No organization can be completely centralized or decentralized. Compensation should be based on a systematic attempt to reward good performance.
While dealing with the employees a manager should use kindliness and justice towards employees equally. There must be an orderly placement of the resources such as Men and Women, Money, Materials, etc. Human and material resources must be in the right place at the right time. A place for everything and everything in its place’ the right man in the right place.
When the organisation is staffed with persons to perform a part of the total workload, a well-defined authority-responsibility relationship comes into being. Authority percolates from the highest to the lowest level and responsibility moves up from the lowest to the highest level.
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If an organization wants efficient employees and best performance, then it should have a good remuneration policy. Supervision, motivation, leadership and communication are the sub-functions of directing. Influencing, guiding and motivating the subordinates for the achievement of organisational objectives. Directing is also a coordinating activity in as much as it tries to harmonize the personal aspirations of the staff with the organisational goals.
Co-operation is essential for the achievement of co-ordination but it is not a substitute for co-ordination. However, both co-operation and co-ordination are essential in management. Co-ordination can be classified under two categories – vertical and horizontal co-ordination, and internal and external co-ordination. Co-ordination is internal when it is between different sections of the same concern and external when it is required with persons outside the organisation. Though supervision is performed at all levels of management, the major responsibility for supervision lies with the first line of management.
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In controlling, those areas come to the surface where greater coordination is needed. In short, a business organisation is a man-made system designed to combine a complex of men, materials, machines and other resources into an efficient, effective and viable business enterprise.
It is this authority-responsibility relationship which facilitates the accomplishment of predetermined goals. These plans are further subdivided into more detailed and more specific plans called activity plans. Business planning can be defined as an integrated activity which seeks to optimise the total effectiveness of an enterprise as a system to achieve its purpose. To achieve efficiency of operations and effectiveness of results, organising divides the entire business into manageable departments or work units.
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There should be an Order for material/things and people in the organization. More clear-cut the chain of command, the more effective the decision-making process and the greater the efficiency. However, in decentralization, the authority is distributed to all the levels of management.
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The departments work under organisational hierarchy, with established authority, responsibility and reporting relationships. free movie player Example – Every business has to decide about the product it would deal in, the markets it would focus, whether it would produce or trade etc. all these decisions are part of PLANNING.