MCA615-Principle of Management & OB (1)

Organising 145 Classification of Organisation The organisation can be classified on the basis of authority and responsibility assigned to the personnel and the relationship with each other. In this way, an organisation can be either formal or informal. Formal Organisation The formal organisation represents the classification of activities within the enterprise, indicates who reports to whom and explains the vertical journal of communication which connects the chief executive to the ordinary workers. In other words, an organisational structure clearly defines the duties, responsibilities, authority and relationships as prescribed by the top management. In an organisation, each and every person is assigned the duties and given the required amount of authority and responsibility to carry out this job. It creates the co-ordination of activities of every person to achieve the common objectives. It indirectly induces the worker to work most efficiently. The inter-relationship of staff members can be shown in the organisation chart and manuals under formal organisation. Characteristics of Formal Organisation The important characteristics of a formal organisation are given below: 1. It is properly planned. 2. It is based on delegated authority. 3. It is deliberately impersonal. 4. The responsibility and accountability at all levels of organisation should be clearly defined. 5. Organisational charts are usually drawn. 6. Unity of command is normally maintained. 7. It provides for division of labour. CU IDOL SELF LEARNING MATERIAL (SLM)

146 Principle of Management and Organisation Behaviour 5.5 Formal vs Informal Organization In the early 1930s, the famous Western Electric studies revealed that groups of people who shared an informal relationship formed an important part of the total work situation. The studies concluded that the network of personal and social relationships, not established by the formal organization, gave rise to informal organizations within an enterprise. Such relationships arise spontaneously from the interaction of people with one another and cannot be controlled by formal authority. A formal organization is a group of people working together cooperatively, under authority, towards goals that mutually benefit the participants and the organization. It is a system of well- defined jobs, each bearing a definite measure of authority, responsibility, and accountability. An informal organization is \"a network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another.\" An informal organization lays emphasis on people and their relationships, whereas a formal organization lays emphasis on official positions in terms of authority, responsibility, and accountability. Therefore, in an informal organization, 'power' is associated with a person. But in a formal organization, 'power' is associated with a position, since, a person has it only when he or she occupies that position. In other words, in informal organizations, power is purely personal in origin, while in formal organizations, power is institutional in origin. Table 5.1 lists the differences between formal and informal organizations. Table 5.1: Formal Organization vs. Informal Organization Formal Organization Basis of Comparison Informal Organization Official General nature Unofficial Authority and responsibility Major concepts Power and politics Position Primary focus Person Delegated by management Source of leader power Given by group Rules Guidelines for behavior Norms Rewards and penalties Sources of control Sanctions CU IDOL SELF LEARNING MATERIAL (SLM)

Organising 147 Although many management theorists differentiate between formal and informal organizations, often both are found in organizations, as shown in Figure 5.1. The informal organization may or may not support the goals and objectives established by the formal organization. Hence, it is the manager's responsibility to identify the informal relationships in the organization and integrate them with the formal organization to achieve the desired goals. Figure 5.1: Formal and Informal Organization To study the total organization (which includes both formal and informal organizations), George Homans developed a model (see Figure 5.2) based on three concepts: activities, interactions, and sentiments. Activities include all that an individual actually does; interactions refers to an individual's personal and social relationships with others; and sentiments refer to an individual's emotional reaction to various organizational issues. In a formal organization, the manager establishes the relationships between his subordinates, asks them to follow orders, and directs them to perform the tasks in a specified manner and work as a team. The subordinates are CU IDOL SELF LEARNING MATERIAL (SLM)

148 Principle of Management and Organisation Behaviour expected to possess certain sentiments about the organization, the manager, and the work. But, informal relationships develop spontaneously, supplementing or modifying the formal relationships established by the management. For example, an informal relationship may be established among people who may have lunch together. Informal relationships can help a company attain organizational goals as people may find it easier to seek help from someone they know even if they are from a different department, than from a person whom they know only at a formal level. There is no official chain of command in the informal organization, since power is not determined by the management but is determined by one's relations with other members of the group. Since informal power depends on interpersonal relationships, it does not remain consistent like formal power. Further, since people's sentiments cannot be controlled by management, informal organizations cannot be controlled by management as precisely as formal organizations. Even as the formal organization grows to an immense size, informal groups tend to remain small and stay restricted to personal relationships. Though small in size, a large number of groups operate within an organization. Informal groups need not be restricted to people within the organization — they may have external members as well. However, due to their small size and instability, informal organizations cannot be a substitute for the formal set-up. They only supplement it. CU IDOL SELF LEARNING MATERIAL (SLM)

Organising 149 Figure 5.2: Formal vs. Informal Organization Model The emergence of informal organizations within a formal framework is a natural process. Three behavioral variables have been found to influence such a process. First, the employees may behave in a manner different from the one specified by the organization. For example, employees may perform a task differently from what is expected of them. They may work slower than they were supposed to or they may modify a work procedure gradually as they gain more experience. Second, employees often interact with different people who possess different maturity levels and attitudes, and they tend to associate with people who share similar views. Such an affiliation need not be affected by their formal organizational positions. Third, the set of attitudes, beliefs and values that some workers hold can be very different from what the organization expects of them. Such workers may form an informal group to share their common attitudes, beliefs etc. Therefore, managers must keenly follow the informal developments that take place within their span of control to ensure that the organizational goals are achieved efficiently and effectively. CU IDOL SELF LEARNING MATERIAL (SLM)

150 Principle of Management and Organisation Behaviour 5.6 Span of Management Organizations are growing in terms of size and geographical coverage, thereby increasing the workload of executives. To cope up with this workload, managers should delegate routine activities to their subordinates. Delegation of such activities would leave managers free to handle key strategic issues. The number of subordinates a manager has to supervise has a direct bearing on the degree to which managers can interact with and supervise subordinates. The span of control refers to the number of subordinates a superior can supervise efficiently and effectively. According to Kathryn M. Bartol and David C. Martin, \"The span of management or span of control is the number of subordinates who report directly to a specific manager.\" The principle of span of management states that there is a limit to the number of subordinates a manager can effectively supervise, but the exact number will depend on the impact of underlying factors. One important thing is to be noted in the definition cited above. It is not how many people who report to a manager that matters. What matters is how many people who have to work with each other report to a manager. What counts are the number of relationships rather than the number of men. The span of control is a very important principle that emphasizes the need for coordination among the subordinates working under a particular manager. The question therefore arises: how many people can a manager supervise effectively? Students of management have come to the conclusion that a manager can effectively manage usually four to eight subordinates at the upper levels, and eight to fifteen subordinates at the lower levels. According to the British consultant, Lyndall Urwick, the ideal number of subordinates for a higher level executive should be four while the number of subordinates for an executive at the lower level may be eight or twelve. Others are of the view that a manager can manage twenty to thirty subordinates. A survey of 100 large companies carried out by the American Management Association showed the following results. CU IDOL SELF LEARNING MATERIAL (SLM)

Organising 151
The number of executives reporting to the presidents varied from one to twenty-four.
Only twenty-six presidents had six or fewer subordinates.
The average number of executives under a manager was nine. Another study of forty-one smaller organizations revealed that:
Twenty-five of the presidents had seven or more subordinates.
The most common number of subordinates was eight. None of these studies indicated the actual span of control. One reason is that the studies were carried out to know the span of control at or near the highest level of an organization. The results, therefore, may not be applicable for different levels of the organization. Many organizations may have a narrower span at the middle and a comparatively wider span at the top level. Another reason is that successful organizations have a varying span of management. They arrived at the best span of control through trial and error. So, it is best to decide the span of management, according to the prevailing situation within the organization. Tall vs. Flat Structure The span of management has a direct effect on the number of hierarchical levels in an organization. A tall structure comprises many hierarchical levels with narrow spans of control as shown in Figure 5.3. Having many levels within an organization has some disadvantages. Firstly, as the number of levels increase, the effort and expenditure involved in managing them also increases. Extra costs are incurred on hiring additional managers and staff for their assistance, and for coordinating departmental activities. These costs are referred to as overheads and are a burden to the organization. Thus, having a large number of levels is an expensive affair CU IDOL SELF LEARNING MATERIAL (SLM)

