Professional Documents
Culture Documents
ORGANIZING
Definition of Organizing : -
Organizing is a systematic process of structuring, integrating, co-ordinating task goals, and
activities to resources in order to attain objectives.
Nature :-
The following are the important Natures of organizing.
Specialization and division of work. The entire philosophy of organization is centered on
the concepts of specialization and division of work. The division of work is assigning
responsibility for each organizational component to a specific individual or group thereof.
It becomes specialization when the responsibility for a specific task lies with a designated
expert in that field. The efforts of the operatives are coordinated to allow the process at
hand to function correctly. Certain operatives occupy positions of management at various
points in the process to ensure coordination.
Orientation towards goals. Every organization has its own purposes and objectives.
Organizing is the function employed to achieve the overall goals of the organization.
Organization harmonizes the individual goals of the employees with overall objectives of
the firm.
Composition of individuals and groups. Individuals form a group and the groups form an
organization. Thus, organization is the composition of individual and groups. Individuals
are grouped into departments and their work is coordinated and directed towards
organizational goals.
Continuity. An organization is a group of people with a defined relationship in which they
work together to achieve the goals of that organization. This relationship does not come
to end after completing each task. Organization is a never ending process.
Purpose : -
Helps to achieve organizational goal. Organization is employed to achieve the overall
objectives of business firms. Organization focuses attention of individuals objectives
towards overall objectives.
Optimum use of resources. To make optimum use of resources such as men, material,
money, machine and method, it is necessary to design an organization properly. Work
should be divided and right people should be given right jobs to reduce the wastage of
resources in an organization.
To perform managerial function. Planning, Organizing, Staffing, Directing and Controlling
cannot be implemented without proper organization.
Facilitates growth and diversification. A good organization structure is essential for
expanding business activity. Organization structure determines the input resources
needed for expansion of a business activity similarly organization is essential for product
diversification such as establishing a new product line.
Humane treatment of employees. Organization has to operate for the betterment of
employees and must not encourage monotony of work due to higher degree of
specialization. Now, organization has adapted the modern concept of systems approach
based on human relations and it discards the traditional productivity and specialization
approach.
FORMAL AND INFORMAL ORGANIZATION
FORMAL ORGANIZATION
Formal organisational structure clearly spells out the job to be performed by each individual, the
authority, responsibility assigned to every individual, the superior- subordinate relationship and
the designation of every individual in the organisation. This structure is created intentionally by
the managers for achievement of organisational goal.
Features of Formal organisation:
(1) The formal organisational structure is created intentionally by the process of organising.
(2) The purpose of formal organisation structure is achievement of organisational goal.
(3) In formal organisational structure each individual is assigned a specific job.
(4) In formal organisation every individual is assigned a fixed authority or decision-making power.
(5) Formal organisational structure results in creation of superior-subordinate relations.
(6) Formal organisational structure creates a scalar chain of communication in the organisation.
Circular Chart
Control by the top management people in all the core and special departments in a circular flow.
Tall VS Flat Organization Chart
ORGANIZATION STRUCTURE : -
Organizational structure refers to the way in which an organization's activities are divided,
grouped and coordinated into relationships between Managers and Employees, Managers and
Managers, and Employees and Employees.
TYPES OF ORGANIZATION STRUCTURE
(i) Line organisational structure.
(ii) Staff or functional authority organisational structure.
(iii) Line and staff organisational structure.
(iv) Committee organisational structure.
(v) Divisional organisational structure.
(vi) Project organisational structure.
(vii) Matrix organisational structure and
(viii) Hybrid organisational structure.
These organisational structures are briefly described in the following paragraphs:
1. Line Organizational Structure:
A line organisation has only direct, vertical relationships between different levels in the
firm. There are only line departments-departments directly involved in accomplishing the primary
goal of the organisation. For example, in a typical firm, line departments include production and
marketing. In a line organisation authority follows the chain of command.
Advantages:
1. Alignment of corporate and divisional goals.
2. Functional expertise and efficiency.
3. Adaptability and flexibility in divisions.
Disadvantages:
1. Conflicts between corporate departments and units.
2. Excessive administration overhead.
3. Slow response to exceptional situations.
LINE AND STAFF AUTHORITY:
Authority is the right to perform or command.
Line authority:
Line authority means that people in management positions have formal authority to
direct and control immediate subordinates.
Line functions are those that are related directly with the attainment of the
organizational objectives Ex: production and sales are line functions, while finance,
personnel and accounting are staff functions in manufacturing organization.
But in bank, finance and accounting are the line functions.
