Unit –3
Management at Work
In the words of Louis Allen “The process of identifying and grouping of the work to be performed, defining and delegating responsibility and authority and establishing a pattern of relationship for the purpose of enabling people to work most effectively together in accomplishing objectives.”
NATURE AND CHARACTERISTICS OF ORGANISING:
The main characteristics of an organizing are as follows:
- Process: Organizing is a process undertaken to accomplish objectives. The process of organizing consists of the following steps:1) Defining goals/objectives of the organization 2) Identifying and grouping of activities 3) Defining and delegating authority and responsibility 4) Establishing relationships in the organization 5) Co-coordinating activities.
- Goal oriented: Every organization has its own objectives and goals. Organizing is the function employed to achieve the individual goals of the employees with overall objectives of the firm.
- Group of individual: Individuals form a group and the groups form an organization. Thus, organization is the composition of individuals and groups. Individuals are grouped into departments and their work is co-ordinate directed towards achievement of organization goals.
- Integration: The organization divides the entire work and assigns the tasks to individuals in order to achieve the organizational objectives. Each one has to perform a different tasks of one individual must be co-ordinated with the tasks of others. Collectively these tasks at the final stage are called integration.
- Continuity: An organization is a group of people in which they work together to achieve the goals of that organization. This relationship does not come to an end after completing the task. Organizing is a never ending process.
- Decision Making: Top management has a right and power to take decisions. It is a task of a manager to get the things done from the subordinates in the most efficient and effective manner.
- Common Targets: To level management set the overall goals for an organization. It is an integrated and collective effort from all the employees towards the achievement of common targets or goals setup by an organization.
- Authority: Authority is the power to take decisions and to get the work done from the subordinates. Every manager in the organization must be given adequate authority so that he can take the right decisions to get the work done.
- Responsibility: The manager who is provided with authority must made responsible. There must be a balance between authority and responsibility.
IMPORTANCE OF ORGANIZING
1) Ensures co-ordination: Due to good organization structure, co-ordination is possible in the organization. Co-ordination refers to interlinking of actions of the subordinates by the superior. The activities of the various individuals, and departments are combined together to accomplish company goals.
2) Optimum utilization of resources: Organization ensures optimum utilization of resources – human, financial and physical resources. The resources are put to best possible use.
3) Facilitates effective management: A properly designed organization facilitates effective management. It avoids confusion, delays and duplication of work. The work is systematically divided and grouped into several sections or units, so as to achieve desired results.
4) Motivates personnel: A sound organization avoids confusion, misunderstandings and overlapping of functions, and as such employees are motivated to produce better results. This is mainly because of good relations existing between the superiors and their subordinates in the organization.
5) Facilitates delegation of authority: A good organization structure enables the superiors to delegate authority to the subordinates. The superiors are in a position to delegate the proper degree of authority to the right subordinates. Without proper delegation, it would not be possible to conduct the activities of the organization smoothly and quickly.
6) Encourages initiative and innovation: Due to effective delegation of authority, there is freedom of self-expression. The subordinates are encouraged to show their initiative, which helps the organization to excel and grow.
7) Technological improvements: Sound organizations have contributed to the technological developments. Through research and development, the organizations come with new methods, new machines, and techniques, which can be effectively used for business activities.
8) Facilitates growth: Sound organizations achieve good success. This enables the organization to grow and diversify. Large progressive firms are the direct outcome of the success of effective organizing.
PRINCIPLES OF ORGANISATION:
Principles of organization, for sake of clarity of discussion and a far better comprehension of those, are classified in the following manner:
(I) Overall Principles:
(i) Principle of unity of objective
(ii)Principle of simplicity
(iii)Principle of flexibility
(II) Structural Principles:
(iv)Principle of division of work
(v)Principle of functional definition
(vi)Principle of optimum departmentation
(vii) Principle of unity of direction
(viii) Span of management principle
(III) Operational Principles:
(ix) Principle of adequate delegation
(x) Scalar chain principle
(xi) Principle of unity of comment
(xii) Authority-level principle
Following may be a brief discuss each of the above-stated principles of organisation under appropriate categories:
(I) Overall Principles:
Under this classification, a number of the very fundamental principles of organization are included i.e. principles which are absolutely essential for an efficient and logical functioning of the organization.
A brief explanation of the principles under this category is as follows:
(i) Principle of unity of objective:
Very simply stated, this principle requires that individual and departmental objectives throughout the enterprise must be perfectly harmonized; which all objectives must be mutually supportive and collectively contributing to overall common objectives.
(ii) Principle of simplicity:
The observance of this principle requires that the management must, as far as possible, design a simple organizational structure. a straightforward structure facilitates a far better understanding of superior- subordinate relationships; and provides background for better co-operation among people.
(iii) Principle of flexibility:
While designing the organizational structure, the management must provide for in-built devices within the structure itself; which might facilitate changes within the organizational structure to be effected as and when environmental factors-internal and/or external- so demand.
(II) Structural Principles:
Structural principles of organization relate to those aspects of the organization, which have an impact on the structuring (or the development) of the organization; its fundamental design and shape.
Some of the important principles, during this context, could be the subsequent ones:
(iv) Principle of division of work:
Since the total work of the enterprise can't be performed by just one person; it's imperative that such work must be suitably divided among variety of persons. In fact, the total managerial work need to be divided among variety of managers; and the total operational work being divided among variety of operating personnel.
(v) Principles of functional definition:
The above stated principle implies that the role (or job) of each individual and of every department of the enterprise must be suitably defined, in terms of the-work content, the authority and facilities required for job performance and the relationship of the job with those of others, within the enterprise.
(vi) Principle of optimum departmentation:
There are some ways and bases for creating departments within an organization. consistent with the principle of optimum departmentation, departments in an organization must be so created and maintained-as to facilitate the simplest attainment of the common objectives of the enterprise.
(vii) Principle of unity of direction:
The principle implies that every group of activities having the same objective must have just one overall head and just one overall or master plan.
As a principle of organization, this concept of unity of direction must be so embedded in designing the organizational structure that for every group of similar activities, there's a provision for only one overall head-having authority over all personnel performing a similar function, anywhere, in the organization.
(viii) Span of management principle:
The span of management principle is variously called as- the span of control or the span of supervision. However, the phrase ‘span of management’ is that the widest; including also the notions of span of control and span of supervision.
The span of management principle implies that there's a limit to the number of subordinates; whose work might be effectively managed (controlled or supervised) by a superior.
(III) Operational Principles:
Operational principles of organization can be suggested to be those which have a bearing on the running or functioning of the organization.
Some important principles, under this category, are as follows:
(ix) Principle of adequate delegation:
By the principle of adequate delegation, we mean that every managerial position be given adequate (or necessary or requisite) authority-to enable the holder of the position i.e. the manager to cope successfully with the wants of his job.
