NOTES - 1

(1. NATURE AND SIGNIFICANCE OF MANAGEMENT)

MEANING OF MANAGEMENT
“Management is the process of designing and maintaining an environment in which
individuals, working together in groups, efficiently accomplish selected aims.”

NATURE AND CHARACTERISTICS OF MANAGEMENT

1. Management is Goal-oriented
It is a means to achieve certain economic and social goals. Management goals are called
group goals or organisational goals. The basic goal of management is to ensure efficiency
and economy utilisation of human, physical and financial resources. The success of
management is measured by the extent to which the established goals are achieved. Thus
management is a purposeful activity.
2. Management is all pervasive
The activities involved in managing an enterprise are common to all organisations whether
economic, social or political. A petrol pump needs to be managed as much as a hospital or a
school.
3. Management is Multi-disciplinary
Management is a complex activity that has three main dimensions. These are:
a) Management of work: All organisations exist for the performance of some work. In a
factory, a product is manufactured, in a garment store a customer’s need is satisfied and
in a hospital a patient is treated. Management translates this work in terms of goals to be
achieved and assigns the means to achieve it.
b) Management of people: Human resources or people are an organisation’s greatest asset.
Despite all developments in technology “getting work done through people” is still a
major task for the manager. Managing people has two dimensions
i) it implies dealing with employees as individuals with diverse needs and behaviour
ii) it also means dealing with individuals as a group of people.
The task of management is to make people work towarrds achieving the organisation’s
goals, by making their strengths effective and their weaknesses irrelevant.
c) Management of operations: No matter what the organisation, it has some basic product
or service to provide in order to survive. This requires a production process which entails
the flow of input material and the technology for transforming this input into the desired
output for consumption. This is interlinked with both the management of work and the
management of people.
4. Management is a Continuity Activity
The process of management is a series of continuous, composite, but separate functions
(planning, organising, directing, staffing and controlling). These functions are simultaneously
performed by all managers all the time.
Management is an ongoing activity. Management goes on without breaks or gaps.
Management continues so long as an organisation exists to achieve certain objectives.
5. Management is a Group Activity
Management is concerned with group efforts because its creates effective cooperation among
people working together in a group. Management cannot be thought of, and does not exist,
independent of the organisation it serves.
6. Management is a dynamic function
Management is a dynamic function and has to adapt itself to the changing environment. An
organisation interacts with its external environment which consists of various social,
economic and political factors.
7. Management is Intangible
Management is an unseen force. Its functioning is not visible but its results are apparent.
People judge the effectiveness of management on the basis of the end results although they
cannot observe it during operation. However, the people who manage an organisation are
tangible and visible.
OBJECTIVES OF MANAGEMENT
SOCIAL OBJECTIVES
Every organisation is a part of the society. Thus it has certain social obligation to fulfill. The
main social objectives are:
1. Using environmental friendly methods of production.
2. Giving employment opportunities to the disadvantaged sections of the society.
3. Providing basic facilities to the employees like school and creches for their children,
medical facilities etc.
4. Providing quality goods and services at reasonable prices.
5. Providing financial support to society by donating for noble causes.
6. Organizing educational, health and vocational training programmes.
7. Participating is social service projects of Governmnent and non-Government Organisations
(NGOs).
PERSONAL OBJECTIVES
Personal objectives refer to the objectives which are related to the employees of an organisation.
Different people with different values, experiences and objectives become part of the
organisation to satisfy their different needs. These needs includes:
1. Financial needs like salaries, perks and other monetary benefits.
2. Social needs like recognition in the organisation
3. Higher Level needs which include personal growth and development.
-----------------------------------
IMPORTANCE OF MANAGEMENT
1. Management helps in achieving group goals
Management is required not for itself but for achieving the goals of the organisation. The task
of a manager is to give a common direction to the individual effort in achieving the overall
goal of the organisation.
2. Management increases efficiency
The aim of a manager is to reduce costs and increase productivity through better planning,
organising, directing, staffing and controlling the activities of the organisation.
3. Management creates a dynamic organisation
All organisations have to function in an environment which is constantly changing. It is
generally seen that individuals in an organisation resist change as it often means moving
from a familiar, secure environment into a newer and more challenging one. Management
helps people adapt to these changes so that the organisation is able to maintain its
competitive edge.
4. Management helps in achieving personal objectives
A manager motivates and leads his team in such a manner that individual members are able
to achieve personal goals while contributing to the overall organisational objective. Through
motivation and leadership the management helps individuals to develop team spirit,
cooperation and commitment to group success.
5. Management helps in the development of society
An organisation has multiple objectives to serve the purpose of the different groups that
constitute it. In the process of fulfilling all these, management helps in the development of
society. It helps to provide good quality products and services, creates employment
opportunities, adopts new technology for the greater good of the people and leads the path
towards growth and development.
--------------------------
MANAGEMENT AS A SCIENCE
7. Management is Intangible
Management is an unseen force. Its functioning is not visible but its results are apparent.
