It focuses on
organization's objectives and develops various courses of action. Designing a proper
planning and implementing accordingly is the key of achieving the objectives of an
organization.
In short, planning is a detailed programme of future courses of action

3. Organizing
Ans: Organizing is the process of identifying, bringing the required resources
together such as men, money, material, machine and method, grouping and
arranging them properly for achieving the objectives. In planning, the management
decides what is to be done in future whereas organizing function decides the ways
and means to achieve what has been planned. This function is important for
execution of the plans which have been prepared by top level management people.
The synchronization and combination of workforce, physical, financial and
information resources are established in the process of organizing.

4. Staffing
Ans: Staffing is the function of execution according to plan and organizational
structure. It is
the process of attracting, recruiting, selecting, placing, appraising, remunerating,
developing and retaining the best workforce.
The need of staffing arises since the initial period of organization. Due to promotion,
transfer, business expansion, retirement, resignation, accidents, death of employee
etc. vacancies are created in organization. In this context, staffing function plays
very important role in organization. Right person at right job with right pay is the
basic principle of staffing.

5. Directing:
Ans: Directing is the soul of management function. It is the process of instructing,
guiding, com- municating, inspiring, motivating and supervising the employees to
achieve predetermined goals of an organization. Direction is a continuous function
initiated at top level and flows to the lower level through organizational hierarchy. It
is a continuous managerial process that goes on throughout the tenure of the
organization. Director is the person who shows the correct path as well as guides
the employees in solving the problems wherever necessary. A few philosophers
called direction as "Life Spark of an Enterprise".

Q.3 Study the following case/situation and express your opinion.

Mr. Ram, an emergining entrepreneur has designed a structure of his business
organization by
taking into consideration the required resources such as land, money, machinery,
workforce
etc, for his new business. He appointed Mr.Shyam as a manager. Mr.Ram has
assigned the responsibilities such as recruitment, selection, training and
development and to determine the
remuneration of the employees' to Mr.Shyam. Mr. Ram has also appointed
Mr.Shubham to
supervise the work done by the employees according to the standards given to the
employees.
Mr.Shubham has to also suggest the remedies to the employees wherever necessary.
On this context, find out the management functions performed by

i. Mr. Ram
Ans: Mr. Ram performs the function of planning and organising. He is an emerging
entrepreneur and plans the business structure and organises different resources.

ii. Mr.Shyam
Ans: Mr Shyam is performing the function of staffing as his main duty is to recruit,
select, train and develop the employees and to decide their remuneration
accordingly.

iii. Mr.Shubham
And: Mr. Subham is performing the function of controlling. He compares actual
performance of employees with standard performance given. He discovers causes of
deviations and suggests remedies to overcome deviations.

2) In XYZ Company, Mr. Lele gives instructions to the employees working under
him, provide
guidance and motivates them for their best performance. On the other hand
Mr.Sayyad takes
effort to harmonize the work done by the employees of different departments while
achieving
organizational goal. Mr.Desai is looking after the arrangement of required resources
to the
business organization.
Mention the name of employee engaged in following functions:
i. Organization :
Ans: Mr Desai is engaged in the organization function as he is looking after
arrangement of required resources for the business organisation.

ii. Direction:
Ans: Mr. Lele is engaged in the function of directing as he gives instructions to the
employees working under him, provides guidance and motivates them for their best
performance.

iii. Coordination:
Ans: Mr. Sayyed is engaged in the function of co ordination as he takes effort to
harmonize the work done by the employees of different departments.

Q.4 Distinguish between.

1) Planning and organizing

Points Planning Organizing

1. Meaning 1. Planning is deciding in 1. Organizing is the process of
advance what to do how to defining and grouping the
do it, when to do it and who activities of the enterprise and
is to do it. establishing the authority
relationships among them.
2. Objective 2. To set goals and choosing 2. To identify and bring
the means to achieve these together all required resources.
goals.
3. Area of function 3. It includes setting 3. It includes identification and
objectives by identifying the grouping of activities, assigning
ways of attaining the goal the work and establishing the
and selecting the best plan. authority relationship.
4. Factors 4. Internal and External 4. Internal and external factors
factors are considered in are considered in arrangement
planning process. of resources.
5. Order 5. It is the basic first function 5. It is based on planning.
of management process.
6. Resources 6. Planning is done as per the 6. All available resources i.e.
requirement and availability men, money, material, machine
of resources. and method are arranged in a
systematic manner.
7. Nature 7. It is continuous in nature. 7. It takes place till the time all
It exists in the whole life of the resources are collected and
organization. arranged.
8. level of 8. Top management is 8. Top and middle level
Management concerned with planning the management s related with
activities. organizing the required
resources.