Staff authority:
Staff authority includes the right to advise, recommend and counsel the staff specialists
area of expertise.
Staff functions are those that help line functions in attaining the objectives.
In marketing department ,selling may be line function whereas market research is a staff
function.
DEPARTMENTATION
Meaning
Departmentation means group of activities and employees into departments. It is, as Allen
wrote a means of dividing the large and monolithic functional organization into smaller, flexible
administrative units.
Processes of Departmentation
Departmentation is done through the following processes:
(a) Identification of tasks or duties.
(b) Analysis of details of each task.
(c) Description of the functions.
(d) Entrusting the groups of functions to separate specialist heads and providing them with
suitable staff.
(e) Delineation of scope of authority and responsibility of departmental heads.
Types of Departmentation
(a) Functions, e.g., sales, production, personnel, planning, transport, etc.
(b) Products, e.g., air-conditioners, accounting machines, electronic calculators, etc.
(c) Territory, region, or geographical area, e.g., Northern Railway, Western Railway, N.E.
Railway, etc.
(d) Customer, e.g., wholesaler, retailer, government.
(e) Process.
(f) Appropriate combination of any of these types.
Function wise Departmentation
Under each of these five managers, there will be subordinate managers and under them, the
subordinate staff.
The advantages of this type of structure are as follows:
(i) It is a logical reflection of functions.
(ii) It follows the principle of specialisation.
(iii) Maintains power and prestige of major functions.
(iv) Inter-departmental co-ordination is facilitated.
(v) The structure is simple, logical and easy to understand.
(vi) Provides a good means of control at the top.
There is full leadership and coordination in Decentralization, shares the burden of the top
Centralization. level managers.
The reason for centralization is inadequate The reason for decentralization is good and
control over the organization effective control over the same.
JOB DESIGN : -
Job design essentially involves integrating job responsibilities or content and certain qualifications
that are required to perform the same. It outlines the job responsibilities very clearly and also helps in
attracting the right candidates to the right job. Further it also makes the job look interesting and
specialized.
The whole process of job design is aimed to address various problems within the
organizational setup, those that pertain to ones description of a job and the associated
relationships. More specifically the following areas are fine tuned:
Checking the work overload.
Checking upon the work under load.
Ensuring tasks are not repetitive in nature.
Ensuring that employees don not remain isolated.
Defining working hours clearly.
Defining the work processes clearly.
The above mentioned are factors that if not taken care of result into building stress within the
employees.
Benefits of Job Design
The following are the benefits of a good job design:
1. Employee Input: A good job design enables a good job feedback. Employees have the
option to vary tasks as per their personal and social needs, habits and circumstances in the
workplace.
2. Employee Training: Training is an integral part of job design. Contrary to the philosophy of
leave them alone job design lays due emphasis on training people so that are well aware
of what their job demands and how it is to be done.
3. Work / Rest Schedules: Job design offers good work and rest schedule by clearly defining
the number of hours an individual has to spend in his/her job.
4. Adjustments: A good job designs allows for adjustments for physically demanding jobs by
minimizing the energy spent doing the job and by aligning the manpower requirements
for the same.
Job design is a continuous and ever evolving process that is aimed at helping employees make
adjustments with the changes in the workplace. The end goal is reducing dissatisfaction,
enhancing motivation and employee engagement at the workplace.
HUMAN RESOURCE MANAGEMENT
Definition of HRM : According to Edwin B. Flippo, Personnel Management or Human Resource
Management is the the planning, organizing , directing and controlling of the procurement,
development, compensation, integration maintenance and reproduction of human resources to
the end that individual, organizational and societal objectives are accomplished.
OBJECTIVES OF HUMAN RESOURCE MANAGEMENT
The primary objective of HRM is to ensure the availability of right people for right jobs, so as the
organizational goals are achieved effectively. This primary objective can further be divided into
the following sub objectives.
1. To help the organization to attain its goals effectively and efficiently by providing
competent and motivated employees.
2. To utilize the available human resources effectively.
3. Increase the fullest employees job satisfaction and self-actualization.
4. To develop and maintain the quality of work life which makes employment in the
organization a desirable personal and social situation.
5. Helps to maintain the ethical policies and behavior inside and outside the organization.
6. To establish and maintain cordial relations between employees and management.
7. To reconcile individual / group goals with organizational goals.
Werther and Davis have classified the objectives into 4 categories.
HRM OBJECTIVES SUPPORTING FUNCTIONS
1. SOCIETAL OBJECTIVES LEGAL COMPLIANCE
BENEFITS
UNION MANAGEMENT RELATIONS
RECRUITMENT
Recruitment refers to the process of attracting, screening, selecting, and on boarding a
qualified person for a job.
