Internal attributes of companies that excel at cost leadership include: Acquiring the resources necessary to make a substantial investment in production assets; this investment poses a significant obstacle to entry that many companies will not be able to resolve. Ability to design goods that are efficient to produce, such as having a low component count to speed up the assembly process. Extensive knowledge of industrial process engineering. Channels of distribution that are reliable. Each generic strategy, including the low-cost strategy, has its own set of risks. Some businesses, for example, will be able to cut costs as well. With advancements in technology, the market will be able to leapfrog production capacities, removing the competitive advantage. Furthermore, some companies that adopt a focus strategy and target a range of narrow markets can be able to achieve even lower costs within their segments and gain significant market share as a company. b) Differentiation Strategy A differentiation strategy involves the development of a product or service with specific characteristics that consumers respect and that customers consider to be better than or different from the competition's products. The value added by the product's uniqueness can enable the company to charge a higher price for it. The company hopes that the higher price would more than offset the added costs associated with delivering the one-of-a-kind commodity. Because of the product's specific characteristics, if manufacturers raise their prices, the company will be able to pass the costs on to consumers who are unable to buy comparable goods. Internal strengths of companies that excel in a differentiation strategy include: • You'll have access to cutting-edge scientific research. • A talented and innovative product development team. • A good sales force that can efficiently articulate the product's perceived strengths. • A solid reputation for quality and creativity within the business. Competitor imitation and shifts in consumer preferences are two threats associated with a differentiation strategy. Furthermore, companies that pursue focus strategies can be able to gain even more differentiation in their market segments. 101 CU IDOL SELF LEARNING MATERIAL (SLM)
c) Focus Strategy The emphasis approach focuses on a specific segment and aims to achieve either a cost advantage or distinction within that segment. The premise is that by concentrating exclusively on the group's needs, it would be better served. Customers are also loyal to a company that uses a focus approach, and this loyalty discourages other companies from competing directly. Firms following a concentration strategy have lower quantities and therefore less negotiating power with their suppliers due to their limited business focus. Due to the lack of near replacement products, companies following a differentiation-focused strategy may be able to pass higher costs on to consumers. Firms that excel at concentrating their efforts are able to adapt a wide variety of product development capabilities to a relatively narrow consumer segment that they are deeply acquainted with. Imitation and shifts in the target segments are two threats of concentration strategies. Furthermore, a broad-market cost leader can find it relatively simple to change its product in order to compete directly. Finally, other focusers may be able to carve out sub- segments they can better serve. A Combination of Generic Strategies These generic methods may or may not be compatible with each other. If a business wants to gain an advantage on all fronts, it can end up with no advantage at all. For example, if a company distinguishes itself by providing exceptionally high-quality goods, it risks jeopardizing that quality if it tries to become the lowest-cost provider. Even if the output remained unchanged, the company would risk projecting a muddled image. As a result, Michael Porter concluded that a company must choose only one of these three generic tactics to be competitive in the long run. Otherwise, a company that has more than one generic strategy will be \"stuck in the Centre\" and will not be able to gain a competitive advantage. According to Porter, businesses that are effective at multiple strategies often do so by forming separate business units for each strategy. An organization is less likely to become \"stuck in the middle\" if its plans are split into separate units with different policies and even cultures. However, some argue that a single standardized approach isn't always the best since consumers also seek multi-dimensional satisfactions within the same product, such as a combination of quality, design, convenience, and price. There have been instances where high-quality suppliers adhered to a single strategy and were severely harmed when a competitor entered the market with a lower-quality product that better matched the consumers' overall needs. Policy 102 CU IDOL SELF LEARNING MATERIAL (SLM)
Policies are broad statements that direct people's thoughts or efforts in a specific direction. Policies serve as a foundation for deciphering policy, which is generally stated in broad terms. They serve as guidelines for managerial action and decisions related to policy execution. For example, the organisation might have a recruiting policy and a pricing policy, all of which are used to set goals and make decisions. It is easier to fix problems or issues when there is a policy in place. As a result, a policy is a broad solution to a specific issue or circumstance. From big business policies to small policies, the corporation has policies at all levels and divisions. Major company policies apply to all, including consumers, clients, and rivals, while minor policies apply only to insiders and include minute specifics of information critical to an organization's employees. However, there must be a justification for disclosing knowledge to others. The broad parameters under which a manager can operate are defined by policies. A manager may interpret and enforce a policy at his or her discretion. The decisions made under a Purchase Policy, for example, will be in the realm of manufacturing or purchasing. • Can a business produce or buy its packages, transportation facilities, stationery printing, water and power supply, and other items? • How can vendors for purchasing supplies be chosen? • From how many vendors does a business make purchases? • What parameters are used to choose suppliers? • The Purchasing Policy will answer both of these concerns. Importance of Policies The following are some of the reasons why policies are beneficial: • They serve as thinkers and doers, as well as providing support to subordinates. • They define the boundaries of the decision-making region. • They save time and effort by determining issues ahead of time. • They enable managers at lower levels to delegate authority. Procedure Procedures are the steps that must be followed in order to complete a task. They define the particular manner in which all work must be done. They're listed in reverse chronological order. There may be a system in place for requisitioning materials prior to output, for example. Procedures are steps that must be taken under specific situations. Insiders are typically the ones that obey them. In general, the steps or measures to be taken are to 103 CU IDOL SELF LEARNING MATERIAL (SLM)
implement a strategy and accomplish pre-determined goals. Policies and procedures are inextricably related. Procedures are measures that must be followed within a larger policy structure. Method Methods define the prescribed ways or manners in which a task must be completed in order to achieve the goal. It deals with a task that consists of one procedure step and determines how that step should be completed. Depending on the job, the approach can differ. Proper method selection saves time, resources, and effort while increasing performance. Various approaches may be used to provide instruction to workers at various levels, from top management to supervisory. For example, workshops and conferences may be arranged for higher-level management orientation programmes, while on-the-job preparation and work- oriented approaches are sufficient at the supervisory level. Rule Rules are statements that specify what should be done. They don't allow for any discretion or versatility. It represents a managerial decision to take or not take a specific action. Since there is no compromise or adjustment until a policy decision is made, they are typically the easiest plans. Programme Programmes are concise statements about a project that describe the project's goals, strategies, processes, regulations, activities, human and physical resources, and budget. The full range of operations, as well as the organization's policy and how it will relate to the overall business strategy, will be covered in the programmes. Under the large policy structure, the smallest specifics, such as processes, regulations, and budgets, are worked out. Budget A budget is a numerically expressed declaration of planned performance. It's a technique that quantifies potential figures and facts. A sales budget, for example, may forecast the sales of various products in each region for a given month. A budget can be created to indicate the number of employees needed in the factory during peak production periods. Since the budget represents everything in numbers, it's much easier to equate real numbers to planned numbers and take corrective action as a result. As a result, a budget is often a monitoring system that can be used to address deviations. Making a budget, on the other hand, necessitates estimating, so it obviously falls under preparation. Many companies use it as a key planning method. 104 CU IDOL SELF LEARNING MATERIAL (SLM)
Let's look at a Cash Budget as an example. The cash budget is a fundamental instrument in cash management. It is a tool that assists management in planning and managing cash use. It's a statement that shows the expected cash inflows and outflows over a certain time span. Cash inflows will typically come from cash sales, while cash outflows would typically be costs and expenditures related to the business's operations. The cash budget defines the net cash position, which is defined as inflows minus (–) outflows = surplus or deficit. For a variety of reasons, management must maintain sufficient cash reserves. However, it should avoid having an excessive cash balance because it provides little to no return. With care, the organisation must evaluate and schedule its cash needs. 7.8 SUMMARY The importance of planning in management is Resource Optimization, Goal Setting, Risk Management, Fostering Corporate Culture and Team Spirit, and Gaining an Edge over Competitors. Planning is the process of bridging the difference between where we are now and where we want to be in the future. Preparation entails a number of items. Planning focuses on achieving goals, is a primary feature of management, is ubiquitous, continuous, futuristic, requires decision-making, and is a mental exercise. Perception of Opportunities, Setting Objectives, Considering Planning Premises, Identification of Alternatives, Evaluation of Alternatives, Choice of Alternative Plans, Formulating Supporting Plans, and Establishing Sequence of Activities are all part of the planning process. Planning is relevant as a managerial feature for the following reasons. They are to handle by priorities, to mitigate confusion and transition, to ensure operational economy, to aid in coordination, to improve power, and to boost organisational effectiveness. Depending on the use and duration of the planning period, plans can be divided into many groups. Certain programmes have a limited time span and assist in the achievement of operational objectives. Single-use and standing plans are the two types of plans available. 7.9 KEYWORDS Plans: are created for a particular time period, such as a month, quarter, or year. Single-use plan: is one that is created for a single event or project. 105 CU IDOL SELF LEARNING MATERIAL (SLM)