2. Organizing and staffing

Ans:

Points Organizing Staffing

1. Meaning 1. Organizing is the process of 1. The staffing function
defining and grouping the pertains to the
activities of the enterprise and recruitment, selection,
establishing the authority development, training
relationships among them. and compensation of
subordinate managers.
2. Objective 2. To identify and bring 2. To appoint right type
together all required resources. of people at the right
positions and the right
time.
3. Area of function 3. It includes identification and 3. It includes
grouping of activities, assigning recruitment, selection,
the work and establishing the training, development
authority relationship. and compensation of
human resources.
4. Factors 4. Internal and external factors 4. Staffing is mostly
are considered in arrangement concerned with internal
of resources. factors.
5. Order 5. It is based on planning. 5. It follows organizing
function.
6. Resources 6. All available resources i.e. 6. It is the process
men, money, material, machine relating to organization
and method are arranged in a of human resources.
systematic manner.
7. Nature 7. It takes place till the time all 7. It is a continuous
the resources are collected and process as it deals with
arranged. employees i.e. human
resources.
8. level of 8. Top and middle level 8. Middle level
Management management s related with management is related
organizing the required with recruitment,
resources. training and selection
Top level is concerned
with promotion and
compensation.

3. Staffing and directing

Ans:

Points Staffing Directing

1. Meaning 1. The staffing function 1. Directing is the guidance
pertains to the recruitment, inspiration, the leadership
selection, development, of those men and women
training and compensation of constitute the real case
subordinate managers. responsibilities of
management.
2. Objective 2. To appoint right type of 2. To direct the subordinates
people at the right positions to get the things done in the
and the right time. right manner.
3. Area of function 3. It includes recruitment, 3. It includes instructing,
selection, training, guiding, inspiring,
development and communicating and
compensation of human motivating the human
resources. resources.
4. Factors 4. Staffing is mostly concerned 4. Directing is concerned
with internal factors. directly with internal factors
i.e. human resources.
5. Order 5. It follows organizing 5. It follows organizing and
function. staffing for execution of
planning.
6. Resources 6. It is the process relating to 6. It gives direction to the
organization of human employees regarding use of
resources. other resources.
7. Nature 7. It is a continuous process as 7. This continuous process is
it deals with employees i.e. necessary in the process of
human resources. achievement of the goals.
8. level of Management 8. Middle level management is 8. Middle level management
related with recruitment, is involved in directing the
training and selection Top level employees.
is concerned with promotion
and compensation.

4. Directing and controlling

Ans:

Points Directing Controlling

1. Meaning 1. Directing is the guidance 1. Controlling is the
inspiration, the leadership of process of taking steps to
those men and women constitute bring actual results and
the real case responsibilities of desired results closer
management. together.
2. Objective 2. To direct the subordinates to 2. To ensure that the
get the things done in the right objectives are achieved
manner. according to the plan.
3. Area of function 3. It includes instructing, guiding, 3. It includes setting up of
inspiring, communicating and standards, measurement,
motivating the human resources. and comparison with
actual performance and
taking corrective steps
whenever necessary.
4. Factors 4. Directing is concerned directly 4. Internal and external
with internal factors i.e. human factors are taken into
resources. account for taking
corrective action.
5. Order 5. It follows organizing and 5. It is an end function of
staffing for execution of planning. management process.
6. Resources 6. It gives direction to the 6. It is related to all
employees regarding use of other organizational resources
resources. which help to achieve goal
of organization.
7. Nature 7. This continuous process is 7. It is the process which
necessary in the process of starts once the actual plan
achievement of the goals. is executed.
8. level of Management 8. Middle level management is 8. Top and middle level
involved in directing the management are
employees. responsible for controlling
the activities.

5. Co-ordinating and controlling

Points Co-ordinating Controlling

1. Meaning 1. Coordination is orderly 1. Controlling is the
arrangement of group efforts to process of taking steps to
provide unity of action in the bring actual results and
pursuit of common goal. desired results closer
together.
2. Objective 2. To ensure harmony of efforts 2. To ensure that the
of the employees for smooth objectives are achieved
functioning of organization. according to the plan.

3. Area of function 3. It includes integration of 3. It includes setting up of

efforts of top level, middle level standards, measurement,
and lower level. and comparison with
actual performance and
taking corrective steps
whenever necessary.

