Unit -4

Staffing
Staffing can be defined as one of the most important functions of
management. It involves the process of filling the vacant position of the
right personnel at the right job, at right time. Hence, everything will
occur in the right manner.

It is a truth that human resource is one of the greatest for every

organization because in any organization all other resources like- money,
material, machine etc. can be utilized effectively and efficiently by the
positive efforts of human resource.

Therefore it is very important that each and every person should get right
position in the organization so as to get the right job, according to their
ability, talent, aptitude, and specializations so that it will help the
organization to achieve the pre-set goals in the proper way by the 100%
contribution of manpower. Thus it can be said that it is staffing is an
essential function of every business organization. 
Staffing includes:
1. Identifying the requirement of workforce and its
planning.
2. Recruitment and selection of appropriate personnel for
new jobs or for positions which may arise as a result of
existing employees leaving the organisation.
3. Planning adequate training for development and growth
of workforce.
4. Deciding on compensation, promotion and performance
appraisals for the workforce.
 Concept of staffing
Once the organisational goals are set, the plans are prepared
and organisation is appropriately structured to pave the path
for achievement of the set goals. The next step is to provide
appropriate personnel to fill in the various positions created by
the organisational structure. The process putting people to jobs
is termed as staffing. Staffing, the management function
involves appointing appropriate personnel, developing them to
meet organisational needs and ensuring that they are a satisfied
and happy workforce.
Staffing is defined as a managerial function of filling and
keeping filled the positions in the organisational structure. The
personnel appointed are a combination of permanent
employees, daily workers, consultants, contract employees etc.
Nature of Staffing
i. People-oriented – Staffing deals with efficient utilization of human
resources in an organization. It pro­motes and stimulates every employee
to make his full contribution for achieving desired objective of the
organization.

ii. Development-oriented – It is concerned with developing

potentialities of personnel in the organization. It develops their
personality, interests, and skills. It enables employees to get maximum
satisfaction from their work. It assists employees to realize their full
potential. It provides opportunities to employees for their advancement
through training, job education, etc.

iii. Pervasive function – Staffing is required in every organization. It is

a major sub-system in the total manage­ment system that can be applied
to both profit making and non-profit making organizations. It is required
at all levels of organization for all types of employees.
iv. Continuous function – Staffing is a continuous and never-ending
process. It requires constant alertness and awareness of human relations
and their importance in every operation.

v. Human objectives – It develops potentialities of employees so that

they can derive maximum satisfaction from their work. It creates an
atmosphere where employees willingly cooperate for the attainment of
desired organizational goals.

vi. Individuals as well as group-oriented – Staffing is concerned with

employees both as individuals and as group in attaining goals. It
establishes proper organizational structure to satisfy individual needs and
group efforts. It integrates individual and group goals in such a manner
that the employees feel a sense of involve­ment towards the organization.

vii. Developing cordial working environment – It develops a cordial

environment in the enterprise where each employee contributes his best
for the achievement of organizational goals. It provides a very
comfortable physical and psychological working environment.
viii. Interdisciplinary nature – Staffing has its roots in social
sciences. It uses concepts drawn from various dis­ciplines such as
psychology, sociology, anthropology, and management. It has also
borrowed principles from behavioural sciences. It is a science of
human engineering.

ix. Integral part of general management – Staffing is an integral

part of the general management. It is very much a part of every line
manager’s responsibility. Every member of the management group
(from top to bottom) must be an effective personnel administrator. It
renders service to other functional areas of management.

x. Science as well as art – Staffing is a science of human

engineering. It is an organized body of knowledge consisting of
principles and techniques. It is also an art as it involves skills to deal
with people. It is one of the creative arts as it handles employees and
solves their problems systematically. It is a philosophy of manage­
ment as it believes in the dignity and worth of human beings.
  Characteristics of Staffing 
Characteristic # 1. Related to Human Beings:
The first important characteristic of staffing is its relationship
with human beings. It means that unlike planning and organising
it is not mere paper work but involves the appointment of
competent persons on various posts. Planning lays down what,
when, how and by whom work is to be done. Similarly, an
organisational structure chart is prepared under organising.
On the contrary, under staffing, competent individuals are
selected and given training keeping in view the importance of the
post and not only doing paper work alone. All the activities done
to accomplish this work are connected with human beings-they
may be recruitment, selection, training, promotion, etc.
Characteristic # 2. Separate Managerial Function:
The second important characteristic of staffing is that it is
a separate managerial function. Separate managerial
function means that far from being a major part of some
function, it is in itself a major function. Staffing is
included in the other categories of managerial functions
like planning, organising, leading, and controlling. A little
earlier, some management experts considered it a part of
organising. But these days, on the basis of various
researches, it is accepted as an important separate
managerial function.
Characteristic # 3. Essential at All Managerial Levels:
Staffing is essential at all managerial levels. The Board of Directors
performs the function of staffing by appointing General Manager. The
General Manager does so by appointing departmental managers, while the
departmental managers perform this function by appointing their
subordinates. It must be clarified here that the establishment of a separate
personnel department does not free the concerned managers from this all-
important function.
The aim of establishing this department is to assist the managers at every
level in the performance of their function of staffing. It is important to note
that the final responsibility regarding staffing lies with the managers
concerned.