Standing plan: is used for events that occur on a daily basis over time. Objectives: Ambitious goals are needed. Policies: These are broad statements that steer people's thoughts or efforts in a specific direction. Budget: A budget is a numerical statement of projected performance. 7.10 LEARNING ACTIVITY Margaret Quinn, the president of Eastern Electric Corporation, one of the large electric utilities operating in the eastern United States, had long been convinced that effective planning in the company was absolutely essential to success. For more than 10 years she had tried to get a company planning program installed without seeing much result. Over this time, she had consecutively appointed three vice presidents in charge of planning and, although each had seemed to work hard at the job, she noticed that individual department heads kept going their own ways. They made decisions on problems as they came up, and they prided themselves on doing an effective job of \"fighting fires.\" But the company seemed to be drifting, and individual decisions of department heads did not always tally with each other. The executive in charge of regulatory matters was always pressing state commissions to allow higher electric rates without having very much luck, since the commissions felt that costs, although rising, were not justified. The head of public relations was constantly appealing to the public to understand the problems of electric utilities, but electric users in the various communities felt that the utility was making enough money and that the company should solve its problems without raising rates. The vice president in charge of operations, pressed by many communities to expand electric lines, to put all lines underground to get rid of unsightly poles and lines, and to give customers better services, felt that costs were secondary to keeping customers off his back. When a consultant called in at the request of Ms. Quinn looked over the situation, he found that the company really was not planning very well. The vice president of planning and his staff were working hard, making studies and forecasts and submitting them to the president. There they stopped, since all the department heads looked on them as impractical paperwork that had no importance for their day-to-day operations. Questions: 1. If you were the consultant, what steps would you suggest to get the company to plan effectively? 2. What advice would you give the company as and how far in the future to plan? 3. How would you suggest to the president that your recommendations be put into effect? 106 CU IDOL SELF LEARNING MATERIAL (SLM)
___________________________________________________________________________ ___________________________________________________________________________ 7.11 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is meant by Planning? 2. Define Planning. 3. Expand SMART goals 4. Explain the purpose of planning 5. Explain single use plan 6. Discuss standing plan 7. Explain the features of objectives 8. Discuss the advantages of objectives 9. Define Management by Objectives 10. Discuss the characteristics of strategy Long Questions 1. Discuss the nature of planning 2. State the importance of planning 3. Explain the process of planning. 4. Classify the types of planning 5. Identify the features of MBO 6. Discuss the steps involved in MBO 7. Describe the strategic planning process in detail. 8. Explain the merits and demerits of MBO. 9. Classify the types of porter’s generic strategy. B. Multiple choice Questions 107 1. The first and foremost function of management is ___________. a. Planning b. Organizing c. Controlling d. Coordination. 2. Strategic planning is ___________. a. Long term planning CU IDOL SELF LEARNING MATERIAL (SLM)
b. Medium term planning c. Short term planning d. Annual planning 3. Goals, aims, purposes, missions and target is also known as ____________. a. Strategies b. Objectives c. Policies d. Rules 4. A chronological sequence of steps to be undertaken to enforce a policy and to attain an objective is known as ___________. a. Strategies b. Objectives c. Procedures d. Rules 5. Set of clear instruction in a clear and logical sequence to perform a particular task______ a. Strategies b. Objectives c. Procedures d. Programme 6. Employees will be promoted on the basis of seniority is an example of __________. a. Strategies b. Objectives c. Procedures d. Policy Answers 1. (a) 2. (a) 3. (b) 4. (c) 5. (d) 6. (d) 7.12 REFERENCES Reference Books: R1, L M Prasad, “Principles and Practice of Management”, Sultan Chand & Sons, 20th Edition, New Delhi. 108 CU IDOL SELF LEARNING MATERIAL (SLM)
R2 Vijaykumar Kaul, “Principles and Practice of Management”, Vikas Publishing House Pvt Ltd, New Delhi. Textbooks: T1, Harold Koontz, Heinz Weihrich, A Ramachandra Aryasri, 2004, “Principles of Management”, The McGraw-Hill publishers, T2, RSN Pillai & S Kala, 2013, “Principles and Practice of Management”, S. Chand Publication, New Delhi. 109 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 8: ORGANIZING 110 Structure 8.0 Learning Objectives 8.1 Introduction 8.2 Meaning & Definition 8.3 Nature & Characteristics of Organizing 8.4 Importance of Organizing 8.5 Process of Organizing 8.6 Principles of Organizing 8.7 Organization Structure 8.7.1Significance 8.7.2 Principles 8.8 Line and Staff Function 8.8.1 Line Organization 8.8.2 Features 8.8.3 Merits and Demerits 8.8.4 Staff Organization 8.8.5 Types 8.8.6 Functions 8.8.7 Features of Line & Staff Organization 8.8.8 Advantages and Disadvantages 8.9 Formal and Informal Organization 8.9.1 Characteristics of Formal Organization 8.9.2 Advantages and Disadvantages of Formal Organization 8.9.3 Characteristics of Informal Organization 8.9.4 Benefits of Informal Organization 8.10 Differences between Formal and Informal Organization 8.11 Summary 8.12 Keywords CU IDOL SELF LEARNING MATERIAL (SLM)
8.13 Learning Activity 8.14 Unit End Questions 8.15 References 8.0 LEARNING OBJECTIVES After studying this unit, students will be able to: Explain the nature of organizing State the importance of organizing Identify the process of organizing Discuss the principles of organizing Describe the organization structure State the line and staff function Explain formal and informal organization 8.1 INTRODUCTION Following the determination of general and particular goals, and the prescription of a strategy to achieve them, the next step is to coordinate the enterprise's operations in order to carry out the plan and achieve the organisational objectives. Management must determine the tasks needed to accomplish the goals, group these activities, and delegate them to teams, which are groups of people. A manager with the necessary qualifications, intelligence, and capability is assigned to each department and granted authority to work with his subordinates to achieve the organization's goals. The most successful use of all of the company's resources would be aided by proper organisation. When the scale of the business unit increases, so does the need for appropriate organisation. As his company expands from a small business with a core of a few main individuals, he will need more delegation and a large number of managers. 8.2 MEANING & DEFINITION The term \"organising\" refers to a managerial function's method. The analysis of organisational structure allows one to clarify the main features of the organization's anatomy and to compare and contrast the similarities and differences between various organisations. The word \"organisation\" can be used in two ways. They are: 111 CU IDOL SELF LEARNING MATERIAL (SLM)
1. To a particular company or group of persons working together to fulfil certain objectives or goals. It is referred in the name of the organization such as- Royal Industries, Tata Consultancy Services etc. 2. To the organization as a structure or a network of specific relationships among individuals. “The establishment of authority relationships with provision for coordination between them, both vertically and horizontally in the enterprise structure.” - Koontz and O’Donnell “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 accomplishing objectives”- Louis A. Allen 8.3 NATURE & CHARACTERISTICS OF ORGANIZING The following details about the attributes or essence of an organisation is extracted from an analysis of the various descriptions offered by various management experts. 1. Division of Work: Work division is the foundation of every company. To put it another way, there can be no company without job division. The entire work of a company is split into several divisions under division of work. Any department's work is further divided into sub-works. As a result, each person is required to perform the saran work on a regular basis, eventually transforming them into experts. 2. Coordination: Different individuals are assigned different roles under organising, but the purpose of all of them is the same - to achieve the enterprise's objectives. The organisation ensures that everyone's work is dependent on each other's work, even though it is different. One person's job begins where the work of another person finishes. The failure of one person to complete their work has an effect on everyone else's work. As a result, everybody finishes their work on time and does not interrupt the work of others. As a consequence, it is clear that establishing cooperation among various works, departments, and posts in the company is inherent in the design of the organisation. 3. Plurality of Persons: An organisation is a community of several people who come together to accomplish a common goal. An organisation cannot be created by a single person. 4. Common Objectives: An organisation is made up of different sections, each with its own set of duties, but they all work for a common purpose. 5. Well-defined Authority and Responsibility: Within an organisation, a chain is formed between various posts, starting at the top and working all the way down. It is clearly 112 CU IDOL SELF LEARNING MATERIAL (SLM)
mentioned what each post's authority and duties would be. To put it another way, every employee in the company is granted some authority for efficient work performance, and it is also determined what will be the individual's responsibility in the event of poor work performance. 6. Organization is a Structure of Relationship: Relationships between people who work in various areas of the organisation are determined. In other words, who will be the superior and who will be the subordinate is determined. Leaving aside the highest and lowest level positions, everyone is someone's superior and subordinate. There is no superior for the person working at the top-level post, and no inferior for the person working at the bottom level post. 7. Organization is a Machine of Management: Organization is regarded as a management machine because the performance of all operations is dependent on its effectiveness. No work can be executed in a scheduled manner without organisation. From a different perspective, it is fitting to refer to an organisation as a management machine. It's the system where no component can have an ill-fitting or non-functional tube. In other words, if work is not properly divided or posts are not properly established, the entire management system will fail. 8. Organization is a Universal Process: Organization is important in both commercial and non-commercial organisations. Not only that, but organisation will be needed when two or more people collaborate. As a result, organisation has a universal consistency. 9. Organization is a Dynamic Process: Organization is dependent on people, and people's knowledge and experience evolve. The effect of this transition is felt through the organization's different functions. As a result, organisation is not a mechanism that can be predetermined for all time, but it evolves in response to changing needs. In this case, the formation or elimination of a new post based on the need is an example. 8.4 IMPORTANCE OF ORGANIZING The organisation is a tool that helps people understand their relationships with one another, such as who is their superior and who is their subordinate. This knowledge assists in the assignment of roles and the creation of teamwork. The organization's goals can be easily met under such circumstances. As a result, it is said that an organisation is a management mechanism. It also aids in other management functions such as planning, staffing, leading, managing, and so on. The following facts show the value of organisation or its merits: 113 CU IDOL SELF LEARNING MATERIAL (SLM)