(x) Scalar chain principle:
Scalar chain implies a chain of superiors-ranging from the highest rank to the lowest rank-in a corporation . The scalar chain forms the base of authority-responsibility relationships among managers and subordinates, within the organisation; thus promoting mutual understanding among superiors and subordinates at different levels of the organization.
As a principle of organization, scalar chain principle requires its incorporation into the design of the organisation, for ensuring smooth running of the enterprise life.
(xi) Principle of unity of command:
The above-sated principle implies that an employee must receive orders and instructions, only from one superior, at a time. The observance of this principle is desirable for reasons of removing doubts and confusions from the mind of the employees; and for facilitating exact fixation of responsibility on individuals for the results expected of them.
(xii) Authority-level principle:
The authority-level principle implies that managers at particular levels within the management hierarchy must decide only those matters which fall within the purview of the authority vested in their managerial positions.
A natural extension of this principle is that if a manager at any level of the management hierarchy comes across a matter not covered by his authority; the matter must either be referred upwards within the hierarchy or pushed down the hierarchy at the acceptable level for decision.
MEANING OF DEPARTMENTALISATION:
‘Departmentation’ or ‘Departmentalisation’ is that the process of grouping the activities of an enterprise into several units for the aim of administration at all levels.
The administrative units so created could also be designated as departments, divisions, units, branches, sections, etc.
The process of organising consists of dividing and grouping of the works to be wiped out an enterprise and assigning different duties and responsibilities to different people.
Dividing the work naturally means the identification of individual activities which need to be undertaken for the attainment of the organisational objectives. But once the varied activities are identified, it's necessary to group them together on some logical basis so that a team can be organised.
Departmentation can provide a necessary degree of specialisation of executive activity for efficient performance. It can simplify the tasks of management within a workable span. It also provides a basis on which the top managers can co-ordinate and control the activities of the departmental units.
NEED FOR AND IMPORTANCE OF DEPARTMENTATION:
The basic need for departmentation is to make the size of each departmental unit manageable and secure the benefits of specialisation. Grouping of activities and, consequently, of personnel, into departments makes it possible to expand an enterprise to any extent.
Departmentation is necessary on account of the subsequent reasons:
1. Advantages of Specialisation:
Departmentation enables an enterprise to avail of the advantages of specialisation. When every department looks after one major function, the enterprise is developed and efficiency of operations is increased.
2. Feeling of Autonomy:
Normally departments are created within the enterprise with cer¬tain degree of autonomy and freedom. The manager in charge of a department can take inde¬pendent decisions within the general framework of the organisation. the feeling of autonomy provides job satisfaction and motivation which cause higher efficiency of operations.
3. Expansion:
One manager can supervise and direct only a number of subordinates. Group¬ing of activities and personnel into departmentation makes it possible for the enterprise to expand and grow.
4. Fixation of Responsibility:
Departmentation enables each person to understand the spe¬cific role he's to play within the total organisation. The responsibility for results are often defined more clearly, precisely and accurately and an individual are often held accountable for the per¬formance of his responsibility.
5. Upliftment of Managerial Skill:
Departmentation helps within the development of managerial skill. Development is feasible due to two factors. Firstly, the managers focus their attention on some specific problems which give them effective on-the-job training. Sec¬ondly, managerial need for further training are often identified easily because the managers’ role is prescribed and training can provide them opportunity to work better in their area of spe¬cialisation.
6. Facility in Appraisal:
Appraisal of managerial performance becomes easier when specific tasks are assigned to departmental personnel. Managerial performance are often meas¬ured when the areas of activities are specified and therefore the standards of performance are fixed. Departmentation provides help in both these areas.
When a broader function is divided into small segments and a specific segment is assigned to every manager, the world to be appraised is clearly known; and therefore the factors affecting the performance are often pointed out more easily. Similarly, the standards for performance are often fixed easily because the factors influencing the work performance are often known clearly. Thus, performance appraisal becomes more effective.
7. Administrative Control:
Departmentation may be a means of dividing the large and com¬plex organisation into small administrative units. Grouping of activities and personnel into manageable units facilitates administrative control. Standards of performance for each and each department are often precisely determined.
TYPES OF DEPARTMENTATION:
There are several bases of Departmentation. The more commonly used bases are—function, product, territory, process, customer, time etc.
These are explained below:
(A) Departmentation by Functions:
The enterprise could also be divided into departments on the basis of functions like production, purchasing, sales, financing, personnel etc. this is often the most popular basis of departmentation. If necessary, a major function could also be divided into sub-functions. for instance , the activities in the production department could also be classified into quality control, processing of materials, and repairs and maintenance.
The organisation chart supported functional departmentation is shown in Fig. 4.10:
Advantages:
The advantages of functional departmentation include the following:
(a) it's the most logical and natural kind of departmentation.
(b) It ensures the performance of all activities necessary for achieving the organisational objectives.
(c) It provides occupational specialisation which makes optimum utilization of man-power.
(d) It facilitates delegation of authority.
(e) It enables the top managers to exercise effective control over a limited number of functions.
(f) It eliminates duplication of activities.
(g) It simplifies training because the managers are to be experts only during a narrow range of skills.
Disadvantages:
There are some problems related to functional departmentation. These are mentioned below:
(a) There could also be conflicts between departments.
(b) The scope for management development is limited. Functional managers don't get training for top management positions. The responsibility for results can't be fixed on anybody functional head.
(c) there's too much emphasis on specialisation.
(d) There could also be difficulties in coordinating the activities of various departments.
(e) There could also be inflexibility and complexity of operations.
(B) Departmentation by Products:
In product departmentation, every major product is organised as a separate department. Each department takes care of the production, sales and financing of 1 product. Product departmentation is beneficial when the expansion, diversification, manufacturing and marketing characteristics of every product are primarily significant.
It is generally used when the production line is complex and diverse requiring specialised knowledge and large capital is required for plant, equipment and other facilities like in automobile and electronic industries.
In fact, many large companies are diversifying in several fields and they prefer product departmentation. for instance , an enormous company with a diversified line may have three product divisions, one each for plastics, chemicals, and metals. Each division may be sub-divided into production, sales, financing, and personnel activities.
Advantages:
Product departmentation provides several advantages which can be stated as follows:
(a) Product departmentation focuses individual attention to every product line which facilitates the expansion and diversification of the products.
(b) It ensures full use of specialized production facilities. Personal skill and specialised knowledge of the assembly managers are often fully utilised.
(c) the production managers are often held accountable for the profitability of every product. Each product division is semi-autonomous and contains different functions. So, product departmentation provides a superb training facility for the top managers.
(d) The performance of every product division and its contribution to total results are often easily evaluated.
(e) it's more flexible and adaptable to change.
Disadvantages:
Product departmentation presents some problems as follows:
(a) It creates the problem of effective control over the product divisions by the top managers.
(b) Each production manager asserts his autonomy disregarding the interests of the organisation.
(c) The benefits of centralisation of certain activities like financing, and accounting aren't available.