Characteristic # 4. Related to Social Responsibility:

Staffing deals with human beings and man is a social animal. Since it is
connected with human beings, the social responsibility of this function is
born. In order to discharge this responsibility the managers should take care
and be impartial while going through the allied functions of recruitment,
selection, promotion, etc.
Characteristic # 5. Effect of Internal and External Environment:
The performance of staffing is affected by the internal and external
environment of the enterprise. The internal environment of the
enterprise includes policies connected with the employees — like the
promotion policy, demotion policy, transfer policy, etc. If as a matter of
policy the vacant posts are to be filled up by promotion, the employees
already working in the enterprise will have the opportunity to reach
higher posts, and the people from outside will be appointed only on
lower posts.
In this way the internal policy of the organisation does affect the
function of staffing. The external environment affecting the enterprise
includes government policies and educational environment. It can be
the policy of the government that in a particular enterprise employees
should be recruited only through employment exchange. Educational
institutions can help in the development of the employees by organising
special training camps. In this way, external environment also affects
the function of staffing.
3 Important Aspects: Recruitment, Selection and Training

Staffing has three aspects:

1. Recruitment – Recruitment is a positives process which aims to attract
larger number of people with desirable profile to apply for positions vacant in
the organisation. Higher the number of applicants, greater is the possibility of
finding a suitable employee.
2. Selection – Selection is a negative process which scrutinizes the
applications received and selects only those who are most suitable for the
vacant position. Recruitment invites applications but selection rejects
applications.
3. Training – Training is another positive process which upgrades the
knowledge and skills of employees and enhances the ability to perform better.
Organisations follow the process of recruitment, selection and training to
ensure that all positions in the organisational structure remain Med with
qualified and talented people. However, the business environment influences
the way these processes are carried out.
  Importance of Staffing (With Examples)
1. Identifies Competent Personnel:
Staffing identifies the requirement of workforce to fill in the positions
in the organisational structure and selects right people for the right job.
It ensures that people with adequate competencies are employed.
For example – Your school principal identifies the departments, which
are short of teachers, and works towards finding the adequate teachers.

2. Improved Performance:

By deploying right people on the right job helps business enterprises to
use physical resources in the most optimum manner leading to higher
productivity, better efficiency and improved performance.
For example – To get best results, teachers with proficiency in
Business Studies are the right people to be appointed in the commerce
department to teach Business Studies.
3. Continuous Survival and Growth:
Proper training and employee development programmes updates
managers with the changes in business environment. The
succession planning for managers ensures the continuous survival
and growth of the enterprise.
For example – Whenever there is a change in the syllabus or
marking of papers, CBSE Board holds workshops for teachers so
that they are aware of the changes and are able to incorporate the
same in their teaching plans.

4. Optimum Utilisation of the Human Resources:

Staffing identifies the workforce requirements and plans
appointment of people accordingly. This ensures that there are
adequate personnel available to avoid under-utilisation or
disruption of work due to under-staffing.
For example – Adequate number of teachers in each department
ensures that each class has an assigned teacher.
5. Provides Job Satisfaction and Builds Morale:
Staffing provides opportunities for growth through
internal promotions, appreciates and rewards the
contribution through continuous appraisals. This keeps the
workforce satisfied and in high morale.
For example – At the end of academic year schools may
plan appraisal for each teacher to give ‘teacher of the year’
award. This brings satisfaction for the teacher who worked
hard and also motivates others to work harder. You may
also observe that your school principal was a teacher once.
She/he was promoted to this position as an appreciation of
hard work.
Staffing –  Elements
While performing the staffing function, the manager has to see that men are fit
for jobs and jobs are not altered for men.
Elements of Staffing:
It consists of many inter related activities such as:
(i) Human Resource Planning – This is the first step in the process of staffing in
which a planner forecast and determine the number and kind of manpower
required by the organisation in future. It has two aspects viz., short term and long
term.

(ii) Recruitment – It refers to identification of the sources of man power

availability.

(iii) Selection – It is the process of choosing and appointing the right candidates
for various positions in the organisation.

(iv) Placement – It involves placing the selected candidates on the right jobs
after given orientation training.
(v) Training and Development – It involves improving job
and work knowledge skills and attitudes of employees on a
regular basis so that they may perform their work effectively
and efficiently.

(vi) Remuneration and Compensation – It is necessary to pay

equitable amount of wages and salaries to the employees. In
order to achieve the objectives of the organisation.

(vii) Performance Evaluation – It is the appraisal system of

various categories of employees in terms of their behavior
and work performance at the work place.

(viii) Transfer – It is the moving of employees to similar

positions in the other work units.
(ix) Promotion – It is the moving of employees from low
position to higher position in the organisation. It is also
called vertical movement upward direction.