152 Principle of Management and Organisation Behaviour Figure 5.3: Organization Structure with Narrow Span/Tall Structure The second disadvantage of a tall structure is that communication gets unduly complicated. It is much more difficult to communicate the objectives, policies, plans and procedures in organizations with a tall structure as compared to the organizations with a flat structure. This is because of omission and misinterpretation of messages while they are being transmitted from one level to the other levels of the organization. The presence of a number of levels dilutes the information as it passes from the source to the receiver. Thus, different levels sometimes act as 'communication filters.' Finally, in an organization with a tall structure, numerous departments and levels make the planning and controlling tasks complicated. A plan made at the top level may appear to be definite and complete, but as the plan is subdivided at lower levels, it may lose its clarity. The controlling task also becomes difficult due to additional levels and managers. Due to these disadvantages, many organizations opt for downsizing. According to Bartol and Martin, \"Downsizing is the process of significantly reducing the layers of middle management, increasing the span of control, and shrinking the size of the workforce for purposes of improving its efficiency and effectiveness.\" Another term, which is synonymously used with downsizing is CU IDOL SELF LEARNING MATERIAL (SLM)

Organising 153 \"restructuring\". \"Restructuring is the process of making a major change in the organizational structure that often involves reducing management levels and possibly changing some major components of the organization through divestiture and/or acquisition.\" Restructuring involves decreasing an organization's workforce For instance, Ford Motor Company cut down its management levels after it realized that it was managing 12 levels of hierarchy as compared to 7 layers at Toyota. Ford realized that they were not only bearing administrative overheads but also that the absence of many levels proved to be a competitive advantage for Toyota. In addition, more levels of hierarchy made it difficult for the company to move quickly in the competitive environment. Once Ford opted for reduction in organizational levels, Toyota also followed suit and reduced its management levels further. A flat structure has a wide span of control and fewer hierarchical levels as shown in Figure 5.4. The classical school of management emphasized the need to specify the number of subordinates for an organization to have an effective span of management. The operational- management theorists, on the other hand, are of the opinion that it is not possible to determine a specific number of subordinates that a manager can effectively supervise as there are too many underlying variables in any management situation. While interacting with his subordinates, a manager should therefore, identify those aspects that consume a majority of his time. This would help him to work out solutions to reduce these time pressures and determine the best span of management. Also, it will enable him to extend his span of management without destroying effective supervision. CU IDOL SELF LEARNING MATERIAL (SLM)

154 Principle of Management and Organisation Behaviour Figure 5.4: Organization Structure with Spans/Flat Structures In a flat structure, tasks are highly interrelated. As a result, control and coordination are negatively affected. Nowadays, the span of management is primarily decided by the environment in which the subordinates are being supervised. Some of the factors that determine an organization's span of control are the amount of time spent by the supervisor with his or her subordinates, the flow of communication in the organization, the capability of the supervisor, etc. A poor span poses problems such as: (i) oversupervision, (ii) delay in decisions, (iii) problems in communication, (iv) decreased levels of initiative and morale, (v) less opportunity for responsibility and development, and (vi) higher costs. One of the early management writers, V.A. Graicunas tried to analyze the increase in the number of interactions and relationships by increasing the number of subordinates under a particular manager. He stated that a manager should not only consider direct one-to-one relationships with his or her subordinates but should also recognize the importance of cross relationships among the subordinates and interactions between groups of two or more subordinates. For instance, a manager who supervises three people under him interacts with them at three levels: firstly with each person as an individual, secondly with all three subordinates as a CU IDOL SELF LEARNING MATERIAL (SLM)

Organising 155 group and with three different groups of two employees each. The number of possible interactions and relationships can be determined by the formula: R = n (2n – 1 + n – 1) where, R = relationships n = number of subordinates R = 2 (22 – 1 + 2 – 1) = 2 (2 + 1) = 2×3 =6 If there are two subordinates working under a manager, the number of possible interactions and relationships will be six. Likewise, if the number of subordinates is 10, the manager may have approximately 5,210 interactions. Although Graicunas' formula does not help in determining the optimum span of management, it demonstrates how complex a work group becomes as the number of members increases. 5.7 Summary Organizing is an important managerial function. If managerial planning focuses on deciding what to do, organizing focuses on how to do it. Thus, after a manager has set goals and developed a workable plan, the next managerial task is to organize people and groups to carry out the plan. Organizing is the process of identifying and grouping the work to be performed, defining and delegating authority, and establishing relationships to enable people to work together to achieve the organization's objectives. In essence, organizing involves the grouping of activities and resources in a logical fashion. CU IDOL SELF LEARNING MATERIAL (SLM)

156 Principle of Management and Organisation Behaviour The various approaches to the division and coordination of work activities and resource allocation fall under two broad categories: the classical closed systems and the open systems. Closed systems involve sets of interacting elements operating without any exchange with the environment in which they exist. Open systems consists of sets of elements that interact with each other and with the environment, and whose structure evolves over time as a result of these interactions. The span of management refers to the number of subordinates who report directly to a specific manager. According to Graicunas, what counts is the number of relationships among those who report to a manager, not the number of people who report to him. Spans of management have a direct affect on the number of hierarchical levels in an organization. A tall structure consists of many hierarchical levels with narrow spans of control, whereas a flat structure contains fewer hierarchical levels. The process of organizing consists of six steps — defining the firm’s objectives, framing supporting objectives and policies, identifying and classifying the required activities, grouping the activities according to the available human and material resources, delegating authority, and horizontal and vertical coordination of the various groups in the organization. Effective organizing has many benefits. It helps individuals clearly visualize the tasks they are expected to accomplish. It supports planning and control activities. Organizing also creates channels of communication and helps in maintaining the logical flow of work activities. The process of organizing ensures efficient use of resources and helps avoid conflicts and duplication of effort. It coordinates diverse activities and builds harmonious relationships among members of the organization. The process of organizing helps managers to focus on tasks that are logically related to a common goal. 5.8 Key Words/Abbreviations
Organising: Organizing is an important managerial function. If managerial planning focuses on deciding what to do, organizing focuses on how to do it. Thus, after a CU IDOL SELF LEARNING MATERIAL (SLM)

Organising 157 manager has set goals and developed a workable plan, the next managerial task is to organize people and groups to carry out the plan.
Formal and informal organisation: A formal organization is a group of people working together cooperatively, under authority, towards goals that mutually benefit the participants and the organization. It is a system of well-defined jobs, each bearing a definite measure of authority, responsibility, and accountability. An informal organization is \"a network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another.\"
Span of Control: Organizations are growing in terms of size and geographical coverage, thereby increasing the workload of executives. To cope up with this workload, managers should delegate routine activities to their subordinates. Delegation of such activities would leave managers free to handle key strategic issues. The number of subordinates a manager has to supervise has a direct bearing on the degree to which managers can interact with and supervise subordinates. The span of control refers to the number of subordinates a superior can supervise efficiently and effectively. According to Kathryn M. Bartol and David C. Martin, \"The span of management or span of control is the number of subordinates who report directly to a specific manager.\"
Tall and flat structure: The span of management has a direct effect on the number of hierarchical levels in an organization. A tall structure comprises many hierarchical levels with narrow spans of control. A tall structure consists of many hierarchical levels with narrow spans of control, whereas a flat structure contains fewer hierarchical levels. 5.9 Learning Activity 1. Study the organisation structure of your management institute and comment on (a) span of management (b) Formal and informal relationship ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- CU IDOL SELF LEARNING MATERIAL (SLM)