(d) there's duplication of physical facilities and functions. Each product division main¬tains its own specialised personnel thanks to which operating costs could also be high.
(e) There could also be under-utilisation of plant capacity when the demand for a specific product isn't adequate.
(C) Departmentation by Territory:
Territorial or geographical departmentation is specially useful to large-scale enterprises whose activities are widely dispersed. Banks, insurance companies, transport companies, distribution agencies etc. are some samples of such enterprises, where all the activities of a given area of operations are grouped into zones, branches, divisions etc.
It is obviously impossible for one functional manager to manage efficiently such widely spread activities. This makes it necessary to appoint regional manag¬ers for various regions.
The organisation chart of territorial departmentation may take the subsequent form:
Advantages:
Territorial departmentation offers certain facilities in operation. These are acknowledged below:
(a) Every regional manager can specialise himself within the peculiar problems of his region.
(b) It facilitates the expansion of business to varied regions.
(c) It helps in achieving the advantages of local operations. The local managers are more familiar with the local customs, preferences, styles, fashion, etc. The enterprise can gain inti¬mate knowledge of the conditions within the local markets.
(d) It leads to savings in freight, rents, and labour costs. It also saves time.
(e) there's better co-ordination of activities during a locality through fixing regional divisions.
(f) It provides adequate autonomy to every regional manager and opportunity to train him as he takes care of the entire operation of a unit.
Disadvantages:
Territorial departmentation have the subsequent problems:
(a) there's the problem of communication.
(b) It requires more managers with general managerial abilities. Such managers might not be always available.
(c) There could also be conflict between the regional managers.
(d) Co-ordination and control of various branches from the head office become less effective.
(e) due to duplication of physical facilities, costs of operation are usually high.
(f) there's multiplication of personnel, accounting and other services at the regional level.
(D) Departmentation by Customers:
In such method of departmentation, the activities are grouped consistent with the sort of customers. for instance , a large cloth store could also be divided into wholesale, retail, and export divisions. this sort of departmentation is beneficial for the enterprises which sell a product or service to variety of clearly defined customer groups. as an example , a large readymade garment store may have a separate department each for men, women, and children. A bank may have separate loan departments for large-scale and small- scale businessmen.
The organisation chart of customer-oriented departmentation may appear as follows:
Advantages:
The important advantages of customer departmentation are the follow¬ing:
(a) Special attention are often given to the particular tastes and preferences of each kind of customer.
(b) Differing types of consumers can be satisfied, easily through specialised staff. Customers’ satisfaction enhances the goodwill and sale of the enterprise.
(c) the advantages of specialisation are often gained.
(d) The enterprise may acquire intimate knowledge of the needs of each category of consumers .
Disadvantages:
This method of departmentation may have certain disadvantages, specially when it's followed very rigidly. These are as follows:
(a) Co-ordination between sales and other functions becomes difficult because this method are often followed only in marketing division.
(b) There could also be under-utilisation of facilities and manpower in some departments, particularly during the amount of low demand.
(c) it's going to lead to duplication of activities and heavy overheads,
(d) The managers of customer departments may put pressures for special benefits and facilities.
(E) Departmentation by Process or Equipment:
In such type or departmentation the activities are grouped on the basis of production processes involved or equipment used. this is often generally utilized in manufacturing and distribution enterprises and at lower levels of organisation. as an example , a textile mill could also be organised into ginning, spinning, weaving, dyeing and finishing departments. Similarly, a printing press may have composing, proof reading, printing and binding departments. Such departmentation can also be employed in engineering and oil industries.
The organisation chart of departmentation by process or equipment within the manufacturing department of a textile industry has been shown in Fig. 4.14:
Advantages:
The basic object of such departmentation is to attain efficiency and economy of operations. The processes are set in such how that a series of operations is possible making operations economic. Efficiency are often achieved if departments are created for every process as each one has its peculiarities.
It provides the benefits of specialisation required at each level of the total processes. the maintenance of plant are often done in better way and manpower are often utilised effectively.
Disadvantages:
In such departmentation, there may be difficulty in coordinating the various process-departments, because the work of every process depends fully on the prece¬ding process. So, there are chances of conflicts among the managers looking after the differ¬ent processes. It can't be used where manufacturing activity doesn't involve distinct proc¬esses.
(F) Departmentation by Time and Numbers:
Under this method of departmentation the activities are grouped on the basis of the time of their performance. as an example , a factory operating 24 hours may have three departments for 3 shifts—one for the morning, the second for the day, and therefore the third for the night.
In the case of departmentation by numbers, the activities are grouped on the basis of their performance by a certain number of persons. as an example , within the army, the soldiers are grouped into squads, companies, battalions, regiments and brigades on the basis of the amount prescribed for every unit.
Such sort of departmentation is beneficial where the work is repetitive, manpower is a crucial factor, group efforts are more significant than individual efforts, and group performance are often measured. it's used at the lowest level of organisation.
MEANING OF ORGANISATION STRUCTURE:
Organisation structure is that the pattern of organisational hierarchy based on authority responsibility relationship.
According to Lounsbury Fish, “Organisation Structure is more than a chart. it's mechanism through which management directs co-ordinates and controls the business. it's the foundation of management.”
“An organisation may be a group of individuals coordinated into different levels of authority and segments of specialization for the purpose of achieving the goals and objectives of the organisation.” —Kossen
“Organisation is that the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in establishing of objectives ” —Allen
Organisation structure is one among the forces that affect the goal of the organisation. it's designed in such a manner on serve as an instrument to accomplish the social goal. The extent to which an organisation is able to attain its goal is, to a great extent, determined by its structure.
So, a structure is developed to offer the shape to a tentative idea at the initial stage. within the beginning, the structure is very simple because the dimensions of organisation is little . because the organisation expands, it becomes complex and needs planning and a systematic approach.
Nature and Characteristics of Organisation Structure:
Features and characteristics of organisation structure are:
1. It facilitates co-ordination of organisational activities and tasks.
2. It states the pattern of formal relationships and duties among people at different positions within the organisation.
3. In elaborates the hierarchical relationship among different levels of management within the organisation.
4. It facilitates the implementation of policies, practices, procedures, standards evaluation systems etc. that guide the activities and relationship among people within the organisation.
5. It sates the activities and tasks assigned to different departments and other people within the organisation.
Advantages of Organisation Structure:
Merits of having a well-designed organisation structure are as follows:
1. The activities of the individuals and therefore the groups will become more rational, stable and predictable.
2. An orderly hierarchy during which people are related during a meaningful sequence will result. Individual responsibility are going to be known clearly and the authority to act would be defined.
3. Individuals are going to be selected on the basis of ability to perform expected tasks. Simplification and specialisation of job assignment is possible in more effective way.
4. Directional and operational goals and procedures are going to be determined clearly and energies devoted to their achievement.
5. Available resources will be utilised within the most effective way.
6. Such an organisation may make the treatment of the individual workers more democratic because patronage and favouritism are reduced.