4. Factors 4. It is harmonization of human 4. Internal and external

resources. factors are taken into
account for taking
corrective action.
5. Order 5. It is an important element of 5. It is an end function of
organizing which follows management process.
planning.
6. Resources 6. It is related to human 6. It is related to all
resources. organizational resources
which help to achieve
goal of organization.
7. Nature 7. This is a continuous process 7. It is the process which
related to all managerial levels. starts once the actual plan
is executed.
8. level of Management 8.It is related to all the levels of 8. Top and middle level
management to achieve the goal management are
of organization. responsible for
controlling the activities.

6. Planning and Controlling

Points Planning Controlling

1. Meaning 1. Planning is deciding in 1. Controlling is the
advance what to do how to do process of taking steps to
it, when to do it and who is to bring actual results and
do it. desired results closer
together.
2. Objective 2. To set goals and choosing the 2. To ensure that the
means to achieve these goals. objectives are achieved
according to the plan.
3. Area of function 3. It includes setting objectives 3. It includes setting up
by identifying the ways of of standards,
attaining the goal and selecting measurement, and
the best plan. comparison with actual
performance and taking
corrective steps
whenever necessary.
4. Factors 4. Internal and External factors 4. Internal and external
are considered in planning factors are taken into
process. account for taking
corrective action.
5. Order 5. It is the basic first function of 5. It is an end function of
management process. management process.
6. Resources 6. Planning is done as per the 6. It is related to all
requirement and availability of organizational resources
resources. which help to achieve
goal of organization.
7. Nature 7. It is continuous in nature. It 7. It is the process which
exists in the whole life of starts once the actual
organization. plan is executed.
8. level of 8. Top management is 8. Top and middle level
Management concerned with planning the management are
activities. responsible for
controlling the activities.

7. 0rganizing and Directing

Points Organizing Directing

1. Meaning 1.Organising is the process of 1. Directing is the guidance
defining and grouping the inspiration, the leadership
activities of the enterprise and of those men and women
establishing the authority constitute the real case
relationships among them. responsibilities of
management.
2. Objective 2. To identify and bring 2. To direct the
together all required subordinates to get the
resources. things done in the right
manner.
3. Area of function 3. It includes identification 3. It includes instructing,
and grouping of activities, guiding, inspiring,
assigning the work and communicating and
establishing the authority motivating the human
relationship. resources.
4. Factors 4. Internal and external 4. Directing is concerned
factors are considered in directly with internal
arrangement of resources. factors i.e. human
resources.
5. Order 5. It is based on planning. 5. It follows organizing and
staffing for execution of
planning.
6. Resources 6. All available resources i.e. 6. It gives direction to the
men, money, material, employees regarding use of
machine and method are other resources.
arranged in a systematic
manner.
7. Nature 7. It takes place till the time all 7. This continuous process
the resources are collected is necessary in the process
and arranged. of achievement of the goals.
8. level of Management 8. Top and middle level 8. Middle level management
management s related with is involved in directing the
organizing the required employees.
resources.

8. Organising and Co-ordinating.

Points Organizing Co-ordinating

1. Meaning 1.Organising is the process of 1.Coordination is orderly
defining and grouping the arrangement of group
activities of the enterprise and efforts to provide unity of
establishing the authority action in the pursuit of
relationships among them. common goal.

2. Objective 2. To identify and bring together 2. To ensure harmony of

all required resources. efforts of the employees for
smooth functioning of
organization.
3. Area of function 3. It includes identification and 3. It includes integration of
grouping of activities, assigning efforts of top level, middle
the work and establishing the level and lower level.
authority relationship.

4. Factors 4. Internal and external factors 4. It is harmonization of

are considered in arrangement of human resources.
resources.
5. Order 5. It is based on planning. 5. It is an important element
of organizing which follows
planning.
6. Resources 6. All available resources i.e. men, 6. It is related to human
money, material, machine and resources.
method are arranged in a
systematic manner.

7. Nature 7. It takes place till the time all 7. This is a continuous

the resources are collected and process related to all
arranged. managerial levels.
8. level of Management 8. Top and middle level 8. It is related to all the
management s related with levels of management to
organizing the required achieve the goal of
resources. organization.
Q.5 Answer in brief.
1) Explain any five points of importance of planning.
Ans: Refer Q.8 (1)

2) Explain any five points of importance of organizing.