158 Principle of Management and Organisation Behaviour 2. What are the advantages and disadvantages of tall and flat structure. ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- 5.10 Unit End Questions (MCQ and Descriptive) A. Descriptive Type Questions 1. Explain the definitions of Organizing. 2. What are the benefits of Organizing? 3. Explain the Traditional perspectives on Organizing? 4. What are the difference between Closed System vs. Open System? 5. Differentiate between Formal vs. Informal Organization. 6. Why do we need to have Span of Management? 7. Explain the Process of Organizing. 8. What are the prerequisites for Effective Organizing? B. Multiple Choice Questions 1. Factors determining span of control are (a) Trained subordinates (b) Delegation of authority (c) Clarity of plans (d) All the above 2. Formal organisations is based on the following (a) Authority (b) Responsibility (c) Accountability (d) All the above 3. Informal power depends upon (a) Interpersonal relationship (b) Authority (c) Accountability (d) All the above CU IDOL SELF LEARNING MATERIAL (SLM)

Organising 159 4. Flat organisation structure has (a) Narrow span of control (b) Problems with regard to communication within the organisation (c) Higher costs (d) Less management levels 5. A subordinate can perform task independently if he is (a) Trained well (b) Given authority by the manage (c) Motivated (d) All the above Answers: 1. (d), 2. (d), 3. (a), 4. (b), 5. (a). 5.11 References References of this unit have been given at the end of the book. CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 6 STAFFING Structure: 6.0 Learning Objectives 6.1 Introduction 6.2 Meaning of Staffing Depends 6.3 Manpower Planning 6.4 Factors Affecting Staffing 6.5 Recruitment 6.6 Selection 6.7 Selection Procedure 6.8 Meaning of Leadership 6.9 Leader’s Power 6.10 Leader vs. Manager 6.11 Leadership Styles 6.12 Summary 6.13 Key Words/Abbreviations 6.14 Learning Activity 6.15 Unit End Questions (MCQ and Descriptive) 6.16 References CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 161 6.0 Learning Objectives After studying this unit, you will be able to understand:  Handerstens the meaning of staffing  Describe the meaning of manpower planning  Analyse the factors affecting staffing  Discuss the recruitment and selection  Explain the meaning of leadership  Elaborate the theories of leadership  Analyse the leadership styles 6.1 Introduction In an organisation, staffing function follows the planning and organising function. Staffing is a continuous process in a running organisation. Staffing ensures that the organisation has the right number and type of people at right places, at the right time doing the right job for the benefit of the individual and the organisation. 6.2 Meaning of Staffing Depends According to Koontz and O’ Donnel “The managerial function of staffing involves managing the organisation structure through proper and effective selection, appraisal and development of personnel to fill the roles designed into the structure”. Thus staffing function comprises of activities of selection and placement of competent personnel. Staffing function includes selection of right persons, training to those needy persons, promotion of best persons, retirement of old persons, performance appraisal of all personnel and adequate remuneration of personnel. The success of any enterprise depends upon the successful performance of staff function. CU IDOL SELF LEARNING MATERIAL (SLM)

162 Principle of Management and Organisation Behaviour 6.3 Manpower Planning It is a process for determination and assuring that the organisation will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organisation and which would provide satisfaction for the individuals involved. It involves:  Estimation of present and future requirements and supply of human resources based on objectives and long range plans of the organisation.  Calculation of net human resources requirements based on present inventory of human resources.  Taking steps to mould, change and develop the strength of existing employees in the organisation so as to meet the future human resources requirements.  Preparation of action programmes to get the rest of human resources from outside the organisation and to develop the human resources in terms of existing employees. Recruitment: It is the process of searching for prospective employees and stimulating them to apply for jobs in an organisation. It deals with:  Identification of existing sources of applicants and developing them.  Creation/identification of new sources of applicants.  Stimulating the candidates to apply for jobs in the organisation.  Striking a balance between internal and external sources. Selection: It is the process of ascertaining the qualifications, experiences, skills, knowledge, etc., of an applicant with a view to appraising his/her suitability to a job. This function includes:  Framing and developing application blanks.  Creating and developing valid and reliable testing techniques.  Formulating interviewing techniques.  Checking of references.  Setting up a medical examination policy and procedure. CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 163  Line manager’s decision.  Sending letters of appointment and rejection.  Employing the selected candidates who report for duty. Placement: It is the process of assigning the selected candidate with the most suitable job in terms of job requirements. It is matching of employee specifications with job requirements. This function includes:  Counselling the functional managers regarding placement.  Conducting follow-up study, appraising employee performance in order to determine employee adjustment with the job.  Correcting misplacements, if any. Induction and Orientation: Induction and orientation are the techniques by which a new employee is rehabilitated in the changed surrounding and introduced to the practices, policies, purposes and people, etc., of the organisation.  Acquaint the employee with the company philosophy, objectives, policies, career planning and development, opportunities, product, market share, social and community standing, company history, culture, etc.  Introduce the employee to the people with whom he has to work such as peers, supervisors and subordinates. 6.4 Factors Affecting Staffing Staffing depends upon a number of factors as shown below. Fig. 6.1: Human Resource Planning External Factors Internal Factors 1. Government policies 1. Company strategies 2. Economic factors 2. HR policies 3. Business environment factors 3. Planning period 4. Information technology 4. Job analysis CU IDOL SELF LEARNING MATERIAL (SLM)

164 Principle of Management and Organisation Behaviour 5. Level of technology 5. Expansion programme 6. Competition 6. Production/Sales estimates 7. Production/Operations policy 8. Trade Union 9. Loss of manpower 10. Employee workload 11. Type of organisation 12. Organisation Cycle External Factors 1. Government policies with regard to liberalisation, industrial relations, religion/caste based job reservations, age exemptions, sons of the soil, etc., will affect Human Resource Planning. Example: The Government has given licence for commercial banking operations to microfinance institution like ‘Bandhan’, Equitas. 2. Economic factors: If the economic situation is encouraging, it may lead to increase in production and sales and more employment opportunities. 3. External business environment factors will influence product volumes and mix of production and demand for human resources. 4. Information technology initiatives on supply chain management, enterprise resource planning, computer aided design, etc., have influenced the quantity and quality of manpower required in the organisation. 5. Level of technology also affects the type of human resource required in the organisation. Computerisation in railways, postal department, banks, airlines, etc., can reduce the headcount in certain departments and at the same time provide opportunities to qualified people. 6. When the business is highly competitive, companies may go for lean organisation reducing the number of employees. At the same time, these companies may also look for people with critical skills to succeed in a competitive environment. CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 165 Internal Factors 1. Company strategies on expansion, diversification, acquisition, etc., will affect the requirement of human resources. 2. HR policies on quality of people, compensation, career prospects, organisation culture will influence human resource plan. 3. Planning period, i.e., short-term/long-term forecast have to be considered while planning for human resources. 4. Job analysis consisting of job description and job specification determines the type of human resource required. 5. Under expansion programme, the company normally needs more number of people in production/sales and marketing etc. 6. Production/Sales estimates are important inputs for determining manpower requirements. 7. Production/Operations policies on in-house production, third party production, changes in process, techniques or installation of new machinery or better raw material, etc., will influence the quality and quantity of manpower required. 8. The terms and conditions of working of employees under Union Agreement will affect human resource planning. 9. Loss of manpower due to leave, sickness, transfer, resignations, absenteeism, etc., are also considered. 10. Under Workload Analysis, the company tries to find out the number and type of people required for various jobs in relation to planned output. 11. Type of organisation. 12. Organisation Cycle. CU IDOL SELF LEARNING MATERIAL (SLM)