7. Workers will enjoy planned superior subordinate- relationships during which each work receives essential support and direction.
Demerits of Organisation Structure:
Disadvantages of getting an organisation structure are as follows:
1. Individual creativity and originality could also be stifled by the rather rigid determination of duties and responsibilities.
2. Workers may become less willing to assume duties that aren't formally a part of their original assignment.
3. very often the fixed relationships and lines of authority seem inflexible and difficult to adjust to satisfy changing needs.
4. They produce anxiety in individual workers by pressing too heavily for routine and conformity.
5. They become too costly in terms of your time and human dignity so as to implement organisational rules and regulations.
6. Inter-personal communication may be slowed or stopped as a results of strict adherence to formal lines of communication.
7 Organisations tend to fail to account for important differences in workers as human beings.
These organisational structures are briefly described within the following paragraphs:
1. Line Organisational Structure:
A line organization has only direct, vertical relationships between different levels within the firm. There are only line departments-departments directly involved in accomplishing the primary goal of the organisation. for instance , during a typical firm, line departments include production and marketing. during a line organization authority follows the chain of command.
Exhibit 10.3 illustrates one line organisational structure.
Features:
Has only direct vertical relationships between different levels within the firm.
Advantages:
1. Tends to simplify and clarify authority, responsibility and accountability relationships
2. Promotes fast decision making
3. Simple to know .
Disadvantages:
1. Neglects specialists in planning
2. Overloads key persons.
Some of the benefits of a pure line organization are:
(i) A line structure tends to simplify and clarify responsibility, authority and accountability relationships. the levels of responsibility and authority are likely to be precise and understandable.
(ii) A line structure promotes fast decision making and adaptability .
(iii) Because line organisations are usually small, managements and employees have greater closeness.
However, there are some disadvantages also. They are:
(i) as the firm grows larger, line organization becomes more ineffective.
(ii) Improved speed and flexibility might not offset the lack of specialised knowledge.
(iii) Managers may need to become experts in too many fields.
(iv) there's a tendency to become overly dependent on the few key people that an perform numerous jobs.
2. Staff or Functional Authority Organisational Structure
The jobs or positions in an organisation are often categorized as:
(i) Line position:
a position within the direct chain of command that's responsible for the achievement of an organisation’s goals and
(ii) Staff position:
A position intended to produce expertise, advice and support for the line positions.
The line officers or managers have the direct authority (known as line authority) to be exercised by them to attain the organisational goals. The staff officers or managers have staff authority (i.e., authority to advice the line) over the line. this is often also called functional authority.
An organisation where staff departments have authority over line personnel in narrow areas of specialization is understood as functional authority organisation. Exhibit 10.4 illustrates a staff or functional authority organisational structure.
In the line organization , the line managers can't be experts in all the functions they're required to perform. But within the functional authority organisation, staff personnel who are specialists in some fields are given functional authority (The right of staff specialists to issue orders in their own names in designated areas).
The principle of unity of command is violated when functional authority exists i.e., a worker or a group of workers may need to receive instructions or orders from the line supervisor also as the staff specialist which can result in confusion and therefore the conflicting orders from multiple sources may result in increased ineffectiveness. Some staff specialists may exert direct authority over the line personnel, instead of exert advice authority (for example, quality control inspector may direct the worker also as advise in matters related to quality).
While this sort of organisational structure overcomes the disadvantages of a pure line organisaional structure, it's some major disadvantages:
They are: (i) the potential conflicts resulting from violation of principle of unity of command and (ii) the tendency to stay authority centralized at higher levels within the organisation.
3. Line and Staff Organisational Structure:
Most large organisations belong to this sort of organisational structure. These organisations have direct, vertical relationships between different levels and also specialists liable for advising and assisting line managers. Such organisations have both line and staff departments. Staff departments provide line people with advice and assistance in specialized areas (for example, quality control advising production department).
Exhibit 10.5 illustrates the line and staff organisational chart. the line functions are production and marketing whereas the staff functions include personnel, quality control, research and development, finance, accounting etc. The staff authority of functional authority organisational structure is replaced by staff responsibility in order that the principle of unity of command isn't violated.
Three sorts of specialized staffs are often identified:
(i) Advising,
(ii) Service and
(iii) Control.
Some staffs perform only one of those functions but some may perform two or all the three functions. the primary advantage is that the use of expertise of staff specialists by the line personnel. The span of control of line managers are often increased because they're relieved of the many functions which the staff people perform to help the line.
Some advantages are:
(i) Even through a line and staff structure allows higher flexibility and specialization it's going to create conflict between line and staff personnel.
(ii) Line managers might not like staff personnel telling them what to do and how to do it even though they recognize the specialists’ knowledge and expertise.
(iii) Some staff people have difficulty adjusting to the role, especially when line managers are reluctant to simply accept advice.
(iv) Staff people may resent their lack of authority and this might cause line and staff conflict.
Features:
1. Line and staff have direct vertical relationship between different levels.
2. Staff specialists are accountable for advising and assisting line managers/officers in specialized areas.
3. These sorts of specialized staff are (a) Advisory, (b) Service, (c) Control e.g.,
(a) Advisory:
Management information system, Operation Research and Quantitative Techniques, industrial engineering, Planning etc
(b) Service:
Maintenance, Purchase, Stores, Finance, Marketing
(c) Control:
Quality control, Cost control, Auditing etc. Advantages
(i) Use of experience of staff specialists.
(ii) Span of control are often increased
(iii) Relieves line authorities of routine and specialized decisions.
(iv) No need for all round executives.
Disadvantages:
(i) Conflict between line and staff should arise.
(ii) Staff officers may resent their lack of authority.
(iii) Co-ordination between line and staff may become difficult.
Committee Organisational Structure Features:
(a) Formed for managing certain problems/situations
(b) Are temporary decisions.
Advantages:
1. Committee decisions are better than individual decisions
2. Better interaction between committee members results in better co-ordination of activities
3. Committee members are often motivated to participate in group decision making.
4. group discussion may result in creative thinking.
Disadvantages:
1. Committees may delay decisions, consume more time and hence costlier .
2. group action may result in compromise and indecision.
3. ‘Buck passing’ may result.
4. Divisional Organisational Structure:
In this sort of structure, the organisation can have different basis on which departments are formed. They are:
(i) Function,
(ii) Product,
(iii) Geographic territory,
(iv) Project and
(iv) Combination approach.
Exhibit 10.6 illustrates organisational structures formed supported the above basis of departmentation.
5. Project Organisational Structure:
The line, line and staff and functional authority organisational structures facilitate establishment and distribution of authority for vertical coordination and control instead of horizontal relationships. In some projects (complex activity consisting of variety of interdependent and independent activities) work process may flow horizontally, diagonally, upwards and downwards. The direction of labor flow depends on the distribution of talents and skills within the organisation and therefore the got to apply them to the problem that exists. The cope up with such situations, project organisations and matrix organisations have emerged.