Ans: Refer Q.8 (2)

3) Describe any five points of importance of staffing.

Ans: Refer Q.8 (3)

4) Explain any five points of importance of directing.

Ans: Refer Q.8 (4)

5) Describe any five points of importance of coordinating.

Ans: Refer Q.8 (5)

Q.6 Justify the following statements.

1. Planning is the first function of Management :
(1) Planning is the basic function of management. Every function of management is
based on planning. Planning is an intellectual process of logical thinking and rational
decision making.
(2) Designing i.e. doing a proper planning and implementing it accordingly is the
key of achieving the objectives of organisation.
(3) Planning means deciding in advance what to do, when to do, how to do, where to
do and who is to do it. Thus, it is a detailed programme of future course of action.
(4) Planning involves setting objectives,identifying alternative courses of action and
selecting the best plan. It focuses on organisation's objective and develop various
course of action to achieve those goals.

2. Controlling is the last function of Management.

Ans: (1) It is important for an organisation to keep a check on whether things are
moving as per plan or not. So controlling function comes as the last but
indispensable function of management. The effectiveness of planning can be
determined with the function of cotrolling.

(2) Controlling function helps in comparing the actual performance with the pre-
determined standard and performance. It is the process of bringing about
conformity of performance with planned action.

(3) Controlling function helps in measuring deviation, if any, identifies the course of
deviation and suggest corrective measures. The process of controlling helps in
formulation of future plans also.
(4) Controlling helps in checking and measuring performance at all the levels of
management, as it compare and find deviation, analyses the causes of deviation and
suggest corrective measures. All planning may fail in the absence of proper
controlling measures.

3. Organizing facilitates administration as well as operation of the Organization.

Ans: (1) Organising function is also called as doing function' i.e. putting the plan into
action. Administration and operation both are doing function as organising is the
process of putting together various resources and activities of the organisation into
a system.

(2) Organising involves identifying the activities and grouping of relative activities
of administration and operational department.

(3) Organising function defines, departmentalized and assigns activities so that they
can be most effectively executed for the smooth flow of administration.

(4) Due to proper grouping of the tasks and the employees, there is increase in
production and reduction in wastage. The duplication of work can be avoided and
effective delegation becomes possible.

4. Right person at right job with right pay is the basic principle of staffing.
Ans: (1) The main function of staffing is to select the right person for the right job
with right pay. Selecting the right person for the right job brings efficiency and
specialisation in the organisation.

(2) It also bring job satisfaction as adequate remuneration increase morale of the
employees. Training and development programmes and job security are the factors
which are important in providing job satisfaction.

(3) Proper selection of qualified, efficient and skilful work force is always an asset of
the organisation. Proper selection of employees contributes in the higher efficiency
and leads to long term positive effects in the organisation.

(4) With proper selection process, right persons for right jobs are placed and
regularly appraised on merit basis. The criteria of appraisal are duly communicated
which brings peace and harmony in the organisation.

5. Co-ordination between different functions and all levels of Management is the

essence of organizational success.
Ans: (1) Co-ordination is an integration of different activities which is essential for
their smooth flow. It establishes harmony among all the activities of an organisation
in achieving desired goals. Co-ordination will not exist unless efforts are taken at all
levels of management.

(2) Co-ordination is the synchronization of the efforts of a group so as to provide

unity of action for organisational goals. It is a hidden force which binds all other
functions at all levels of management.

(3) In an organisation, a number of persons are working together to achieve a

common goal. Their work is closely linked with each other. Co ordination function
brings all the group efforts together and harmonise them carefully.

(4) Co-ordination is orderly arrangement of group efforts to provide unity of action

to achieve common goals. Co-operation, team work and higher efficiency level lead
to attainment of goals and thus, it is the essence of organisational success.

Q.7 Attempt the following.

1) Explain the importance of planning.
Ans: Refer Q.8 (1)
2) Describe the importance of organizing.
Ans: Refer Q.8 (2)
3) Explain the importance of staffing.
Ans: Refer Q.8 (3)
4) Explain the importance of directing.
Ans: Refer Q.8 (4)
5) Describe the importance of coordinating.
Ans: Refer Q.8 (5)
6) Explain the importance of controlling.
Ans: Refer Q.8 (6)

Q.8 Answer the following.

1) Define the term planning and explain the importance of planning.

