3. 11 - 3
Deciding how best to
group organizational
activities and resources.
Organizing: the process
by which managers
establish working
relationships among
employees to achieve
goals.
4. THEO HAIMANN
“Organising is the process of
defining and grouping the
activities of the entire process
and establishing the authority
and relationship among them”
5. organising
Koontz define the organizing as “the grouping of
activities necessary to attain objectives, the
assignment of each grouping to a manager with
authority necessary to supervise it and the
provision for the co-ordination horizontally and
vertically in the enterprise structure.
1–5
6. 1. Group of Persons
2. Common Objectives
3. Division of Work
4. Co-ordination
5. Communication
6. Central Authority
7. Rules & Regulations
8. Environment
7. Common Objectives: Every organization has a
common objectives. The common goal is the
basis of cooperation among the members.
Group of Persons: An organization is a group
of people working together for the achievement
of common objectives.
8. Co-ordination: The members of an organization are
willing to help each other for the achievement of desired
goals.
Division of Work: Total task is divided into the members
of the group. Division of work is necessary not only
because one individual cannot do all the work but
specialization results in efficiency and effectiveness.
9. Communication: People who form an organization
communicates with each other in order to integrate or
coordinate there efforts. People can perform together
efficiently.
Authority: In an organization, there is a central directing
authority which controls the concerted efforts of the group.
The chain of authority- responsibility relationships is known
as the chain of command.
10. Rules and Regulations: For the orderly and systematic
working of the members, rules and regulations are laid down
and enforced by the central authority.
Environment:
Economic,social,political and legal factors.
11. IMPORTANCE OF
ORGANIZING
1. Facilitates
Administration
2. Encourages
Growth &
Diversification
3. Optimum
Use of
Technology
4. Stimulates
Innovation &
Technology
5. Encourages
Good Human
Relations
6. Ensures
Continuity of
Enterprise
7.
Coordination
12. Facilitates Administration: Achievement of the objectives
of an enterprise by providing a framework of coordination
and control. Individual goals can be coordinated towards
group goals. A properly balanced organization facilitated
both management and operation of the enterprise.
Encourages Growth &Expand: It has enabled
organizations to grow and expand to giant sizes. It provides
flexibility for growth without losing control over various
activities.
13. Optimum Use of New Technology: Optimum use of
technology permits optimum utilisation of human
resources. Sound organization ensures that every individual
is placed on the job for which one is best suited.
Stimulates Innovation & Creativity: It stimulates creative
thinking and initiative on the part of employees. It provides
recognition for the professional and the specialist in terms
of their achievement.
14. Encourages Good Human Relations: The assignment of
right jobs to right person improves job satisfaction and
inter-personal relations. Well-defined jobs and clear lines of
authority and responsibility ensure good human relations.
Ensures Continuity of Enterprise: It provides scope for
the training and development of future management.
Coordination: Division of labor, better utility of
technology and human talent helps to improve the
efficiency and quality of work.
15. It is a diagrammatic representation of organization
structure show names designation functions of
personnel in a organization.
Top-down or vertical chart: It shows the organization structure
in the form o pyramid. The lines of communication flow from
top level to bottom in vertical lines.In this chart ,the highest
postion is placed at the top the next highest follows the next
highest one and so on.
ORGANISATION CHART
16.
17. Horizontal chart or Left to right chart:
The chart in which the lines of command are flowing
horizontally instead of vertical is known as horizontal
chart. In this chart, the highest position is shown at
the extreme left and lowest position at the extreme
right.
ORGANISATION CHART
19. Types of Organization :
Organizations can be of 2 Types as given
below :
1) Formal Organization.
2) Informal Organization.
Both types are found in the
Organization shown below :
20. 1) Formal Organization :
There are various Levels in any Organization, right from
President or Chairman or Managing Director or Chief
Executive Officer at the top to Foremen/Supervisors down the
line.
Formal means the Intentional Structure of Roles in a
Formally Organized Enterprise.
This doesn’t mean there is anything inherently inflexible.
If a Manager is to organize well, the structure must furnish an
environment in which individual performance, both present &
future contributes most effectively to Group Goals.
Formal Organizations should be flexible, there should be
room for advantageous utilization of creative talents for
recognition of individual likes & capacities in the most formal of
Organizations. Yet, individual efforts in a Group situation
should be directed towards Group & Organization Goals.