(1) Increase in Managerial Efficiency: A well-balanced organisation aids managers in increasing their productivity. Managers distribute the entire work to various people according to their abilities through the medium of organisation. (2) Proper Utilization of Resources: Through the medium of organisation, a company should make the best use of all of its available human and material resources. Work is assigned to each person based on his or her skill and capability, with conditions in place to allow him to maximise his or her potential. If an individual knows how to use modem machinery but the modem machinery isn't available in the company, for example, attempts are made to make the modem machinery available. (3) Sound Communication Possible: Effective communication is critical for making the best decision at the right time. However, only through an organisation can a good communication mechanism be established. The time of contact in an organisation is set such that all relevant information reaches the officers involved, which aids decision-making. (4) Facilitates Coordination: Coordination between different activities within the organisation is critical to achieving the organization's goals. Coordination can only be achieved by organisation. Under organisation, work is divided in such a way that all tasks are complementary to one another, enhancing their interdependence. Interdependence contributes to the formation of partnerships, which increases coordination. (5) Increase in Specialization: Organization divides the whole job into separate sections. Competent people are assigned to all of the sub-works, and by doing so repeatedly, they develop into specialists. This allows them to deliver optimal job output in the shortest amount of time possible, while the company benefits from specialisation. (6) Helpful in Expansion: A strong organisation aids a company's ability to compete. When a company begins to provide high-quality goods at low prices, demand for such products increases. A company must increase its operations in order to meet the growing demand for its goods. A good organisation, on the other hand, has a level of versatility that, rather than hindering growth, facilitates it. 8.5 PROCESS OF ORGANIZING The process of forming relationships among the enterprise's members is known as organisation. In terms of authority and obligation, the relationships are established. 114 CU IDOL SELF LEARNING MATERIAL (SLM)
Harmonize, coordinate, or plan in a logical and organised way is what it means to organise. Each member of the organisation is given a particular obligation or duty to fulfil, as well as the authority to carry out that responsibility. The managerial role of organising entails dividing work into groups of activities and tying together the roles that represent groupings of activities in order to achieve a logical, well-coordinated, and orderly structure for work completion. \"Organizing entails identifying and grouping the tasks to be performed, dividing them among the individuals, and establishing authority and obligation relationships among them for the accomplishment of organisational objectives,\" according to Louis A Allen. The different steps in this procedure are as follows: Figure: 8.1 Organizing Process a) Determination of Objectives: This is the first step in forming a business. Organization is often connected to a set of targets. As a consequence, before beginning any activity, management must first define the goals. The enterprise's goals serve as the foundation for the organization's structure. That is, the structure of the company can only be decided by management after the organization's goals have been determined. This move assists management in not only determining the organization's structure, but also in achieving the company's goals with the least amount of money and effort. Determining goals entails determining why the proposed organisation will be established and, as a result, what type of work will be done by the organisation. b) Enumeration of Objectives: If the members of the community are to successfully pool their efforts, the main tasks must be properly divided. The division of the total job into critical tasks is the first step in organising group effort. Each job should be graded and grouped appropriately. This will encourage people to understand what is required of them as community members and will help prevent duplication of effort. An industrial concern's work, for example, can be divided 115 CU IDOL SELF LEARNING MATERIAL (SLM)
into the following major functions: manufacturing, financing, staff, distribution, purchase, and so on. c) Classification of Activities: The next step would be to categorise behaviours based on their similarities, common purposes, and roles, as well as human and material capital. The activities that are closely linked and similar are then grouped into divisions and departments, with departmental activities being further divided into parts. d) Assignment of Duties: Relevant job assignments are provided to various subordinates in order to ensure consistency in work results. Each person should be assigned a specific role based on his or her abilities and kept accountable for it. He should also be granted ample authority to complete the mission at hand. \"Organization encompasses the duties of designating the departments and staff that will carry on the job, identifying their roles, and determining the interactions that will exist between departments and individuals,\" say Kimball and Kimball. e) Delegation of Authority: Since there are so many people working in the same company, it is the duty of management to establish a relationship framework. Responsibility without authority is a dangerous thing, and authority without responsibility is an empty vessel. All should clearly understand to whom they are accountable; subordinates are given accountability authority in order for them to demonstrate job success. This will aid in the smooth operation of the company by allowing for the delegation of accountability and authority. 8.6 PRINCIPLES OF ORGANIZING The planning method can be made more effective if managers are given clear instructions about how to make decisions and take action. A manager should use the following organisational concepts to coordinate in an efficient manner. 1. Principle of Specialization According to the philosophy, a company's entire workload should be distributed among its subordinates based on their qualifications, abilities, and skills. Specialization of work can be accomplished by division of labour, resulting in successful organisation. 2. Principle of Functional Definition 116 CU IDOL SELF LEARNING MATERIAL (SLM)
All roles in a company should be absolutely and clearly specified to managers and subordinates, according to this concept. This can be accomplished by explicitly identifying people's roles, obligations, authority, and relationships with one another. Clarifications in authority-responsibility relationships aid in achieving coordination and, as a result, successful organisation. The primary roles of manufacturing, marketing, and finance, as well as the authority-responsibility relationships within these divisions, should be clearly identified to all associated with them. Clarity in the authority-responsibility relationship aids in organisational performance. 3. Principle of Span of Control/Supervision According to this concept, span of control is described as the number of employees that can be effectively managed and regulated by a single manager. A manager should be able to accommodate the number of workers that report to him, according to this theory. You can choose between a broad or narrow span for this decision. There are two kinds of control spans: - a. Wide span of control- A broad span of control is one in which a manager can efficiently supervise and control a large number of people at the same time. The following are the characteristics of this span: - a. Lower supervision overhead costs b. Employees who react quickly c. More efficient contact d. Improved supervision e. Enhanced communication f. It's ideal for jobs that need a lot of repetition. One manager can easily and efficiently manage a large number of subordinates at the same time if they have this period. b. Narrow span of control- Within this span, work and authority are distributed to several subordinates, and a manager does not supervise or control a large number of people. A limited number of workers are under the supervision of the manager at any given time. The characteristics are as follows: - 117 CU IDOL SELF LEARNING MATERIAL (SLM)
a) Work that necessitates strict control and supervision, such as handicrafts, ivory work, and other crafts that involve craftsmanship, where a narrow period is more beneficial. b) It is difficult to maintain coordination. c) Communication breakdowns may occur. d) Facts can be skewed. e) Job specialisation is possible. Factors influencing Span of Control Managerial abilities- A broad spectrum of control is often advantageous in circumstances where managers are competent, skilled, and experienced. Competence of subordinates- When subordinates are capable and competent, and their levels of comprehension are sufficient, they are more likely to go to their supervisors for support with their problems. In such situations, the manager is capable of managing a large number of workers. As a consequence, a broad period is sufficient. Nature of work- If the work is repetitive, a broad range of supervision is more advantageous. When work requires mental skill or craftsmanship, on the other hand, tight control and supervision are required, and a narrow period is more beneficial. Delegation of authority- When work is assigned to lower levels in an effective and proper manner, there are less misunderstandings and the atmosphere remains pleasant. In these situations, a broad range of control is appropriate, and supervisors may handle and control a large number of subordinates at once. Degree of decentralization- Decentralization is used to achieve specialisation, in which authority is distributed among several citizens and managers at various levels. In these situations, a tall structure is beneficial. There are some situations where decentralisation is done very well, resulting in direct and personal contact between superiors and subordinates, and where superiors can easily handle a large number of subordinates. In such instances, a large period may be beneficial. 4. Principle of Scalar Chain A scalar chain is an order or authority chain that runs from the top to the bottom. With a chain of authority in place, resource waste is reduced, coordination is improved, job duplication is avoided, and organisation is simplified. In an organisation, a scalar chain of command promotes work flow and assists in the achievement of successful performance. When power passes from top to bottom, it clarifies authority roles for managers at all levels, making it easier to organise effectively. 118 CU IDOL SELF LEARNING MATERIAL (SLM)
5. Principle of Unity of Command It implies a one-to-one relationship between a subordinate and a superior. At any given time, each subordinate is answerable and accountable to only one boss. This helps to avoid communication gaps and ensures prompt feedback and responses. Unity of command also aids in the efficient use of resources, such as physical and financial resources, allowing for easier coordination and, as a result, better organisation. 8.7 ORGANIZATION STRUCTURE An organisational structure is a system that allows a specific space to a specific department or entity while still displaying their relationship to one another. By presenting who reports to whom, an organisation structure illustrates the authority and accountability relationships between the different roles within the organisation. It is a pre-determined pattern of interaction among the organization's constituents. \"Organization structure consists simply of those elements of the organization's pattern of action that are relatively constant and change only slowly,\" March and Simon write. An organisation chart is a diagram that depicts the structure of a company. It depicts the authority and obligation relationships among different positions in the organisation. When designing the organisation structure, the principles of sound organisation should be taken into consideration. 8.7.1 significance of organization structure A well-designed organisation can assist in the development of collaboration and efficiency by offering a structure through which people can more efficiently collaborate. The location of decision-making in an entity is determined by its structure. By having well-defined patterns of authority, a sound organisational framework promotes innovative thinking and initiative among organisational members. A good organisational structure helps a company expand by growing its capacity to manage higher levels of authority. The organisational framework establishes a contact and planning pattern. The organisational structure aids a participant in understanding his or her position and how it interacts with other roles. 119 CU IDOL SELF LEARNING MATERIAL (SLM)