A project organisation may be a temporary organisation designed to attain specific results by using teams of specialists from different functional areas within the organisation. The project team focuses all its energies, resources and results on the assigned project. Once the project has been completed, the team members from various cross functional departments may go back to their previous positions or is also assigned to a new project. a number of the samples of projects are: research and development projects, product development, construction of a new plant, housing complex, shopping complex, bridge etc.
Exhibit 10.7 illustrates a project organisational structure.
Feature:
Temporary organisation designed to attain specific results by using teams of specialists from different functional areas within the organisation.
Importance of Project Organisational Structure:
Project organisational structure is most precious when:
(i) Work is defined by a selected goal and target date for completion.
(ii) Work is unique and unfamiliar to the organisation.
(iii) Work is complex having independent activities and specialized skills are necessary for accomplishment.
(iv) Work is critical in terms of possible gains or losses.
(v) Work isn't repetitive in nature.
Characteristics of project organisation:
1. Personnel are assigned to a project from the present permanent organisation and are under the direction and control of the project manager.
2. The project manager specifies what effort is required and when work are going to be performed whereas the concerned department manager executes the work using his resources.
3. The project manager gets the needed support from production, quality control, engineering etc. for completion of the project.
4. The authority over the project team members is shared by project manager and therefore the respective functional managers within the permanent organisation.
5. The services of the specialists (project team members) are temporarily loaned to the project manager till the completion of the project.
6. There could also be conflict between the project manager and the departmental manager on the issue of exercising authority over team members.
7. Since authority relationships are overlapping with possibilities of conflicts, informal relationships between project manager and departmental managers (functional managers) become more important than formal prescription of authority.
8. Full and free communication is important among those working on the project.
6. Matrix Organisational Structure:
It is a permanent organisation designed to attain specific results by using teams of specialists from different functional areas within the organisation. The matrix organisation is illustrated in Exhibit 10.8.
Feature:
Superimposes a horizontal set of divisions and reporting relationships onto a hierarchical functional structure
Advantages:
1. Decentralised decision making.
2. Strong product/project co-ordination.
3. Improved environmental monitoring.
4. Fast response to change.
5. Flexible use of resources.
6. Efficient use of support systems.
Disadvantages:
1. High administration cost.
2. Potential confusion over authority and responsibility.
3. High prospects of conflict.
4. Overemphasis on group decision making.
5. Excessive concentrate on internal relations.
This type of organisation is usually used when the firm has got to be highly responsive to a rapidly changing external environment.
In matrix structures, there are functional managers and product (or project or business group) managers. Functional manager are responsible of specialised resources like production, quality control, inventories, scheduling and marketing. Product or business group managers are incharge of 1 or more products and are authorized to prepare product strategies or business group strategies and call on the varied functional managers for the necessary resources.
The problem with this structure is that the negative effects of dual authority similar to that of project organisation. The functional managers may lose some of their authority because product managers are given the budgets to get internal resources. during a matrix organisation, the product or business group managers and functional managers have somewhat equal power. there's possibility of conflict and frustration but the opportunity for prompt and efficient accomplishment is quite high.
7. Hybrid Organisational Structure:
Exhibit 10.9 (a) illustrates the hybrid organisational structure.
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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.
Uses:
Used in organisations that face considerable environmental uncertainty this will be met through a divisional structure which also required functional expertise or efficiency
This type of structure is employed by multinational companies operating within the global environment, for instance , International Business Machines USA. this type of structure depends on factors like degree of international orientation and commitment. Multinational corporations may have their corporate offices within the country of origin and their international divisions established in various countries reporting to the CEO or president at the headquarters. The international divisions or foreign subsidiaries may be grouped into regions like North America, Asia, Europe etc. and again each region may be subdivided into countries within each region.
While the focus is on international geographic structures, companies can also choose functional or process or product departmentation additionally to geographic pattern while at the head quarter’s the departmentation could also be based on function.
The Informal Organisation:
An informal organisation is that the set of evolving relationships and patterns of human interaction within an organisation which aren't officially presented. Alongside the formal organisation, an informal organisation structure exists which consists of informal relationships created not by officially designated managers but by organisational members at every level. Since managers cannot avoid these informal relationships, they need to be trained to deal with it
The informal organisation has the subsequent characteristics
(i) Its members are joined together to satisfy their personal needs (needs for affiliation, friendship etc.)
(ii) it's continuously changing:
The informal organisation is dynamic.
(iii) It involves members from various organisational levels.
(iv) it's affected by relationship outside the firm.
(v) it's a pecking order: certain people are assigned greater importance than others by the informal group.
Benefits of Informal Organisation:
(i) Assists in accomplishing the work faster.
(ii) Helps to remove weakness within the formal structure.
(iii) Lengthens the effective span of control.
(iv) Compensation for violations of formal organisational principles.
(v) Provides a further channel of communication.
(vi) Provides emotional support for workers .
(vii) Encourages better management.
Disadvantages of informal organisation:
(i) may work against the purpose of formal organisation.
(ii) Reduces the degree of predictability and control.
(iii) Reduces the amount of practical alternatives.
(iv) Increases the time required to finish activities.
Meaning:
Responsibility refers to an obligation to do something.
It is the duty of the subordinate to perform organisational tasks, functions or activities assigned to him. Authority and responsibility go side by side. When authority is delegated then some responsibility for getting the assigned task is additionally fixed. One can delegate authority but not responsibility.
Definition:
“Responsibility is that the obligation of a subordinate to hold out the duties assigned to him.”
—Knootz and O’Donnel
“By responsibility we mean the work or duties assigned to a person by virtue of his position within the organisation. It refers to the mental and physical activities which must be performed to hold out a task or duty. that means every one who performs any kind of mental or physical effort as an assigned task has responsibility. —Allen
“Responsibility is that the obligation to carry out assigned activities to the simplest of his abilities.” —George Terry
Responsibility is thus the results of superior-subordinate relationship. In other words, a subordinate’s obligations in any business unit will arise basically from his relationship with his superior who is given the authority to get something done.
A superior/ manager/executive get the rights of compliance of orders when he assigns duties and debates authority, while accepting a job a subordinate incurs an obligation to perform the work successfully.
“The essence of responsibility is then obligation. Responsibility has no meaning except as applied to a person; a building, a machine or an animal can't be held responsible.” Responsibility may be a concomitant of authority. an individual who has authority has a corresponding responsibility for the proper exercise of authority given to him. Authority flows from a superior to subordinate while responsibility flows from a subordinate to a superior.
Features of Responsibility:
The following are the characteristics or features of responsibility:
(i) Responsibility comes from superior-subordinate relationship.
(ii) It always flows upward from juniors to seniors.
(iii) It arises from duty assigned.
(iv) It can't be delegated.
(v) it's the obligation to finish the job as per instructions. Responsibility may be continuing obligation or it's going to be discharged by accomplishing single task. Responsibility may be a personal attribute. nobody can shift his responsibility by delegating his authority to others.