21. 2) Informal Organization :
Such an Organization is a Joint Personal Activity without
conscious joint purpose, even though contributing to joint
results.
Thus, the Informal Relationships established in the Group
of people during morning Tea Break or Playing Cricket in the
Evening etc., may aid in the achievement of Organization
Goals.
It may be easier to ask for help in an Organization
Problem from someone you know personally, even if he may
be in a different section, than by passing thro the
Organization Structure.
Definition : “ A Network of Personal & Social Relations
not established or required by the formal organization but
arising spontaneously as people associate with one another.
Thus, relationships not appearing on the Organization Chart
might include Evening Cricket Team & Morning Tea Regulars.
22. Organization structure consists simply of those aspects
of pattern of behavior in the organization that are
relatively stable and change only slowly.
Organization structure refers to the systematic
arrangement of the people working for the organization
to achieve the desired goals and objective.
types
Functional organizational structure
Line organizational structure
Line and staff organizational structure
Project organizational structure
Matrix organizational structure
23. Organization structure is primarily concerned
with the allocation of tasks,and relationship
between the responsible positions
Purpose of organization structure
To achieve specific goals
To define personal identify
Assigning responsibility
Assigning authority
Achieving co ordination
To promote division or work that leads to
specialization.
Optimum utilization of staff and resources.
24. 1. FUNCTIONAL STRUCTURE:
General Manager
Production
Dept
Finance
Dept
Marketing
Dept
HR
Deprtment
Structure is created based on the
various functions of an organization.
ORGANIZATIONAL ARCHITECTURE – HORIZONTAL
DIFFERENTIATION
25. 25
ORGANIZATION STRUCTURE
Functional organization
It is the most popular organizational structure in the business world because it is basic
and it makes sense.production,marketing,finance,R&D and HR are common
groupings within a functional structure.
26.
27. This type of functional organization is
suggested by F.W.Taylor.
In functional organization different experts
guide the subordinates in organization.
Workers or subordinates thus receive order
from several specialists or officers and are
responsible for their performance to
different experts.
28. Since output of product is Based on experts
knowledge ,better quality is assured.
Functional efficiency more
Experts knowledge reduces wastages and
possibility of accidents.
Reduce the workload
29. Co ordination is very difficult
Maintaining the discipline is difficult
Workers always remain confused about the
authority and activity of each foreman.
31. ORGANIZATIONAL ARCHITECTURE – HORIZONTAL
DIFFERENTIATION
Divisional or M-form (Multidivisional) Design
An organizational arrangement based on multiple
businesses in related areas operating within a larger
organizational framework; following a strategy of
related diversification.
Activities are decentralized down to the divisional
level; others are centralized at the corporate level.
The largest advantages of the M-form design are the
opportunities for coordination and sharing of
resources.
33. 6–33
4. MATRIX ORGANIZATION
Employees
CEO
Project
manager B
Project
manager C
Vice president,
engineering
Vice president,
production
Vice president,
finance
Vice president,
marketing
Project
manager A
ORGANIZATIONAL ARCHITECTURE – HORIZONTAL
DIFFERENTIATION
34. MATRIX STRUCTURE:
6/24/2023
POM/Chapter
4
-
Organizing
34
Advantages:
Enhances organizational
flexibility.
Team members have the
opportunity to learn new
skills.
Provides an efficient way for
the organization to use its
human resources.
Team members serve as
bridges to their departments
for the team.
Disadvantages:
Employees are uncertain
about reporting
relationships.
The dynamics of group
behavior may lead to
slower decision making,
one-person domination,
compromise decisions, or
a loss of focus.
More time may be required
for coordinating task-
related activities.
35. Line organization is the traditional and
simplest of organization structure. Line
organization is also called as military
organization as it is adopted from military
administration.
The enterprise is divided into departments,
usually by function such as accounting,
marketing and so on, and a controlling head
is appointed.
36.
37. The important aspect of line organization is
that superior and subordinate relationship
from top to bottom level of organization.
The authority is distributed vertically from
top to bottom level.
In line organization structure,every one has a
well defined manager and there is clear
definition of the routes of authority and
communication
38. The top level management takes the major
decisions and passes it to middle level
subordinates who implement them.
The middle level management identifies the
job and assigns the responsibility to different
people according to their functions and
ability.
39. Easy to establish and operate.
No confusion as authority and
responsibilities of each employee are clearly
defined.