166 Principle of Management and Organisation Behaviour 6.5 Recruitment Meaning of Recruitment After determining the type and number of employees needed, the next operative function is procurement of employees. Procurement involves recruitment, selection and placement of employees. Recruitment is finding out potential applicants for actual and anticipated organisational vacancies. In recruitment, the organisation gives details of the jobs available and interested candidates are encouraged to submit applications. The objective of recruitment is to identify and attract candidates and increase the number of applicants for the purpose of selection. Therefore, recruitment is a positive process. Definition According to Edwin Flippo, “Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation”. The need for recruitment arises due to the following reasons: 1. Separation (retirement, resignation, death, etc.). 2. New vacancies arising out of expansion or diversification of business. Sources of Recruitment The sources of recruitment can be broadly divided into Internal and External sources. Internal Sources Many companies fill up vacancies from within the organisation. The existing employee knows the company, its policies and practices and has proved his worth over a period of time. It increases the morale of the existing employees. When a company has to fill up a position, it can consider an employee, who is a consistent performer. External Sources The following are the external sources of recruitment. 1. Advertising in newspapers, business magazines, trade/technical journals. CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 167 2. Technical and Management Institutes are also rich sources of supply of technical and management graduates Example: Industrial training institutes, Polytechnics, Engineering colleges and Management Institutes. Companies visit engineering and management institutes and interview the students within the campus. Suitable candidates are selected and advised to join the company after declaration of the result of degree examination. This is known as campus recruitment. 3. Employment Exchange: Unemployed people with or without experience register their names with government employment exchanges. They send the candidates for interviews based on the request from organisations, such as State and Central Government departments, Government undertakings, banks, etc. 4. Placement Agencies keep a data bank of candidates and suitable candidates are sent to the organisations for selection purpose. These agencies receive a commission based on the total salary offered to the selected candidate by the company. 5. Contractors, Jobbers provide labour to the factories. 6. Competitors: The HR manager contacts the employees working in competing companies, offering better terms and conditions of service. 7. Unsolicited applications: Many candidates send applications directly to he companies even though the company has not advertised for jobs in the organisations. The HR department keeps a file containing all such applications and it is used to fill up vacancies in future. 8. Recruitment through Trade unions improve labour relations. 9. Walk in Interviews are conducted for selection of candidates for positions in Call centres, Pharma companies, Credit card sales, Home loans, etc. 10. e-Recruitment: Organisations advertise the job vacancies through World Wide Web (www) and job seekers send their CVs through various sites such as hot jobs. com, jobs.com, naukri.com or monster.com, etc. The methods is cost effective and it reaches a wider audience. CU IDOL SELF LEARNING MATERIAL (SLM)

168 Principle of Management and Organisation Behaviour Example: Naukari.com is an Indian Job Portal and it has a database of resume, jobs and recruitment consultants. It is a platform for job seekers and job providers. It is positioned in the online recruitment and job search space and it has a list of more than 15,000 clients. Three major categories of customers are job providers, job seekers and placement agencies. 11. Poaching: There are employees in the industry who have gained expertise in a chosen field over a period of time. Example: Merchant banking, credit rating, rural marketing, computerised auditing, import/export accounting, organised retailing, etc. They may also have access to sensitive information within the organisation. Poaching involves identifying right people in the rival companies and offering them better employment terms and conditions and persuading them to join the organisation. Of course, there are ethical issues involved in poaching. 12. Executive Recruiters (Head Hunters) are special agencies who are retained by companies for recruitment of senior managers. 13. Employee Referrals: Nowadays, in many organisations, existing employees are asked to suggest suitable candidates for filling up vacancies in the organisation. The management considers the recommended candidates as the existing employees are aware of the nature of the job and organisational culture. Many companies believe that employees are the best brand ambassadors and they can attract the right people to the organisation. Many firms are making use of employee referral as a major tool for recruitment. The vacancies are put up on an internal portal and employees are requested to refer their friends and former colleagues to fill up the vacancies. Firms also reward employee through financial and non-financial incentives. Internal reference can bring good quality candidates. It also shows that the present employee is enjoying the job and he is loyal to the organisation. Apart from saving expenses on recruitment process, the company is also able to acquire candidates as per the job requirement. Example: Existing employees recommend suitable candidates in IT/BPO, private sector banks. CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 169 6.6 Selection After identifying the sources of human resources, searching for prospective employees and stimulating them to apply for jobs in an organisation, the management has to perform the function of selecting the right employees at the right time. The obvious guiding policy in selection is the intention to choose the best qualified and suitable job candidate for each unfilled job. The objective of the selection decision is to choose the individual who can most successfully perform the job from the pool of qualified candidates. The selection procedure is the system of functions and devices adopted in a given company to ascertain whether the candidates’ specifications are matched with the job specifications and requirements or not. The selection procedure cannot be effective until and unless: (i) Requirements of the job to be filled have been clearly specified (Job analysis, etc.). (ii) Employee specifications (physical, mental, social, behavioural, etc.), have been clearly specified. (iii) Candidates for screening have been attracted. Thus, the development of job analyses, human resources planning and recruitment are necessary pre-requisites to the selection process. A break down in any of these processes can make even the best selection system ineffective. Essentials of Selection Procedure The selection process can be successful if the following requirements are satisfied: (i) Someone should have the authority to select. This authority comes from the employment requisition, as developed by an analysis of the workload and workforce. (ii) There must be some standard of personnel with which a prospective employee may be compared, i.e., a comprehensive job description and job specification should be available beforehand. (iii) There must be a sufficient number of applicants from whom the required number of employees may be selected. CU IDOL SELF LEARNING MATERIAL (SLM)

170 Principle of Management and Organisation Behaviour 6.7 Selection Procedure Selection procedure employs several methods of collecting information about the candidate’s qualifications, experience, physical and mental ability, nature and behaviour, knowledge, aptitude and the like for judging whether a given applicant is suitable or not for the job. Therefore, the selection procedure is not a single act but is essentially a series of methods or stages by which different types of information can be secured through various selection techniques. At each step, facts may come to light which are useful for comparison with the job requirement and employee specifications. Steps in Scientific Selection Process (i) Job Analysis. (ii) Recruitment. (iii) Application Form. (iv) Written Examination. (v) Preliminary Interview. (vi) Business Games. (vii) Tests. (viii) Final Interview. (ix) Medical Examination. (x) Reference Checks. (xi) Line Manager’s Decision. (xii) Job offer (xiii) Employment. (Fig. 6.1) Job Analysis: Job analysis is the basis for selecting the right candidate. Every organisation should finalise the job analysis, job description, job specification and employee specifications before proceeding to the next step of selection. Human Resource Plan: Every company plans for the required number of and kind of employees for a future date. This is the basis for recruitment function. CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 171 Fig. 6.1: Scientific Selection Process Development of Bases for Selection: The company has to select the appropriate candidates from the applicants’ pool. The company develops or borrows the appropriate bases/techniques for screening the candidates in order to select the appropriate candidates for the jobs. Application Form: Application Form is also known as application blank. The technique of application blank is traditional and widely accepted for securing information from the prospective candidates. It can also be used as a device to screen the candidates at the preliminary level. Many companies formulate their own style of application forms depending upon the requirement of CU IDOL SELF LEARNING MATERIAL (SLM)

172 Principle of Management and Organisation Behaviour information based on the size of the company, nature of business activities, type and level of the job, etc. Information is generally required on the following items in the application forms: (i) Personal background information (ii) Educational attainments (iii) Work experiences (iv) Salary (v) Personal details, and (vi) References. (i) Personnel Background Information: It includes name, present and permanent addresses, sex, date of birth, marital status, health, height and weight, nationality, number of dependents, annual income of applicant’s parents, etc. This information can be used by the management to know the suitability of the candidate regarding his socio-economic background, neighbourhood, family status and background, sociological outlook, impact of these factors on employee behaviour, etc. (ii) Educational Attainments: These include list of schools, colleges, institutions attended, period of study, major subjects, class, percentage of marks, rank secured, extra curricular activities, positions and membership held during the educational career, hobbies, and interests, study either through regular course, or correspondence course or through private study, etc. This is the major area of information gathered by the organisation through application forms. (iii) Work Experience: It covers experience in all previous jobs with greater particulars about the nature and quantum of work handled, period of experience in each job, reasons for leaving the past employers, duties and responsibilities involved, name of the immediate supervisor, salary drawn, etc. This information enables the organisation to know the stability of the employee, his aptitude for the nature of work, nature of relationship he maintained with the past employers, etc. (iv) Salary: Salary drawn in the present employment and salary and benefits expected. (v) Personal Items: Association membership, personal likes and dislikes, hobbies, etc. (vi) References: Organisations ask candidates to send the names and addresses of persons who can be contacted for reference purposes. CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 173 Written Examination The organisations have to conduct written examination for the qualified candidates after they are screened on the basis of the application blanks so as to measure the candidate’s ability in arithmetical calculations, to know the candidates’ attitude towards the job, to measure the candidates’ aptitude, reasoning, knowledge in various disciplines, general knowledge and English language. Preliminary Interview The preliminary interview is to solicit necessary information from the prospective applicants and to assess the applicant’s suitability to the job. This may be conducted by an assistant in the personnel department. The information thus provided by the candidate may be related to the job or personal specifications regarding education, experience, salary expected, aptitude towards the job, age, physical appearance and other physical requirements, etc. Thus, preliminary interview is useful as a process of eliminating the undesirable and unsuitable candidates. If a candidate satisfied the job requirements regarding most of the areas, he may be selected for further process. Preliminary interviews are short and known as standup interviews or sizing up of the applicants or screening interviews. However, certain required amount of care is to be taken to ensure that the desirable workers are not eliminated. This interview is also useful to provide the basic information about the company to the candidate. Business Games: Business games are widely used as a selection technique for selecting management trainees, executive trainees and managerial personnel at junior, middle and top management positions. Business games help to evaluate the applicants in the areas of decision- making, identifying the potentialities, handling the situations, problem-solving skills, human relations skills, etc. Participants are placed in a hypothetical work situation and are required to play the role situations in the game. The hypothesis is that the most successful candidate in the game will be the most successful one on the job. Group Discussion: The technique of group discussion is used in order to secure further information regarding the suitability of the candidate for the job. Group discussion is a method where groups of the successful applicants are brought around a conference table and are asked to CU IDOL SELF LEARNING MATERIAL (SLM)