(x) Working Environment – It is the responsibility of

personnel department to provide good working conditions
to the employees in the organisation. It certainly influence
the motivation and morale of the employees.
 Staffing – 7 Step Process of Staffing:
Step # 1. Estimating Manpower Requirements/Manpower
Planning:
The process of manpower planning can be divided into two parts.
One is an analysis for determining the quantitative needs of the
organisation, i.e., how many people will be needed in the future.
The other part is the qualitative analysis to determine what
qualities and characteristics are required for performing a job.
The former is called the quantitative aspect of manpower planning
in which we try to ensure a fair number or personnel in each
department and at each level. It should neither be too high nor too
low leading to overstaffing or under-staffing respectively. The
second aspect is known as qualitative aspect of manpower
planning wherein we try to get a proper fit between the job
requirement and the requirement on the part of personnel in terms
of qualification, experience and personality orientation.
Step # 2. Recruitment and Selection:
The second step after manpower planning is recruitment
and selection. These are two separate functions, which
usually go together. Recruitment aims at stimulating and
attracting job applicants for positions in the organisation.
Selection consists of making choice among applicants. To
choose those which are most suited to the job requirement
keeping in view the job analysis information.
Selection processes must begin by precisely identifying
the task to be performed and also drawing a line between
successful and unsuccessful performance. Thereafter, the
process of selection tries to find out how far a job
applicant fulfils those characteristics or traits needed to
successfully perform the job
Step # 3. Placement and Orientation:
Placement refers to place the right person on the right job.
Once the job offer has been accepted by the selected
candidate, he is placed on his new job. Proper placement of
an employee reduces absenteeism, employee’s turnover and
accident rates. Orientation/Induction is concerned with the
process of introduction or orienting a new employee to the
organisation.
The new employee is introduced to fellow employees, given
a tour of the department and informed about such details as
hours of work, overtime, lunch period, rest rooms, etc. They
are mostly informed about the company, the job and work
environment. They are encouraged to approach their
supervisors with questions and problems.
Step # 4. Training and Development:
It is more accurately considered as a process of skill
formation and behavioural change. It is a continuous process
of the staffing function. Training is more effectively
conducted when the actual content of jobs for which people
are being trained and developed is known.
Training programmes should be devised to impart
knowledge, develop skills and stimulate motives needed to
perform the job. Development involves growth of an
employee in all respects. It is a wider concept. It seeks to
develop competence and skills for future performance. Thus,
it has a long-term perspective
Step # 5. Performance Appraisal:
It means evaluating a performance employee’s current and past
performance as against certain predetermined standards. This process
includes defining the job, appraising performance and providing
feedback.

Step # 6. Promotion and Career Planning:

Managers must encourage employees to grow and realise their full
potential. Promotions are an integral part of people’s career. They usually
mean more pay, responsibility and job satisfaction.

Step # 7. Compensation:
It refers to all forms of pay or rewards paid to employees by the
employer/firm. It may be in the form of direct financial payments (Time
based or Performance based) like salaries and indirect payments like paid
leaves.  
Manpower planning
Manpower planning is the process of estimating the
optimum number of people required for completing a
project, task or a goal within time. Manpower planning
includes parameters like number of personnel, different
types of skills, time period, demand and supply trends,
organizational strategy etc. It is a never ending
continuous process to make sure that the business has
the optimized resources available when required taking
into consideration the upcoming future projects and
also the replacement of the outgoing employees. It is
also called as Human Resource Planning.
 Examples
Example of Manpower Planning:
IT companies are often faced with the business problem of hiring
right people for upcoming projects as well as attrition. These
companies have multiple projects going on at a single time and
upcoming projects in the pipeline. If they hire more people without
planning they would end up with many resources on the bench
which would eat into profits and if they keep waiting till the last,
they would not have enough skilled people to set up the project and
start delivering eventually leading to customer dissatisfaction and
losses.
So these companies keep on forecasting and planning as per the
market requirements, latest skill set and their project pipeline. Most
of the times, hired resources cannot be productive straight away so
they need to train them which would require further planning and
time.
 Manpower Planning-Process
1.  Analyze Objectives
The human resources planning process starts with the identification of the objectives of
the different departments in the organization. each department such as management,
marketing, production, finance, sales, etc. can have different objectives and they have
specific expectations related to human resources. The objectives can include recruiting
new employees for the process, reducing the number of employees by
 automating processes or improving the knowledge and skill levels of existing employees.
By analyzing the objectives of each department of the organization, the human resources
planning team can identify the changes that will be necessary for the future of the
organization.
2. Inventory current human resources
Once the necessary changes are identified, the Human resources planning team should
create an inventory of the current human resources available in the organization. This
should include the current number of employees available in the organization, their
capacities, capabilities, and performance abilities. This helps the human resources team to
identify the methods of filling the upcoming job requirements and to create estimates for
internal and external recruitments that will be necessary.
3. Forecast the demand and the supply of employees
Based on the objectives of the different departments of the
organization and the inventory of the available resources, the Human
resources planning team can forecast the demand of the employees.
Apart from that, based on the availability in the organization and the
employee market, the supply of the employees should be forecasted.
4. Estimate Gaps
Conducting a comparison between the demand and the supply of the
employee availability can help the human resources team to identify
the gaps that can arise in the foreseeable future. The gaps can arise as
employment deficits as well as employment surpluses.  Employment
deficits indicate the number of employees that need to be recruited
and the employment surpluses indicates the job terminations or
transfers between departments. Apart from that, the gaps can be used
as an indication of the training and development requirements for the
employees.
5. Formulate Plan
Once the employment gaps are estimated, the Human resources planning team
should formulate a plan for the recruitment, training, development, termination,
interdepartmental transfers, promotion, or early retirement of employees based
on the requirements of the organization. The employment plan can vary based
on the deficit or the surplus estimated in forecasting the demand and supply
stage.
6. Implement Plan
Once the human resources plan is formulated, the human resources department
should implement the plan in the organization. This should be aligned with the 
goals and objectives of the organization as well as the goals and objectives of
each department of the organization.
7. Monitor, Control, and feedback
Once the human resources plan is implemented, the plan should be monitored
continuously to ensure the alignment of the plan to the objectives of the
departments. The necessary controls should be put in place and the feedback at
each level should be obtained to measure any defects in the implemented
human resources plan.  The necessary changes should be implemented
according to the feedback obtained in the ongoing process in order to make the
human resources plan a success.
Directing
In the ordinary sense, directing means giving instructions and guiding
people in doing work. In our daily life, we come across many
situations like a hotel owner directing his employees to complete
certain activities for organising a function, a teacher directing his
student to complete an assignment, a film director directing the artists
about how they should act in the film etc. In all these situations, we
can observe that directing is done to achieve some predetermined
objective. In the context of management of an organisation, directing
refers to the process of instructing, guiding, counselling, motivating
and leading people in the organisation to achieve its objectives. You
can observe here that directing is not a mere issue of communication
but encompasses many elements like supervision, motivation and
leadership. It is one of the key managerial functions performed by
every manager. Directing is a managerial process which takes place
throughout the life of an organisation.
Direction is the managerial function of guiding,
motivating, leading, and supervising the subordinates to
accomplish desired objectives.
Acquiring physical and human assets and suitably placing
them will not suffice; what is more important is that
people must be directed toward organizational 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.
Features of directing
1. Directing Is A Management Function
Directing is a key function of management. Direction brings plan into action by
motivating subordinates for higher productivity. So, it is a tool of management to
achieve organizational goals and objectives. 