There is a direct chain of command and thus
decisions are rapidly made and
implemented.
Because od its simple structure line
organization promotes staff discipline more
easily than other forms
40. Specialized variety of job is difficult to
supervise by a supervisor.
Line organization is not suitable for large
scale industry.
It encourages directorial way of working
which may not develop own creative
thinking of workers.
41. Departmentation means the process of
grouping the similar activities of the business
into departments, divisions or other
homogenous units.
It is used for the purpose of facilitating a
smooth administration at all levels.
A Departmentation is a process of dividing
the large monolithic functional organization
into small and flexible administrative units.
42. Departmentation :
The Horizontal Differentiation of Tasks or
Activities into discrete segments is called
Departmentation.
The limitation on the Number of Subordinates that
can be directly managed would restrict the size of the
enterprises if it were not for the tool of
Departmentation.
Grouping of activities & people into depts makes it
possible to expand Organization & to manage it
effectively & efficiently.
Departmentation is thus the Key in building up an
effective & efficient Organization.
The basic aim is to take advantage of the
division of Labor & Specialization.
43. 1.The basic purpose of depart mentation
arises because of specialization of work and
limitation on the number of subordinates that
can be controlled by a manager.
2.Departmentation increases the operating
efficiency of the workers by providing the
specialization of work.
44. 3.Departmentation helps in fixing the
responsibility to various executive of the
oranisation.it makes the executive to be alert
and efficient in his duties.
4.Grouping of activities and personnel into
departments makes it possible for enterprise
to expand and grow.
45. 5.Departmentation provides an opportunity to
managers to take initiative in complicating job
effectively and to make independent decision
related to the department .
6.By assigning specific tasks to the
departmental personnel,it is easier for the
appraisal of managerial performance.
46. 7.Departmentation gives other advantages like
-Budget preparation
-effective control of expenditure
Attaining specialization Better coordination
among the managerial personal
47. The various bases of Departmentation :
1) Departmentation by Enterprise
Functions :
Functional Departmentation is the most widely
employed basis for Organizing Activities & is
present in almost every Enterprise at some level in
the Organization Structure.
Each Major function of the enterprise is
grouped into a Dept.
For Eg : A typical Manufacturing Company will
have Production, Engineering, Marketing, Finance
& Personnel Depts. A typical Manufacturing Unit
representing such Functional Depts is shown
below :
48.
49. Advantages : ( Function based
Departmentation)
It is logical & time proven.
The Power & prestige of the basic activities of
the enterprise are maintained by the Top
Managers. The identity of various functions is
maintained.
Functional Departmentation follows the
principle of Occupational Specialization &
thereby facilitates efficiency in utilization of
people.
It simplifies training.
It furnishes a means of tight control at the
Top, as the Top Managers are responsible for
50. Disadvantages :
This may tend to de-emphasize over all Enterprise
Objectives.
Over specializes & narrows view points of Key
Personnel.
People develop attitudes & other behavioral patterns
involving loyalty to their Functional Depts & not to the
enterprise as a whole & this tends to reduce Co-
ordination between Functions.
Responsibility for profits is at the Top only. In small
Enterprises, this may be acceptable, but in large
Enterprises the burden becomes too heavy for the person
to bear.
Functional Departmentation makes it difficult to
adapt quickly to environmental changes.
51. 2) Departmentation by
Products :
This method is ideally suited for Large
Organizations manufacturing various different
Products.
In this method, a separate Semi Autonomous
Dept is created for each Product & is put under
the Charge of a VP or, a Manager is made
responsible for achieving Set Goals.
52. Within each Dept, all the needed
Production, Engineering, Personnel, Marketing
& other facilities are grouped.
This method is ideal when an Organization
grows to a very Large Size & the usual method
of Functional Departmentation creates
Operational Problems.
For Eg: An Automobiles Manufacturing
Company has 3 Products say : 1) Tractors 2)
LCV & 3) Luxury Cars etc. The Company may
create 3 Different for these Products, each
headed by a VP for efficient & effective running
of the Organization.
53. Advantages :
It facilitates use of specialized Capital (eg : A
person may be extremely good in Marketing
Luxury Cars or LCV & his Services may be used
in these areas.)
Relieves Top Management of Operating Task
Responsibility, therefore it can better concentrate
on such centralized activities like Finance, R &
D, & Control.