174 Principle of Management and Organisation Behaviour discuss either a case study or a subject-matter. The candidates in the group are required to analyse, discuss, find alternative solutions and select the sound solution. A selection panel then observes the candidates in the areas of initiating the discussion, explaining the problem, soliciting unrevealing information based on the given information and using common sense, keenly observing the discussion of others, clarifying controversial issues, influencing others, speaking effectively, concealing and mediating arguments among the participants and summarising or concluding aptly. The selection panel, based on its observation, judges the candidates’ skill and ability and ranks them according to their merit. In some cases, the selection panel may also ask the candidates to write the summary of the group discussion in order to know the candidates’ writing ability as well. Test Psychological tests play a vital role in employee selection. A psychological test is essentially an objective and standardised measure of sample of behaviour from which inferences about future behaviour and performance of the candidate can be drawn. Types of Test: Tests are classified into five types. They are: (i) Aptitude tests; (ii) Achievement tests; (iii) Situational tests; (iv) Interest tests; (v) Personality tests, and (vi) Multidimensional Testing. Interview Final interview is usually followed by testing. This is the most essential step in the process of selection. In this step, the interviewer matches the information obtained about the candidate through various means to the job requirements and to the information obtained through his own observation during the interview. Types of Interviews: The types of interviews are: (i) Informal Interview, (ii) Formal Interview, (iii) Planned Interview, (iv) Patterned Interview, (v) Non-directive Interview, (vi) Depth Interview, (vii) Stress Interview, (viii) Group Interview, and (ix) Panel Interview (Fig. 6.2). CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 175 Fig. 6.2 Types of Employment Interviews Preliminary Interview (a) Informal Interview: This is the interview which can be conducted at any place by any person to secure the basic and non-job related information. The interaction between the candidate and the personnel manager when the former meets the latter to enquire about the vacancies or additional particulars in connection with the employment advertisement is an example of informal interview. (b) Unstructured Interview: In this interview, the candidate is given the freedom to tell about himself by revealing his knowledge on various items/areas, his background, expectations, interest, etc. Similarly, the interviewer also provides information on various items required by the candidate. Core Interview It is normally the interaction between the candidate and the line executive or experts on various areas of job knowledge, skill, talent, etc. This interview may take various forms like: (i) Background Information Interview: This interview is intended to collect the information which is not available in the application blank and to check that information provided in the application blank regarding education, place of domicile, family, health, interests, hobbies, likes, dislikes and extracurricular activities of the applicant. CU IDOL SELF LEARNING MATERIAL (SLM)

176 Principle of Management and Organisation Behaviour (ii) Job and Probing Interview: This interview aims at testing the candidate’s job knowledge about duties, activities, methods of doing the job, critical/problematic areas, methods of handling those areas, etc. (iii) Stress Interview: This interview aims at testing the candidate’s job behaviour and level of withstanding during the period of stress and strain. The interviewer tests the candidate by putting him under stress and strain by interrupting the applicant from answering, criticising his opinions, asking questions pertaining to unrelated areas, keeping silent for unduly long periods after he has finished speaking, etc. Stress during the middle portion of the interview gives effective results. Stress interview must be handled with utmost care and skill. This type of interview is often invalid, as the interviewee’s need for a job and his previous experience in such type of interviews may inhibit his actual behaviour under such situations. (iv) Group Discussion Interview: There are two methods of conducting group discussion interviews, viz., group interview method and discussion interview method. All the candidates are brought into one room, i.e., the interview room and are interviewed one-by-one under group interview. This method helps a busy executive to save valuable time and gives a fair account of the objectivity of the interview to the candidates. Under the discussion interview method, one topic is given for discussion to the candidates who assemble in one room and they are asked to discuss the topic in detail. This type of interview helps the interviewer in appraising certain skills of the candidates like initiative, interpersonal skills, dynamism, presentation, leading, comprehension, collaboration, etc. Interviewers are at ease in this category of interview because of its informality and flexibility. But it may fail to cover some significant portions of the candidates’ background and skills. (v) Formal and Structured Interview: In this type of interview, all the formalities, procedures like fixing the value, time, panel of interviewers, opening and closing, intimating the candidates officially, etc., are strictly followed in arranging and conducting the interview. The course of the interview is preplanned and structured, in advance, depending on job requirements. The questions for discussion are structured and experts are allotted different areas and questions CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 177 to be asked. There will be very little room for the interviewers to deviate from the questions prepared in advance in a sequence. (vi) Panel Interview: A panel of experts interviews each candidate, judges his performance individually and prepares consolidated judgement. This type of interview is known as panel interview. Interviews for middle level and senior level managers are normally conducted by the panel of experts. (vii) Depth Interview: In this interview, the candidate would be examined extensively in core areas of job skills and knowledge. Experts test the candidate’s knowledge in depth. Depth interviews are conducted for specialist jobs. Information technology brought significant developments in the selection process of employees. The vital development is online interview (See Box. 6.1). Box 6.1: Technology Tools Powering Interview Most of the employee selection techniques including interviews are now conducted through online. These techniques include online applicant searching or online application submission, internet based recruiting, outsourcing employment function, sophisticated scanning and searching. Most of the global companies interview the candidate online across the globe. A panel of interviewers interview the candidates of any country. This practice reduces the cost of interview to a large extent. (Source: Adapted from Human Capital). Medical Examination Certain jobs require certain physical qualities like clear vision, perfect hearing, unusual stamina, tolerance of hardworking conditions, clear tone, etc., Medical examination reveals whether or not a candidate possesses these qualities. Medical Examination can give the following information: (i) Whether the applicant is medically suited for the specific job. (ii) Whether the applicant has health problems or psychological attitudes likely to interfere with work efficiency or future attendance. (iii) Whether the applicant suffers from bad health which should be corrected before he can work satisfactorily CU IDOL SELF LEARNING MATERIAL (SLM)