Whether a personal exercises the authority himself or gets it exercised through others, he remains responsible to his own superior for proper performance. Thus, responsibility is absolute and may never be delegated or shifted to others.
It is a vital managerial practice of getting things done through others by sharing authority with them.
In any typical organisation, the policy and strategic decisions are taken by Board of Directors and actual implementation of those is entrusted to the Chief Executive.
However, the chief executive alone cannot do the whole work.
He cannot even supervise the work of all individuals working in several departments. He can pass on some portions of his authority to different departmental managers and commit them to specific tasks of supervision and operation. This process is known as delegation of authority.
“Delegation means in short the passing on the opposite of a share within the four elements of the management.” —E. F. L. Brech
“Delegation means assigning work to others and giving them authority to do it.” —F. G. Moore
“Delegation is an act of comparing authority by some higher source of authority.”
“Delegation means conferring authority from one executive or organi¬sational unit to another so as to accomplish particular assignment.” —George R. Terry
Process of Delegation of Authority:
Delegation process involves the subsequent three steps (Fig. 7.1):
STEP-I: Assignment of Work:
The first step in delegation is that the assignment of work or duty to the subordinate i.e., delegation of authority. The superior asks his subordinate to perform a particular task during a given period of time. it's the outline of role assigned to the subordinate. Duties in terms of functions or tasks to be performed constitute the basis of delegation process.
STEP-II: Granting of Authority:
The grant of authority is Fig. 7.1 Process of delegation the second element of the dele authority to the subordinate in order that the assigned task is accomplished. The delegation of responsibility without authority is meaningless. The subordinate can only accomplish the work when he has authority required for completing that task. Authority comes from responsibility.
STEP-III: Creation of Accountability:
Accountability is that the obligation of a subordinate to perform the duty assigned to him. The delegation creates an obligation on the subordinate to accomplish the task assigned to him by the superior. When a work is assigned and authority is delegated then the accountability is that the by-product of this process.
The authority is transferred in order that a particular work is completed as desired. this suggests that delegator has got to ensure the completion of assigned work. Authority flows downward whereas accountability flows upward.
Importance of Delegation:
Delegation of authority is widely recognised as an art of getting best results. It reduces the burden on top executives by relieving them of the both elation of taking routine decisions. this may help them in concentrating on vital aspects of management.
Delegation enables quick decisions concerning various matters because the authority of decision making has been distributed to numerous people. Granting of authority to subordinates motivates the superiors to perform their duties well. Delegation helps in maintaining healthy relationship between the executives and his subordinates by clearly defining the authority and responsibility of subordinates.
In general, the importance of delegation are often summarized as:
(a) Delegation results in better decisions.
(b) Delegation relieves the manager from heavy work load.
(c) Delegation helps to boost the motivation and morale of subordinates.
(d) Delegation accelerates decision making.
(e) Delegation facilitates training of subordinates.
(f) Delegation creates a proper organisation structure.
Comparative Account # Merits of Centralisation/Limitations of Decentralisation:
Following are the benefits of centralisation/limitations of decentralisation:
(i) Consistency/Lack of Consistency in Decision-Making:
Centralisation results in consistency in decision-making; because decisions are taken by a small group of managers at upper levels of management.
According, there are lesser problems of co¬ordination. In decentralisation, there's a lack of consistency in decision-making; because an outsized number of managers at lower levels may decide an equivalent issue in diverse manners – despite operating within the organisational policy framework. Accordingly, problems of co-ordination are accentuated.
(ii) Strong/Weak Top Management:
Centralisation of authority strengthens top management; and it's during a position to provide outstanding leadership to the entire enterprise by virtue of its vast authority. Under decentralisation, top management is quite weak; as most of its powers are given away among lower levels of management. it's not during a position to provide outstanding leadership to the organisation, due to its reduced powers.
(iii) Lower/Higher Costs of Administration:
In a centralised set-up of the organisation, the cost of administration is lesser; because the enterprise can operate with a limited number of managers. this is often a good advantage of centralisation, within the present-day-times characterised by highly inflationary conditions. in a decentralised set-up, the cost of administration is higher; because to control the decentralised units, a large number of managers is necessitated.
(iv) Broad/Narrow Approach to Managing:
In centralisation, the top management has a broad outlook to managing; because it takes decisions from the system’s perspective – viewing the functioning of the organisation as an entire. In decentralisation, the managers of decentralised units have, usually, a narrow outlook to managing. For them, their own departmental interests are supreme – as against the overall interests of the entire organisation.
(v) Discouraging/Encouraging Inter-Departmental Conflicts:
Centralisation discourages inter-departmental conflicts; because major decisions of departments are taken at upper levels of management with an orientation towards departmental co-operation.
Decentralisation encourages inter-departmental conflicts; because different departmental managers take decisions in their own unique manners and styles, by virtue of, their vast powers and hell look after departmental co-ordination and co-operation.
(vi) Mature/Risky Decision-Making:
In centralisation, upper management, because of its experience, wisdom and broad outlook, is more mature in decision-making. Such decisions carry the chance of being least risky. In decentralisation, lower level managers, due to their less experience, wisdom and narrow outlook are less mature in decision-making.
Sometimes, under decentralisation such risky decisions could be taken as might endanger the very survival of the business enterprise.
(vii) Retention/Loss of Control by Top Management:
In centralisation, top management retains tight control over the entire organisation, due to its vast powers. In decentralisation, top management’s control over the organisation is loosened; as its substantial powers are passed on to the lower levels of management.
(viii) Optimum/Less than Optimum Utilisation of Resources:
Under centralisation, there's an optimum utilisation of organisational resources, due to rational allocation of scarce resources among different uses. Under decentralisation, there may be, at times, but optimum utilisation of resources; because the same set of activities may be duplicated in various decentralised units – resulting in wastage of precious organisational resources.
(ix) Efficient/Inefficient Handling of Emergencies:
In centralisation, there's an efficient handling of emergencies by top management; and it can overcome organisational crises in an intelligent and planned manner. In decentralisation, lower level management could also be frightened by emergencies and run to hunt the shelter and guidance of top management for handling emergency situations.
Failure to effectively affect emergencies by lower level management, may tell upon the survival and prosperity of the entire enterprise.
(x) Suitable/Unsuitable within the Present-Day Environmental Scenario:
Centralisation/re-centralisation is very suitable for tackling present-day environmental scenario; which is very volatile and turbulent. Under these circumstances, top management can take sound decisions in consultation with specialists, from various fields.
Present-day environmental scenario makes decentralisation impractical. For taking sound decisions under these circumstances, top management cannot provide specialists to each Tom, Dick or Harry manager at lower levels within the organisation, due to financial implications.
