Nature and Significance of Management — Business Studies STD 12 Commerce — Question

Co-ordination is not a separate function of management. It is the very essence of management.This is because:

1. In planning, co-ordination is required between:

1. Overall plan of the organisation and the departmental plans.
2. Objectives and the available resources.

e.g. co-ordination between production department plans and sales department targets.

2. In organising, co-ordination is required:

1. For resources of an enterprise and the activities to be performed.
2. For assigning authority, responsibility and accountability.

e.g. if the finance manager is given authority to raise funds, he should also be given the responsibility to manage funds efficiently.

3. In staffing, co-ordination is required:

1. Between the skills of the workers and the jobs assigned to them.
2. Between efficiency of the workers and compensation.

e.g. a C.A. should generally be given work of a financial nature.

4. In directing, co-ordination is required:

1. Among orders, instructions and suggestions.
2. Between superior and subordinates.

e.g. a manager instructs the subordinates, motivates them and also supervises their work.

5. In controlling, co-ordination is required:

1. Between standards and actual performance.
2. Between correction of deviations and achievement of objectives.

e.g. if the planned target is 100 units of output and the actual output is 85 units, then corrective action is taken to ensure that plans co-ordinate with actual performance.
Thus, co-ordination is indispensable in all managerial functions.