This enables the Top Management to
Compare the performance of different
Products & take the Policy Decisions about
those Products which are not performing at
expected levels.
54. In this form, since Responsibility for Performance
of each Product is entrusted to a particular Dept
Head, he is well stimulated for improving his
performance.
Here, those who Work within the Dept derive
greater satisfaction from identification with a
recognizable Goal.
55. Disadvantages :
This form results in Duplication of Facilities &
Staff.
Extra expenditure is incurred in maintaining a
Sales Force for each Product Line.
Employment of a Large No of Management
Personnel is reqd.
Plant & Machineries in each Dept may not be
used fully.
56. 3) Customer Departmentation :
An enterprise may be divided into a Number of
Depts on the basis of the Customer that it serves.
In this form, the Customers are the Key to the
way the activities are grouped when each of
the different things an enterprise does for
them is managed by one Dept Head for that
particular activity/thing.
57.
58. Advantages :
Encourages Concentration on Customer
Needs.
Gives Customers feeling that they have an
understanding Supplier.
This form helps to develop Expertise in
Customer Area.
59. Disadvantages :
It may result in Under Utilization of resources
& facilities in some Depts.
There may be duplication of Services.
Requires Manager’s & Staff Experts in
Customer’s Problems.
60. 4) Departmentation by Territory or
Geography or Regions :
It is based on Territory or Region which is
Very Common in Enterprises that operate over
Wide Geographic Areas.
For Eg: Used widely in Automobile
Assembling, Chain Retailing, Wholesaling & Oil
Retailing. i.e., “Big Bazaar”, “Wal Mart in USA”,
departments based on Region “Western
Railways, Southern Railways etc”.
Here, it is important that activities in a
given area or region be grouped & assigned
to a GM, when this type of Departmentation
is adapted.
61. Advantages& Disadvantages :
advantages
It motivates each regional head to achieve high
performance.
Places responsibility at a Lower Level.
Places emphasis on Local Markets &
problems.
It improves Coordination in a Region.
It enables better face to face communication
with the local
disadvantages
It requires more people with GM capabilities.
It increases problem of Top Management
62. 5) Departmentation by Time :
One of the Oldest form of Departmentation
generally used at Lower Levels of
Organization, i.e., Grouping based on Time. The
use of Shifts is Common in many enterprises
where for Economic, Technological or other
reasons, the normal day will not suffice.
Egs: Hospitals, Machine Shops, Forging
Shops, Press Shops working in 3 Shifts for
Economic Reasons. This is also true for Chemical
Industries, Blast Furnaces, Steel Melting
Furnaces etc where processes cannot be
interrupted. These industries work in 3 Shifts.
63. Advantages :
Services may be rendered that go beyond
the typical 8 Hours a Day, often extending to
24 Hours a Day.
It is possible to use processes that cannot
be interrupted, those that require a
Continuous Cycle.
Expensive Capital Investment on Plant &
Machinery can be used more than 8 Hours a
Day when Workers in all the 3 Shifts use the
same Machines. This is a very important
Economic Consideration.
64. Disadvantages :
Supervision may lack during Night Shift.
There is a fatigue factor ; it is difficult for most
people to switch, for instance, from a Day Shift to
a Night Shift & Vice Versa.
Having Several Shifts may cause problems in
Communication & Coordination.
In a factory, the night shift people may not clean
up the machines to be used by the day shift
people.
Efficiency of the people have generally been
found to be quite low between 12:00 AM to 8:00
AM.
65. 6) Process or Equipment
Departmentation :
This is done on the basis of several discrete
processes or technologies involved in the
manufacture of a Product.
In this kind of Departmentation, the necessary
Resources are brought in to do the particular Job.
Eg: This can be explained by means of a Cast
Iron Foundry manufacturing Graded cast Iron
Castings. There are so many processes involved
such as Moulding, Core Making, Melting, Sand
Preparation, Fettling etc. The Block Diagram of
a Typical Enterprise is shown below :
66.
67. Advantages :
It achieves Economic Advantages.
Follows principle of Specialization – each Dept
is engaged in doing a special type of work,
therefore utilizing special skills of the people &
increases Operational Efficiency.
Ideally suited for manufacturing enterprises
using a Number of Intermediate Processes to
manufacture their Products.
68. Disadvantages :
It does not provide a good training ground for
overall development of Managerial Talent.