Comparative Account # Limitations of Centralisation/Merits of Decentralization:
Following are the limitations of centralisation/ad vantages of decentralisation:
(i) Heavy Burden/Light Burden on Top Management:
Under centralisation, there's heavy burden of management work on top management; as it has got to do strategic planning, policy formulation and controlling the entire organisation. Under decentralisation, there's light burden on top management; as much of the management work is passed on to lower levels of management.
(ii) Organisational Growth Retarded/Facilitated:
Centralisation retards the growth of organisation. Strategies of diversification, expansional programmes can't be practical for organisation; as top management, already over-burdened with normal management work, can hardly find time to think in these directions.
Decentralisation facilities organisational growth. Dynamic and talented managers at lower levels coupled with power, can easily conceive of and implement growth strategies, of course, in consultation with top management. In fact, a trend towards decentralisation has gained momentum to deal with requirements of growth.
(iii) Lower/Higher Status of Lower Level Managers:
Centralisation decreases the status of lower level managers. As such, they need less motivation to work, due to the non-fulfillment of their ego needs. Decentralisation adds to the status of lower level managers. In fact, everything which goes to extend the status of lower level managers may be a measure of decentralisation. With enhanced status, lower level managers have more motivation to work.
(iv) Autocratic/Democratic Management:
Centralisation may cause autocratic management, within the organisation. Top management with unrestricted powers might not hesitate to impose its autocratic policies and leadership styles on the entire organisation i.e. it may misuse its powers also.
Decentralisation results in democratic features in organisational functioning. In fact, under decentralisation, management decision-making power gets divided among a large number of lower rank managers. This phenomenon puts restraints over the dictatorial use of powers by the top management.
(v) Initiative Discouraged/Encouraged:
Centralisation discourages the exercise of initiative on the a part of lower level managers. Their creativity and innovative skills haven't any scope, within the organisation. Decentralisation encourages the exercise of initiative on the a part of lower level managers.
They can plan and execute their innovative plans, for the overall betterment of organisational life. Their creativity and innovative skills have full scope within the organisation. that's why; many decentralised enterprises have progressed plenty, in some cases.
(vi) Delayed/Quick Decision-Making:
In centralisation, there's delayed decision-making; because top management is burdened with many organisational issues and can't pay timely attention to decision-making. In decentralizations, there's quick decision-making.
For one thing, lower level managers have comparatively limited managerial work, as they need to attend to only their own departmental problems. And for another, they have not seek approval of upper management for decision-making on issues, that authority has been decentralised to them.
(vii) Inferior/Superior Decision-Making:
Under centralisation there's inferior decision-making by top management. this might seem paradoxical; but it's true within the sense that top rank managers are much remote to the situational factors, within the context of which decisions need to be made.
Under decentralisation, decision-making is superior, within the sense that lower level managers are close to the situational factors, within the context of which decisions have to be made. In fact, they practically affect situational factors and develop a far better sense of their appreciation and tackling.
(viii) Managerial Development Retarded/Facilitated:
Centralisation retards managerial training and developmental process. Under this philosophy, lower rank managers have little chance of development; because their roles in organisational life are routinized and they haven't any or little freedom to exercise initiative and take bold decisions, in an unrestricted manner.
Centralisation, in a way, creates problems of managerial succession when some significant top-level managers retire, because of age factor. Decentralisation, may be a systematic way of training and developing managers for higher managerial positions. This philosophy more or less does away with the problem of managerial succession.
(ix) Management by Exception Retarded/Facilitated:
Centralisation retards the policy of management by exception, under which top management must concentrate its attention only on strategic issues. Hence, under centralisation, this policy isn't possible; as top management has got to attend to all aspects of managing, because of reservation of considerable decision-making authority with itself.
Decentralisation facilitates the policy of management by exception. By retaining authority for strategic decision-making with itself, top management can decentralize substantial authority for operational management purposes to lower level managers.
(x) Egoistic/Rational Planning:
Under centralisation, as a matter of great men psychology, top management, sometimes, may enjoys egoistic planning for ambitious purposes without caring for the attainment of enterprise objectives. Under decentralisation, rational planning is completed by lower level managers.
They have comparatively little ambition and ego and care more for attainment of their departmental objectives through designing and implementing rational plans.
TEAMWORK
Teamwork are often best defined as “the process of working collaboratively with a group so as to attain a goal.” it's about gathering together a group of people from different backgrounds in hopes that their collective talents, skills, and experiences will provide a more efficient and successful outcome.
Importance of Teams:
1. Improved Employee Motivation:
Work teams help in enhancing the employee motivation. Because work teams encourage employee involvement, these make the jobs more interesting and fulfill the social needs of the employees. Individuals are likely to perform better once they are working in the presence of people . Individuals will work harder and put in a lot of additional efforts to stay in the team’s good graces.
2. Positive Synergy:
Teams have the potential to form high levels of productivity because of positive synergy created by them. The output within the sort of performance productivities is usually more than the summation of inputs put within the form of employee efforts. there's a flinch of positive synergy also. Sometimes, managements resort to cuts in staff to use the positive synergy to get the same or greater output from fewer people.
3. Satisfaction of Social Needs:
Man is a social animal. He always feels the necessity of affiliation. Teams can satisfy this need of the workers by increasing worker interactions and creating a sense of brotherhood and friendship among team members. Such employees are always during a better position to cope with stress and they enjoy their jobs more.
4. Commitment to Team Goals:
Teams generally develop a common purpose, commitment thereto purpose and agreement upon specific goals. All this combined with the social pressures exerted by the team, lead to a high degree of commitment to common team goals. The individual members sublimate their individual goals for the common goals of the group.
5. Improved Organisational Communication:
As the teams encourage interactions, it'll result in improved communication. in case of self managed teams, interpersonal dependencies are created which require the members to interact considerably more than when they work on jobs alone. Cross functional teams create inter-functional dependencies and increase organisation wide communication.
6. Benefits of Expanded Job Training:
The implementation of team work always results in expanded job training. Through this training employees build their technical, decision making and interpersonal skills.
7. Organisational Flexibility:
Management has found that teams are more flexible and responsive to changing events than are traditional departments or other sorts of permanent groupings. Teams have the capability to quickly assemble, deploy, refocus and disband. All this is often because of the rationale that teams focus on processes rather than functions. They encourage cross training so members can do each others jobs and expansion of skills. This expansion of skills increases organisational flexibility.
Though the introduction of teams doesn't always achieve these benefits, but we can’t ignore the reality that team movement currently has tremendous momentum and reflects managements belief that teams are often successful in a wide selection of settings. There are obviously contingency factors that influence the acceptance and success of teams.
In organizing, the manager determines as to what activities or jobs are required to achieve organizational goals. In staffing, the manager attempts to find out the right person for the right job. Infact, staffing is an important element of organizing.
Staffing function of management is concerned with the job of providing manpower with required skills for managing the organizational structure. It deals with recruitment, selection, placement, training, growth and development of the people working at various levels in the organization.
According to Theo Haiman, “The staffing function pertains to the recruitment, selection, development, training and compensation of subordinate managers.”