Ans. James Stoner: "Planning is the process of establishing goals and a suitable
course of action for achieving these goals."
Importance of Planning:
It is the fundamental function which gives an outline about where to go, how to go
and reduces the risk of uncertain future with the help of forecasting. The importance
of planning is as follows:

1) Helps to set clear objectives:

Planning is concerned with setting objectives, targets, and formulating plans to
achieve them.
It helps managers to analyze the present condition of the organization and on that
basis to identify the ways of attaining the desired position in future.

2) Provides path of action:

Planning ensures that the goals or objectives are clearly stated. They act as a guide
and they provide direction for doing the right things at the right time with right way.
It helps employees to know what organization has to do and what they must do for
achieving the goals.

3) Planning improves performance:

It helps managers to improve future performances of employees by establishing
objectives and selecting a course of action. It is beneficial for the organization.
Planning leads to efficient working of the employees. Due to proper planning, the
employees can work according to timely guidelines. This improvement in
performances results into higher profitability of the organization.

4) Minimizes the risk:

Planning is based on forecasting technique. It is the process of looking into the
future and anticipating the future changes. By deciding in advance the tasks to be
performed, planning shows the way to deal with changes and uncertain events.
Changes or risks cannot be eliminated totally but they can be anticipated and can be
tackled with preventive measures. It minimizes the risk of future or uncertainties of
future.

5) Planning leads to optimum utilization of resources:

Organizational plans are prepared by taking into consideration the availability of
resources and proper allocation of resources for various activities. It also facilitates
optimum utilization of resources which brings higher efficiency and better results.
One can avoid wastage of resources by proper planning.

6) Helps in decision making:

There are various alternatives in front of the management. For achieving goals
planning helps the management to select the best alternative by considering all
positive and negative outcomes of all the alternatives. Decisions are taken after
selecting alternative courses of action to achieve a predefined goal. It helps the
manager to take rational decisions.

7) Useful in setting the standards for controlling:

Planning set out standards for controlling. So, the actual performance can be
compared with the standards and managers can find out the deviation, if any
between the actual and the standard performance. Such deviation can be bridged by
taking controlling steps. Therefore, planning provides basis for control. It is also
important for maintaining discipline at working place of organization.

8) Facilitates Coordination of all activities:

Planning facilitates the coordination of activities. It reduces overlapping among
activities.
All activities of business organization are closely linked with each other which is
considered in the process of planning. Sound planning inter-relates all the activities
and resources of an organization. Thus, various departments work as per the overall
plan and coordination is achieved.

9) Facilitates other management functions:

Every organization functions towards achieving goal and goal is set at the planning
stage.
Unless the plan is ready, other management functions such as organizing, staffing
etc. cannot be undertaken thus, planning facilitates all other functions of
management.

10) Promotes innovative ideas:

Planning is the basic function of management. It is a process of decision making
which involves promotion of innovative ideas after critical thinking. Ultimately,
these innovative plans result into attainment of the goals of the organization. It is
the most challenging activity for the management as it guides all future actions
leading to growth and prosperity of the organization.
In short, planning plays vital role in every walk of life of an organization as well as of
an individual. Future is highly uncertain and the business environment is changing.
With the help of proper planning, the risks and uncertainties can be minimized
definitely. Hence, planning is the basic requirement of any organization for the
survival, growth and success.

2) What is organizing? Explain the importance of organizing.

Ans: The term 'organization' is used to denote the structure. It is a unit or a group of
people who come together to achieve a common goal whereas 'organizing' is a
process and a function. Some of the definitions are as follows:

Importance of Organizing:
Organizing is concerned with grouping and assigning the organizational activities
among different departments and workforce. The importance of organizing can be
stated as follows:

1) Facilitates Administration as well as Operation:

Organizing process leads to identify and to group the activities. Grouping and
assigning the activities is the task of administration whereas processing according
to it is operational activity.
Thus, organizing facilitates administration as well as operation of the organization.
Due to proper grouping of the tasks and the employees, there is increase in
production and reduction in wastage. Duplication of work is restricted and effective
delegation becomes possible.

2) Brings Specialization:
Organizational structure is a network of relationships in which the work is divided
into units and departments. This division of work helps in bringing specialization in
various activities of organization. Specialization in activities leads to increase in
organizational efficiency.

3) Defines the Jobs Properly:

Organizational structure helps in putting right men on right job which can be done
by selecting people for various departments according to their qualification, skill
and experience. This is helping in defining the jobs properly which clarifies the role
of every person.