Coordination of different Depts is difficult &
some times, it may lead to Production Bottle
Necks.
Responsibility for Profit is at the Top.
69. Span of management means the number of
people managed effectively by a single in an
organization.
The term span of management is also known
as span of supervision or span of authority or
span of responsibility.
But span of management is better term
because control and supervision are elements
of management
70. SPAN OF MANAGEMENT
It is also called as
span of control or
span of supervision.
It refers to the
number of
subordinates that
report directly to a
single manager or
supervisor.
71. Capacity of superior
Capacity of subordinates
Nature of work
Type of technology
Delegation of authority
Communication technique
Using of objective standards
Direction and coordination.
72. Capacity of superior
- manager having more capacity may
supervise more subordinates the those who are
having less capacity.
-Each manager has different capacity in
respect of such factors in
communication,leadership,decision making
and control.
73. Capacity of subordinates
-subordinates should have more experienced
and well trained persons such situations more
number of subordinates can be easily
controlled.
Nature of work
- If the subordinates are involved in simple and
repetitive activities then it is possible for the
manager to supervise ore subordinates and
span may be wider
74. Type of technology
- Firms using mass production and assembly
line production can have wider span than
process production system.
Delegation of authority
- the most serious of poor organization
affecting the span of management is
inadequate or unclear authority delegation.
- If a manager should be define clearly
delegation of authority for reducing
managerial time.
75. Communication technique
Communication is one of the factor for
determine the span of control.
If the communication is oral or face to face
it requires more time and energy on the part
of both superior and subordinates.
On the other hand if we use electronic and
other modern devices that will save lot of
time and span can be increased.
77. AUTHORITY:
Right to take decisions that arises due to
position in organizational structure.
Authority is the right to perform or
command. It allows its holder to act in
certain designated ways and to directly
influence the actions of others through
orders.
Types of Authority:
Line Authority
Staff Authority
78. LINE AUTHORITY
The chain of command in the
organizational structure that flows
major decision making power.
The officially
sanctioned ability to issue orders t
o subordinate employees within
an organization.
79. STAFF AUTHORITY
Staff authority consists of the right to
advise or assist those who possess
line authority as well as other staff
personnel.
The Advisory or Counseling
Role :
The Service Role
The Control Role
80. DELEGATION OF AUTHORITY
Assigning work to subordinates
and giving them necessary
authority to do the assigned work
effectively.
Simple terms,
GRANTING AUTHORITY TO SUBORDINATES
81. FEATURES OF DELEGATION OF
AUTHORITY:
No delegation of total authority
Delegation of only that authority a
manager has
Representation of the superior
Delegation for organizational purpose
Restoration of delegated authority
Balance of authority and responsibility
No delegation of responsibility
82. CONFLICT BETWEEN LINE – STAFF EMPLOYEES
Assume Line Authority
Do not give Sound Advice
Steal Credit for Success
Fail to Keep line
personnel informed of their
activities
Do not see the whole picture.
83. CENTRALIZATION AND DECENTRALIZATION
Meaning : Centralization and Decentralization
Reasons: In which case which is needed
Advantages and Disadvantages: of both
84. Centralization versus Decentralization of
Authority & Responsibility :
Meaning of Decentralization :
Organization Authority is merely the
discretion conferred on people to use their
judgement to make decisions & issue
instructions.
It is the tendency to disperse decision
making authority in an Organized
Structure.
It is a fundamental aspect of delegation,
to the extent the authority is not delegated ; it
is Centralized.
85. Delegation of Authority & hence Decentralization
is necessary for an Organization to exist.
Just as no one person in an enterprise, can do
all the tasks necessary for accomplishing a group
purpose, so it is impossible, as an enterprise
grows, for one person to exercise all the
authority for making decisions.
There is a limit to the No of Persons Managers
can effectively supervise & make decisions for.
86. Once this limit exceeds, Authority must be
delegated to Subordinates, who will take decisions
within the area of the assigned duties.
Decentralization implies more than delegation. It
reflects the philosophy of the Organization &
Management.
It requires careful selection of which decisions
to be taken at lower levels of the Organization
Structure & which to be taken at the Top levels.
87. It also requires specific policy making to guide
the decision making, proper selection & training of
people & adequate control.
A policy of Decentralization affects all areas of
Management & can be seen as an essential
element of a Managerial System. In fact, without it,
Managers wouldn’t be able to use their discretion
to handle the ever - changing situations they face.