Definition - Recruitment
Recruitment is defined as a process to discover the source of manpower to meet the
requirements of staffing scheduling and to employ effective measures for attracting the
manpower in adequate numbers to facilitate effective.
Sources of Recruitment
Every organization has the option of choosing the candidates for its recruitment processes
from two kinds of sources: internal and external sources.
1. Internal Sources of Recruitment : sources of recruitment are from within the organization.
2. External Sources of Recruitment: sources of recruitment are from outside the organization.
SELECTION
The selection procedure is the system of function and devices adopted in a given company
ascertain whether the candidates specifications are matched with the job specifications are not.
Definition:
Selection can be defined as a process of choosing the right person for the right job from a
pool of different candidates who applied for a certain job.
Process of Selection
The process of selection is not the same in all organizations; it can be different in many
organizations depending upon the nature of that organization. However, one particular type of
selection is approved by most organizations; it can be explain with the help of following diagram:
1. Job analysis
The very first step in the selection procedure is the job analysis. The HR department prepares
the job description and specification for the jobs which are vacant. This gives details for the jobs
which are vacant. This gives details about the name of the job, qualification, qualities required and
work conditions etc.
2. Advertisement
Based on the information collected in step 1, the HR department prepares an
advertisement and publishes it in a leading news papers. The advertisement conveys details about
the last date for application, the address to which the application must be sent etc.
3. Application blank/form
Application blank is the application form to be filled by the candidate when he applies for a
job in the company. The application blank collects information consisting of the following four
parts:
1. Personal details
2. Educational details
3. Work experience
4. Family background
4. Written test
The applications which have been received are screened by the HR department and those
applications which are incomplete are rejected. The other candidates are called for the written
test. Arrangement for the written test is looked after the HR department i.e. question papers,
answer papers, examination centers and hall tickets etc.
5. Interview
Candidates who have successfully cleared the test are called for an interview. The entire
responsibility for conducting the interview lies with the HR department i.e. they look after the
panel of interviewers, refreshments, informing candidates etc.
6. Medical examination
The candidates who have successfully cleared the interview are asked to take a medical
exam. This medical exam may be conducted by the organization itself (army). The organization
may have a tie up with the hospital or the candidate may be asked to get a certificate from his
family doctor.
7. Initial job offer
Candidates who successfully clear the medical exam are given an initial job offer by the
company stating the details regarding salary, terms of employment, employment bond if any etc.
The candidate is given some time to think over the offer and to accept or reject.
8. Acceptance/ rejection
Candidates who are happy with the offer send their acceptance within a specified time limit
to show that they are ready to work with the company.
9. Letter of appointment / final job offer Candidates who send their acceptance are given
the letter of appointment. The letter will state the name of the job. The salary and other benefits,
number of medical leaves and casual leaves, details of employment bond if any etc. It will also
state the date on which the employee is required to start duty in the company.
10. Induction
Induction can be defined as a process of introducing the employee who is newly elected to
the organization. When an employee is given a letter of appointment he joins the company on
duty. The very first thing that the company does is, introduces the new employee to the
organization and people working there. An induction program may be conducted at a particular
center for all employees or at different places (branches of the company) for different employees.
Normally the new employee is called together to the staff training college for the induction
program.
Types Of Selection Test
Different selection test are adopted by different organization depending upon their
requirements. These tests are specialized test which have been scientifically tested and hence
they are also known as scientific test. Different types of test can be explained with the help of
following diagram:
TRAINING
After the selection of people for various jobs, the next function of staffing is to arrange for
their training and development. This is because a person, however carefully selected is not
molded to specifications and rarely meets the demands of his job adequately.
Definition
According to Flippo, "Training is the act of increasing the knowledge and skills of an
employee for doing a particular job."
Purpose Of Training :
The purpose of training includes
To prepare the employee, both new and old to meet the present as well as the changing
requirements of the job and the organization.
To prevent obsolescence.
To impart the new entrants the basic knowledge and skills they need for an intelligent
performance of a definite job.
To prepare employees for higher level tasks.
To assist employees to function more effectively in the present positions by exposing them
to the latest concepts, information and techniques and developing the skills in their
particular fields.
To build up a second line of competent officers and prepare them to occupy more
responsible positions..
To broaden the minds of senior managers by providing them with opportunities for an
interchange of experiences within and outside with a view to correcting the narrowness of
outlook that may arise from over specialization.
