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Coordination -The Essence of Management & Need of coordination

Coordination -The Essence of Management & Need of coordination

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Today, in the following article, we are going to discuss the ‘Coordination – The essence of management’ from Business management.

The Essence of Management

Coordination is the orderly synchronization of the efforts by unifying, integrating and harmonizing the activities of the subordinates for the achievement of the goals of the organization. Every business enterprise is divided into a number of departments and every department has a number of groups and individuals. Coordination is not a separate function of the management, it is the force that binds all the other functions of management.

The managers at all levels are concerned with achieving coordination while performing the functions of planning, organizing, staffing, directing and controlling. Coordination is implicit and inherent in all functions of management.

Coordination is required in Planning – systematic planning of work and allied aspects from top to bottom of the organization. Example. Coordination between production department plans and sales department targets.

Coordination is required in Planning – systematic planning of work and allied aspects from top to bottom of the organization. Example. Coordination between production department plans and sales department targets.

Coordination is required in Organizing – for systematic division of work among individuals and departments. Assigning authority, responsibility, and accountability. Example: If the finance manager is given authority to raise funds, he/she should also be given the responsibility to manage funds efficiently.

Coordination is required in staffing – for placement of right persons on the right jobs. Example CA should generally be given work of financial nature.

Coordination in Directing  – among orders, instructions, and suggestions. Coordination is required for thefree flow of information, sound leadership, and suitable incentives for good performances. Example a manager instructs the subordinates motivates them and also supervises their work.

Coordination in controlling – coordination between planned standards and actual performances. Control of activities through personal observation and other techniques.

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Need of coordination

Growth in size – As organizations grow in size, the number of people in the organization also increases. They may work for cross purposes. So, coordination is needed to integrate their efforts and activities, i.e., to bring unity of action.

Functional differentiation – in an organization, there may be separate departments of production, finance, marketing and human resources. All departments have their own objectives, policies, strategies, etc. So, there may arise a conflict between them. For example, the marketing department’s objective may be to increase sales by 10 percent by offering discounts. But the financial department may not approve such discounts as it means loss of revenue.Therefore, coordination is necessary to link the activities of various departments and to avoid conflicts among them.

Specialization: in modern organizations, there is a high degree of specialization, arising out of the complexities of modern technology and the diversity of tasks to be performed. So, organizations employ a number of specialists, who think that they only are members, which leads to conflict between them. Therefore, coordination is required to avoid conflict between the specialists and the other members.

In the absence of coordination, there will be chaos and conflicts in the organization as shown in figure. There will be no synergies among production, sales, accounts, stores and other departments and the customers will not get timely delivery of goods.

For more notes on business management, business ethics and business economics.

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September 6, 2017

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