8.7.2 principles of organization structure Several organisational theories have defined such concepts as central to every organisational structure, and these principles have developed into current organisational structures. a) Line and Staff Relationships: The scalar chain, or superior-subordinate linkages, that run throughout the hierarchy is referred to as line authority (Koontz, O'Donnell, and Weihrich). Line employees are responsible for achieving the organization's specific or strategic goals, while staff supports line employees and offers services. In terms of organisational structure, architecture, and performance, the relationship between line and staff is critical. It's also a useful tool for data analysis and collaboration. b) Departmentalization: On any one level of the hierarchy, departmentalization is the method of horizontal clustering of various types of functions and activities. Traditionally, departmentalization is based on intent, product, method, feature, personal belongings, and location. c) Span of Control: The number of specialised tasks or individuals supervised by a single person is referred to as this. When it comes to successfully managing various types of operations, determining the span of influence is critical. d) De-centralization and Centralization: Decision-making at lower levels of the authority hierarchy is referred to as de-centralization. In a centralised organisational system, on the other hand, decision-making is done at a higher level. The number of levels of hierarchy, degree of organisation, specialisation, and duration of control all influence the degree of centralization and decentralisation. Every organisational structure, to different degrees, includes both centralization and decentralisation. Determine how much decision-making is centralised at the top and how much is distributed to lower levels to determine the degree of this. Decentralization is a clear theme in contemporary organisational systems. 8.8 LINE AND STAFF FUNCTION Line authority runs from top to bottom in an organisation, and staff authority is exercised by experts over line managers who advise them on important issues. These specialists are ready to assist line managers if and when they are needed, to collect information, and to provide assistance that will help the line officials perform their duties more effectively. Since they are hired to give professional guidance to the line officers, the staff officers do not have any command authority in the organisation. The 'line' ensures order and harmony, while the ‘staff' 120 CU IDOL SELF LEARNING MATERIAL (SLM)
offers expert advice. The line produces the product, while the staff conducts analysis, plans, schedules, establishes standards, and keeps track of results. The line assigned the authority to the workers to conduct these tasks, and the output must be satisfactory to the line before action is taken. 8.8.1 Line organization The easiest and oldest form of administrative organisation is line organisation. The authority in a matter flows from top to bottom in this form of organisation. The command chain is followed from top to bottom. This is why this organisation is referred to as a scalar organisation, implying that a scalar chain of command is an integral part of this form of administrative structure. There are no gaps in communication or coordination in this form of organisation since the line of command flows smoothly. 8.8.2 Features of line organization 1. It is the most fundamental organisational structure. 2. The chain of command runs from the top to the bottom. 3. These organisations do not have specialised or supportive programmes. 4. Line officers should retain unified authority and they can make decisions individually in their areas and spheres. 8.8.3 Merits & demerits of line organization Merits of Line Organization 1. Simplest- It is the simplest and oldest type of administration. 2. Unity of Command- These entities maintain a superior-subordinate relationship and a scalar chain of command from top to bottom. 3. Better discipline- Since the authority is concentrated and centred on one person, he is able to make decisions on his own. Better discipline is ensured with centralised power. 4. Fixed responsibility- Every line executive in this form of organisation has a fixed authority, control, and responsibility associated with it. 5. Flexibility- There is coordination between the highest and lowest levels of authority. Line officials are impartial and can make decisions flexibly because authority relationships are transparent. Line executives are pleased with this versatility. 6. Prompt decision- Due to the factors of defined responsibility and command unity, officials are able to make quick decisions. 121 CU IDOL SELF LEARNING MATERIAL (SLM)
Demerits of Line Organization 1. Over reliance- Decisions made by the line executive are carried out all the way to the bottom. As a result, line officials are over-reliant. 2. Lack of specialization- A scalar chain flows from top to bottom in a line organisation, with no space for specific functions. Expert guidance, for example, is applied in the same way as line managers' decisions are implemented. 3. Inadequate communication- The highest authority's policies and plans are implemented in the same manner. There is no space for contact on the other end of the line as a result. Lower-level concerns and suggestions are not reported to the top-level authority. As a consequence, contact is one-way. 4. Lack of Co-ordination- Whatever decisions line officials make, in some cases incorrect decisions are carried down and enforced in the same way. As a result, there is less good coordination. 5. Authority leadership- Line officials have a proclivity to abuse their positions of power. This results in autocratic rule and monopoly in the business. 8.8.4 Staff organization Line groups are supported by staff groups that are involved in activities that benefit them. Advisory (legal), operation (human resources), and control (accounting) classes are among them. Workers groups help others who are active in the company's most profitable operation. As a result, the infrastructure of the company is created by staff groups. Infrastructural responsibilities include human resources, information technology, and finance. Staff groups perform study, testing, counselling, supervision, assessment, and other tasks that would otherwise be performed by personnel in line groups, reducing organisational performance. As a result, workers groups are accountable to their respective line departments. 8.8.5 Types The staff role created as a measure of support for the line managers may look like this: Personal Staff: The staff official is assigned to the line manager as a personal assistant or advisor. Assistant to the managing director, for example. Specialized Staff: This type of staff serves as a wellspring of knowledge in areas such as R&D, personnel, and accounting. General Staff: This group of employees consists of a variety of professionals in various fields who are tasked with advising and assisting top management on matters requiring expertise. For instance, a financial advisor, a technical advisor, and so on. 122 CU IDOL SELF LEARNING MATERIAL (SLM)
8.8.6 Functions 123 The following roles have been delegated to the personnel authority: 1. Agency of Control: It has to discharge the functions such as: (a) Organisation. (b) Cost. (c) Audit. (d) Budget. (e) Personnel. (f) Accounting; etc. 2. Agency of Co-Ordination: It must aid in the coordination of work among various departments. These functions are: (a) Planning. (b) Order and distribution. (c) Production planning. (d) Communication. 3. Agency of Service: It performs functions like: (a) Research and development. (b) Taxes. (c) Statistical analysis. (d) Personnel development. 4. Agency of Advice: It has to perform functions such as: (a) Legal advice. (b) Public relations. (c) Labour relations. CU IDOL SELF LEARNING MATERIAL (SLM)
(d) Economic 8.8.7 Features of Line And Staff Organization • In this system, line officers have jurisdiction and command over their subordinates and are responsible for the tasks they are assigned. Staff officers are experts who provide line officers with expert guidance about how to conduct their duties effectively. • In this system, staff officers prepare plans and offer advice to line officers, who then carry out the plan with the assistance of employees. • The organisation of the line and staff is based on the concept of specialisation. 8.8.8 Advantages and disadvantages Advantages 1. It applies expert expertise to management and operational issues. As a result, line managers profit from the advanced expertise of different levels of personnel specialists. 2. The staff officers' professional advice and guidance to the line officers benefits the entire organisation. 3. Line managers are relieved of the responsibility of focusing on specialised tasks because staff officers handle the thorough review of each essential managerial activity. 4. By delivering expert guidance, personnel experts support line managers in making better decisions. As a consequence, in this system, sound managerial decisions will be made. 5. It allows the concept of undivided duty and authority to be implemented while still allowing for personnel specialisation. As a result, the company benefits from functional organisation while retaining command unity. 6. It is built on the concept of expected specialisation. 7. Line and personnel management is more flexible, in that new specific tasks may be applied to line activities without disrupting the line procedure. Disadvantages 1. There can be substantial uncertainty in the company about the roles and positions of staff members in relation to line supervisors unless the duties and responsibilities of 124 CU IDOL SELF LEARNING MATERIAL (SLM)
staff members are clearly indicated by maps and manuals. 2. There is always a clash between line and workers executives. Line managers believe that staff consultants do not always have the best guidance, and staff officials usually claim that their recommendations are not followed up on. 3. Line managers may dislike staff members' actions, believing that their reputation and authority are being harmed by the involvement of specialists. 4. Since they may not have the power to bring their suggestions into motion, the staff experts will be unsuccessful. 5. In addition to line officers, this form of organisation necessitates the appointment of a significant number of staff officers or experts. As a consequence, the device becomes very costly. 6. Expert information and recommendations are available, but they must be relayed to staff by officers, risking confusion and misinterpretation. 7. 7. Staff managers may not be doing their duties well because they are not responsible for the performance. 8. 8. Line managers are more realistic in their approach to issues. Staff officials who are experts in their fields, on the other hand, are more theoretical. This will make it difficult for the company to organise. 8.9 FORMAL AND INFORMAL ORGANIZATION The structured organisation refers to the top management-defined system of jobs and roles with specifically defined responsibilities and relationships. This form of organisation is created by management to achieve a company's goals and is governed by regulations, processes, and procedures. Everyone is given a specific responsibility for completing the task and the necessary authority to do so. The informal organisation, which does not appear on the organisation map, helps the formal organisation accomplish its objectives more effectively and efficiently. The workings of informal groups and leaders are not as straightforward as they seem. As a result, every manager must critically analyse the working pattern of informal relationships in the organisation and use them to achieve organisational goals. Formal organisation is described by Chester I Bernard as - \"a system of two or more people's activities or forces that are consciously organised. It refers to a system of clearly specified workers, each with its own set of authority, obligations, and accountability.\" Formal organisation is described as a group of people working together for a common goal. Have the ability to communicate with one another. 125 CU IDOL SELF LEARNING MATERIAL (SLM)