4) Clarifies Authority and Responsibility:

Organizational structure defines the role to every manager. This can be done by
delegating the authority to every manager and clarifying the way he has to exercise
those powers. So that misuse of powers does not take place. Well defined jobs and
responsibilities helps in bringing efficiency into managers working. This helps in
increasing productivity.

5) Establishes Coordination:
This function helps in establishing co-ordination among different departments of
organization.
It creates clear cut relationships among positions and ensures mutual co-operation
among individuals. Coordination or synchronization between all departments and
different level of managers is important for smooth functioning of organizational
activities.

6) Helps for Effective Administration:

This function determines different positions, departments, activities and the roles
are clearly structured. The utmost care is taken while placing right person in right
job with right authorities and responsibilities. It is achieved through division of
work and delegation of authorities. This all leads to efficient and effective
administration.

7) Helpful for Growth and Diversification:

The growth of every organization depends on its smooth and efficient functioning.
Clearly defined roles and responsibilities, coordination among all levels of
management personnel and use of appropriate control techniques bring efficiency
at work place and organization grows well. This is possible only when the
organization structure is well- defined.

8) Creates Sense of Security:

Organizational structure clarifies the job positions. It clearly states the duties and
responsibilities of everyone. Everyone can work accordingly. Clarity in jobs and
powers helps in increasing mental satisfaction and it creates sense of security
among the employees.

9) Scope for Innovation: Organizing function clears the roles and activities to be
performed. Employees can work by using their new ideas. This provides enough
space to the manager to develop talent and flourish the knowledge. This scope for
innovation into adopting new changes in methods of work is possible only through a
set of organizational structure.

10) Helps in Optimum Utilization of Resources:

This function provides different jobs to different employee according to the job
specification.
Due to this, specialization of work becomes possible. This right workforce utilizes
other resources at its optimum level so that desired results are achieved within
defined period.

3) What do you mean by staffing? Describe the importance of staffing.

Ans: Meaning:
Staffing is the function of execution according to plan and organizational structure.
It is
the process of attracting, recruiting, selecting, placing, appraising, remunerating,
developing and retaining the best workforce. Overall growth and success of every
venture is based on appropriateness of staffing function. It is very challenging for
organization to focus on best utilization of workforce by using their talents and
skills, retaining them and arranging training and development programmes.
The function emphasizes managing human and not material or financial resources.

Importance of Staffing:
1) Effective Managerial Function:
Staffing is the key to effective performance of other functions of management such
as planning, organizing, directing and controlling. Competent workforce can work
effectively in different functional areas like production, sales, finance etc. The
outcome of other functions is based on the effectiveness of staffing.
2) Leads to Effective Utilization of Human Resources:
Staffing function leads to effective utilization of human resources i.e. workforce.
Proper care is taken at every stage such as recruitment, selection, placement,
remuneration, training, development etc. Excessive burden of work is avoided.
Optimum utilization of human resources results in improvement in performances
and progress of organization.

3) Builds Cordial Relationship:

This function is helpful in building healthy relationships among all levels of
employees in the organization. A smooth human relation is the key to better
communication and coordination of managerial efforts in an organization.

4) Helps Human Resource Development:

Skilled and experienced employee is an asset of a business organization. Staffing
helps to inculcate the organizational culture into employees. It trains and develops
the existing workforce. It also ensures smooth functioning of all the managerial
aspects of the business organization.

5) Helps in Effective use of Technology and Other Resources:

Trained employees can use the latest technology, capital, material and methods of
work effectively. It helps in building competitive strength of the organization. It is
also helpful in improving standard of work and productivity in terms of quality and
quantity.

6) Improves Efficiency:
Training and development programmes are offered to the employees for self-
development and organizational development. Through proper selection, the
organization gets quality employees and through proper training the performance
level of the employees can be improved.

7) Long Term Effect:

Qualified, efficient and skillful workforce is always an asset of the organization.
Proper selection of employees leads the organization towards the path of success.
Naturally, long term positive effects can be observed on the efficiency of an
organization.

8) Essential Contribution:
Staffing ensures the continuity and growth of the organization through development
of employees. Selection is based on the ability of the prospective employees. So that
organization can meet the future challenges wisely. Therefore, the contribution of
the staff in their future roles is taken into account in staffing function.
9) Provides Job Satisfaction:
Employees can be motivated through financial and non-financial incentives.
Adequate remuneration increases job satisfaction and morale of the employees.
Training and development programmes, fair remuneration and job security are the
factors which are important in providing job satisfaction.