To develop the potentialities of people for the next level job.
To ensure smooth and efficient working of a department.
To ensure economical output of required quality.
To promote individual and collective morale, a sense of responsibility, co-operative
attitudes and good relationships.
Types Of Training
Various types of training programmes are not mutually exclusive, but invariably overlap and
employ many of the same techniques. Some of the more common types of training programmes
are examined below:
Management By Objectives
Behaviorally Anchored Rating Scales
Assessment Centers
360 Degree Appraisal
Cost Accounting Method
This modern method place more emphasis on the evaluation of work results, I.e., job
achievements than the personal traits. It tend to be more objective and worthwhile.
1. Ranking Method
In this method one employee is compared with all others for placing them in a
simple rank.
The employees are ranked from the highest to the lowest or from the best to the
worst.
The employee who is the highest on the characteristics being measured and also the
one, who is the lowest, are indicated.
Thus, if there are 10 employees to be appraised, there will be ten ranks from 1 to 10.
Limitations of this method :
It is very difficult when a large number of employees are rated.
It does not tell that how much better or worse one is than another.
It is very difficult to compare one individual with others having varying behavioral
traits.
2. Paired Comparison Method
Each employee is compared with other employees on one on one basis. Based on
one trait only.
The rater is provided with a bunch of slips each containing a pair of names, the rater
puts a tick mark against the employee whom he considers the better of the two.
The number of times this employee is compared as better with others determines
his final ranking.
The no.of possible pair for a given number of employees is ascertained by the
following formula.
3. Paired Comparison Method
N (N-1) / 2
N = total number of employees to be evaluated.
Ex: if the following five teachers have to be evaluated by the Vice Chancellor of a University. (K,
M, R, V, B.)
The above formula gives 5(5-1)/2 = 10 pairs. These are:
K with M, K with R, K with V, K with B.
M with R, M with V, M with B.
R with V, R with B.
V with B.
Limitation of this Method:
1. It can become unwieldy when large numbers of employees are being compared.
4. Grading Method
In this method certain categories of worth are established in advance and carefully
defined.
There can be three categories established for employees : Outstanding,
Satisfactory and Unsatisfactory.
Employee performance is compared with grade definitions.
The employee is then allocated to the grade that best describes his performance.
Such type of grading is done in semester pattern of examinations and in the
selection of a candidate in the public service sector.
Limitation of this Method:
1. In this method the rater may rate most of the employees on the higher side of their
performance.
5. Forced Distribution Method
This method was evolved by Tiffen to eliminate the central tendency of rating most of the
employees at a higher end of the scale.
The method assumes that employees performance level confirms to a normal statistical
distribution. I.e., 10, 20, 30, 40, 50, 60, 70, 80, 90, 100.
This is useful for rating a large number of employees job performance and promotability.
It ends to eliminate or reduce bias.
It is also highly simple to understand and easy to apply in appraising the performance of
employees in organizations.
Limitation of this Method:
1. All distribution grades improve similarly, no single grade would rise in a ratings.
6. Forced Choice Method
This method is developed by J.P.Guilford. It contains a series of group of
statements.
The rater rates how effectively a statement describes each individual being
evaluated.
Common method of forced-choice method contains two statements, both positive
or negative. Examples of positive statements are:
1. Gives good and clear instructions to the subordinates
2. Can be depended upon to complete any job assigned.
A pair of negative statements may be as follows:
1. Makes promises beyond his limit to keep these.
2. Inclines to favor some employees.
Each statement carries a score or weight, which is not made known to the rater.
The Human resource section does rating for all sets of statements both positive
and negative.
The final rating is done on the basis of all sets of statements.
Limitation of this Method:
1. The actual constructing of several evaluative statements, also called forced choice Scales,
takes a lot of time and effort.
7. Check List Method
A series of statements I.e., questions with their answers in yes or no are prepared by the
HR department.
The check-list is then, presented to the rater to tick appropriate answers relevant to the
appraise.
Each question carries a weightage in relationship to their importance.
When the checklist is completed, it is sent to the HR department to prepare the final
scores for all appraisees based on all questions.
Limitation of this Method :
It is difficult to assemble, analyse and weigh a number of statements about employee
characteristics and contributions
It is very costliest method, if there are a number of job categories in the organisation,
because a checklist of questions must be prepared for each category of job. it will involve a
lot of money, time and efforts.
Modern methods of Performance Appraisal
Management By Objectives
Assessment Centers
Tug of war manager pushes for higher quotas and subordinates push for lower
ones.
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
UNIT 4
DIRECTING