Are ready to take action and. Have a common goal. The formal framework is based on four main pillars. They are as follows: • Workforce division • Functional and scalar processes • Organization and • Monitor range Thus, As a consequence, a structured organisation is one that is the result of preparation, with the pattern of structure already decided by top management. 8.9.1 Characteristics of formal organization To accomplish organisational goals, top management creates a structured organisational framework. In a structured company, the relationships between the people who work there are prescribed. The organisational framework is deliberately structured to allow the organization's people to cooperate in order to achieve the enterprise's shared goals. The organization's structure focuses on the work to be done rather than the people who will be doing them. In a formal organisation, employees are assigned to jobs and positions and must work in accordance with management decisions. As a result, the formal relations in the company are derived from the management's pattern of responsibilities. Laws, legislation, and procedures govern formal organisations. Each level's role, authority, duty, and accountability are clearly established in a structured organisation. To achieve operational efficiency, the organisation structure is based on division of labour and specialisation. The impersonality of a formal entity is on purpose. The feelings of the members of the organisation are overlooked by the organisation. Everybody must respect the authority and accountability relationships defined by the organisation structure. In a structured organisation, teamwork follows a pre-determined pattern. 126 CU IDOL SELF LEARNING MATERIAL (SLM)
8.9.2 Advantages and disadvantages Advantages of formal organization The hierarchical organisational framework focuses on the activities that must be accomplished. As a result, it makes everyone accountable for a specific mission. Laws, legislation, and procedures govern formal organisations. As a consequence, the organization's law and order is maintained. The organisational framework allows the company's employees to cooperate in order to achieve the company's mutual goals. Disadvantages or criticisms of formal organization The formal organisation does not take into account the opinions of the members of the organisation. Individual goals are not taken into account by the formal organisation. It is only intended to accomplish the organization's objectives. Strict laws, legislation, and procedures govern the structured organisation. Goals are more difficult to reach as a result of this. INFORMAL ORGANIZATION The relationship between people in an organisation that is focused on personal attitudes, emotions, prejudices, likes, dislikes, and other factors is referred to as an informal organisation. An informal organisation is one that is not formed by a central authority but rather emerges from people's personal and social relationships. These relationships do not grow according to the protocols and regulations established by the formal organisation structure; in general, large formal groups spawn small informal or social groups. These groups can be formed on the basis of shared tastes, languages, cultures, or other factors. These groups are not pre-planned; rather, they arise spontaneously within the company as a result of its surroundings. 8.9.3 Characteristics of informal organization • No formal authority establishes an informal organisation. It is unplanned and happens out of the blue. • Informal groups are a result of human experiences. It is a result of the personal and social relationships that exist among the employees of the company. • The emergence of informal groups is a natural occurrence. There are no laws, legislation, or procedures in place. • An organisation chart cannot depict the inter-relationships among people in an 127 CU IDOL SELF LEARNING MATERIAL (SLM)
informal organisation. • In an informal organisation, people interact between themselves rather than through formal means of communication. • Participation in informal associations is entirely voluntary. It does not occur as a result of deliberate or conscious efforts. • Since an individual may be a member of several informal groups, their membership can overlap. • Informal associations are formed around shared interests, problems, languages, religions, cultures, and so on. It is affected by the people in the organization's personal attitudes, feelings, whims, likes and dislikes, and so on. 8.9.4 Benefits of informal organization It integrates with the structured organisation to increase performance. There are many items that can be done by informal organisation that cannot be accomplished by formal organisation. The involvement of informal organisation in an organisation allows managers to organise and behave with greater caution. Informal association provides workers with a sense of protection and belonging. It gives community members a sense of belonging. The effect of an informal organisation on efficiency and work satisfaction is important. The informal leader relieves the formal manager's workload and aims to fill in the holes in the manager's skill. Informal association supports community members in achieving personal goals. Employee contact is best accomplished by informal organisation. It is extremely fast. Participants of an informal group experience psychological satisfaction. It serves as a safety valve for the organization's employees' emotional issues and grievances by providing a forum for them to express themselves. It functions as a social monitoring agency for human actions. 8.10 DIFFERENCES BETWEEN FORMAL AND INFORMAL ORGANIZATION 128 CU IDOL SELF LEARNING MATERIAL (SLM)
Formal Organization Informal Organization Formal organisation is created for the Informal organisation emerges express purpose of achieving well- spontaneously. It has well-defined and defined objectives. intangible objectives. Members of a structured association are A generalised type of power relationship tied together by authority relationships. characterises informal organisations. In Top management, middle management, informal organisations, authority is and supervisory management are formed extracted from sources other than rational in a hierarchical framework legal rights. A formal organisation acknowledges There are no well-defined roles in an specific activities that must be completed informal organisation. in order to accomplish its objectives. In a structured organisation, people's People in informal organisations have positions and relationships are interpersonal positions and relationships. impersonally established. Performance, discipline, conformity, Informal organisations are characterised consistency, and control are all highly by relative independence, spontaneity, valued in formal organisations. homeliness, and comfort. The social and psychological needs and In an informal organisation, the members' desires of the organization's members social and psychological needs and receive little consideration in formal desires take precedence. organisations. In a formal organisation, the In an informal organisation, communication system follows pre- communication is haphazard, complex, determined patterns and routes. and normal. Formal organisations take a long time to The informal organisation is alive and react and adapt to changing well, and it is still on the lookout. It's circumstances and realities. aware of its surroundings. 8.11 SUMMARY The process of identifying and grouping the work to be done, defining and delegating responsibility and authority, and creating relationships in order to allow people to work together most effectively to achieve goals. An organization's base is the division of labour. To put it another way, there can be no company without job division. 129 CU IDOL SELF LEARNING MATERIAL (SLM)
An organisation is a tool that helps people understand their relationships with one another, such as who is their superior and who is their subordinate. The process of forming relationships among the members of an organisation is known as organisation. The planning process can be made more effective if managers are given clear instructions about how to make decisions and take action. A manager should use organisational concepts to coordinate in an efficient manner. An organisational structure is a system that allows a specific space to a specific department or entity while still showing their connection to one another. Determining the period of control is critical for successfully managing various types of activities. In an organisation, line authority is exercised by specialists over line managers who advise them on important matters, and staff authority is exercised by specialists over line managers who advise them on important matters. It extends expert expertise to management and organisational concerns. As a result, line managers profit from the advanced expertise of different levels of personnel specialists. There is often a clash between line and workers executives. Line managers believe that staff consultants do not always have the best guidance, and staff officials usually claim that their recommendations are not followed up on. The hierarchical organisation refers to the top management-defined system of jobs and positions with specifically defined responsibilities and relationships. Informal organisation, which does not appear on the organisation map, helps the formal organisation accomplish its objectives more effectively and efficiently. 8.12 KEYWORDS Organizing: refers to a managerial function's operation. Scalar chain: is an order or authority chain that runs from the top to the bottom. Line organization: this is the simplest and oldest form of administrative organisation. Formal organization: is set up for the sole purpose of achieving well-defined objectives. Informal organization: there are no clearly specified activities. 8.13 LEARNING ACTIVITY Shan Spices Ltd. is the manufacturer of different food specific spices like Rajmaa Masala, Cholley Masala, Aaloo Parantha Masala etc. Mr Raghav, the owner of the company has 130 CU IDOL SELF LEARNING MATERIAL (SLM)
created different departments for purchase, production, marketing, finance and human resource. There are thirty employees working in the organisation. Planning is of paramount importance to the company as Mr Raghav believes that effective planning leads to achievement of organisational objectives. So, in order to make employees focus on objectives, he issued instructions that during working hours only official matters will be discussed. He made certain rules and code of conduct for the employees to follow, according to which employees are not allowed to visit and talk to the employees of other departments except for official work. He emphasized on work performance which resulted in smooth functioning of the organisation. Questions: 1. Identify and state the type of organisation. 2. State one features of the organizing. 3. What was the purpose behind the formulation of rules for the employees that restricted their personal communication with the employees of other departments? 4. State two values violated by Mr. Raghav. ___________________________________________________________________________ ___________________________________________________________________________ 8.14 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is meant by Organizing? 2. Define Organizing. 3. List the process of Organizing. 4. Explain the factors influencing Span of Control. 5. State the significance of Organization Structure 6. Identify the principles of Organization Structure 7. State the Line and Staff Function 8. Classify the types of Staff function 9. Discuss the functions of Staff Authority 10. Explain the features of Line & Staff Organization. Long Questions 131 1. State the nature of Organizing. 2. Explain the importance of Organizing 3. Discuss the process of Organizing. CU IDOL SELF LEARNING MATERIAL (SLM)