10) Maintains Harmony:

In staffing process, individuals are recruited, selected and placed as well as their
performance is regularly appraised and promotions are given on the basis of merit.
For this, criteria is made and duly communicated to concerned employees. It brings
peace and harmony in organization.

4) Give the definition of directing and explain the importance of directing.

Ans: Theo Haimann: "Direction consists of the process and techniques utilizing in
issuing instructions and making certain that operations are carried out as planned."
Importance of Directing:
Directing refers to a process or technique of instructing, guiding, inspiring,
counselling, overseeing and leading people towards the accomplishment of
organizational goals.
Supervision is an integral part of direction function. The director supervises
employees by observations, examining the reports and behavior of employees.
On the basis of the above definitions, the importance of directing can be stated as
follows:

1) Initiates Action:
Direction is the function which supports to activate the plans with the help of
employees.
Every action is initiated through timely direction. Proper instructions are given to
subordinates
while completing their assigned task. The managers direct the subordinates about
what to do,
how to do, when to do and also to see that their instructions are properly followed.

2) Integrates Efforts:
Communication is one of the elements of direction. It helps in integrating the efforts
of all the employees and departments which results in achievement of
organizational goal. Integration of efforts is possible through persuasive leadership
and effective communication towards the accomplishment of organizational goals.

3) Means of Motivation:
While directing the subordinates, their opinions are also considered. A manager
identifies the potential and abilities of its subordinates and helps them to give their
best. He also motivates them by offering them financial and non-financial incentives
to improve their performance. It boosts the morale of subordinates.

4) Provides Stability:
Stability plays significant role in the growth and survival of the organization.
Effective leadership, communication, supervision and motivation develop co-
operation and commitment among the employees. It provides stability and creates
balance among various departments and groups.

5) Coping up with the Changes:

Factors of business environment are always changing. Adapting to the
environmental changes is necessary for the growth of the organization. With the
help of motivation, proper communication and leadership, the employees can
clearly understand the nature of change and also the positive outcome of adopting
to the change. For example, e-filing, use of Robots at workplace etc.

6) Effective Utilization of Resources:

Direction involves assigning duties and responsibilities to everyone. Proper
instructions and systems are developed to avoid wastages, duplication of efforts etc.
Subordinates are guided to utilize the resources i.e. men, machine, materials, and
money in the maximum possible way. It helps in reducing costs and increasing
profits.

7) Creates Team Spirit:

Direction focuses on motivating the subordinates for group efforts. Group efforts or
team spirit plays vital role in success of an organization than individual efforts.
Therefore, the role of manager as a director plays very important role in guiding and
motivating the employees to achieve the predetermined goals.

8) Explores Capabilities of Individuals:

Every individual has various capabilities or potentials in addition to their formal
qualifications.
Direction helps to identify and utilize their abilities for best performance by
encouraging and motivating them just like a leader.

9) Increases Efficiency Level:

Guidance and motivation is given to subordinates to perform at their best level.
Being a leader, team spirit is created by the manager as well as proper techniques of
supervision are used. It works positively and results into enhancing the efficiency
level of the whole organization.
10) Co-operation:
Co-operation is necessary for smooth flow of organizational activities. It should be
created by manager i.e. director from top level to the bottom level of management.
Healthy cooperation, team work and higher efficiency level lead to attainment of
goals.
Thus, Directing to subordinates is a basic management function that includes
building an effective work climate through motivation.

5) What is coordinating? Describe the importance of coordinating.

Ans: Henry Fayol: "To co-ordinate is to harmonise all the activities of a concern to
facilitate its working and its success."
Importance of Co-ordinating:
Need for co-ordination arises out of the fact that different elements and efforts of an
organization are to be harmonized and unified to achieve the common objectives.
Importance of coordination can be discussed as follows:

1) Encourages Team Spirit:

In organizations, group of individuals work together. There may be existence of
conflicts, disputes between individuals, departments and employer and employees
regarding organizational policies, roles and responsibilities etc. Coordination
arranges the work in such a way that minimum conflicts are raised. It increases the
team spirit at work place.

2) Gives Proper Direction:

Coordination integrates departmental activities for achieving common goal of the
organization.
The work is arranged in a very systematic way. The interdependence of
departments gives proper direction to the employees.

3) Facilitates Motivation:
Coordination motivates the employees to take initiative while completing their
assigned task.
An effective co-ordination increases efficiency and results into growth and
prosperity of the organization. A prosperous organization ensures job security,
higher income, promotion and incentives. Such monetary and non- monetary
incentives provide job security and motivate the employees for hard work.