People judge the effectiveness of management on the basis of the end results although they
cannot observe it during operation. However, the people who manage an organisation are
tangible and visible.
OBJECTIVES OF MANAGEMENT
SOCIAL OBJECTIVES
Every organisation is a part of the society. Thus it has certain social obligation to fulfill. The
main social objectives are:
1. Using environmental friendly methods of production.
2. Giving employment opportunities to the disadvantaged sections of the society.
3. Providing basic facilities to the employees like school and creches for their children,
medical facilities etc.
4. Providing quality goods and services at reasonable prices.
5. Providing financial support to society by donating for noble causes.
6. Organizing educational, health and vocational training programmes.
7. Participating is social service projects of Governmnent and non-Government Organisations
(NGOs).
PERSONAL OBJECTIVES
Personal objectives refer to the objectives which are related to the employees of an organisation.
Different people with different values, experiences and objectives become part of the
organisation to satisfy their different needs. These needs includes:
1. Financial needs like salaries, perks and other monetary benefits.
2. Social needs like recognition in the organisation
3. Higher Level needs which include personal growth and development.
-----------------------------------
IMPORTANCE OF MANAGEMENT
1. Management helps in achieving group goals
Management is required not for itself but for achieving the goals of the organisation. The task
of a manager is to give a common direction to the individual effort in achieving the overall
goal of the organisation.
2. Management increases efficiency
The aim of a manager is to reduce costs and increase productivity through better planning,
organising, directing, staffing and controlling the activities of the organisation.
3. Management creates a dynamic organisation
All organisations have to function in an environment which is constantly changing. It is
generally seen that individuals in an organisation resist change as it often means moving
from a familiar, secure environment into a newer and more challenging one. Management
helps people adapt to these changes so that the organisation is able to maintain its
competitive edge.
4. Management helps in achieving personal objectives
A manager motivates and leads his team in such a manner that individual members are able
to achieve personal goals while contributing to the overall organisational objective. Through
motivation and leadership the management helps individuals to develop team spirit,
cooperation and commitment to group success.
5. Management helps in the development of society
An organisation has multiple objectives to serve the purpose of the different groups that
constitute it. In the process of fulfilling all these, management helps in the development of
society. It helps to provide good quality products and services, creates employment
opportunities, adopts new technology for the greater good of the people and leads the path
towards growth and development.
--------------------------
MANAGEMENT AS A SCIENCE
Science is a systematic body of knowledge pertaining to a specific field of study. It contains
general principles and facts which explain a phenomenon. These principles establish cause-
and-effect relationship between two or more factors.
Thus, the essential features of science are as follows:
1. Systematised Body of Knowledge
 Science is systematised in the sense that it consists of principles and theories. Scientific
knowledge can explain past events and may be used to predict the outcome of future events.
2. Principles Based on Experiments
Principles of science are evolved through observations. The truth and validity of these
principles are tested through experiments. An observation is treated as a principle only after
it is verified by repeated experimentation. They are critically tested. For example, the
principle that the earth revolves around the sun has been scientifically proved.
3. Universal Validity of Principles
Principles of science represents basic truths. They can be applied in different places and at
different points of time. For example, the law of gravitation is applicable in all countries and
in all years. It is as applicable to a football as it is to an apple falling from a tree.
Now, we can say that management has some characteristics of science.
i. Management has a systematised body of knowledge. It has its own theory and principles
that have developed over a period of time, but it also draws on other disciplines such as
Economics, Sociology, psychology and Mathematics. Like all other organised activity,
management has its own vocabulary of terms and concept.
ii. The principles of management have evolved over a period of time based on repeated
experimentation and observation in different types of organizations. However, since
management deals with human beings and human behaviour, the outcomes of these
experiments are not capable of being accurately predicted or replicated. Therefore,
management can be called an inexact science.
iii. Since the principles of management are not as exact as the principles of science, their
application and use is not universal. They have to be modified according to a given
situation. However, they provide managers with certain standardised techniques that can
be used in different situations. These principles are also used for training and
development of managers.
Thus, management is undoubtedly a science. It contains a systematic body of knowledge in
the form of general principles which enjoy universal applicability. However, management is not
as exact a science as Physics, Chemistry, Biology and other physical sciences. This is because
management deals with people and it is very difficult to predict accurately the behaviour of
living human beings. Management is a behavioural science. Management principles are universal
but they cannot be expected to give exactly the same results in every situation. Principles of
management are flexible and can be applied in different situations with modifications. That is
why management is known as a soft science. Management is a social science. It is an exact
science. Moreover, management is relatively a new field of knowledge and its principles are still
being evolved. Management as a science has provided a systematised body of knowledge which
can be learnt through education, training and experience.