4. Identify the principles of Organizing 5. Explain the features of Line and Staff Function 6. Discuss the Merits and Demerits of Line and Staff Function 7. Discuss the advantages and disadvantages of Line & Staff Organization 8. Write short note on Formal and Informal Organization 9. Explain the characteristics of Formal Organization 10. Discuss the advantages and disadvantages of Formal Organization 11. Explain the characteristics of Informal Organization 12. Identify the benefits of Informal Organization 13. Differences between Formal and Informal Organization B. Multiple choice Questions 1. Under __________ the entire work of business is divided into many departments. a. Division of work b. Coordination c. Authority and Responsibility d. Common Objectives 2. _________ is essential for taking the right decision at the right time. a. Coordination b. Communication c. Expansion d. Specialization 3. _________ which depicts the number of employees that can be handled and controlled effectively by a single manager. a. Principle of Specialization b. Principle of Functional Definition c. Principle of Span of Control d. Principle of Scalar Chain 4. In a staff and line organization, the power of the command remains with ______ 132 a. Staff Authority CU IDOL SELF LEARNING MATERIAL (SLM)
b. Central Authority c. Line Authority d. None of these 5. Formal authority flows from upwards to downwards in___________. a. Formal organization. b. Informal organization. c. Business or organisation. d. Strategic organization. 6. Informal authority flows upwards to downwards or horizontally in _____________. a. Formal organization. b. Informal organization. c. Business or organisation. d. Strategic organization. Answers 1. (a) 2. (b) 3. (c) 4. (c) 5. (a) 6. (b) 8.15 REFERENCES Reference Books: R1, L M Prasad, “Principles and Practice of Management”, Sultan Chand & Sons, 20th Edition, New Delhi. R2 Vijaykumar Kaul, “Principles and Practice of Management”, Vikas Publishing House Pvt Ltd, New Delhi. Textbooks: T1, Harold Koontz, Heinz Weihrich, A Ramachandra Aryasri, 2004, “Principles of Management”, The McGraw-Hill publishers, T2, RSN Pillai & S Kala, 2013, “Principles and Practice of Management”, S. Chand Publication, New Delhi. 133 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 9: STAFFING 134 Structure 9.0 Learning Objectives 9.1 Introduction 9.2 Meaning & Definition 9.3 Concept of Staffing 9.4 Objectives of Staffing 9.5 Nature of Staffing 9.6 Importance of Staffing 9.7 Factors of Staffing 9.8 Elements of Staffing 9.9 Process of Staffing 9.10 Recruitment and Selection 9.11 Meaning & Definition of Recruitment 9.12 Importance of Recruitment 9.13 Recruitment Process 9.14 Sources of Recruitment 9.15 Meaning & Definition of Selection 9.16 Significance of Selection 9.17 Principles of Selection 9.18 Process of Selection 9.19 Summary 9.20 Keywords 9.21 Learning Activity 9.22 Unit End Questions 9.23 References 9.0 LEARNING OBJECTIVES After studying this unit, students will be able to: Explain the concept of staffing CU IDOL SELF LEARNING MATERIAL (SLM)
Explain the objectives of staffing Identify the nature and importance of staffing Describe the factors and elements of staffing Discuss the process of staffing Explain the process and sources of recruitment Outline the importance of selection Explain the process of selection 9.1 INTRODUCTION The staffing role comes after the planning and organising function in a new company. Staffing is a continuous process when it comes to running a company. As a result, the manager should always perform this role. Personnel recruitment, selection, training, growth, transition, promotion, and compensation are all part of the staffing function. It is self-evident that management must ensure the continuous availability of a sufficient number of capable executives in order for the business to run smoothly. Personnel should be physically, psychologically, and temperamentally capable of doing the job. Staffing is a fundamental management function. Every manager is involved in the staffing process at all times. He is involved in the hiring, selection, training, and evaluation of his subordinates. In relation to their subordinates, the chief executive, departmental administrators, and foremen conduct these tasks. As a result, hiring is a widespread management role that is carried out by managers at all levels. Every manager is responsible for personnel practises such as employee selection, training, performance assessment, and therapy. In several businesses, a Personnel Department is established to handle these tasks. However, this does not absolve administrators at all levels of accountability for providing assistance to managers in fulfilling their staffing functions. As a result, every manager must ensure that the obligation of staffing is met. 9.2 MEANING & DEFINITION Staffing is the conventional management function of recruiting and hiring the best candidates, placing them in roles where their abilities and expertise can be best used, and retaining these people through rewards, career training, and job enrichment programmes, in order to fulfil both individual and organisational goals. This focuses on human resource management rather than material or financial resource management. 135 CU IDOL SELF LEARNING MATERIAL (SLM)
The role of human relationships in the organisational structure with professional personnel is referred to as staffing. Staffing refers to the part of management that deals with people at work and their relationships within the company. “Staffing is defined as “recruiting and filling vacant positions in the organization or company for a specific position.”. This is done by identifying the needs of the workforce, enlisting the available people, recruiting, selecting, retaining, promoting, evaluating, career planning, compensation, training, developing existing employees or new recruits So that they can carry out their tasks effectively and efficiently”. - Koontz and O’Donnell “The process involved in identifying, assessing, placing, evaluating and directing individuals at work.” - S. Benjamin. 9.3 CONCEPT OF STAFFING When the organization's goals have been defined, preparations are made and the organisation is adequately organised to ensure that the objectives are met. The next step is to hire the right people to fill the different roles that the organisational structure has developed. Staffing is the method of placing people in positions. Appointing suitable employees, designing them to meet organisational needs, and ensuring that they are a fulfilled and happy workforce are all part of the management role of staffing. Staffing is a managerial role that includes filling and holding open roles in an organization's structure. Permanent staff, regular workers, contractors, contract employees, and other personnel have been hired. Staffing includes: 1. Identifying and preparing for workforce requirements. 2. Adequate staff recruitment and selection for new roles or vacancies that might occur as a result of current employees leaving the company. 3. Organizing adequate preparation for workforce development and growth. 4. Make recommendations on job benefits, promotions, and performance assessments. 9.4 OBJECTIVES OF STAFFING i. To hire the best people for the right jobs. ii. To build and train human capital. iii. To establish personnel strategies for transfer, promotion, and other matters. iv. To efficiently mould human capital and inspire them to achieve higher levels of success. 136 CU IDOL SELF LEARNING MATERIAL (SLM)
v. Establishing positive working relationships with both employers and staff, as well as between groups of employees. vi. To ensure that employees' needs are addressed in order for them to become loyal and committed to the company. vii. Maintaining good human relations among employees in order to boost employee morale. 9.5 NATURE OF STAFFING The following are the fundamental characteristics of staffing: i. People-oriented – Staffing is concerned with the effective use of human resources in a company. It inspires and motivates every employee to give his or her all in order to help the business achieve its goals. ii. Development-oriented – It is concerned with the organization's personnel's future development. It helps them to develop in terms of personality, interests, and abilities. It allows workers to get the most enjoyment out of their jobs. It allows workers to achieve their full potential. It provides workers with opportunities for promotion through training, work education, and other ways. iii. Pervasive function – Any company needs staff. It is a significant sub-system of the overall management system that can be used by for-profit and non-profit organisations alike. It is expected for all types of workers at all levels of the company. iv. Continuous function – Hiring is a never-ending and continuous operation. It necessitates constant vigilance and knowledge of the value of human relationships in every activity. v. Human objectives – It helps workers realise their full potential so that they can enjoy their jobs to the fullest. It fosters an environment in which workers are able to work together to achieve the organization's objectives. vi. Individuals as well as group-oriented – Staffing is concerned with the accomplishment of targets by workers as individuals and as a company. It creates an appropriate organisational framework to meet individual needs as well as group efforts. It combines individual and group objectives in such a way that employees feel a sense of control over the company. 137 CU IDOL SELF LEARNING MATERIAL (SLM)
vii. Developing cordial working environment – It creates a pleasant working environment in which each employee gives his or her all to help the company achieve its objectives. It offers a physically and psychologically pleasant working atmosphere. viii. Interdisciplinary nature – Staffing has social science origins. It incorporates ideas from a variety of fields, including psychology, sociology, anthropology, and management. It's all focused on behavioural science concepts. It's a human-engineering science. ix. Integral part of general management – Staffing is an important part of overall management. It is an important part of any line manager's job description. From the top to the bottom, every member of the management team must be a competent personnel administrator. It provides support to other management departments. x. Science as well as art – Staffing is a human engineering science. It is a set of concepts and techniques organised into a body of information. It's also an art because it necessitates interpersonal skills. It is an innovative art because it deals with workers and addresses their issues in a structured manner. It is a management ideology that believes in the integrity and worth of humans. 9.6 IMPORTANCE OF STAFFING Staffing is the process of recruiting the best candidates for the right job in order to fill vacancies in an organization's structure. Since human resource management is the most fundamental and crucial function of management, having the right kind of employees is the most fundamental and crucial function of management. Staffing used to mean appointing people to do work, but due to rapid changes in the business world, staffing has become more important as a management tool. Because of the constant development of technology, evolving human behaviour, and the growth of industry, it is necessary to hire people who have not only technical skills but also the right mindset, aptitude, dedication, and sense of loyalty for the organisation. The efficiency of an organization's human resources determines its success. As a consequence, staffing is a vital managerial feature. Let us understand the importance of staffing: 1. Identifies Competent Personnel: Staffing determines the employment requirements to fill open roles in an organization's system and hires the best candidates for the job. It ensures that people with the necessary skills are hired. 138 CU IDOL SELF LEARNING MATERIAL (SLM)