178 Principle of Management and Organisation Behaviour (such as need for spectacles). (iv) It reveals the applicant’s physical measurements, and (v) It is used to check the special senses of the candidates. Reference Checks After completion of the final interview and medical examination, the personnel department will engage in checking references. Candidates are required to give the names of references in their application forms. These references may be from the individuals who are familiar with the candidate’s academic achievement or from the applicant’s previous employer, who is well-versed with the applicant’s job performance, and sometimes from co-workers. In case the reference check is from the previous employer, information for the following areas may be obtained. They are: job title, job description, period of employment, pay and allowances, gross emoluments, benefits provided, rate of absence, willingness of the previous employer to employ the candidate again, etc. Further, information regarding candidate’s regularity at work, character, progress, etc., can be obtained. Often a telephone call is much quicker. The method of mail provides detailed information about the candidate’s performance, character and behaviour. However, a personal visit is superior to the mail and telephone methods and is used where it is highly essential to get the detailed, actual information which can also be secured by observation. Reference checks are taken as a matter of routine and treated casually or omitted entirely in many organisations. But a good reference check used sincerely will fetch a useful and reliable information to the organisation. Final Decision by the Line Manager Concerned The line manager concerned has to make the final decision whether to select or reject a candidate after soliciting the required information through different techniques discussed earlier. The line manager has to take much care in taking the final decision not only because of economic implications and of the decisions but also because of behavioural and social implications. A careless decision of rejecting would impair the morale of the people and they would suspect the selection procedure and the basis of selection of this organisation. A true understanding between line managers and personnel managers should be established to take proper decisions. CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 179 Job Offer Thus, after taking the final decision, the organisation has to intimate this decision to the successful as well as unsuccessful candidates. The organisation offers the job to the successful candidates either immediately or after sometime depending upon its time schedule. The candidate after receiving job offer communicates his acceptance to the offer or requests the company to modify the terms and conditions of employment or rejects the offer. Employment The company may modify the terms and conditions of employment as requested by the candidate. The company employs those candidates who accept the job offer with or without modification of terms and conditions of employment and place them on the job. 6.8 Meaning of Leadership The concept of leadership has undergone a seachange from the concept of ‘born-leader’ to ‘situation-leader’ and to effective leader. Views, assumptions and theories of leadership have changed significantly in recent years. Business and industry have set managers more as leaders to achieve the challenges. The quality of leadership provided by the managers determine the degree of success of business. Some people are born leaders and need little training or development. But many managers do not born with qualitative leadership skills. Such managers need training and development to acquire and develop leadership skills. However, born leaders can be more efficient with training. For Example, Jamshediji Tata and Dhirubhai Ambani belong to the born leaders category, whereas Vikram Singh of Hindustan Aluminium and Pardhasaradhi of Hindustan Lever belong to the ‘made leaders’ category. Leadership involves the exercise of influence on the part of the leader over the perception, motivation, communication, personality and ultimately over the behaviour of other people (preferably followers). Leadership is, therefore, the study of leader’s influence over the thoughts, feelings, opinions, beliefs, attitudes and actions of followers (See Box 6.2). CU IDOL SELF LEARNING MATERIAL (SLM)

180 Principle of Management and Organisation Behaviour Box 6.2: Leaders are influencers There is no single, universally accepted definition of a leader. At a broad level, the common characteristic of a leader is that he should be ahead of others and have the ability to articulate his thoughts clearly. A leader should also have the ability to effectively demonstrate confidence in his people. Respect, trust and acceptability should be gained, and not commanded. A good leader should master the art of listening to his team, being sensitive to his people’s needs, and above all, to lead by example. Of course, the styles will vary. Leaders are born, not made. Leadership cannot be taught in B-schools. Only the styles can be altered and refined. A leader moves ahead, trying new things, knowing that not all the loose ends are tied up, that not everyone is fully aboard, and that success is not assured. A leder must follow the maxim “practice what you preach”. Leadership also means upholding, at all costs, the ideals, principles and credos that one considers sacrosanct. The process of influencing others is subject to interpretation and differs with culture, age and society. However, one attribute applies to all leadership: setting the right example. The only way leaders can utilise their ability to touch the lives of those around them is to become involved themselves. (Source: Adapted from Business Today, May 12, 2002.) Leadership is defined as, “the process whereby one individual influences other group members towards the attainment of defined group or organizational goals.” The definition on leadership indicates that the leader influences the follower. However, it is viewed that the followers also influence leaders. Infact, leader and follower influence each other mutually. 6.9 Leader’s Power The leader’s influence over his followers is derived from various sources of power. The important sources of power of the leader include: Reward Power Superior granting a salary rise to his subordinate in order to encourage him to work better is referred to reward power of the superior. Reward power refers to offering monetary and non- monetary rewards by the leader to his followers. Leader has the formal and informal control over organizational resources, opportunities and decisions. Leader, rewards his followers, by CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 181 exercising his control over these resources. These rewards include salary increase, promotions, transfers, providing fringe benefits and perquisites. Other types of rewards are offered by the leader to his followers based on the former's personal power, motives, dynamism and communication and appreciation skills include: praise, recognition, granting autonomy, freedom, empowerment, etc. Leader’s success depends on the nature and extent of valuing these rewards by the followers. Coercive Power Leader motivates his followers not only through rewarding but also through punishing. Coercive power is the opposite to reward power. Coercive power is the ability or the capacity of the leader to coerce or punish his followers for not carrying out the assigned tasks. The sources of coercive power include both personal and position. Leaders personally have coercive power or power to punish their followers. If the followers do not do the work on their own, then the leader influences and coercive them. Leaders also have coercive power which is derived from their positions. This coercive power includes deferring promotions, salary reductions, demotion, transfer to an unpleasant place or job, retrenchment, etc. Legitimate Power The job analysis consists of job description and job specification. Job description consists of the rights of the job incumbent. The job of the leader gives rights to the leader regarding issuing orders, work assignment, delegation of authority and responsibility to his subordinates in order to get the work done. This power of the leader to influence his followers through the rights of his job is referred to as legitimate power. Therefore, the orders, requests, direction issued by the leader based on his job rights is viewed by the followers as legitimate and valid. Subordinates/followers job description indicate their duties and obligations. These obligations indicate that they have to comply with such requests and orders in order to carryout the organizational activities. Therefore, legitimate power is derived from the position and it is nothing to do with the leader’s characteristics. CU IDOL SELF LEARNING MATERIAL (SLM)

182 Principle of Management and Organisation Behaviour Expert Power Expert power is derived from the expertise, knowledge, information, skills and abilities that the leader possesses over the jobs of his subordinates. The subordinates expect the leader as a source of knowledge, information and skills in carrying out their duties. If the subordinates get continuous and timely support from their leader in the form of offering expertise that they do not have, then they respond very positively to their leader. Thus, the leader can influence the subordinates very much positively by possessing the expert knowledge, skills and abilities. The leader should acquire knowledge, skill, abilities to become expert. He should also update them continuously in order to retain that expert position in order to influence the followers effectively and contribute to the organizational goals. Referent Power The leader should be resourceful in terms of knowledge and skill. He should be capable of rewarding the followers properly. Subordinates would like to find extraordinary characters, abilities and qualities in the leader and see him as their role model. Further, the followers would like to identify with the leader and to emulate the leader. If the followers admire the leader’s abilities and qualities very much, they would like to be influenced by the leader to a greater extent. Then the leader has greater referent power over subordinates. 6.10 Leader vs. Manager Managers in the past like Mr. Krishna Murthy of Maruti Udyog Limited ran the business under the relatively stable environmental factors. But, the leaders in the new millennium like Mr. Bill Gates of Micro Soft, Mr. Dhirubai Ambani of Relliance Petrochemicals, win over the competitors, create the new external environment, and conquer the market. As Bennis put it, “To survive in the twenty-first century, we are going to need a new generation of leaders—leaders not managers. The distinction is an important one. Leaders CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 183 conquer the context — the volatile, turbulent, ambiguous surroundings that sometimes seem to conspire against us and will surely suffocate us if we let them—while managers surrender to it.” Thus, managers surrender to the external environment, white leaders fight with the environment and create new environment. Theorists and practitioners are differentiating the leader from managers only in recent years. This is more so, particularly after globalisation and liberalization of world economies. Abraham Zaleznik argues that leaders and managers are very different kinds of people. They differ in motivation, personal history, etc. Managers tend to be impersonal towards goals while leaders take active and personal attitude towards goals.  Managers tend to view work as an enabling process while leaders work from high task positions, seek out risk and danger when opportunity and reward appear high.  Managers work with people while leaders relate ideas to people in more intuitive and empathic ways.  Managers cope up with change, whereas leaders bring change. Leaders develop a vision and direction for the future. Warren G. Bennis presents the differences between Manager and Leader as shown in Exhibit 6.1. Exhibit 6.1: Managers vs. Leaders in the Twenty-First Century Managers Leaders Administers Innovates A copy An original Maintains Develops Focusses on Systems and Structures Focusses on People Relies on control Inspires trust Short-range view Long-range perspective Asks how and when Asks what and why Eye on the bottom line Eye on the horizonImitates CU IDOL SELF LEARNING MATERIAL (SLM)

