Question

Which of the following statements about Luther Gulick’s POSDCORB framework are correct?

1. Staffing includes recruiting, training, and maintaining favorable working conditions.

2. Reporting involves keeping both the executive and subordinates informed through records and research.

3. Budgeting excludes fiscal planning and focuses only on accounting.
   

• A. 1 & 2
• B. 2 & 3
• C. 1 & 3
• D. All are correct

Answer 1

Answer:

A. 1 & 2

Luther Gulick's POSDCORB

• The POSDCORB framework is a classic model of administrative management, outlining the essential functions of an executive.

• It was coined by Luther Gulick in his 1937 paper 'Notes on the Theory of Organization', which was part of the broader work 'Papers on the Science of Administration' co-edited with Lyndall Urwick.

• This framework is an acronym representing seven key functions: Planning, Organizing, Staffing, Directing, Co-ordinating, Reporting, and Budgeting.

• It primarily focuses on the duties of managers and is often associated with the Classical Theory of Administration.

Components of POSDCORB:

• Planning (P): This involves outlining the broad objectives and methods for accomplishing the enterprise's purpose. It's about deciding in advance what to do, how to do it, when to do it, and who is to do it.

• Organizing (O): This refers to the establishment of the formal structure of authority through which work subdivisions are arranged, defined, and coordinated for the objective in view. It includes the distribution of tasks and responsibilities among personnel.

• Staffing (S): This function encompasses the entire personnel process. It includes recruiting, appointing, training, and maintaining favorable working conditions for the staff. This aligns perfectly with statement 1.

• Directing (D): This is the continuous task of making decisions and embodying them in specific and general orders and instructions, and serving as the leader of the enterprise. It involves guiding and motivating employees.

• Co-ordinating (Co): This function involves interrelating the various parts of the work and connecting them within the organization. It ensures that different departments and individuals work together harmoniously.

• Reporting (R): This refers to keeping the executive themselves, as well as their subordinates and external stakeholders, informed about what is going on. This is achieved through records, research, inspection, and formal reporting channels. This confirms statement 2.

• Budgeting (B): This is concerned with all activities that fall under fiscal management. It includes fiscal planning, accounting, and control. Therefore, the statement that budgeting 'excludes fiscal planning and focuses only on accounting' is incorrect, as it explicitly includes fiscal planning and financial control.