For instance, your school's principal recognises departments that are short on teachers and works to fill those positions. 2. Improved Performance: By putting the right workers in the right jobs, businesses can make the most of their physical resources, resulting in increased productivity, efficiency, and success. For example, teachers who are proficient in Business Studies should be assigned to teach Business Studies in the commerce department to achieve the best results. 3. Continuous Survival and Growth: Managers are kept up to date on developments in the business environment through proper preparation and workforce development programmes. Boss succession planning ensures the company's long-term viability and expansion. For example, if the syllabus or the marking of papers changes, the CBSE Board conducts seminars for teachers so that they are aware of the changes and can integrate them into their teaching plans. 4. Optimum Utilisation of the Human Resources: Staffing determines the workforce needs and makes personnel appointments accordingly. This ensures that sufficient resources are available to prevent underutilization or job interruption caused by understaffing. For instance, having a sufficient number of teachers in each department means that each class has a teacher assigned to it. 5. Provides Job Satisfaction and Builds Morale: Staffing offers opportunities for advancement through internal promotions and recognises and honours contributions through ongoing evaluations. This maintains a happy and motivated workforce. For example, at the end of the academic year, schools may conduct teacher evaluations in order to award a ‘teacher of the year' award. This gives the instructor who worked hard satisfaction and encourages others to work harder as well. You may also note that your school's principal was once a teacher. As a result of her/his hard work, she/he was promoted to this position. 139 CU IDOL SELF LEARNING MATERIAL (SLM)
You must have learned from the above discussion on personnel that human resources are an organization's most valuable asset. It is important for an organization's success and development that roles in organisational structures are filled at the right time with the right number and type of people. Waste of money, time, energy, and effort would result from incompetent people. As a result, people with the necessary skills and expertise must be appointed in order to make the best use of resources, achieve optimum efficiency, and deliver high-quality goods. Employees should be taught how to respond to changes in the workplace. To keep the positions filled, adequate rewards and bonuses for hitting goals should be in place. 9.7 FACTORS OF STAFFING The following are common considerations that any company considers when designing a staffing pattern: (i) Size of the Organisation: The amount of human capital available to an organisation is dictated by its size. Small, medium, and large sizes are all possible. The size and staffing pattern of an organisation are determined by its organisational structure. The number of workers would be reduced if the company is small. The most relaxed staffing pattern will be decided by the optimal scale. (ii) Type of Skills Needed: The type of skills required by the company has an effect on the staffing pattern. Jobs are usually classified into three categories: skilled workers, semi-skilled workers, and unskilled workers. In general, the number of skilled and semi-skilled employees would be lower than the number of unskilled workers. These types of skills are what define the organization's staffing pattern. (iii) Employee’s Number: The staffing pattern is often determined by the total number of workers needed in an organisation. The number of people in the labour-intensive unit will be higher, and the staffing pattern will allow for more levels. Labour will be less in capital intensive units, and the staffing pattern will be planned accordingly. (iv) Clients and Customers: The staffing is also determined by the customer's attitude toward the company. If the clientele is larger, the organization's operation would be higher, requiring more staff. Staffing patterns may be restructured as a result of expansion and diversification. (v) Financial Posture: 140 CU IDOL SELF LEARNING MATERIAL (SLM)
The staffing pattern is often influenced by an organization's financial situation. Financial constraints may prevent you from hiring the people you need; on the other hand, a strong financial position may enable you to hire the people you need. (vi) Geographic Location: The staffing pattern of an organisation is often dictated by the position of its business units. Business units near business centres may be able to operate with fewer employees, while units farther away may need to hire more. 9.8 ELEMENTS OF STAFFING It involves a variety of interconnected operations, such as: Human Resource Planning – This is the first phase in the staffing process, in which a manager forecasts and determines how much and what kind of manpower the organisation will need in the future. It is divided into two parts: short-term and long- term. Recruitment – This is the process of identifying potential sources of manpower. Selection – This is the process of selecting and nominating the best applicants for different positions within a company. Placement – This entails putting the right people in the right positions after they've received orientation training. Training and Development – This includes constantly developing workers' role and work awareness, abilities, and attitudes in order for them to perform their roles effectively and efficiently. Remuneration and Compensation – Workers must be paid an equal sum of wages and salaries. In order for the organization's goals to be met. Performance Evaluation – This is a system for evaluating different types of workers in terms of their job behaviour and performance. Transfer – This applies to workers being transferred to identical positions in other work units. Promotion – This is the process of transferring workers from a lower to a higher role within an organisation. Vertical upward movement is another name for it. Working Environment – It is the personnel department's duty to provide decent working environments for the organization's workers. It has a major impact on employee motivation and morale. 141 CU IDOL SELF LEARNING MATERIAL (SLM)
9.9 PROCESS OF STAFFING The staffing process encompasses manpower planning, recruitment, selection and training: Figure: 9.1 Process of Staffing a) Manpower requirements: Manpower planning, also known as Human Resource planning, entails placing the right number of people, the right kind of people, in the right spot, at the right time, and doing the right things for the organization's goals. The primary goal of manpower planning is to assess and evaluate the organization's human resources, as well as to figure out how to get the types of people required to fill roles ranging from assembly line employees to CEOs. b) Recruitment: The process of identifying and attempting to attract job applicants capable of successfully filling job vacancies is known as recruitment. In the hiring process, work requirements and job specifications are relevant since they specify the essence of the job and the skills expected of job applicants. c) Selection: For any organization, finding a suitable applicant may be the most difficult task. The success of a business is largely determined by its workers. The right applicant selection is the cornerstone of every organization's success and aids in the reduction of turnover. d) Training and Development: Employee training and growth is a comprehensive initiative to help workers learn job-related habits and enhance their performance. Experts often differentiate between the words \"training\" and \"growth,\" with \"training\" referring to efforts to strengthen employee skills on current jobs, while \"development\" refers to efforts aimed at potential work improvements. 142 CU IDOL SELF LEARNING MATERIAL (SLM)
9.10 RECRUITMENT AND SELECTION Management's hiring role includes recruitment and selection. Scientific selection ensures that the right individual is assigned to the right task. Proper attention must be paid to the scientific selection of managers and other workers in order to create a team of effective, competent, and loyal employees. The traditional method of hiring managers on a haphazard basis is being phased out in favour of a scientific and objective approach to determining who should be hired under the organization's employment rules in the short- and long-term interests of both the individual employee and the organisation. The process of bringing human capital into organisations, agencies, divisions, and employment is known as recruitment and selection. A more useful concept of recruitment may be \"the art of identifying and procuring potential candidates for actual and expected vacancies within the organisation.\" This term has introduced the idea of ‘art,' which refers to management soft skills, some of which may be inherent in some managers or learned through advanced training. The word \"discover\" is used to emphasise successful recruiting, which is a process that requires experimentation and necessitates the use of advanced methods and techniques without which no \"discovery\" of possible candidates for the job can be made. Typically, recruitment and selection are governed by the organization's recruitment and selection policy. The \"right man for the right work\" theory is the cornerstone of hiring, and it can only be accomplished by empirical recruitment and selection. This is because an organization's capacity is largely measured by the capability of its workers. The old idea that capital was essential to an organization's growth is no longer true, as employers around the world have started to believe that a smart workforce is the secret to an organization's success. 9.11 MEANING & DEFINITION OF RECRUITMENT The discovery and creation of staff and employees in the company at the time they are needed is referred to as recruitment. It entails identifying, retaining, and contacting manpower sources. “Recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in the organisation” – Edwin B. Flippo “Recruitment is a process to discover the sources of manpower to meet the requirement of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force.”- Dale Yoder 143 CU IDOL SELF LEARNING MATERIAL (SLM)
9.12 IMPORTANCE OF RECRUITMENT The primary goal of recruiting is to create a pool of eligible job applicants. The specific goals are to: Assess the firm's current and potential needs in accordance with staff preparation and job analysis. Increase the pool of job applicants for the least amount of money. Assist in growing the selection process' success rate by reducing the number of job applicants who are obviously underqualified or overqualified. Assist in lowering the likelihood that work candidates, once hired and picked, may leave the company within a limited period of time. Comply with the organization's legal and social responsibilities in terms of employee composition. Begin identifying and preparing possible job candidates that would be suitable for the role. Improve short- and long-term organisational and individual effectiveness. Assess the efficacy of different recruitment strategies and outlets for a variety of job candidates. 9.13 RECRUITMENT PROCESS Recruitment is the process of finding and attempting to attract job candidates who are capable of effectively filling job vacancies. The recruitment process consists of the following steps: • Identification of vacancy • Preparation of job description and job specification • Selection of sources • Advertising the vacancy • Managing the response 144 CU IDOL SELF LEARNING MATERIAL (SLM)