MANAGEMENT AS AN ART
Art signifies the application of knowledge and personal skills to bring about desired results. It
is based on scientific knowledge and principles. If a science is learnt and art is practiced. Thus
the art has following characteristics satisfied by the management.
1. Existence of theoretical knowledge.
Art presupposes the existence of certain theoretical knowledge. Experts in their respective
areas have derived certain basic principles which are applicable to a particular form of art.
For example, literature on dancing, public speaking, acting or music is widely recognised.
2. Personalised application.
7. Management is Intangible
Management is an unseen force. Its functioning is not visible but its results are apparent.
People judge the effectiveness of management on the basis of the end results although they
cannot observe it during operation. However, the people who manage an organisation are
tangible and visible.
OBJECTIVES OF MANAGEMENT
SOCIAL OBJECTIVES
Every organisation is a part of the society. Thus it has certain social obligation to fulfill. The
main social objectives are:
1. Using environmental friendly methods of production.
2. Giving employment opportunities to the disadvantaged sections of the society.
3. Providing basic facilities to the employees like school and creches for their children,
medical facilities etc.
4. Providing quality goods and services at reasonable prices.
5. Providing financial support to society by donating for noble causes.
6. Organizing educational, health and vocational training programmes.
7. Participating is social service projects of Governmnent and non-Government Organisations
(NGOs).
PERSONAL OBJECTIVES
Personal objectives refer to the objectives which are related to the employees of an organisation.
Different people with different values, experiences and objectives become part of the
organisation to satisfy their different needs. These needs includes:
1. Financial needs like salaries, perks and other monetary benefits.
2. Social needs like recognition in the organisation
3. Higher Level needs which include personal growth and development.
-----------------------------------
IMPORTANCE OF MANAGEMENT
1. Management helps in achieving group goals
Management is required not for itself but for achieving the goals of the organisation. The task
of a manager is to give a common direction to the individual effort in achieving the overall
goal of the organisation.
2. Management increases efficiency
The aim of a manager is to reduce costs and increase productivity through better planning,
organising, directing, staffing and controlling the activities of the organisation.
3. Management creates a dynamic organisation
All organisations have to function in an environment which is constantly changing. It is
generally seen that individuals in an organisation resist change as it often means moving
from a familiar, secure environment into a newer and more challenging one. Management
helps people adapt to these changes so that the organisation is able to maintain its
competitive edge.
4. Management helps in achieving personal objectives
A manager motivates and leads his team in such a manner that individual members are able
to achieve personal goals while contributing to the overall organisational objective. Through
motivation and leadership the management helps individuals to develop team spirit,
cooperation and commitment to group success.
5. Management helps in the development of society
An organisation has multiple objectives to serve the purpose of the different groups that
constitute it. In the process of fulfilling all these, management helps in the development of
society. It helps to provide good quality products and services, creates employment
opportunities, adopts new technology for the greater good of the people and leads the path
towards growth and development.
--------------------------
MANAGEMENT AS A SCIENCE
Science is a systematic body of knowledge pertaining to a specific field of study. It contains
general principles and facts which explain a phenomenon. These principles establish cause-
and-effect relationship between two or more factors.
Thus, the essential features of science are as follows:
1. Systematised Body of Knowledge
Science is systematised in the sense that it consists of principles and theories. Scientific
knowledge can explain past events and may be used to predict the outcome of future events.
2. Principles Based on Experiments
Principles of science are evolved through observations. The truth and validity of these
principles are tested through experiments. An observation is treated as a principle only after
it is verified by repeated experimentation. They are critically tested. For example, the
principle that the earth revolves around the sun has been scientifically proved.
3. Universal Validity of Principles
Principles of science represents basic truths. They can be applied in different places and at
different points of time. For example, the law of gravitation is applicable in all countries and
in all years. It is as applicable to a football as it is to an apple falling from a tree.
Now, we can say that management has some characteristics of science.
i. Management has a systematised body of knowledge. It has its own theory and principles
that have developed over a period of time, but it also draws on other disciplines such as
Economics, Sociology, psychology and Mathematics. Like all other organised activity,
management has its own vocabulary of terms and concept.
 ii. The principles of management have evolved over a period of time based on repeated
experimentation and observation in different types of organizations. However, since
management deals with human beings and human behaviour, the outcomes of these
experiments are not capable of being accurately predicted or replicated. Therefore,
management can be called an inexact science.
iii. Since the principles of management are not as exact as the principles of science, their
application and use is not universal. They have to be modified according to a given
situation. However, they provide managers with certain standardised techniques that can
be used in different situations. These principles are also used for training and
development of managers.
Thus, management is undoubtedly a science. It contains a systematic body of knowledge in
the form of general principles which enjoy universal applicability. However, management is not
as exact a science as Physics, Chemistry, Biology and other physical sciences. This is because
management deals with people and it is very difficult to predict accurately the behaviour of
living human beings. Management is a behavioural science. Management principles are universal
but they cannot be expected to give exactly the same results in every situation. Principles of
management are flexible and can be applied in different situations with modifications. That is
why management is known as a soft science. Management is a social science. It is an exact
science. Moreover, management is relatively a new field of knowledge and its principles are still
being evolved. Management as a science has provided a systematised body of knowledge which
can be learnt through education, training and experience.

