GLOBAL CONTROLLING & GLOBAL CHALLENGES

Need for Leadership in global organisations: The work place in the present day context is increasingly multicultural and diverse. Employees are required to work together with colleagues from different parts of the world with varied backgrounds, customs and practices.

Many products and services are produced for export. In addition, organisations are outsourcing their work to countries having low labour costs to stay competitive. As opportunities for global expansion increase, the workplace will have more diversity.

Organisations are now hiring professionals with different backgrounds, cultures, styles and motivation. It is therefore necessary for organisations to expand the capacity for people to handle the challenges of working with other cultures if they are to participate successfully.

Leaders must be adaptive and flexible to manage this diverse workforce. This requires an understanding of the historical, political and economic references of people who work in the organisations. Leaders must understand differences in worldviews, communication styles, ethics and etiquette of the people they deal with both internally and externally.

Understanding different cultures: According to Richard D Lewis, the different nations and cultures can be put into three groups:

1. Linear-active: In these cultures, people focus on a scheduled timeline and like to do one thing at a time. The people in these cultures are task-oriented planners.

2. Multi-active: People belonging to these cultures are more focused on interactions and dialogues. Meetings are given priorities and discussions and dialogues help to build relationship and it is this relationship that determines what comes out of work.

3. Reactive: People belonging to this type of culture are more introverted. They are respect-oriented listeners and concentrate on what people have to say without interruption and even if they interrupt it is rarely done. People in these cultures usually express their ideas in a passive voice.

Leaders must understand different cultures when they work in an organisation which has employees belonging to different cultures. The grouping done by Lewis is a simple perspective that can help one to begin to understand basic differences in ways of doing business in foreign countries. However, we must be cautious and avoid working with unverified assumptions.

9.8 LET US SUM UP

The techniques of control involve the feed forward control, concurrent control and the feed-back process. There are several techniques to establish the control system in an organisation like CPM, Gantt Chart, PERT, etc. We have also studied about global controlling and global challenges.

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9.9 LESSON END ACTIVITY

PERT is a management interventional technique designed to establish an effective control system. Justify the statement.

9.10 KEYWORDS

Feedback Feed Forward Gantt Chart Material Control Performance PERT CPM

9.11 QUESTIONS FOR DISCUSSION

1. What are the methods of effective control?

2. Explain standard costing as a technique of control.

3. What is the need for leadership in global organisations?

4. Discuss the critical path method of controlling.

9.12 SUGGESTED READINGS

Billy E. Goetz, "Management Planning and Control", McGraw-Hill, New York (1979).

Chris Argyris, "Personality and Organization", Harper and Row, New York (1957).

Charles Handy, "Trust and the Virtual Organization", Harvard Business Review (may - June 1995).

Douglas S. Sherwin, "The Meaning of Control", in Max D. Richards and William A Nielander (eds.) Readings in Management, D.B Taraporevala, Bombay (1971).

George R. Terry, "Principles of Management", Richard D. Irwin, Homewood III (1988).

George R. Terry and Stephen G. Franklin, "Principles of Management" AITBS, Delhi (2000).

G. B. Giglione and A.G Bedein, "Conception of Management Control Theory", Academy of Management Journal (June 1974).

Harold Koontz, Cyril O'Donnell, and Heinz Weihrich, "Management", McGraw-Hill, New York (1984).

John A. Pearce and Richard B. Robinson, "Strategic Management", Homewood III Richard D. Irwin (1988).

McGregor Douglas, "The Human Side of Enterprise", McGraw Hill Book Company, New York (1960).

Peter F. Drucker, "Management Tasks, Responsibilities and Practices", Harper &

Row, New York (1974).

Paul E. Holden, L.S Fish, and Hubert L. Smith, "Top Management Organisation and Control", McGraw-Hill, New York (1981).

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Principles of Management and

Organisational Behaviour Scanlon Burt K., "Principles of Management and Organisation Behaviour", John Wiley and Sons (1973).

Tom K. Reeves and Joan Woodward, "The Study of Management Control", Joan Woodward (ed.) "Industrial Organization, Behaviour and Control", Oxford University Press, London (1970).

P.G. Aquinas, “Organizational Behaviour”, Excel Books, New Delhi.

LESSON

10

DIRECTING

CONTENTS

10.0 Aims and Objectives 10.1 Introduction

10.2 Meaning and Definition 10.3 Characteristics of Directing 10.4 Scope of Directing

10.5 Importance of Direction

10.6 Nature of Direction — Functions of Management 10.6.1 Pervasiveness of Direction

10.6.2 Continuing Function 10.7 Principles of Direction 10.8 Principles of Issuing Orders 10.9 Types of Direction

10.10 Techniques of Direction 10.11 Let us Sum up

10.12 Lesson-end Activity 10.13 Questions for Discussion 10.14 Suggested Readings

10.0 AIMS AND OBJECTIVES

After studying controlling and techniques of controlling in previous two chapters, this lesson is intended to discuss all about directing the staff. After studying this lesson you will be able to:

(i) appreciate the role of direction.

(ii) understand the nature, principles and elements of direction.

(iii) use various tools and techniques of directing the staff.

10.1 INTRODUCTION

In practice, management is essentially the art and process of getting things done. The managers have therefore, the responsibility not only of planning and organising the operations but also of guiding and supervising the subordinates. This is the managerial function of direction. In the words of Marshall "Directing involves determining the course, giving orders and instructions and providing dynamic leadership".

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Organisational Behaviour

10.2 MEANING AND DEFINITION

According to G. R. Terry - "Directing means moving to action and supplying simulative power to a group of persons". Thus, the plan is put into operation through the organisation by the process of direction. Another term used to describe this function is "Activating".

In the words of G. R. Terry - "Activating means moving into action - supplying simulative power to the group".

According to Dale, "Direction is telling people what to do and seeing that they do it to the best of their ability. It is through directing that managers get the work done through people. It consists of:

l Issuing orders and instructions by a superior to his subordinates.

l Guiding, advising and helping subordinates in the proper methods of work.

l Motivating them to achieve goals by providing incentives, good working environment etc.

l Supervising subordinates to ensure compliance with plans".

To carry out physically the activities resulting from the planning and organising steps, it is necessary for the manager to take measures that will start and continue action as long as they are needed in order to accomplish the task by the members of the group. The process of directing or activating involves:

1. Providing effective leadership

2. Integrating people and tasks and convincing them to assist in the achievement of the overall objectives

3. Effective communication

4. Providing climate for 'subordinate' development

Directing represents one of the essential functions of management because it deals with human relations. Once the organisational plans have been laid down, the structure being designed and competent people brought in to fill various positions in organisation, direction starts. Direction phase of management is the heart of management-in action.