Figure: 9.2 Process of Recruitment 1) Identification of vacancy: The process of identifying and attempting to attract job applicants capable of successfully filling job vacancies is known as recruitment. The phases in the recruiting process are as follows: 1. Finding a work opening 2. Developing a job description and specification 3. Origins of information 4. Publishing a work advertisement 5. Handling the reaction 145 CU IDOL SELF LEARNING MATERIAL (SLM)
2) Preparation of job description and job specification: A job description is a list of a position's general duties, roles, and responsibilities. It can include information such as who the position reports to, job requirements such as the qualifications or skills required, or a salary scale. A work specification outlines the expertise, skills, qualifications, experience, and abilities that you believe are required to complete a specific task. 3) Selection of sources: Any company has the choice of selecting applicants for its recruiting processes from two types of sources: internal and external. Internal sources of recruiting are those that come from within the company (e.g., transfers of staff from one department to another, promotions) in order to fill a vacancy. Candidates sourced from other sources (such as outsourcing agencies) are referred to as alternative sources of recruitment. 4) Advertising the vacancy: Following the selection of acceptable outlets, the vacancy is advertised in a suitable medium, such as television, radio, newspaper, internet, direct mail, and so on. 5) Managing the response: After receiving a sufficient number of responses from work applicants, the resume screening process begins. Since choosing the correct resumes that fit the work description is critical, this is a crucial step in the recruitment selection process. Naturally, it must be performed competently by someone who is completely aware of all of the obligations associated with the classification. Candidates who possess the required skill set are then selected and invited to an interview. Additionally, applicants whose applications do not meet the current nature of the position but may be considered for potential criteria are filed separately and saved. 9.14 SOURCES OF RECRUITMENT It is important for a company to establish multiple sources of recruitment; if the organisation has a wide pool of candidates, it can use a rigorous process to find the best workers without sacrificing efficiency. However, no single combination of resources and strategies will be effective for all businesses. The different types of recruitment sources can be divided into two categories: • Internal • External 146 CU IDOL SELF LEARNING MATERIAL (SLM)
The majority of companies depend on both sources. Depending on the following variables, the relative emphases can vary from one company to the next: 1. The company's training programme, and whether it prefers trained employees or wishes to train potential applicants on its own. 2. The degree of specialisation and preparation that workers are expected to have. 3. Management's recruiting process, and whether it favours internal or external candidates. 4. Staff are expected to be creative and take initiative. 5. The stance of the trade unions against the management's recruitment policy. Internal Sources: Employees currently recruited by the organisation are internal sources of recruitment. Many companies fill work openings by promoting and replacing existing workers, and it often applies to filling vacant positions with the organization's current employees. It's a method of generating enough enthusiasm among current employees for them to formally express an interest in a specific role. The role you've applied for may be a promotion, a move, or even a demotion within the organisation. Internal sources: The following are the primary internal sources of recruitment. Present Employee: Internal recruitment from current employees is the most common method. In general, the company holds inventories of credentials in order to pick workers for appropriate positions. The traditional method of generating a pool of internal candidates is to post job openings. They assess work prospects in light of their skills, experience, interests, and desired career path. Internal sources of recruiting include promotions and transfers from current workers. Employees Referrals: This is a great way to find internal candidates. Employees help their family and friends by informing them of the benefits of working for the organisation, providing letters of introduction, and even encouraging them to apply. This method of recruitment is successful because it allows the organisation to reach out to a large number of eligible candidates at a low cost. One of the main drawbacks of employee referrals is that the individuals referred are likely to be identical in nature to those already employed by the company. Former Employees: Another internal source of recruiting is former employees. Some retired workers might be able to return to work part-time or refer someone who may be interested in working for the company. People who have left the business for various reasons are 147 CU IDOL SELF LEARNING MATERIAL (SLM)
occasionally able to return to work. The output of these individuals is already known, which is a benefit of this source. External Sources: The following are the primary sources of external recruiting. Advertising: Outside recruiting is most commonly achieved by advertising in newspapers and journals. It is a very practical and cost-effective approach for a range of staff. To aid candidates' self-screening, detailed details may be used in the advertising. If required, the business may conceal its identity by providing a post box number. Educational Institutions: Universities, universities, and institutes of higher education have become common places to look for engineers, scientists, management trainees, technicians, and other professionals. Businesses can conduct campus interviews and choose students for a final interview at their offices. Placement bureaus are commonly administered by universities and institutes to assist in the recruitment of students. However, educational institutions only have candidates who are young and inexperienced. Personnel Consultants: A consulting company is a specialist entity that supports clients in personnel recruitment. It acts as a middleman between the employer and the job seeker. It advertises the vacancy and accepts applications on a requisition from a client company. It can send the applications to the client company or perform tests and interviews with the applicants, for which the client company may pay a fee. This method is commonly used to hire executives. Jobbers and Contractors: Jobbers and contractors are sources of unskilled and manual labour recruitment. For this reason, they maintain strong links with towns and villages. Employment Exchanges: Public job exchanges are essential sources of staff recruitment. These exchanges enable job seekers to register their names. Employers post work openings on these exchanges, which then forward the names of interested applicants to the employers. Leasing: Leasing is a common practise employed by public sector organisations. Owing to a lack of administrative staff, it employs personnel from the public service, the military, and the private sector for specific periods. Unsolicited Applicants: Due to India's unemployment crisis, businesses are inundated with unsolicited candidates at the main gate or via mail. Such job seekers can be considered for temporary openings or for the formation of a waiting list for potential employment. 148 CU IDOL SELF LEARNING MATERIAL (SLM)
9.15 MEANING & DEFINITION OF SELECTION Selection is the method of carefully reviewing applicants who apply for positions in order to choose the most eligible candidates for the available positions. It is the method of matching candidates' qualifications to the specifications of open positions. “Selection is the process of choosing from among the candidates, from within the organization or from the outside, the most suitable person for the current position or for the future position” – O. Donnell “Selection is the process by which candidates are divided into two classes those who will be offered employment and those who will not?” – Dale Yoder 9.16 SIGNIFICANCE OF SELECTION Selection is a vital feature that must be carried out with caution. If the wrong workers are employed, there will be a lot of absenteeism and turnover. Such individuals would avoid their duties and eventually leave the organisation. This would waste time, resources, and money spent on recruiting and educating them. The organization's productivity would deteriorate. The standard of an organization's managers has a significant impact on its success. Only by carefully choosing executives will the company's management structure be improved. Errors in selection could cost a lot of money in the future. In order to create a sufficient workforce, proper selection is critical. When the right people are hired for different positions, their productivity and performance can skyrocket. As a result, the primary goal of the selection process is to find the best applicants for different positions within the organisation. A well-organized selection process is necessary to accomplish this goal. Each stage of the selection process should reveal more details about the applicant. This type of knowledge would make it easier to make a decision. 9.17 PRINCIPLES OF SELECTION The performance of an industrial enterprise is determined by whether or not the selection was made properly according to selection principles. The company can be effective in achieving its goals if the best workers and employees have been selected. The company will not be effective in achieving its goals if careful selection is not made. As a result, in a large industrial organisation, decisions must be made based on the following principles: 1. Policy of recruitment in accordance with the object of enterprise: The recruitment policy of the must be in line with the enterprise's pre-determined objectives in order to aid in the achievement of the enterprise's objectives. 149 CU IDOL SELF LEARNING MATERIAL (SLM)
2. Observation of government rules and regulations: Before forming a strategy for enterprise recruitment and selection, the government's rules and regulations for selection must be properly understood and enforced, with particular attention to the rules of reservation to ensure that no legal complications occur later after the recruitment is made. 3. Recruitment by a Committee: The authority to hire staff and employees must be delegated to a committee of competent, effective, experienced, senior, and accountable company officers. To ensure equal selection, the entire recruitment process should be carried out by a committee rather than by a single officer. 4. Clear Policy of Recruitment: The recruitment policy must be definite and clear so that it can be applied without difficulty. 5. Flexibility: The recruiting strategy must be flexible enough to allow for required adjustments depending on the needs of the organisation. 6. Impartiality: The hiring policy must ensure that a fair selection process is followed. Only the most qualified and competent candidates should be chosen solely on the basis of merit. 7. Job Security: Job security must be provided to any worker and employee of the company from the time of his or her appointment so that he or she can contribute to the achievement of organisational goals. 8. Opportunity of Development to the Employees: The enterprise's hiring policy should be written in such a way that it can offer challenging opportunities to its workers based on their skill and success. It will always push them to do more and better work in order to outperform the competition. 9.18 SELECTION PROCESS For any organization, finding a suitable applicant may be the most difficult task. The success of a business is largely determined by its workers. The right applicant selection is the cornerstone of every organization's success and aids in the reduction of turnover. Though there is no foolproof selection procedure that will guarantee low turnover and high income, the selection process usually consists of the steps mentioned below. 150 CU IDOL SELF LEARNING MATERIAL (SLM)
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