MANAGEMENT AS AN ART
Art signifies the application of knowledge and personal skills to bring about desired results. It
is based on scientific knowledge and principles. If a science is learnt and art is practiced. Thus
the art has following characteristics satisfied by the management.
1. Existence of theoretical knowledge.
Art presupposes the existence of certain theoretical knowledge. Experts in their respective
areas have derived certain basic principles which are applicable to a particular form of art.
For example, literature on dancing, public speaking, acting or music is widely recognised.
2. Personalised application.
The use of this basic knowledge varies from individual to individual Art, therefore, is a very
personalised concept. For example, two dancers, two speakers, two actors or two writers will
always differ in demonstrating their art.
3. Based on practice and creativity.
All art is practical. Art involves the creative practice of existing theoretical knowledge. We
know that all music is based on seven basic notes. However, what makes the composition of
a musician unique or different or different is his use of these notes in a creative manner that
is entirely his own interpretation.
Management can be said to be an art since it satisfies the following criteria.
i. A successful manager practices the art of management in the day-to-day job of managing
an enterprise based on study, observation and experience. There is a lot of literature
 available in various areas of management like marketing, finance and human resources
which the manager has to specialise in. There is existence of theoretical knowledge.
ii. There are various theories of management, as propounded by many management
thinkers, which prescribe certain universal principles. A manager applies these scientific
methods and body of knowledge to a given situation, an issue or a problem, in his own
unique manner. A good manager works through a combination of practice, creativity,
imagination. A manager achieves perfection after long practice. Students of management
also apply these principles differently depending on how creative they are.
iii. A manager applies this acquired knowledge in a personalized and skillful manner in the
light of the realities of a given situation. He is involved in the activities of the
organization, studies critical situations and formulates his own theories for use in a given
situation. This gives rise to different styles of management.
MANAGEMENT IS BOTH SCIENCE AND ART
It is considered as science because it has an organised body of knowledge which contains
certain universal truths. It is called an art because managing requires application of certain
skills which are the personal possession of the manager. Science provides knowledge about
certain things and art deals with the application of knowledge and skills. A manager to be
successful must acquire the knowledge of science of management and learn to apply this
knowledge. A manager should be an applied scientist. He should possess not only specialised
knowledge of management but also the skills to put his knowledge into practice. Just as a doctor
uses his knowledge to treat his patients, a manager should use his knowledge to solve the
organisational problems.
Management is as old as the civilization but its emergence as a scientific field of enquiry is
comparatively new. It has been remarked as management is the oldest of art but the youngest of
science.
MANAGEMENT AS A PROFESSION
Profession is a well-defined body and knowledge which is learned intellectually and
organisationally.
Entry is restricted by the examination and its objective is to serve the society. The basic
requirements of profession are:
A profession has the following characteristics:
1. Well-defined body of knowledge: All professions are based on a well-defined body of
knowledge that can be acquired through instruction.
2. Restricted entry: The entry to a profession is restricted through an examination or
through acquiring an educational degree. For example, to become a chartered accountant in