184 Principle of Management and Organisation Behaviour Originates Accepts the Status Quo Challenges the Status Quo Classic good soldier Own person Does things rightDoes the right thing (Source: Warren G.Bennis, “Managing the Dream:Leadership in the 21st Century,” Journal of Organisational Change Management, Vol.2, No.1, 1989, p.7). 6.11 Leadership Styles Leadership is practiced by its styles which may be positive or negative. The styles used by the military officers and traditional managers are mostly negatives, whereas those of the modern and high-technology organisations are positive. The styles used by the Japanese Companies like Mitsubishi, and Toyota and Korean Companies such as Lucky-Goldstar(LG), Samsung, Hyundai and Daewoo are the positive and people-oriented styles. The styles used by some of the Indian Public Sector Companies like Indian Railways, HCL and HMT are negative styles. Styles based on Traditional Theories Different types of the leadership styles are derived from the leadership theories. These are four popularly known traditional leadership styles, viz., Free-rein, autocratic, participative and democratic. Free-rein or Laissez faire Style These leaders avoid authority and responsibility. They mostly depend upon the group to establish objectives and goals, formulate policies and programmes. The group members train and motivate themselves. Contrary to the autocratic style the leader play minor or negligible roles and depend upon the group. Autocratic Style Autocratic leaders centralize power of decision-making in themselves. Followers have no say either in decision-making or in implementation. They have to completely obey and follow the instructions of the leaders. The leaders take full authority and full responsibility. Autocratic leaders are classified into: (a) Strict autocrat who follows autocratic style completely where the method of influencing subordinates is thoroughly negative; (b) Benevolent autocrat who typically CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 185 gives awards to the followers; and (c) Incompetent autocrat who adopts autocratic style with a view to hide his incompetency. Domocratic Style Democratic leaders decentralise authority and encourage subordinates to express their opinion in decision-making as well as in implementing the decision. However, decisions are taken by the leaders. Thus, decisions are arrived at by consultation. Participative Style Participative leaders decentralize authority and encourage subordinates to participate and involve in decision-making and implementation processes. Decisions are made by the leader and his subordinates. It is, however, concluded that there is no clear-cut leadership style which is applicable universally and in all circumstances. Therefore, the leaders have to adopt appropriate style depending upon the situational requirements. Leadership Styles Based on Modern Theories Leaders of the modern, high-technololgy and highly competitive organisations exhibit inspirational style with vision and perform the work effectively, i.e., do the right things. The leadership styles based on the charismatic and transformational theories are classified into three, viz., envisioning, energising and enabling. (i) Envisioning: This style includes creating a picture of the future or a desired future state with which people can identify. Envisioning generates excitement. Thus, this style emphasises on articulating a compelling vision and setting high goals and expectations. (ii) Energising: The leader in this style directs the generation of energy, the motivation to act among the organizational employees. This style also includes demonstrating personal excitement and confidence, seeking, finding and using success. (iii) Enabling: The leader helps the followers psychologically to act or perform in the face of challenging goals. This style includes empowering, expressing personal support and emphathising. CU IDOL SELF LEARNING MATERIAL (SLM)

186 Principle of Management and Organisation Behaviour Match of Situation-Leadership Style-Followership Style The mere coincidence of leadership and followership styles will not produce effective results. What is more essential is the coincidence of these two styles which should meet the situational requirements to maximize the human resources contribution towards the organisational effectiveness. The emergency situations can be handled effectively if the leader is in exploitative autocratic style and the follower is in Yes-Boss style. Other styles of the leader and the follower may not suit to this situation and hence, they may be ineffective match in situations of exigency. The leader has to insist the followers to accept his decisions in some situations like adoption of latest technology which normally is resisted by the followers. In such situations, the leader in ‘the Benevolent Autocratic’ style can impress upon the follower to accept the decision of adoption of technology by offering benefits. It is clear from the anlysis that leader-follower and situations interaction should be taken into account to attain the organisational goals rather than mere leadership styles. One may agree to this but he faces the problem of integration of these three variables. There may not be specific and readymade answer to this question but the problem can be minimized when the follower and leader adopt to their style based on the situational requirements. 6.12 Summary In an organisation, staffing function follows. The planning and organising function. Staffing is a continuous process in a running organisation. Staffing ensures that the organisation has the right number and type of people at right places, at the right time doing the right job for the benefit of the individual and the organisation. It is a process for determination and assuring that the organisation will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organisation and which would provide satisfaction for the individuals involved. In recruitment, the organisation gives details of the jobs available and interested candidates are encouraged to submit applications. The objective of recruitment is to identify and attract CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 187 candidates and increase the number of applicants for the purpose of selection. Therefore, recruitment is a positive process. After identifying the sources of human resources, searching for prospective employees and stimulating them to apply for jobs in an organisation, the management has to perform the function of selecting the right employees at the right time. The obvious guiding policy in selection is the intention to choose the best qualified and suitable job candidate for each unfilled job. The objective of the selection decision is to choose the individual who can most successfully perform the job from the pool of qualified candidates. Leadership involves the exercise of influence on the part of the leader over the perception, motivation, communication, personality and ultimately over the behaviour of other people (preferably followers). Leadership is, therefore, the study of leader’s influence over the thoughts, feelings, opinions, beliefs, attitudes and actions of followers. Leadership is defined as, “the process whereby one individual influences other group members towards the attainment of defined group or organizational goals.” The leaders influence over his followers is derived from various sources of power. The sources of power include reward power, legimate power expert power, referent power. There is lot of literature on theories of leadership theories of leadership are classified into transitional theories. Behavioural theories, situational theories and modern theories. 6.13 Key Words/Abbreviations  Staffing: According to Koontz and O’ Donnel “The managerial function of staffing involves managing the organisation structure through proper and effective selection, appraisal and development of personnel to fill the roles designed into the structure”. Thus staffing function comprises of activities of selection and placement of competent personnel. Staffing function includes selection of right persons, training to those needy persons, promotion of best persons, retirement of old persons, performance appraisal of all personnel and adequate remuneration of personnel. The success of any enterprise depends upon the successful performance of staff function. CU IDOL SELF LEARNING MATERIAL (SLM)

