Co-ordination as a Management Function

Definition

Co-ordination is the unification, integration, synchronization of the efforts of group members so

as to provide unity of action in the pursuit of common goals. It is a hidden force which binds all

the other functions of management. According to Mooney and Reelay, “Co-ordination is orderly

arrangement of group efforts to provide unity of action in the pursuit of common goals”.

According to Charles Worth, “Co-ordination is the integration of several parts into an orderly

hole to achieve the purpose of understanding”.

Management seeks to achieve co-ordination through its basic functions of planning, organizing,

staffing, directing and controlling. That is why, co-ordination is not a separate function of

management because achieving of harmony between individuals efforts towards achievement of

group goals is a key to success of management. Co-ordination is the essence of management and

is implicit and inherent in all functions of management.

In the organisation, there are many individuals, groups and departments. They perform many different activities. Co-ordination means to integrate (i.e. bring together) these activities for achieving the objectives of the organisation. "Co-ordination means integration of activities."

Coordination is done to achieve the objectives of the organisation. Co-ordination is a process. It is not fixed. It applies to group activities. It does not apply to individual activities. The managers have to make special efforts to get coordination. Coordination does not come automatically. Co-ordination leads to unity of action.

A manager can be compared to an orchestra conductor since both of them have to create rhythm

and unity in the activities of group members. Co-ordination is an integral element or ingredient

of all the managerial functions as discussed below: -

a. Co-ordination through Planning - Planning facilitates co-ordination by integrating the

various plans through mutual discussion, exchange of ideas. e.g. - co-ordination between

finance budget and purchases budget.

b. Co-ordination through Organizing - Mooney considers co-ordination as the very

essence of organizing. In fact when a manager groups and assigns various activities to

subordinates, and when he creates department’s co-ordination uppermost in his mind.

c. Co-ordination through Staffing - A manager should bear in mind that the right no. of

personnel in various positions with right type of education and skills are taken which will

ensure right men on the right job.

d. Co-ordination through Directing - The purpose of giving orders, instructions &

guidance to the subordinates is served only when there is a harmony between superiors &

subordinates.

e. Co-ordination through Controlling - Manager ensures that there should be co-

ordination between actual performance & standard performance to achieve organizational

goals.

Coordination encourages team spirit. It gives proper direction to the organisation. It motivates the employees. It makes proper use of the resources. Coordination affects all the functions of management. Therefore, it is also called the "Essence of Management". It is required in each & every function and at each & every stage & therefore it cannot be separated.

Follett's Four Principles of Coordination

Mary Parker Follett gave four main Principles of Coordination. These four principles of co-ordination are called are Follett's Principles of Coordination. These four principles must be followed to make co-ordination effective.

Mary P. Follett's four main principles of coordination are discussed below :-

1. Principle of Early Stage

According to this principle, coordination must start at an early stage in the management process. It must start during the planning stage. This will result in making the best plans and implementing these plans with success. If coordination is started early only then all the management functions will be performed successfully. Thus by initiating proper coordination the organisation will achieve all its objectives easily and quickly.

2. Principle of Continuity

According to this principle, coordination must be a continuous process. It must not be a one-time activity. The process of coordination must begin when the organisation starts, and it must continue until the organisation exists. Coordination must be done continuously during the management process. It must be done during planning, organising, directing and controlling.

3. Principle of Direct Contact

According to this principle, all managers must have a Direct Contact with their subordinates. This will result in good relations between the manager and their subordinates. This is because direct contact helps to avoid misunderstandings, misinterpretations and disputes between managers and subordinates. It enables the managers to coordinate all the different activities of their subordinates effectively and efficiently.

4. Principle of Reciprocal Relations

The decisions and actions of all the people (i.e of all managers and employees) and departments of the organisation are inter-related. So, the decisions and actions of one person or department will affect all other persons and departments in the organisation. Therefore, before taking any decision or action all managers must first find out the effect of that decision or action on other persons and departments in the organisation. This is called the Principle of Reciprocal Relations. Co-ordination will be successful only if this principle is followed properly.

Additional Principles of Coordination

After Mary Parker Follett, modern management experts have extended her list by adding four additional principles of coordination. These additional or supplementary principles of coordination are explained as follows :-

5. Principle of Effective Communication

Co-ordination will be successful only in the presence of an effective communication. Good communication must be present between all departments, within employees themselves and even between managers and their subordinates. All communication barriers and gaps must be avoided and fixed. Good communication helps to avoid misunderstandings in the organisation. This overall helps in coordination.

