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Management Practices and Organisational Behaviour                 Pretty Bhalla, Lovely Professional University




                    Notes                     Unit 5: Coordination, Centralisation and
                                                              Decentralisation


                                     CONTENTS
                                     Objectives
                                     Introduction
                                     5.1  Coordination
                                          5.1.1  Need for Coordination
                                          5.1.2  Importance of Coordination

                                          5.1.3  Principles of Coordination
                                          5.1.4  Coordination  Process
                                          5.1.5  Types of Coordination
                                          5.1.6  Systems Approach to Coordination
                                     5.2  Centralisation
                                     5.3  Decentralisation
                                     5.4  Centralised and Decentralised Organisations
                                     5.5  Summary
                                     5.6  Keywords

                                     5.7  Self Assessment
                                     5.8  Review Questions
                                     5.9  Further Readings

                                   Objectives

                                   After studying this unit, you will be able to:

                                       Assess need for coordination
                                       Explain the significance and principles of coordination
                                       Discuss the process and type of coordination
                                       Realise the concepts of centralisation and decentralisation

                                       State the relationship between centralisation and decentralisation

                                   Introduction

                                   In an organisation, different people come together to work for a single organisational goal.
                                   Needless to say, coming from varied backgrounds, the mindsets, values, ethics, skills, behavioral
                                   patterns, etc., of these people are bound to be different. Due to this, one of the biggest challenges
                                   and responsibilities for a manger becomes top handle such a group of varied people. Taking
                                   them all as just human resources also, the "human" concept is still there.
                                   Different people in the same teams have different thinking and working pattern. The difference
                                   increases more when it comes to different departments and their heads. The challenge increases




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