India a candidate has to clear a specified examination conducted by the Institute of Chartered
Accountants of India.
3. Professional association: All professions are affiliated to a professional association
which regulates entry, grants certificate of practice and formulates and enforces a code of
conduct. To be able to practice in India lawyers have to become members of the Bar Council
which regulates and controls their activities,
4. Ethical code of conduct: All professions are bound by a code of conduct which guides
the behaviour of its members. All doctors, for example, take the oath of ethical practice at
their time they enter the profession.
5. Service motive: The basic motive of a profession is to serve their client’s interests by
rendering dedicated and committed service. The task of a lawyer is to ensure, that his client
gets justice.
Management does not meet the exact criteria of a profession. However, it does have some of
the features of aprofession:
i) All over the world there is marked growth in management as a discipline. It is based on a
systematic body of knowledge comprising well-defined principles based on a variety of
business situations. This knowledge can be acquired at different colleges and professional
institutes and through a number of books and journals. Entry to different institutes is
usually through an examination.
ii) There is no restriction on anyone being designated or appointed as manager in any
business enterprise. Anyone can be called a manager irrespective of the educational
qualifications possessed. Unlike professions such as medicine or law which require a
practicing doctor or lawyer to possess valid degrees, nowhere in the world is it mandatory
for a manager to possess any such specific degree. But professional knowledge and
training is considered to be a desirable qualification, since there is greater demand for
those who possess degrees or diplomas from reputed institutions. Therefore, as such the
second criterion has not been strictly met.
iii) There are several associations of practising managers in India, like the AIMA (All India
Management Association) that has laid down a code of conduct to regulate the activities
of their members. There is, however, no compulsion for managers to be members of
such an association nor does it have any statutory backing.
iv) The basic purpose of management is to help the organization achieve its stated goal. This
may be profit maximization for a business enterprise and service for a hospital.
However, profit maximization as the objective of management does not hold true and is
fast changing. Therefore, if an organization has a good management team that is efficient
and effective it automatically serves society by providing good quality products at
reasonable prices.
LEVELS OF MANAGEMENT
A. TOP MANAGEMENT
Top Management consists of managers at the highest level in the management hierarchy.
Their job is complex and quite stressful demanding complete dedication and commitment to
organisation. Top level managers are responsible for welfare and survival of the organisation.
• Chairman, • Managing Director
• Board of Directors • Chief Executive Officer (CEO)
• Chief Operating Officer • Chief Financial Officer (CFO)
• President • Vice-President
• General Manager
Main Functions of Top Management
Top management performs the following functions:
1. Develop Long Term Objectives
Top level managers develop the long term objectives like expansion of business, manpower
planning etc.
2. Framing of Policies
They lay down guidelines for departmental heads, i.e. policies relating to production,
marketing, personnel, finance, public relations etc.
3. Organising
Top management organizes the business into various sections and departments to achieve the
desired organizational objectives.
4. Key Appointments
Top level authorities appoint the departmental heads and some other key persons to develop
the organizational structure for profitable growth of the enterprise.
5. Controlling
Top level managers periodically review the work of executives at different levels to ensure
that their performance is as per predetermined plans.

