How to Become a Better Leader by Using POSDCORB System

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Imagine that you are managing a team, each member of which is a creative person and is capable of producing innovative ideas. You have no doubts about their skills, but you need to provide them with a structure and guidance that will help them work effectively. Quite a challenging task, huh?

How to Become a Better Leader by Using POSDCORB System

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Well, there’s a solution named POSDCORB! This system was designed in 1937 by Luther Gulik and Lyndall Urwick. Despite the fact that it was invented about 80 years ago, it is still relevant and useful for managers and leaders. So if you’re dreaming of becoming a godlike manager, this article is just for you!

A little lyrical digression: although POSDCORB is an acronym, the second ‘O’ means nothing and is there just for a comfortable pronunciation.

#1 P – Planning

Set your goals and find out the tools required for achieving them. For example, one of the goals can be a guarantee that your clients will receive the goods within 24 hours after they make orders. Basically, planning includes setting a list of goals and means to achieve them.

#2 O – Organizing

Organize your team so that it can show its best qualities. Carefully study its structure and the way its divisions arranged and coordinated. Watch for their work and constantly improve the results.

#3 S – Staffing

Smart employees are the key to the effectiveness of any organization. A crucial point is arranging right tasks to right people; otherwise, it may happen that a really valuable worker performs the job that is irrelevant to his/her skills. Explore the human resources of your company and try to properly select personnel, as well as train and develop their skills.

How to Become a Better Leader by Using POSDCORB System - Staffing

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#4 D – Directing

This is a continuous work on decision-making and weaving it into instructions that you give to your business team. Arrange team meetings and eye-to-eye conversations; evaluate the performance of your staff. Set the direction that your team should stick to, and carefully control the movement.

#5 C – Coordinating

Luther Gulik claims that managers, as a rule, have very little time and are unable to devote energy to every aspect of their work. Therefore, it is necessary to take into account the number of people managers can successfully cover. Also, Gulick emphasizes that one team member must take instructions only from one manager to avoid misunderstandings.

A successful coordination saves a lot of time and allows you to use your resources most efficiently.

#6 R – Reporting

Be sure to organize mutual reporting. That is, not only your employees should report you, but you should do the same. Keep your people informed of what is happening in the organization and the plans for the future. Provide them with the news, performance results, and other information that can raise their morale, productivity and diligence. Make sure that the team members can at any time to inform you of their progress and problems.

#7 B – Budgeting

Balance your income and expenses using planning; constantly evaluate the situation and be incredibly disciplined about your finances. Budgeting helps monitor the finances as well as determine the success probability of the new projects.

POSDCORB Advantages

  • Labor division: tasks are divided evenly across the entire organization.
  • Authority and responsibility: team members know whose instructions to carry out and who is responsible for the results.
  • Discipline: people are aware of what and when they should do.
  • Guidelines: employees are provided with clear goals and guidelines.
  • Good teamwork: team members work together and have a common goal.
  • Orderliness: there’s a clear organizational structure and instructions to be followed.
How to Become a Better Leader by Using POSDCORB System - Advantages

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Of course, we cannot ignore the pitfalls of this system. It’s often criticized for its simplicity and the impossibility of applying to practice in modern companies.

Simon Gerber, an American economist, criticized the system for the fact that limiting the number of people that are managed can lead to an increase in completely unnecessary levels of management. He also pointed out that the receipt of instructions from a single source may limit the creativity and the search for completely new and effective solutions.

However, this system is used to the date. Companies that implement it say that it helps them to manage the team better. Not all the old methods are obsolete – some bring results with time. I wish you best of luck in your entrepreneurial endeavors!

Question: Do you think you can use the POSDCORB System in your work? How would you do that? You can leave a comment by clicking here.

Please note: I reserve the right to delete comments that are offensive or off-topic.