2. Directing Is A Linking Function

Directing bridges the gap between standard and actual performance of the
employees. It also links managers and lower level subordinates in the organization.

3. Directing Is A Continuous Activity

Directing is a continuous function of an organization. The superiors need to give
direction to the subordinates regularly to meet desired result. Direction process goes
continuously throughout the life of any organization. 
4. Directing Is a Pervasive Function
Managers of all levels (i.e top level management, middle level management,
and lower level management) practice direction function. Therefore, it exists
at every level of management. So, it is called pervasive function of
management. 

5. Directing Flows From Top To Bottom

Directing flows from superior to the subordinate as it follows scalar chain
system. Directing starts with top and ends with bottom level of management.

6. Directing Is A Human Factor

Directing is a human factor as it is related with human behavior. It is a
superior-subordinate relationship in the organization. 

7. Directing Is Performance Oriented

Direction motivates subordinates to perform their work more effectively. It
brings plan into action. So, main objective of directing is to boost employees
performance. 
8. Directing Facilitates Coordination 
Directing influences the subordinates to work properly and effectively to
achieve organizational goals. It brings harmony among employees and top
level management. So, it also facilitates better coordination in the
organization. 

9. Directing Is A Psychological Factor

It influences and inspires human behavior. Directing deals with feelings,
emotions, and psychological of an individual. Therefore, it is also known as
psychological factor.

10. Directing Is A Creative Activity

Direction brings plans into action. It motivates subordinates to perform
their job accurately and effectively. It requires innovative thoughts, proper
techniques, and ideas to convert plan into actual performance. So, directing
is a creative activity of the manager.
Importance of directing
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 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
powerlooms, 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. doesn’t 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.
 Characteristics
(i) Directing initiates action: Directing is a key managerial
function. A manager has to perform this function along
with planning, organising, staffing and controlling while
discharging his duties in the organisation. While other
functions prepare a setting for action, directing initiates
action in the organisation.
(ii) Directing takes place at every level of management:
Every manager, from top executive to supervisor performs
the function of directing. The directing takes place
wherever superior – subordinate relations exist.
(iii) Directing is a continuous process: Directing is a
continuous activity. It takes place throughout the life of
the organisation irrespective of people occupying
managerial positions. We can observe that in organisations
like Infosys, Tata, BHEL, HLL and the managers may
change but the directing process continues because
without direction the organisational activities can not
continue further.

(iv) Directing flows from top to bottom: Directing is first

initiated at top level and flows to the bottom through
organisational hierarchy. It means that every manager can
direct his immediate subordinate and take instructions
from his immediate boss.
 Principles of Directing
Providing good and effective directing is a challenging task as it
involves many complexities. A manager has to deal with people
with diverse background, and expectations. This complicates the
directing process. Certain guiding principles of directing may help
in directing process. These principles are briefly explained below:

(i) Maximum individual contribution: This principle emphasises

that directing techniques must help every individual in the
organisation to contribute to his maximum potential for
achievement of organisational objectives. It should bring out
untappted energies of employees for the efficiency of organisation.
For example, a good motivation plan with suitable monetary and
non-monetary rewards can motivate an employee to contribute his
maximum efforts for the organisation as he or she may feel that
their efforts will bring them suitable rewards.
(ii) Harmony of objectives: Very often, we find that individual
objectives of employees and the organisational objectives as understood
are conflicting to each other. For example, an employee may expect
attractive salary and monetary benefits to fulfill his personal needs. The
organisation may expect employees to improve productivity to achieve
expected profits. But, good directing should provide harmony by
convincing that employee rewards and work efficiency are
complimentary to each other.
(iii) Unity of Command: This principle insists that a person in the
organisation should receive instructions from one superior only. If
instructions are received from more than one, it creates confusion,
conflict and disorder in the organisation. Adherence to this principle
ensures effective direction.
(iv) Appropriateness of direction technique: According to this principle,
appropriate motivational and leadership technique should be used while
directing the people based on subordinate needs, capabilities, attitudes
and other situational variables. For example, for some people money
can act as powerful motivator while for others promotion may act as
effective motivator.
(v) Managerial communication: Effective managerial communication
across all the levels in the organisation makes direction effective.
Directing should convey clear instructions to create total
understanding to subordinates. Through proper feedback, the
managers should ensure that subordinate understands his instructions
clearly.
(vi) Use of informal organisation: A manager should realise that
informal groups or organisations exist within every formal
organisation. He should spot and make use of such organisations for
effective directing.
(vii) Leadership: While directing the subordinates, managers should
exercise good leadership as it can influence the subordinates
positively without causing dissatisfaction among them.
(viii)Follow through: Mere giving of an order is not sufficient.
Managers should follow it up by reviewing continuously whether
orders are being implemented accordingly or any problems are being
encountered. If necessary, suitable modifications should be made in
the directions
 Types and techniques of directing
1. Consultative Direction:
Under this technique, superior, though vested with powers to take
decision independently, does not take decision without consulting with
his subordinates. The superior wins the cooperation of all the
subordinates by taking their inputs into his decisions. Thus subordinates
feel committed and motivated to carry out such decisions made out of
their viewpoints.

2. Free-Rein Direction:
Under this technique, subordinates are empowered to take decisions
independently. The superior limits himself to issuing guidelines. The
execution of the entire task is left to subordinates. The subordinates are
held accountable for the results. This type of direction can be practiced
only when subordinates are highly educated, experienced, capable and
competent. It is self-direction by subordinates.
3. Autocratic Direction:
Superior commands the subordinates to accomplish a set of goals. He
does not take into his decision-making the views, opinions and
suggestions of subordinates. The superior gives a clear direction and
precise orders to his subordinates.

4. Supervision:
Supervision is the process of overseeing the subordinates at work.
Supervisor gives a precise, detailed and clear cut instruction to
subordinates. The quality of supervision depends on the strength of
the subordinates working under him. The lesser the strength of
subordinates, the more effective is supervision arid vice versa.
Supervision is undertaken across the levels of management. Besides,
supervisor should possess certain qualities to exercise effective
supervision. Similarly, there are certain factors like skill, leadership,
position, group cohesiveness, cordiality or relations, etc., that enable
the supervisor to exercise effective supervision.
5. Motivation:
Merely issuing orders and instructions may not help to accomplish any task
effectively. Motivation is the process of stimulating such forces like desires, wishes
and wants that impel human beings to achieve the desired action. Motivation may be
monetary and non-monetary. The impact of non-monetary motivation is supposed to
last longer than monetary motivation.
Motivation is also classified into positive and negative motivation. While positive
motivation is to be reinforced, the negative motivation should be applied as a last
resort. The type of motivation varies according to nature of industry. Without
motivation, the energy, efficiency and morale of the employees cannot be sustained.

6. Leadership:
Leadership is defined to be the ability of a manager to influence his subordinates to
accomplish the goals. A leader is supposed to possess certain qualities to exercise
effective leadership. A leader does many functions like formulation of objectives,
representing the undertaking, initiating action, influencing followers, etc.
There are different styles of leadership practised by leaders. Of course all the types
yield effect. But the type of leadership style to be adopted depends on the nature of
subordinates and the context. Besides, leadership should have intelligence, good
communication skill, initiative, flexibilities, etc.
7. Communication:
Communication enables a group to think together, see together and
act together. It becomes indispensable for passing on decisions to
those engaged in executing them. Where communication is not
understandable to the receiver, direction becomes ineffectual. Face
to face communication and feedback system is essential for smooth
operation of business. There are certain principles like clarity,
preciseness, concreteness etc., to be followed for effective
communication.
The flow of communication is in all directions in any organization.
They are vertical, horizontal, lateral and diagonal flow of
communication. There may arise certain barriers to the flow of
communication. Organizations have to take effort to de-clog the
blockage in the communication process so as to ease the flow of
communication. Besides channels of communication, verbal, written
and gestural communications are used to convey the information to
those intended. Without communication, nothing can be achieved in
the organization.
8. Delegation:
Delegation is the process of entrusting a part of work to be
done by a superior to his subordinate. Without delegation,
an organization cannot grow even an inch. In the absence of
delegation, superior is overloaded with excessive work.
Besides, specialization concept warrants delegation. It helps
the executive to utilize their productive time optimally. The
subordinate to whom the authority is delegated is
responsible to the delegator. In the same vein, the delegator
is ultimately responsible for the work executed by the
delegatee.
9. Orders:
Orders are directives issued by superiors to subordinates directing the
latter to act in a certain manner.

The order should be:

i. Reasonable and enforceable over subordinates.
ii. Clearly defined and understandable.
iii. Complete in all respects.
iv. Win acceptance and cooperation of subordinates.
v. Preferably in written form.
vi. Appropriately toned.
vii. Time line prescribed.

Orders may be oral, written, generic, specific, procedural or operational.