6. Principle of Mutual Respect

Coordination will be successful only if there exist a mutual respect throughout the organisation. All managers working at different levels (top, middle or lower) must respect each other. Similarly, all employees must show a friendly attitude and should respect each other during interactions. There must also exist a feeling of brotherly hood among managers and employees. The managers must respect the feelings and emotions of the employees. On the other hand, employees too must understand and acknowledge their bosses. Without mutual respect, coordination may not survive, and it will eventually fail.

7. Principle of Clarity of Objectives

Co-ordination will be successful only if the organisation has set its clear objectives. Everyone in the organisation must know the objectives very clearly. No one must have any doubts about the objectives of the organisation. Clear objectives can be achieved easily and quickly.

8. Principle of Scalar Chain

Scalar Chain is a line of authority. This line joins all the members (managers and employees) from top to bottom. Every member must know who is his superior. He must also know who is his subordinate. Scalar Chain is necessary for good communication. Scalar Chain must not be broken in norm circumstances. However, if quick action is necessary, then this chain can be broken. This is done using "Gang Plank" / "Bridge" / "Direct Contact".

Scalar Chain is shown in diagram below with Gang plank as dotted line FP.

The Scalar Chain is shown by a double ladder A to G and A to Q. A is the head of the organisation. B and L are the next level, and so on. If quick action is necessary, then a "Gang Plank" "FP" is made. Now F and P can contact each other directly but they should inform E and O about their decisions.

Why Co-ordination is Necessary?

According to management experts, co-ordination is necessary because :-

1. "Co-ordination is the Essence of Management." i.e. co-ordination effects all the functions

of management, viz., Planning, Organising, Staffing, etc.

2. Co-ordination is a function of management.

3. Co-ordination is a principle of management, and all other principles are included in this

one principle, i.e. co-ordination is the "Mother Principle".

4. According to Mary Parker Follett, Co-ordination is the "Plus value of the group". That is,

if there is good Co-ordination then the combined group achievement will be greater than the

total of the individual achievement, i.e. 2+2=5. This is impossible in the physical world, but it

is possible in human affairs through co-ordination.

Importance of Coordination

The need and importance of coordination can be judged from points below :-

1. Coordination encourages team spirit

There exist many conflicts and rivalries between individuals, departments, between a line and staff, etc. Similarly, conflicts are also between individual objectives and organisational objectives. Coordination arranges the work and the objectives in such a way that there are minimum conflicts and rivalries. It encourages the employees to work as a team and achieve the common objectives of the organisation. This increases the team spirit of the employees.

2. Coordination gives proper direction

There are many departments in the organisation. Each department performs different activities. Coordination integrates (bring together) these activities for achieving the common goals or objectives of the organisation. Thus, coordination gives proper direction to all the departments of the organisation.

3. Coordination facilitates motivation

Coordination gives complete freedom to the employees. It encourages the employees to show initiative. It also gives them many financial and non-financial incentives. Therefore, the employees get job satisfaction, and they are motivated to perform better.

4. Coordination makes optimum utilisation of resources

Coordination helps to bring together the human and materials resources of the organisation. It helps to make optimum utilisation of resources. These resources are used to achieve the objectives of the organisation. Coordination also minimise the wastage of resources in the organisation.

5. Coordination helps to achieve objectives quickly

Coordination helps to minimise the conflicts, rivalries, wastages, delays and other organisational problems. It ensures smooth working of the organisation. Therefore, with the help of coordination an organisation can achieve its objectives easily and quickly.

6. Coordination improves relations in the organisation

The Top Level Managers co-ordinates the activities of the Middle Level Managers and develops good relations with them. Similarly, the Middle Level Managers co-ordinates the activities of the Lower Level Managers and develops good relations with them. Also, the Lower Level Managers co-ordinates the activities of the workers and develops good relations with them. Thus, coordination overall improves the relations in the organisation.

7. Coordination leads to higher efficiency

Efficiency is the relationship between Returns and Cost. There will be higher efficiency when the returns are more and the cost is less. Since coordination leads to optimum utilisation of resources it results in more returns and low cost. Thus, coordination leads to higher efficiency.

8. Coordination improves goodwill of the organisation

Coordination helps an organisation to sell high quality goods and services at lower prices. This improves the goodwill of the organisation and helps it earn a good name and image in the market and corporate world.

Co-ordination is the Essence of Management

"Co-ordination is the Essence of Management." The meaning of this sentence implies, Co-ordination affects all the functions of management. In other words, Co-ordination affects Planning, Organising, Staffing, Directing, Communication, Leading, Motivating and Controlling.

1. Planning and Coordination

According to Harold Koontz and Cyril O'Donnell, "Planning is deciding in advance what to do, how to do it, when to do it and who is to do it."