Every enterprise has to decide as to how
much decision making authority should be
centralized in the hands of the President & the
VP (Top Levels) & how much should be
delegated to the Managers at the Lower Levels.
88. In a Centralized set up, the Decision making
Authority is concentrated in a few people at the
Top, in a Decentralized Set up, it is delegated to
the Lower Levels where the actual work is
performed.
Following are the criteria to measure the
extent of Decentralization in an Enterprise.
Decentralization is greater :
1) When, the greater is the number of decisions
made at Lower Levels.
2) When the more important are the decisions
made at Lower Levels.
3) When more is the number of areas in which
decisions can be made at Lower Levels &
89. 4) When fewer are the people to be consulted
& less is the checking reqd from the Top Levels
on the Decisions made at the Lower Levels.
Definition on Decentralization :
“ Everything that goes to increase the
importance of the Subordinate’s Role is
Decentralization & everything that goes to
reduce it is Centralization.”
The terms “Centralization” &
“Decentralization” are not absolute but are
relative. Absolute Centralization is not possible,
except in a One – Man Enterprise. Consequently,
we can say that Decentralization Characterizes
90. Similarly, there cannot be absolute
Decentralization of Authority because the
Manager cannot delegate all his authority
without surrendering his position as a
Manager.
Meaning of Centralization :
It has several meanings :
1) Centralization of Performance :
Pertains to Geographic Concentration ; it
characterizes, for Eg : a Company operating in
a single location.
91. 2) Departmental Centralization :
Refers to Concentration of specalized
activities in one Dept. For Eg : Repairs &
Maintenance for an entire plant may be carried
out by a Single Dept.
3) Centralization as an aspect of
Management :
It is the tendency to Restrict Delegation
of decision making. A high degree of authority
is held at or near the Top by Managers in the
Organizational Hierarchy. We are concerned with
this aspect of Centralization & Decentralization of
Authority & Responsibility.
92. Distinction between Delegation &
Decentralization :
They appear to be the same, but in reality
they mean different things. The Major
differences are given below :
1) Delegation is a process, while
Decentralization is the end result (Outcome) of
the Delegation & Dispersal of Authority.
Delegation mainly refers to granting of Authority
& the creation of responsibility as between one
individual & another; Decentralization is the
situation which exists as a result of the
systematic delegation of Authority throughout
the Organization.
93. 2) In Delegation, a Superior continues to be
responsible for the work delegated to his
Subordinates, while in Decentralization, the
Superior is relieved from his responsibility for
the work Decentralized & Subordinate
becomes liable (responsible) for that.
3) Delegation is Vital & essential to the
Management Process. Only thro Delegation,
Subordinates can be involved in the Organization
& the Management can get things done.
Decentralization is Optional, in the sense, that it
may or may not be done as a Systematic policy.
94. Advantages of Decentralization
:
Relieves Top Management of some burden of
Decision Making & forces upper level managers
to let go. (giving freedom to the Lower Level
Mgrs to take independent Decisions.)
Reduces problems of Communication & hence
enables Top Managers to take timely decisions on
all important issues, thus, enhancing the efficiency
of the Organization.
Encourages Decision Making & assumption of
Authority & responsibility.
Gives Managers more freedom &
independence in Decision Making.
95. Promotes establishment & use of broad
controls which may increase Motivation.
Makes comparison of performance of different
Organizational units possible.
Facilitates setting up of Profit Centers.
Facilitates Product Diversification.
Promotes development of more capable
Managers. Because, Managers in a
Decentralized structure often have to adapt to &
deal with difficult situations, they are assumed to
be excellently trained for Promotions into positions
of greater authority & responsibility.
Decentralization aids in adaptation to fast
changing environment.
96. Limitations of Decentralization
:
Makes it more difficult to have a Uniform Policy.
Increases Complexity of Coordination of
Decentralized Organizational Units.
May result in loss of some control by Upper-Level
Managers.
May be limited by inadequate Control Techniques.
May be constrained by inadequate Planning & control
systems.
Can be limited by the availability of qualified &
capable Managers.
Involves considerable expenses for Training
Managers.
May not be favored by Economics of Scale of
97. The Extent of Decentralization :
To avoid problems, any program for
decentralization of Authority & Responsibility must
consider thoroughly the Advantages & the
Limitations of Decentralization.