NATURE AND CHARACTERISTICS OF STAFFING:
The main characteristics of a staffing are as follows:
- Important managerial Function: Staffing is the most important managerial function along with planning, organizing, directing and controlling. The function of these four functions depends upon the manpower which is available through staffing function.
- Pervasive Activity: Staffing function is carried out by all the managers and in all types of organization where business activities are carried out. It relates from top level management to middle level managers and finally to the lower level subordinates.
- Continuous Activity: Staffing function continues throughout the life of an organization. It includes recruitments, transfers, promotions, etc. of the employees in an organization. Certain trainings are also given to the employees from time to time so as to perform better and contribute towards overall development of the business.
- Efficient Management of personnel: Human resources can be efficiently managed by a system i.e. recruitment, selection, placement, training and development, providing remuneration, etc. All this provides a motivational force to the employee leading to the betterment of the organization as a whole.
- Right men at Right Job: It can be done effectively through proper recruitment procedures and then finally selecting the most suitable candidate as per the job requirements. Staffing aims at selecting the right men for the right job at a right time.
- Related with Human Resource management: This is mainly related with the people and not like planning, organizing, etc. which is related with paper work. It is concerned with the managers and employees of the organization.
- Result –oriented Function: The staffing function places emphasis on results. All the sub-function of staffing aim at achievement higher efficiency and productivity.
- Social Responsibility: This function is related with the recruitment, selection, training, etc. of the people, so it becomes the social responsibility of the person or department concerned with all the activities that they have to be impartial in taking proper and correct decision.
IMPORTANCE OF STAFFING:
Helps to achieve objectives: Staffing helps to achieve business objectives. Staffing helps in selecting, motivating and setting policies related to employees so that all other factors of production are put into efforts to achieve business objectives.
- Improve Efficiency: Staffing includes training and development programme for type employees. Continuous training process helps the organization to adopt advance technology. This increases the efficiency of the employees.
- Job Satisfaction: Staffing provides an opportunity to a right person to work at right place. It enables the people to put their team efforts to achieve targets. This indirectly provides job-satisfaction to employees.
- Best utilization of Human factor: Staffing function of any organization is related with human factor. It tries to utilize human resources more efficiently and effectively. Through training and development programme the employees are made the best for their work.
- Healthy industrial relations: Sound staffing leads to create healthy inter-personal relations among employees and management, superiors and subordinates, among the employees themselves etc.
- Optimum use of resources: All the factors of production like machinery, material and money can be used at their optimum level with the help of efficient man-power. Staffing attempts to use all factors at highest level.
- Human resource accounting: Human resource accounting is related with the record of expenses and incomes concerned to human factor. Human is treated as an asset in business organization. This new branch of accounting is a best tool for control.
- Reduce Absenteeism and Employees turnover: Staffing includes selection, training, promotion of the employees in any organization. Staffing develops the job-satisfaction among the employees. This helps to reduce labour in absenteeism and employees turnover.
- Managerial Development: Staffing is a function related with all level of management. It includes selection, recruitment, training, motivating and promotion etc. of employees. This develops the managerial skills at top and middle level.
Whenever there's a vacancy in the organization, generally it's to be filled. to make the candidate available for filling those vacancies, their selection procedure and placement on a proper job comes under the purview of recruitment.
As soon as the available vacancies are known, they're advertised through different media and accordingly the applications are collected for the vacant posts. a group of candidates curious about doing the job and are eligible to do, it's created through recruitment.
It is an operative function of human resource management coming under the managerial function called organizing. within the words of Edwin Flippo, ‘recruitment is the process of searching for prospective employees and stimulating them to apply for jobs within the organisation’.
In short, it involves attracting and obtaining as many applications as possible from eligible job seekers.
Sources of Recruitment:
The eligible and suitable candidates required for a specific job are available through various sources. These sources are often divided into two categories, as shown in Figure 5.5.
Internal Sources of Recruitment:
1. Promotions:
The promotion policy is followed as a motivational technique for the workers who work hard and show good performance. Promotion leads to enhancements in pay, position, responsibility and authority. The important requirement for implementation of the promotion policy is that the terms, condi¬tions, rules and regulations should be well-defined.
2. Retirements:
The retired employees could also be given the extension in their service in case of non¬-availability of suitable candidates for the post.
3. Former employees:
Former employees who had performed well during their tenure may be called back, and better wages and incentives can be paid to them.
4. Transfer:
Employees could also be transferred from one department to a different wherever the post becomes vacant.
5. Internal advertisement:
The existing employees could also be curious about taking over the vacant jobs. As they're working within the company since while, they realize the specification and outline of the vacant job. for his or her benefit, the advertisement within the corporate is circulated in order that the workers are going to be intimated.
Benefits of Internal Sources of Recruitment:
1. the prevailing employees get motivated.
2. Cost is saved as there's no got to give advertisements about the vacancy.
3. It builds loyalty among employees towards the organization.
4. Training cost is saved because the employees already realize the character of job to be performed.
5. it's a reliable and straightforward process.
Limitations of Internal Sources of Recruitment:
1. Children with the knowledge of modem technology and innovative ideas don't get the prospect.
2. The performance of the prevailing employees might not be as efficient as before.
3. It brings the morale down of employees who don't get promotion or selected.
4. it's going to results in encouragement to favouritism.
5. it's going to not be always within the good interest of the organization.
External Sources of Recruitment:
1. Press advertisement:
A wide choice for choosing the acceptable candidate for the post is avail¬able through this source. It gives publicity to the vacant posts and therefore the details about the work within the sort of description and job specification are made available to public generally .
2. Campus interviews:
It is the simplest possible method for companies to pick students from various educational institutions. it's easy and economical. the corporate officials personally visit various institutes and choose students eligible for a specific post through interviews. Students get an honest opportunity to prove them and obtain selected for an honest job.
3. Placement agencies:
A databank of candidates is shipped to organizations for his or her selection purpose and agencies get commission reciprocally.
4. Employment exchange:
People register themselves with government employment exchanges with their personal details. Consistent with the requirements and request of the organization, the candidates are sent for interviews.
5. Enter interviews:
These interviews are declared by companies on the precise day and time and conducted for selection.
6. E-recruitment:
Various sites like jobs.com, naukri.com, and monster.com are the available electronic sites on which candidates upload their resume and seek the roles .
7. Competitors:
By offering better terms and conditions of service, the human resource managers attempt to get the workers working within the competitor’s organization.
Benefits of External Sources of Recruitment:
1. New talents get the chance.
2. the simplest selection is feasible as an outsized number of candidates apply for the work .
3. just in case of unavailability of suitable candidates within the organization, it's better to pick them from outside sources.
Limitations of External Sources of Recruitment:
1. Skilled and impressive employees may switch the work more frequently.
2. It gives a way of insecurity among the prevailing candidates.
3. It increases the value as advertisement is to tend through press and training facilities to be provided for brand spanking new candidates.