10. Orientation:
a. Orientation of New Employees:
All new hires should be given orientation about their rights,
duties, responsibilities, superior-subordinate, relationship,
profile of the organization, organization structure,
performance evaluation, career opportunities, fundamental
rules put in place in the organization, etc.
b. Continuing Orientation:
Wherever goals are revised, new technique is absorbed; new
machinery is put in place, and newer development unfolds in
a particular area of specialization; existing employees are to
be enlightened thereabout through training, bulletins, news
wheels, staff meetings, updates, committee meetings,
conferences, etc.
 Controlling
Role of the management of an organization is to make sure that the goals
 of the organization are achieved as planned and on time. Out of the
many functions of management, control is one of the most important
functions of the organization.
Controlling means giving instructions to employees and making sure
that the instructions are being followed as desired by the management.
Controlling means the management of the organization is responsible for
deciding predetermined standards and making sure that performance of
the employees match with the standards set by the management and in
case if the performance of employees does not match with standards
then taking required corrective measures.
The management of the organization makes sure that the resources of
the organization are being used properly and are being used for the
growth of the organization and are not being wasted in any way. By
controlling management, make sure the effective and efficient use of
resources of the organization.
Controlling employees of the organization is an important
skill of a manager. A manager can’t play his role
efficiently if he is not good at controlling his team.
By controlling his team properly, he can make sure the
coordination among his team members and by having
proper control on the team, he can plan effectively for the
future projects. Management control has different types
so as to enable the management to choose the form of
control depending upon the situation at hand, as it is one
of the most important functions of management.
Controlling can be defined as a function of making sure
that actions of the employees of an organization are
directed towards the attainment of a common goal and the
work is being performed as planned by the management.
 Features of controlling
1) Controlling is a dynamic process
Controlling is a dynamic process. A manager is required to take
a different course of actions when an employee fails to match the
standards of performance. A manager should have the skills to
decide how to react to a certain situation.
For example, if an employee is absent frequently, then the
manger first should talk with him and ask for the reason of his
absenteeism and try to do something about the problem, and if
the problem persists then, he should take some strict action.
Similarly, the course of action would be different for the
employee who does not perform as per the standard frequently
than the employee who has failed to meet the performance
standards for the first time.
2) Controlling is an end function
Controlling is an end function because it comes into action once the task is
completed. The performance standards are decided before the work is assigned to
the employees and once the work is complete the performance of employees is
compared with the standard performance, and if the performance of the employees
is same as that of the standard performance then no actions are required to be taken
but in case the performance doesn’t match then the manager is required to take the
corrective actions.
Therefore, it is not wrong to say that controlling is an end function.

3) Planning and controlling go hand in hand

It is not wrong to say that planning and controlling works together. A manager is
required to plan so that he can control the actions of employees in order to achieve
the desired outcome.
For example, if a sales manager makes a target to make the sales of 5 million in
one quarter with five salespersons working in his team, then he will give the target
of 1 million to every salesperson and will control their actions to achieve the
desired results.
Now you understand that without planning, controlling is meaningless, and without
controlling planning can’t go as desired.
4) Controlling is a pervasive function
Controlling is a pervasive function because it can’t be escaped at any
level of the management. All management is required to control at all
levels.
For example, a top-level manager will control the actions of a middle-
level manager and supervise the performance of the manager and
similarly, a low-level manager is answerable to a middle-level manager.
In this way, the controlling is done at all levels. However, there might
be a difference in the methods of control, and different corrective
actions are taken when the performance of the employee is not as
desired.

5) Controlling is looking forward

A manager can control the performance of an employee by controlling
the past actions. A manager keeps track of the performance of the
employee, so that follow up can be made when the time comes to
compare the performance.
Process of controlling
The process of controlling in management consists of four steps. All of
these steps are necessary to be followed in order to control effectively.

1) Formation of standards
The first step of the controlling process is the formation of standards. The
manager first prepares a report stating the standards expected from the
project given to employees.
The standards are not decided by randomly picking a figure, but it is
decided on the basis of the past performance of employees and
performance of last season and the condition of the market. Before
revealing the expected standards with employees and giving them the
target, the standards are approved from the senior management.
After getting the approval of the management, these standards are
discussed with the team members, and the target is given to each team
member. A preformed standard gives a common goal to employees to
work towards.
2) Measurement of actual performance
Once the task is completed, it is the job of the manager to
measure the performance of the employees. The manager
will analyze the performance of each employee and ask
them to submit their report of work.

3) Comparison of actual performance with the standard

performance
After the measurement of the actual report, a comparison is
made between the actual performance and the pre-decided
standard performance and the difference is calculated
between both the performances and a report is generated
after the analysis of the performance of all employees.
4) Taking corrective actions if required
After comparing the standard performance with the actual
performance of employees. The difference is calculated.
Then the performance of each employee is analyzed, and the
difference between the target given to them and the
percentage of target achieved by them is observed, and the
required actions are taken as per the policy of the company
and the past performance of the employee.
For example, no actions would be taken against the
employee whose performance has been good in the past few
months. Taking corrective actions is important; otherwise,
employees would start taking their job lightly, and there are
chances that you might lose business in the future.
Importance of controlling
1) Controlling Motivates Employees
Controlling doesn’t mean just giving orders to the employees.
It means that the manager guides his employees throughout the
process and provide help to them where they need.
He also makes sure that each employee is doing his work with
proper dedication and also scolds them if they are not putting
100% efforts.
In addition to this, when a target is given to employees, it gives
them a goal to work. The target motivates them to go to work
and work hard to achieve the target. A motivated employee
ends up performing much more than his actual capacity.
2) Controlling Makes the efficient use of resources
Controlling in management helps in the proper use of resources
available in the organization.
Under controlled environment, employees make the proper use of
resources and are careful while using them. With control, management
can make sure that the employees get maximum output out of the
available resources to them.