Strong forces in the Organization favor the
practice of Decentralization. But, at the same
time, extensive Decentralization is not to be
blindly undertaken.
Perhaps, One Major Problem of
Decentralization is loss of Control. No
enterprise can Decentralize to the extent that
its very existence is threatened & the
achievement of its Goals is frustrated.
98. If Organizational Disintegration is to be avoided,
Decentralization must be tempered with selective
Centralization in certain major policy areas.
An enterprise with well balanced Decentralization will
probably centralize decisions at the Top on such things
as given below :
1) Financing.
2) Overall Profit Goals & Budgeting.
3) Major Facilities & other Capital Expenditures.
4) Important New Product Programs.
5) Major Marketing Strategies.
6) Basic Personnel Policies.
7) Development & Compensation of Managerial
Personnel.
99. Human resource management or
staffing
“ Manpower planning is the process by which an
organization ensures that it has the right number and the kind
of people, at the right place, at the right time, capable of
effectively and efficiently completing those tasks that will
help the organization achieve its overall objectives”.
Human resource is the process of recruitment, selection of
employee, providing proper orientation and induction,
providing proper training and developing skills, assessment of
employee, providing proper compensation and benefits and
maintaining employee’s safety
100. Scope of Human resource
management
Human resource planning: It refers to a process by which the
company to identify the number of job vacant, whether
company has excess staff or storage of staff.
Job analysis and design: It gives a detailed explanation about
each and every job in the company.
Recruitment and selection : Based on information collected
from job analysis the company prepares advertisements and
publishes them in the newspapers. This is recruitment.
Orientation and induction:Once the employees have been
selected an induction or orientation program is conducted.
Training and development:
101. Scope of Human resource
management
Training and development: Every employee goes under training
program which helps him to put up a better performance on
the job.
Performance appraisal: Based on appraisal future promotions,
incentives, increments in salary decided.
Compensation planning and remuneration:
It is the job of HRD to look into remuneration and compensation
planning.
Motivation, welfare, health and safety:
It is the job of HRD to look in to different methods of
motivation.
102. Job analysis
“Job analysis is the process of studying and collecting
information relating to the operations and
responsibilities of a specific job. The immediate
products of this analysis are job descriptions and job
specifications”
It consists of two tasks
Job description: It is a written statement showing job title,
tasks duties and responsibilities involved in a job. It also
describes required qualifications, minimum
requirements,working conditions and desirable qualifications.
Job specification
105. Job design
It is usually broad enough to accommodate people’s
needs and desires.
Guidelines:
Mechanical and technical factors of the job and simplifications
of the mechanical factors
Providing social interaction, views and attitudes with superiors,
Subordinates and peers.
Techniques for designing jobs:
Job Enlargement
Job Rotation
Job Enrichment
107. JOB SIMPLIFICATION
jobs are broken down into very small parts where a fragment called “task”
is repeatedly done over and over again by the same individual.
•ADVANTAGES
•Employee therefore is paid
higher rewards.
•the productivity is high.
•Achieves specialization.
•Training cost to the
organization is practically
negligible.
•DISADVANTAGES
•a worker is likely to get bored and
remain absent frequently.
•Quality and quantity may suffer in
the long run due to frustration.
•Organization may have to attract
workers by offering higher wages
108. JOB ENLARGEMENT
Job Enlargement means where two or more simple tasks are
combined and allotted to an employee
Eg: As in the case of vehicle driver, apart from driving he can undertake
the job of maintenance of the vehicle.
Increases job range, but not depth
Advantage :
more variety in a job
acquiring additional proficiency.
Dissatisfaction of employees can not be avoided after a long period due
to boredom.
109. JOB ENRICHMENT
The concept of job enrichment was
developed by Fredrik Herzberg in the
1950s.
Job enrichment involves providing an
employee with more responsibility for a
job and challenges the individual‟s skills
at work.
Enrichment involves increasing the
decision-making authority and
encouraging the employee with their
tasks.
110.
111. FEATURES OF JOB ENRICHMENT
The characteristics or features of job enrichment
are:-
Nature of Job : Job enrichment is a vertical
expansion of the job.
Objective : The objective of Job enrichment isto
make the job more lively and challenging.
Positive Results : Job enrichment gives positive
results if the workers are highly skilled.
Direction and Control : Job enrichment
encourages self-discipline.
