2. Basic Management Functions
Planning Organizing Leading Controlling
Arranging
for human
and
Non-human
resources
Setting
goals
and
defining a
strategy
Directing
and
motivation
Monitoring
and
evaluation
3. What is Organization?
An organization is a collection of people who
work together to attain specified objectives
and organizational goals.
A formal structure in which people have
different roles, positions and responsibilities.
Organization may be formal or informal
4. Formal and Informal Organizations
Formal organization
When the two or more persons come together
to accomplish a common objective, and they
follow a formal relationship, rules, and policies
which are established for compliance, and
there exists a system of authority.
Informal organization
Usually, informal organizations are formed
under the formal organization as a system of
social relationship, which comes into existence
when people in an organization, meet, interact
and associate with each other.
5. What is Organizing?
Organizing is the process of arranging for
human and non-human resources
The process of developing an organization
structure is called organization design
It consists of grouping similar job activities
together, assigning job responsibilities and
establishing a chain of commands
6. Designing the Organization
Organizational Chart:
A chart that shows the structure of
the organization including the title
of each manager’s position and, by
means of connecting lines, who is
accountable to whom and who has
authority for each area.
Chain of Command:
The path that a directive or answer
or request should take through each
level of an organization; also called
a scalar chain or the line of
authority.
7. Span (area) of control
Chief
Executive
Tall
hierarchy
The number of people who report to one manager
or supervisor
1. Wide Span of Control:
when many
employees are
reporting to the
same manager or
supervisor (Less no.
of managers)
The organization is
called a Flat
organization
8. Span (area) of control
Chief
Executive
Flat
hierarchy
2. Narrow Span of Control:
when a small number of employees is
reporting to the same manager or supervisor
(Large no. of managers)
The organization is called a Tall organization
9. Authority, Responsibility and Accountability
Authority: The right to take action, to make
decisions, and to direct the work of
others.
Responsibility: is an employee’s duty to perform
the assigned task.
Accountability: is the manager’s expectation
that the employee will accept
credit or blame for his work.
10. Organizing: Concepts and Definitions
Delegation: is the process of giving authority and
responsibility to a person to make decisions and
act in certain situations.
Line Authority: authority following the chain of
command established by the formal hierarchy
Staff Authority: the authority of supportive
departments like human resource, marketing
research, customers services etc.
11. Designing the Organization:
Departmentalization Methods:
1. Functional Departmentalization:
This is the most formal division of
business activities, based on the different
functions it performs
2. Product Departmentalization:
When a firm produces many products,
then internal organization can be divided
based on different products
3. Process Departmentalization:
The activities of a department may be
divided into sub activities.
4. Customer Departmentalization:
Activities are grouped according to the
types of customer
12. Staffing, Basic functions of HRM
HRM
Goals
Staffing
Training
And
Development
Motivation
Maintenance
Activities in HRM related with seeking,
attracting and hiring qualified people
It is made of several factors like:
Strategic HR planning
Recruiting
selection
13. 1. Strategic HR planning (1)
Goals & Objectives
Mission
Strategy
Structure/Design
People
•Determining the business type
•Setting goals and objectives
•How goals will be achieved
•What jobs to be done and by whom
•Matching knowledge, skills, and
abilities to required job
Strategic HR planning is forecasting the future work force
needs of an organization
It is a process by which an organization ensures that it has the
right number and kind of people, capable of effectively and
efficiently completing the organizational tasks
14. 1. Strategic HR planning (2)
The number of managers required in any
organization depends upon its:
Size : how big or small the organization is
Nature: simple or complex
Plans for expansion
Turnover rate of managerial employees
Number of managers retiring in near future
Technological changes in the organization
requiring new hiring
15. Job Description Job Specification Job Evaluation
Job Analysis
Activities to be done Importance of the job
Qualification required
Job Analysis
Job analysis is a systematic way of finding activities within a job
Similar activities are placed in one group
Also, the necessary knowledge and skills are identified required
for the job
The purpose of job analysis is to find and make job description,
job specifications and job evaluation
16. Job Description
Also called as the Term of Reference
A job description is a written statement of what the job
holder is expected to do, how it is done, under what
condition and why
It includes the job title, duties to be performed, and
the authority and responsibilities of the jobholder
Example
Job title: Benefits Manager
Reports to: Director, Human Resource
Functions: Manages employee benefits program
Duties and Responsibilities: Details of the tasks
17. Job Specification
Job specification refers to the minimum qualification a
candidate must possess to perform the job successfully
May include information on education, skills, experience,
abilities, and some personal characteristics like weight
and height (as in Army)
It is also in written form
The purpose of this is to encourage potential job
candidates to apply
Also, to discourage non-qualifying candidates
18. Job Evaluation
Job evaluation specifies the relative value of
each job in the organization
Provides basis for comparison for having an
equal compensation program i.e. jobs requiring
similar level of skills, knowledge, and abilities
should be equally paid
The information is for the use of HR
Department only
19. 2. Recruiting
It is the process of seeking sources for job candidates
Its objectives are to inform the job candidates about the vacancy and to
receive as many applications as possible
Recruitment sources are:
Internal Search:
The Internal data base of the company
Employees referral and recommendations
External Sources:
Advertisement in the newspaper, company website and internet
Colleges and Universities:
Professional Organizations in HR services
Previous applications, lay-offs, part time workers
20. 3. Selection
Once we have short listed the candidates, the selection process starts, that
consists of:
1. The initial screening interview: to eliminate the unmatched candidates
2. Completing the application form: company specific application form to get
specific information
3. Employment tests: assignments to test the skills and abilities of the potential
candidates
4. Comprehensive interview: to get in-depth information about the candidate
5. Background investigation: the process of verifying information candidate has
provided
6. Conditional job offer: a job offer with some conditions
7. Medical or physical examination: a check-up to determine an applicant’s
physical fitness for job performance
8. Permanent job offer: a formal letter offering job to the finalized candidate