3) Controlling creates discipline in the organization

Another importance of controlling in management is the discipline in
the organization. Discipline is necessary to attain the goal in the
desired time and with available resources. People tend to become
careless if their actions are not controlled, and if they know that there is
nobody to questions them.
By controlling management not only control the actions of employees
but also makes sure that they do that maximum output can be obtained.
4) Controlling ensures coordination of action
In a large organization, there are hundreds of employees who
work together. Different work is going on different departments
at the same time. If there is no coordination between the
employees of the organization, then they might end up losing a
lot of resources which may cause loss to the organization then
causing profit.
Therefore, it is the role of the management to coordinate the
actions of employees who work in a different department, and
there is little communication between them.
Management acts as a common thread between them and
ensures that the actions of all the employees working in
different departments are directed towards one common
direction that is the direction towards achieving the common
goal of the organization.
5) Controlling helps in deciding the right judgment about the standards
Standards cannot be decided over a hunch. It is management that makes
sure that standards are decided with proper analyses of the performance of
past projects, the market condition, the available resources, and the
capacity of the organization.
This can all be possible if control the work in the organization, and with
their expertise and skills can make the right judgment of standards.

6) Controlling aids in the accomplishment of organizational goals

And last but not least important of controlling in management is the
accomplishment of a goal. The owner of the business or top management
has put their money in the business with the intentions to make more
money out of it.
Therefore, their primary goal in every project is to make more profit, and a
manager at a low level is answerable for the performance of his team’s
performance.
Therefore, a manager always controls the actions of people working on his
team by making the effective use of the process of controlling.
 Techniques of controlling
1. Personal observation –
Personal observation technique, being the most traditional
method of control, fetches first-hand and basic information
regarding the operation to the manager.
However, being the oldest form of managerial control techniques,
some pros and cons are added to it.
It creates a phenomenon atmosphere of psychological awareness
and pressure on the employees; as a result, they are well aware
that they are being watched by their superiors, leading to the
more efficient and fast working of the employees and the
subordinates. The workers work in a more efficient way when
they are aware of being watched by their superiors.
In this technique, the managers benefit from having a face-to-face
interaction with the subordinates next weather the managers know
the bids Off the operation and can also take immediate action
whenever there seems to be anything of wrong order happening
around.
Nonetheless, with all the benefits of personal and close observation,
some disadvantages are also linked to it.
Being a conventional process, it proves to be a very time and energy-
consuming process that will stop, moreover, and the observation may
sometimes be subject to biases.
Not every operation could be suitable for close observation by the
superior. Some sensitive and ultra-professional operations cannot be
done with any foreign interference.
Personal observation, being the most traditional method of control,
can also sometimes prove to be fatal as not everyone working with
due diligence would like to be observed or watched closely by their
superior.
2. Budgetary Control –
Budgetary control is also a traditional form of control. It can be defined as a quantitative
expression that offers a pre-planned list for a future perspective and can be defined as a
financial term.
A budget is a predetermined financial statement of management policy for a fixed
amount of time, providing a standard for the comparison.
Budgetary control is a very common and profusely used technique for managerial
control. It gives the enterprise of the financial standard to work upon.
It helps the company to run cost-efficient operations and also helps to keep a cheque on
the financial deviations.
The different kinds of budgets are listed as below –
Sales budget – the sales budget is an expression of the company’s plan for the sales of a
given period.
Purchase budget – states the amount of raw material to be purchased for an operation.
Cash budget- it enlists the payments and anticipated receipts for a given time.
Expense budget – it speaks about the estimated expenditure that the enterprise has made
a standard to work with.
Capital budget – represents the predetermined expenses on the plant, equipment,
machinery, etc.
Revenue budget – it represents the number of sales or profit to be received by marketing
the products.
3. Break-even Analysis –
Break-even analysis determines an overall picture of possible profits and losses at
distinct levels of operations.
Managers use this technique to analyze the relationship between profit, cost, and volume.
However, the identification of cost classification is not always possible in this type of
analysis. The volume where there is no profit or loss is made is often termed as a break-
even point.
Calculations for break-even point –
BEP = Fixed Costs/Selling price per unit – variable costs per unit.