B. MIDDLE MANAGEMENT
Middle Management acts as a link between Top Management and the Supervisory
Management. They are mainly known as Division Head viz. Factory Manager, Plant
Superintendent etc. They are responsible for implementing and controlling plans and
strategies formulated by top management. They receive orders and instructions from top
managers and get work done through lower managers. It also consists of the heads of various
departments like:
• Finance Manager • Production Manager
• Marketing Manager • Sales Manager etc.
• Human Resource Manager • Operations Manager • Plant Superintendent

Functions of Middle Management

1. Departmental Objectives
It formulates short-term departmental objectives in accordance with the organisational
objectives. It interprets departmental policies framed by top management and then transmits
the policy decisions to the operational levels.
2. Assignment of Duties
It assigns duties and responsibilities to operative and supervisory personnel for the execution
of their departmental plans.
3. Link
It acts as a linking channel between the top level management and operational levels.
4. Communication
It communicates orders/decisions downwards and carries the problems/ suggestions upwards.
5. Coordination
It develops an effective support system of coordination with other departments.

C. SUPERVISORY OR OPERATIONAL MANAGEMENT

Bottom level of management is considered as operative management. They are first line
managers who oversee the efforts of the work force and actually carry out the operational
work in an organisation. For example:
• Supervisors • Foremen • Inspectors
A lower level manager, being one who actually operates the schedule of actions desired from
staff, has following major functions to perform.

Main Function of Supervisory or Operational Management

1. Link between Middle Management and Workforce
To act as a link between workers and the middle management. They pass on the instructions
of the middle management to the workers and the workers, suggestions, complains etc. to the
middle management.
2. Maintenance of Quality
To maintain the quality of output in the organisation.
3. Act as guide to the Workers
To minimize the wastage of materials by providing sufficient guidance and direction to the
workers.
4. Act as Supervisors
To supervise the work of the workers.
5. Discipline
To maintain discipline among the workers.
6. Safety
To adopt sufficient safety measures.
7. Training
To arrange for training at workplace.

CLASSIFICATION OF MANAGEMENT FUNCTIONS:

(a) Planning, (b) Organising, (c) Staffing, (d) Directing, (e) Controlling.
These functions are so intertwined that in actual practice, it is not possible to separate them
from one another. These interrelated functions collectively constitute the integrated process of
management. These are performed continuously by all managers.
EXPLANATION OF MANAGEMENT FUNCTIONS
1. Planning
Planning involves deciding in advance what to do, when to do it, where to do it, how it do it
and who is to do it. It implies determination of the objectives to be achieved and selecting the
 right course of action to achieve the desired objectives. Planning is an intellectual or mental
exercise requiring imagination and judgement. It is a rational or logical process involving
systematic thinking. Planning is a continuous process. It is performed at all levels of
management and in every organisation. Planning enables us to do things in an orderly
manner by reducing haphazard action and disorder. It increases economy and efficiency by
minimising random action.
2. Organising
After deciding the objectives and the ways and means of achieving them, the next step is to
bring together manpower and material resources required for carrying out the plans. “To
organise a business means to provide it with everything useful to its functioning - raw
materials, tools, capital and personnel.” Organisation structure (the network of authority-
responsibility relationships) serves as the framework through which management coordinates
individual efforts.
3. Staffing
Staffing is the function of manning, and also keeping manned, the positions created in the
organisation structure. It is concerned with human resources. Its aim is to fit individuals and
jobs, i.e. the right man for the right job. Staffing has become an important function due to
increasing size of business, rapid advancements in technology and growing competition. It is
a difficult function because the behaviour of human beings is complicated. Staffing is a
pervasive function because every manager is continuously engaged in performing the
function of staffing.
4. Directing
A manager may plan and organise, but no tangible results can be achieved until the plan is
implemented. This is done by directing, which literally means moving into action. Directing
is that part of the management process which actuates the organisation members to work
efficiently and effectively for the attainment of the desired objectives.
5. Controlling
Controlling means the process of ensuring that activities of subordinates and use of resources
are in confirmity with the predetermined objectives and targets. It involves observing what is
being done, how well it is being done, to what extent it is deviating from the desired results
and taking correcting measures. Control is concerned with measuring and comparing
operating results with the plans and taking corrective action when result deviate from plans.
MEANING OF COORDINATES
Meaning coordination as a function of management refers to the task of integrating the activities
of separate units of an organisation to accomplish the organisational goals efficiently. The
objective of coordination is to ensure that the goals of units and sub-units are pursued in
harmony with each other keeping in view the goals of the organisation as a whole.

Definition of Coordination
Coordination is the process whereby an executive develops an orderly pattern of group
efforts among his subordinates and secures unity of action in the pursuit of common purpose.
Nature of coordination
1.Coordination integrates group efforts
Coordination unifies unrelated or diverse interests into purposeful work activity. It gives a
common focus to group effort to ensure that performance is as it was planned and scheduled.
2. Coordination ensures unity of action
The purpose of coordination is to secure unity of action in the realisation of a common
purpose. It acts as the binding force between departments and ensures that all action is aimed
at achieving the goals of the organisation.
3. Coordination is a continuous process
Coordination is not a one-time function but a continuous process. It begins at the planning
stage and continuous till controlling.
4. Coordination is an all pervasive function
Coordination is required at all levels of management due to the interdependent nature of
activities of various departments. It integrates the efforts of different departments and
different levels.
5. Coordination is the responsibility of all managers
Coordination is the function of every manager in the organisation. Top level managers need
to coordinate with their subordinates to ensure that the overall policies for the organisation
are duly carried out. Middle level management coordinates with both the top level and first
line managers. Operational level management coordinates the activities of its workers to
ensure that work proceeds according to plans.
6. Coordinate is a deliberate function
A manager has to coordinate the efforts of different people in a conscious and deliberate
manner. Even where members of a department willingly cooperate and work, coordination
gives a direction to that willing spirit. Cooperation may lead to wasted effort and
coordination without cooperation may lead to dissatisfaction among employees.

Importance:-
1. Growth in size
As organisations grow in size, the number of people employed by the organisation also
increases. At times, it may become difficult to integrate their efforts and activities. All
individuals differ in their habits of work, background, approaches to situations and
relationships with others. It becomes necessary to ensure that all individuals work towards
the common goals of the organisations.
2. Functional differentiation
Functions of an organisation are divided into departments, divisions and sections. In an
organisation there may be separate departments of finance production, marketing or human
resources. All these departments may have their own objectives, policies and their own style
of working. For example, the marketing department objective may be to increase sales by 10
percent by offering discounts. But, the finance department may not approve of such discounts
as it means loss of revenue. These kinds of conflict arise in organisations because each
 unit/department is performing activities in isolation from others and barriers between
departments and becoming more rigid.
3.Modern organisations are characterised by a high degree of specialisation. Specialisation arises
out of the complexities of modern technology and the diversity of tasks to be performed.

Conclusion: Therefore cooperation without coordination has no fruit and coordination without
cooperation has no roots. For Ex:-If four persons purchasing a car out of mud have a strong will
to cooperate with each other in the task, but they may not succeed in their attempt unless they act
in a coordinated way.