4) Optimum Utilization of Resources:

Managers try to integrate all the resources systematically. It helps in utilizing all
available resources at its optimum level. Co-ordination also helps to minimize the
wastage of resources and control the cost of work.
5) Achieve Organizational Objectives:
Co-ordination leads to minimize the wastages of materials, idle time of employees,
delay in completion of targets, departmental disputes etc.to a great extent. It
ensures smooth working of the organization in the process of achieving the
objectives of the organization.

6) Improves Relation:
Co-ordination develops cordial relations between all the levels of management of an
organization. Every department depends on functioning of other department. For
example, sales department works according to production department, Production
department depends on Purchase department and so on. Coordination helps the
employees to build strong relations among them and achieve the given targets.

7) Leads to Higher Efficiency:

With the help of optimum utilization of resources and effective integration of
resources, the organization can achieve high returns in terms of high productivity,
high profitability as well as can reduce the cost. Thus, co-ordination leads to higher
efficiency.

8) Improves Goodwill:
Higher sales and higher profitability can be achieved due to synchronized efforts of
organizational people, strong human relations and lower costs. It directly results
into creating goodwill for organization in the market. It reflects on market value of
shares as well as it helps in building good image in society.

9) Unity of Direction:
Different activities are performed by different departments. Coordination
harmornizes these activities for achieving common goal of organization. Thus,
coordination gives proper direction to all departments of the organization

10) Specialization:
All departments of the organization are headed by experts in their respective fields.
The specialized knowledge of these departmental heads helps in managerial
decisions. It leads organization to march towards growth and success in the
competitive world of business.

6) Define the term controlling and explain the importance of controlling.

Ans: Philip Kotler: "Control is the process of taking steps to bring actual results and
desired results closer together."

Importance of Controlling:
Controlling is important in maintaining standards and to achieve desired goals
effectively and efficiently. It is a function of checking the performances of employees
at every stage of their work in process. The importance of controlling function in an
organization is as follows:

1) Fulfilling Goals of Organization:

Controlling is the function of measuring the performances at every possible stage,
finding out the deviations, if any; and taking corrective actions according to planned
activities for the organization. Thus, it helps in fulfilling the organizational goals.

2) Making Efficient Utilization of Resources:

Various techniques are used by managers to reduce wastage of material and
spoilage of other resources. Standards are set for every performance. Employees
have to follow these standards.
As the effect of this, the resources are used by employees in the most efficient and
effective manner so as to achieve organizational objectives.

3) Accuracy of Standards:
An efficient control system helps management in judging the accuracy of standards
whether they are accurate or not. Controlling measures are flexible to some extent.
So after reviewing them according to changing circumstances, they are revised from
time to time which is beneficial for checking performances accurately.

4) Motivates Employee:
After setting standards of checking performance, they are communicated to
employees in advance. Due to this, employees get an idea about what to do and how
to do. Performances are evaluated and on that basis employees are rewarded in the
form of increment, bonus, promotion etc. It motivates the employees to perform at
their best level.

5) Ensures Order and Discipline:

Controlling is the function of order and maintaining discipline. It works for reducing
unprofessional behavior of the employees. Discipline is maintained by continuous
checking of performances by the superiors and preventive actions are taken to
minimize the gap between actual and standards.

6) Facilitates Co-ordination:
Control is a function in which the roles and responsibilities of all departmental
managers and the subordinates are designed clearly. Coordination between them
helps to find out the deviations in their respective departments and to use remedial
measure for desired results of the organization.

7) Psychological Pressure:
The performances are evaluated with the standard targets. The employees are very
well aware that their performance will be evaluated and they will be rewarded
accordingly. This psychological pressure works as a motivational factor for
empolyees to give their best performance.

8) Ensures Organizational Efficiency and Effectiveness:

Factors of control include making managers responsible, motivating them for higher
performance and achieving departmental coordination. It ensures about
organizational efficiency and effectiveness.

9) Builds Good Corporate Image:

Controlling function helps to improve the overall performance of the organization.
Minimum deviation in predetermined standards and actual performance results
into the progress of business. It can be achieved with the help of proper control. This
builds good corporate image and brings goodwill for the business.

10) Acts as a Guide:

Controlling function provides set of standard performance. Managers as well as
subordinates-work according to it. Wherever necessary, they can take the help of
these standards and can achieve desired results. Thus, controlling function acts as a
guide for everyone. The steps taken for controlling an activity guide the
management while planning the future activities.