There are many departmental plans in a business. These include, Purchase Plan, Sales Plan, Production Plan, Finance Plan, etc. All these plans must be coordinated (brought together) and one Master Plan must be made for the full business. Therefore, Planning is affected by Coordination.

2. Organising and Coordination

There are many steps in Organising. All these steps must be coordinated, for achieving the objectives of the business. The Top Level Managers must coordinate the efforts of the Middle Level Managers. Similarly, the Middle Level Managers must coordinate the efforts of the Lower Level Managers. Furthermore, the Lower Level Managers must also coordinate the efforts of the workers. Therefore, Organisation is affected by Coordination.

3. Staffing and Coordination

Staffing involves Recruitment and Selection, Training, Placement, Promotion, Transfer, etc. All these steps must be properly coordinated. Similarly, the efforts of all the individuals, groups and departments must be coordinated for achieving the objectives of the business. Therefore, Staffing is affected by Coordination.

4. Directing and Coordination

Directing means giving necessary information, proper instructions and guidance to sub-ordinates. This results in coordination. Therefore, Direction is affected by Coordination.

5. Communicating and Coordination

Many types of communication methods are used in a business. These methods include, Formal communication, Informal Communication, Upward Communication, Downward Communication, Oral Communication, Written Communication, etc. It is important to note that, all these types of communication must be properly coordinated. Lack of proper coordination will hinder the smooth functioning of the communication process. Furthermore, it will also restrict the important information flow and cause many economic problems to the business. Thus, Communication is affected by Coordination.

6. Motivating and Coordination

There are many types of Motivation. These are, Positive Motivation, Negative Motivation, Financial Motivation, and Non-Financial Motivation. All these types of Motivation must be properly coordinated. Therefore, Motivation is affected by Coordination.

7. Leading and Coordination

Every manager must be a good leader. He must coordinate the efforts of his subordinates for achieving the objectives. That is, he must coordinate the human resource. He must also coordinate the material and financial resources of the organisation. In short, a leader cannot survive without coordination. In other words, leadership cannot be performed without coordination. Therefore, Leadership is affected by Coordination.

8. Controlling and Coordination

In Controlling the standards are first fixed. Then the performances are measured. Performances are compared with the standards, and the deviations are found out. Then the deviations are corrected. So, controlling involves many steps. All these steps must be properly coordinated. If coordination is not proper, Control will surely fail. Therefore, Control is also affected by Coordination.

Types of co-ordination:

The co-ordination may be divided on different bases, namely;

1. Scope – on the basis of scope or coverage, co-ordination can be.

Internal – refers to co-ordination between the different units of an organisation within and is achieved by integrating the goals and activities of different departments of the enterprise.

External – refers to co-ordination between an organisation and its external environment comprising government, community, customers, investors, suppliers, competitors, research institutions, etc.  It requires proper match between policies and activities of the enterprise and the outside world.

2. Flow – on the basis of flow, co-ordination can classified into:

Vertical – implies co-ordination between different levels of the organisation and has to ensure that all the levels in the organisation act in harmony and in accordance with the goals and policies of the organisation.  Vertical co-ordination is assured by top management through delegation of authority.

Horizontal or lateral – refers to co-ordination between different departments and other units at the same level of the management hierarchy.  For instance, co-ordination between production department and marketing department is horizontal or lateral co-ordination.

3. Procedural and substantive – which according to Herbert A. Simon, procedural co-ordination implies the specification of the organisation in itself, i.e. the generalised description of the behaviour and relationship of the members of the organisation.  On the other hand, substantive co-ordination is concerned with the content of the organisation’s activities.  For instance, in an automobile plant an organisation chart is an aspect of procedural co-ordination, while blueprints for the engine block of the car being manufactured are an aspect of substantive co-ordination.

Techniques of co-ordination:

The main techniques of effective co-ordination are as follows.

1. Sound planning – unity of purpose is the first essential condition of co-ordination.  Therefore, the goals of the organisation and the goals of its units must be clearly defined.  Planning is the ideal stage for co-ordination.  Clear-cut objectives, harmonised policies and unified procedures and rules ensure uniformity of action.

2. Simplified organisation – a simple and sound organisation is an important means of co-ordination.  The lines of authority and responsibility from top to the bottom of the organisation structure should be clearly defined.  Clear-cut authority relationships help to reduce conflicts and to hold people responsible.  Related activities should be grouped together in one department or unit.  Too much specialisation should be avoided as it tends to make every unit an end in itself.

3. Effective communication – open and regular communication is the key to co-ordination.  Effective interchange of opinions and information helps in resolving differences and in creating mutual understanding.  Personal and face-to-face contacts are the most effective means of communication and co-ordination.  Committees help to promote unity of purpose and uniformity of action among different departments.