188 Principle of Management and Organisation Behaviour  Manpower planning: It is a process for determination and assuring that the organisation will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organisation and which would provide satisfaction for the individuals involved.  Recruitment: In recruitment, the organisation gives details of the jobs available and interested candidates are encouraged to submit applications. The objective of recruitment is to identify and attract candidates and increase the number of applicants for the purpose of selection. Therefore, recruitment is a positive process.  Selection: The objective of the selection decision is to choose the individual who can most successfully perform the job from the pool of qualified candidates. The obvious guiding policy in selection is the intention to choose the best qualified and suitable job candidate for each unfilled job.  Psychological tests: Psychological tests play a vital role in employee selection. A psychological test is essentially an objective and standardised measure of sample of behaviour from which inferences about future behaviour and performance of the candidate can be drawn.  Leadership: Leadership involves the exercise of influence on the part of the leader over the perception, motivation, communication, personality and ultimately over the behaviour of other people (preferably followers). Leadership is, therefore, the study of leader’s influence over the thoughts, feelings, opinions, beliefs, attitudes and actions of followers  Legimate power: The job analysis consists of job description and job specification. Job description consists of the rights of the job incumbent. The job of the leader gives rights to the leader regarding issuing orders, work assignment, delegation of authority and responsibility to his subordinates in order to get the work done. This power of the leader to influence his followers through the rights of his job is referred to as legitimate power. Therefore, the orders, requests, direction issued by the leader based on his job rights is viewed by the followers as legitimate and valid. CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 189  Expert power: Expert power is derived from the expertise, knowledge, information, skills and abilities that the leader possesses over the jobs of his subordinates. The subordinates expect the leader as a source of knowledge, information and skills in carrying out their duties. If the subordinates get continuous and timely support from their leader in the form of offering expertise that they do not have, then they respond very positively to their leader. Thus, the leader can influence the subordinates very much positively by possessing the expert knowledge, skills and abilities.  Auto cratic leader: Autocratic leaders centralize power of decision-making in themselves. Followers have no say either in decision-making or in implementation. They have to completely obey and follow the instructions of the leaders. The leaders take full authority and full responsibility.  Referent power: The leader should be resourceful in terms of knowledge and skill. He should be capable of rewarding the followers properly. Subordinates would like to find extraordinary characters, abilities and qualities in the leader and see him as their role model. Further, the followers would like to identify with the leader and to emulate the leader. If the followers admire the leader’s abilities and qualities very much, they would like to be influenced by the leader to a greater extent. Then the leader has greater referent power over subordinates.  Democratic leader: Democratic leaders decentralise authority and encourage subordinates to express their opinion in decision-making as well as in implementing the decision. However, decisions are taken by the leaders. Thus, decisions are arrived at by consultation.  Participative leader: Participative leaders decentralize authority and encourage subordinates to participate and involve in decision-making and implementation processes. Decisions are made by the leader and his subordinates.  Reward power: Superior granting a salary rise to his subordinate in order to encourage him to work better is referred to reward power of the superior. Reward power refers to offering monetary and non-monetary rewards by the leader to his followers. CU IDOL SELF LEARNING MATERIAL (SLM)

190 Principle of Management and Organisation Behaviour  Trait theory: Trait theories assume that leaders are born, not made. The research studies focus on personal traits or characteristics that distinguish the leaders from the followers and a successful leader from an unsuccessful leader. A number of research studies were conducted during the last 50 years. The cumulative findings of these studies conclude that some traits increase the likelihood of success as a leader, but more of the traits guarantee success.  Coecive power: In recruitment, the organisation gives details of the jobs available and interested candidates are encouraged to submit applications. The objective of recruitment is to identify and attract candidates and increase the number of applicants for the purpose of selection. Therefore, recruitment is a positive process.  Behavioural theory: Behavioural theories of leadership propose that specific behaviours differentiate leaders from non-leaders. These theories opine that leader’s style is oriented either an employee-centred or a job-centred emphasis. These theories attempt to explain leadership in terms of the behaviour that the leader exhibits. 6.14 Learning Activity 1. One of the sources of recruitment is advertising in newspapers, business magazines, trade/technical journals. Study the advertisements released by companies in newspapers and journals and write down the salient features of the advertisement. ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- 2. Write down the leadership qualities of Ratan Tata, Narayana Moorthy, and Mukesh Ambani. ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- CU IDOL SELF LEARNING MATERIAL (SLM)

Staffing 191 6.15 Unit End Questions (MCQ and Descriptive) A. Descriptive Type Questions 1. Explain manpower planning 2. What are the factors that affect staffing? 3. Explain the steps in selection process. 4. What is leadership? State the differences between a leader and a manager. 5. Discuss various sources of power of a leader. 6. Explain trait theories of leadership. 7. Compare and contrast different behavioural theories of leadership. 8. Discuss different leadership styles. B. Multiple Choice Questions 1. Referent power refers to (a) Offering monetary benefits to employees (b) The manager’s rights to give orders. (c) Employees considering manager as role model (d) All the above 2. A leader focuses on (a) Systems, structure and procedures (b) Bringing change (c) Controlling people and activities (d) All the above 3. Selection involves (a) Job analysis (b) Preliminary interview (c) Psychological tests (d) All the above CU IDOL SELF LEARNING MATERIAL (SLM)

192 Principle of Management and Organisation Behaviour 4. Behavioural theories on leadership deals with (a) Born leaders (b) Managerial style of leaders (c) How leaders are differentiated for non-leaders based on behaviour. (d) All the above 5. Which leadership style tends to centralised authority and make unilateral decisions (a) Cultural style (b) Democratic style (c) Autocratic style (d) Participetive style Answers 1. (c), 2. (b), 3. (d), 4. (c), 5. (c) 6.16 References References of this unit have been given at the end of the book. CU IDOL SELF LEARNING MATERIAL (SLM)

REFERENCES 1. Harold Koontz and Heinz Weihrich (2018), Essential of Management, McGraw Hill Education (India) Private Limited, 444/1, Sri Ekambara Naicker Industrial Estate, Alapakkam, Porur, Chennai 600116, Tamilnadu 2. James AF Stoner (1994) Management, P prentice Hall of India Private Limited, M-97, Connaught Ciorcus, New Delhi-110001 3. Hurley M.E. (1997), Business Administration, prentice Hall of India Private Limited, M-97, Connaught Circus, New Delhi-110001 4. Subba Rao P (2019), Management Theory and Practice, Himalaya Publishing House Private Limited, Balerao Marg, Girgaon, Mumbai-400004 5. Karminder Ghuman and Aswathappa K, Management, Concept, Practice and Cases, Tata McGraw Hill Education Private Limited, 7, West Patel Nagar, New Delhi- 110008 6. Stephen P Robbins (2019), Organizational Behaviour, Pearson Education Service Private Limited, Tower B, World Trade Tower, Plot No 1, Block C, Sector 16, Noida 201301 7. Fred Luthans, Timothy A Judge and Neharika Vohra (2013) Organizational Behaviour, McGraw Hill Education (India) Private Limitred, P-24, Green Park Extension, New Delhi-110016 8. C.M. Prasad (2010), Organizational Behaviour, Sultan Chand & Sons, 23, Daryaganj, New Delhi-110002 9. John W Newstorm and Keith Davis (1996), Organizational Behaviour (1996), Tata McGraw Hill Publishing Company Limited, 4/12, Asf Ali Road, New Delhi- 110002 10. Subba Rao P, (2018) Organizational Behaviour, Text, Cases and Games, Himalaya Publishing House Private Limited, Balerao Marg, Girgaon, Mumbai-400004 CU IDOL SELF LEARNING MATERIAL (SLM)

194 Principle of Management and Organisation Behaviour On The Internet 1. Visit http://www.moneyinstructor.com/lesson/businessownership.asp to undertake some practical exercises with respect to different forms of business ownership 2. http://elt.heinle.com/cgitelt/course__products_wp.pl?fid=M691&Product_isbn_issn_ 0759398569&chapter_number=11&resource_id=25227 to learn what makes a good manager? 3. Log on to http://www.projectmagazine.com/leadershiop-skills/410-effective-management to learn the characteristics of effective management 4. Log on at nasa.perbang.dk to play an internet game-The Nasa Exercise: Lost on the moon-to learn decision making process 5. Log on to https://www.afresearch.org/skin/rimsq.mod.../display.aspx to understand different facets of centralization and decentralization. 6. Visithttp://www.business balls.com/teambuildijnggames.htm to undertake some practical exercises with respect to team building 7. Visithttp://www.nowhire.com/PDF/NowHireHR-TopTenOnlie RecruitingTechniques.pdf to learn Online Recruitment Techniques 8. Visithttp://www.dol.gov/vets/tap/f-tapsupplement-createaneffectiveresume8.9.07.pdf to learn how to create an effective resume. 9. http://www.thevaryyouth.com/tata.htm to learn about achievement and risk-oriented traits of Ratan Tata 10. http://web.sbu.edu/psychology/lavin/Carolyn.htm to learn about personality types 11. http:/www.iloveindia.com/indian-heroes/kumar-mangalam-birla.html to learn about Role model power of Kumar Mangalam Birla 12. http://www.iloveindia.com/indian-heroes/azim-premji.html to learn about Azim Premji’s Controlling power. CU IDOL SELF LEARNING MATERIAL (SLM)