4. Ratio Analysis –
The ratio analysis being the first financial tool to interpret and analyze financial
statements, is still used widely.
The ratio analysis is a tool that helps in analyzing the relationship between two or more
figures.
Essential examples of ratio analysis-
A. leverage ratio
B. Valuation ratio
C. Turnover ratio
D. Profitability ratio
5. Cost Control-
Cost control is a modern controlling technique, which has been widely used for a
reduction in business expenses to see an increase in profits.
The management compares the budgeted expectations with the financial
undertakings. If the cost expended becomes more than expected, then necessary steps
are taken to balance the same.
6. Statistical Analysis –
Analysis of the statistical report has been a traditional method of controlling. In
simple terms, it represents useful information such as productivity, effectiveness,
profits, losses on a tabular chart, graphical format.
7. Management Audit –
For analyzing the success or failure of an operation, there should be an overall
analysis of data report et cetera.
Since efficient management decides for the failure or success of an organization,
management audit becomes a crucial part of management control. Management audit
attempts a scientific evaluation and assessment of the quality of management.
8. Return On Investment (ROI) –
Return On Investment (ROI) is another modern technique for controlling. Being one
of the essential techniques return on investment provides the organization with a
figure to compare whether the invested capital is being used efficiently. It acts as a
mirror that reflects all the prospects of the company.
9. Network Techniques –
Network techniques, which is a modern technique of control,
have been in profuse use for controlling efficiently. In the
network techniques, the project is divided into small programs,
and each program is done in a technological sequence.
There are two types of network techniques-
PERT (Program Evaluation and Reviewed Techniques)
CPMC (Critical Path Method)
10. Management Information System –
The management information system provides the manager
with quantitative and qualitative information, which helps him
taking necessary actions. This technique aid supports and
controls the operational function of organizations with uniform
formation.
11. Internal Auditing –
Internal auditing aids the managers are with an independent procedure
to verify and evaluate the financial, accounting, and other functions.
Internal auditing helps enhanced organizational effectiveness and
individual efficiency; it says guards and maintains the enterprise’s
assets.
Conclusion –
One of the most crucial management functions is control. Controlling is
an all-pervasive process. To put it another way, managers at all levels of
management must employ control. It is something that every manager
at every level must do effectively. Controlling measures can often
improve the effectiveness of other management activities as well.
Setting predefined criteria, comparing actual performance to these
standards, and, if necessary, taking corrective steps to assure the
attainment of organizational goals is what management control entails.
A good control system may always help a company become more
efficient and effective.
 Types of control
Type # 1. Feed-Forward Controls:
Feed forward controls are future-directed — they attempt to detect and
anticipate problems or deviations from the standards in advance of their
occurrence (at various points throughout the processes). They are in-
process controls and are much more active, aggressive in nature, allowing
corrective action to be taken in advance of the problem.
Feed forward controls thus anticipate problems and permit action to be
taken before a problem actually arises.
Feed forward control devices are of two broad categories: diagnostic and
therapeutic.
Diagnostic controls seek to determine what deviation is taking (or has
taken) place. The sales manager, for instance, who receives the monthly
sales figures (showing sales quota results) is virtually working with a
diagnostic control device. It will no doubt indicate deviations from the
acceptable standard (i.e., what is wrong) but not why. Discovering the
‘why’ is often the most difficult part of the process.
Therapeutic controls tell us both what and why, and then proceed
to take corrective action. For example, engines having internal
control system such as an engine speed governor and automatic
transmission are designed to take necessary corrective actions
when warranted by the conditions.
An example of utilisation of such control can be found in case of a
manager who conducts employee training using the coaching
method. When, for instance, the trainee is performing the task, the
manager observes him closely by standing on his side. The
objective is to discover if any deviations from the intended
processes take place.
In case a deviation occurs, the manager observes it, diagnoses the
reason for the incorrect technique, and corrects the deviation
immediately (i.e., without any loss of time). Thus the control and
correction take place during the process itself, not after a few days.
Type # 2. Concurrent (Prevention) Control:
Concurrent control, also called steering control because it allows people
to act on a process or activity while it is proceeding, not after it is
proceeding, nor after it is completed. Corrections and adjustments can
be made as and when the need a rises. Such controls focus on
establishing conditions that will make it difficult or impossible for
deviations from norms to occur.
An example of concurrent control is the development by companies of
job descriptions and job specifications. It may be recalled that job
description identifies the job that has to be done, thus clarifying
working relationships, responsibility areas, and authority relationships.
It thus assists in preventing unnecessary duplication of effort (work)
and potential organisational conflict.
In a like manner job specification identifies the abilities, training,
education and characteristics needed of an employee to do the work. It
is control device inasmuch as it works to prevent a person who is totally
unqualified and unfit from being selected for the job, thereby saving
money and time, and thus precluding potential poor performance.
Type # 3. Feedback Controls:
Feedback control is future-oriented. It is historical in nature
and is also known as post-action control. The implication is
that the measured activity has already occurred, and it is
impossible to go back and correct performance to bring it up
to standard. Rather, corrections must occur after the act.
Such post-action controls focus on the end results of the
process. The information derived is not utilised for
corrective action on a project because it has already been
completed. Such control provides information for a manager
to examine and apply to future activities which are similar to
the present one. The basic objective is to help prevent
mistakes in the future.
For example, at the end of an accounting year, the manager
should carefully review the analysis of the budget control
report.
The report will suggest clear-cut answers to the following
questions:
(1) What accounts were overdrawn?
(2) Why?
(3) Were there any accounts with a surplus?
(4) Why?
(5) Could unutilized funds have been allocated to other
accounts?
(6) Were all priorities met by the budget?
However, at the end of the financial year it is not possible
for the manager to modify budget expenditures or allocation
for the past year. But this type of information can be
fruitfully utilised to develop more realistic (fruitful) plans
for the next financial year.