4. Effective leadership and supervision – effective leadership ensures co-ordination both at the planning and execution stage.  A good leader can guide the activities of his subordinates in the right direction and can inspire them to pull together for the accomplishment of common objectives.  Sound leadership can persuade subordinates to have identity of interest and to adopt a common outlook.  Personal supervision is an important method of resolving differences of opinion.

5. Chain of command – authority is the supreme co-ordinating power in an organisation.  Exercise of authority through the chain of command or hierarchy is the traditional means of co-ordination.  Co-ordination between interdependent units can be secured by putting them under one boss.

6. Indoctrination and incentives – indoctrinating organisational members with the goals and mission of the organisation can transform a neutral body into a committed body.  Similarly incentives may be used to create mutuality of interest and to reduce conflicts.  For instance, profit-sharing is helpful in promoting team-spirit and co-operation between employers and workers.

7. Liaison departments – where frequent contacts between different organisational units are necessary, liaison officers may be employed.  For instance, a liaison department may ensure that the production department is meeting the delivery dates and specifications promised by the sales department.  Special co-ordinators may be appointed in certain cases.  For instance, a project co-ordinator is appointed to co-ordinate the activities of various functionaries in a project which is to be completed within a specified period of time.

8. General staff – in large organisations, a centralised pool of staff experts is used for co-ordination.  A common staff group serves as the clearing house of information and specialised advice to all department of the enterprise.  Such general staff is very helpful in achieving inter-departmental or horizontal co-ordination.  Task forces and projects teams are also useful in co-ordination.

9. Voluntary co-ordination – when every organisational unit appreciates the workings of related units and modifies its own functioning to suit them, there is self-co-ordination. Self-co-ordination or voluntary co-ordination is possible in a climate of dedication and mutual co-operation.  It results from mutual consultation and team-spirit among the members of the organisation.  However, it cannot be a substitute for the co-coordinative efforts of managers.

Coordination provides the following benefits:

1. Higher Efficiency and Economy:

Coordination helps to improve the efficiency of operations by avoiding overlapping efforts and duplication of work. Integration and balancing of individual efforts provide a smooth and harmonious team work. Coordination is a creative force which makes possible a total result which is greater than the sum of individual achievements. This is the synergetic effect coordination. Coordination enables an organisation to rake optimum use of its resources.

The success of organized Endeavour depends upon the quality of coordination. In fact, coordination is the first principle of organisation as it expresses the principle of organisation in to. The quality of coordination is the crucial factor in the survival of an organisation.

2. Good Human Relations:

Besides promoting the efficiency of operations, coordination improves the morale and job satisfaction of employees. Composite and orderly effort established through team spirit and executive leadership enables employees to derive a sense of security and personal contentment from their job. A well-coordinated organisation can attract, retain and utilize better personnel. Coordination improves human relations by reconciling individual and organizational objectives.

3. Unity of direction:

Coordination helps to ensure unity of action in the face of disruptive forces. By welding together different departments and sections into one entity, coordination ensures the stability and growth of an organisation. It enables the executives to see the enterprise as a whole instead of narrow sectional goals. Individual interests are subordinated to the common interest more easily and effectively.

4. Quintessence of management:

Coordination is an all inclusive concepts or the end result of the management process. Management is nothing more than coordination of all activities, efforts and forces that affect the organisation from within and without. Coordination serves as a key to all managerial functions. According to Mary Parker Follett, "the first test of a business administration should be whether you have a business with all its parts so coordinated, so moving together in their closely knit and adjusting activities, so linking, inter-locking, inter-relating, that they make a working unit that is not a congenis of separate pieces, but a functional whole or integrated unit".

5. Organizational Effectiveness:

Coordination fosters loyalty and commitment among employees. This enhances the effectiveness and stability of the organisation. According to McFarland, "if job satisfactions are present, executives will tend to remain longer with the company. They will feel that they have a place in the organisation. They will feel that they have earned that place. The presence of coordination becomes part of their job experience and hence can form a very useful part of their training." Thus, coordination is the sine qua non of effective management.

Conclusion On Coordination

Now we can conclude that all the functions of management are affected by coordination. Hence coordination is essential for achieving the objectives of the organisation. It is also required for the survival, growth and profitability of the organisation. Coordination encourages team spirit, gives right direction, motivates employees, and makes proper utilisation of resources. Therefore, Coordination is rightly called the "Essence of Management".

REFERENCES

www.managementstudyguide.com/coordination.htm

managementhelp.org/managementcontrol/index.htm

kalyan-city.blogspot.com/.../importance-of-coordination