112. ADVANTAGES
The importance or merits or advantages of job enrichmentare:-
Job enrichment is useful to both the workers and theorganization.
The worker gets achievement, recognition and self-actualization.
The worker gets a sense of belonging to the organization.
The worker finds the job meaningful.
Job enrichment reduces absenteeism, labour-turnover and grievances.
It motivates the workers to give best performance.
113. LIMITATIONS
The shortcomings or demerits or limitations of job enrichmentare:-
In many cases, job enrichment does not give the expected results.
It makes many changes in the job. So many workers oppose it.
It has limited use for highly skilled managers and professionals.
The consent of workers is not taken before implementing job enrichment.
Managers force the workers to accept job enrichment, which is notgood.
114. JOB ENRICHMENT OPTIONS
• Give people the opportunity to use a variety of
skills, and perform different kinds of work
Rotate Jobs
• Combine work activities to provide a more
challenging and complex work assignment.
Combine Tasks
• Break your typical functional lines and form
project-focused units.
Identify Project-
Focused Work Units
• This is job enrichment at the group level.
CreateAutonomous
Work Teams
• Allow team members to participate in decision
making and get involved in strategic planning.
Implement Participative
Management
115. Job Enrichment
Job Enrichment Job Enrichment + Job
Enlargement
Routine Job Job Enlargement
No. of Task
Focus of
Depth
116. JOB ROTATION
Job rotation refers to a
technique where the
employee is periodically
rotated from one job to
another within the work
design.
It involves moving
employees among different
jobs over a period of time
117. 1) Meaningfulness of work:
Skill variety:
Using an appropriate variety of your skills and talents:
Task Identity:
Being able to identify with the work at hand as more whole and
complete,.
Task Significance:
Being able to identify the task as contributing to something
wider, to society or a group over and beyond the self.
Characteristic of Job Rotation
118. 1.Variety of skills:
o improve and increase the skills of the employee due to
organization as well as the individual benefit.
2.Improves earning capacity:
o Due to job enlargement the person learns many new activities.
o such people apply for jobs to other companies and can bargain
for more salary.
3.Wide range of activities:
o Since a single employee handles multiple activities the
company can try and reduce the number of employee‟s.
Advantages of Job Rotation
119. 1. Frequent interruption:
o A person who is doing a particular job and get it comfortable
suddenly finds himself shifted to another job or department
this interrupts the work in both the departments
2. Reduces uniformity in quality:
o when a new worker I shifted or rotated in the department, he
takes time to learn the new job, makes mistakes in the process
and affects the quality of the job.
Disadvantages of Job Rotation
120. Recruitment
Process of locating,
identifying, and attracting
capable candidates
Can be for current or future
needs
Critical activity for some
corporations.
What sources do we use for
recruitment
121. Selection is the process of differentiating between applicants
in order to identify and hire those with a greater likelihood
of success in a job.
selection
123. Difference : Recruitment &
selection
RECRUITMENT SELECTION
To attract maximum number To choose best out of the
of candidates. available candidates.
It creates application pool It is a rejection process
as large as possible. where few are selected.
Techniques are not very Highly specialized techniques
intensive. are required.
Outcome is application Outcome is the candidate who
pool. is offered job.
124. Recruitment & selection process
RECRUITMENT SELECTION
Advertisement Screening of
applications
Employment agencies Selection tests
On campus recruitment Interview
Deputation Checking of
references
Employee recommendations Physical
examination
Labor unions Approval by
authority
Gate hiring Placement
125. Training & development
TRAINING :
“Training is a short term process utilizing a systematic
and organized procedure by which non managerial personnel
learn technical knowledge and skills for a definite purpose.
DEVELOPMENT:
“Development is a long term educational process utilizing a
systematic and organized procedure by which managerial
personnel learn conceptual and theoretical knowledge for
general purpose”.
126. Role of training & development
INCREASE IN EFFICIENCY
INCREASE IN MORALE OF EMPLOYEES
BETTER HUMAN RELATIONS
REDUCED SUPERVISION
INCREASED ORGANIZATIONAL VIABILITY &
FLEXIBILITY
127. Performance appraisal
Major key to managing itself
Basis of determining who is promotable to higher
position
Determines strengths and weaknesses of a manager
Measures performance in accomplishing goals and
plans
Integral part of organization
Recognize legitimate desire of employees for
progress
Essential for effective management
