MANAGEMENT IN ORGANISATION.pptx

Definitions of management
• Acc to Henri Fayol “Management is to forecast
and to plan, to organize, to command, to co-
ordinate and to control”.
• Acc to Harold Koontz “Management is the art of
getting things done through and within people in
formally organized groups”.
• To manage the available resources in efficient
manner to achieve the organizational goals.

5 M’s of Management Resources
5 M’s of
Management
Resources
Man
Money
Machinery
Material
Marketing

3 Levels of management
Top level
(BOD, CEO, GM)
Middle Level
(Departmental Heads)
Lower level
(Supervisors, unskilled lbrs, workers, first line
managers, operators etc. )

4 Functional Areas of Management
HRM
Human Resource
Management
FM
Financial
Management
PM
Production
Management
MM
Marketing
Management
Functional
Areas of
Management

Functions of Management
Planning
Organizing
Staffing
Directing
Controlling

Nature of Management
• Goal Oriented
• Integrates all resources of management
• Continuous activity (never ending)
• Universal in nature
• Group activity
• Intangible force
• Dynamic (flexible)
• Multi dimensional (every level of mgt.)

Functions and skills of manager
• Functions of a manager
There are basically five management concepts
that allow any organization’s manager to
handle the tactfully, planned and set of
decisions. The five basic functions of the
manager are just to have a controlled plan over
the preventive measure.

Functions of a manager
Planning
Organizing
Staffing
Directing
Controlling

Skills of manager
• In addition to performing numerous functions the
manager also need number of specific skills if
he/she wants to be succeeds.
• The most fundamental management skills are
technical skills. Some other skills are:
i. Interpersonal,
ii. Conceptual,
iii. Communication,
iv. Decision making and
v. Time management skills.

14 Principles of Management
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unit of Command
5. Unity of Direction
6. Subordination of Individual Interest to General Interest
7. Remuneration of Personnel
8. Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de corps

1. Division of Work
• This is the principle of specialization.
• The most people specialize the more
effectively they can perform their work.
• Specialization more efficiency

2. Authority and Responsibility
• Managers must give orders so that they can get
the things done.
• Authority as a combination of official
authority deriving from a manager’s official
position and personal authority, which is
compounded of intelligence, experience, moral
worth, past services etc.

3. Discipline
• Members of an organization need to respect to
the rules and agreements that govern the
organization reward superior performance and
penalties for infractions.

4. Unity of Command
 Those operations within the organization that
have the same objective should be directed by
only one manager using one plan.
 This is the principle, which states that on
employee should receive orders from one
superior only.
 Flow of orders from top to bottom.

5. Unity of Direction
• According to Fayol, the unity of direction
principle implies that each group of activities
having the some objectives must have one
head and one plan.
• As distinguished from the principle of unity of
command, Fayol perceives unity of direction
as related to the functioning of personnel.

6. Subordination of Individual
Interest to General Interest
• In any group, the interest of the group should
replace that of the individual.
• When the interests differ, it is the function of
the management to reconcile them.

7. Remuneration of Personnel
• Remuneration and methods of payment
should be fair and also should be able to
afford the maximum satisfaction to employee
and employer.

8. Centralization
• Decreasing the role of a subordinate in
decision making is centralization,
• Increasing their role in decision making is
decentralization.
• Managers should retain final responsibility,
but at the same time given their subordinates
enough authority to do their jobs properly.

9. Scalar Chain
• The scalar chain as a line of authority, a chain
of superiors from the highest to the lowest
ranks.
• lines of organization chart runs in order of rank
from top management to the lowest level of the
enterprise.

10. Order
• It refers to the arrangement of things and
persons in an organization.
• Materials and people should be there in the
right place at the right time. People, in
particular, should be in the jobs or positions
they are most suited to.

11. Equity
• Fayol perceives this principle as one of
eliciting loyalty and devotion from personnel
with a combination of kindliness and justice in
managers while dealing with subordinates.
• Managers should be most friendly and fair to
their subordinates.

12. Stability of Tenure of Personnel
• Finding that instability is both the cause and
effect of bad management, Fayol points out the
dangers and costs of unnecessary turnover.
• A high employee turn over rate undermines the
efficient functioning of the organization.

13. Initiative
• Subordinates should be given the freedom to
conceive and carry out their plans.
• Initiative is conceived as the process of
thinking out and executing a plan.

14. Esprit de corps
• This principle implies that union is strength
and an extension of the principle of unity of
command. Fayol here emphasizes on the need
for teamwork and the importance of
communication in obtaining it.
• Promoting team spirit will give the
organization a sense of unity.

Objectives of Management
1. Getting Maximum Results with Minimum Efforts
2. Increasing the Efficiency of factors of Production
3. Maximum Prosperity for Employer & Employees
4. Human betterment & Social Justice
5. It helps in Achieving Group Goals
6. Optimum Utilization of Resources
7. Reduces Costs
8. Establishes Sound Organization

SWOT ANALYSIS
• A study undertaken by an organization to
identify its internal strengths and weaknesses,
as well as its external opportunities and threats.
• SWOT analysis is a technique for assessing the
performance, competition, risk, and potential
of a business, as well as part of a business.

• SWOT analysis is a framework used to
evaluate a company’s competitive position
and to develop strategic planning.
• It assesses internal and external factors, as well
as current and future potential.

• SWOT analysis is a strategic planning
technique that provides assessment tools.
• Identifying core strengths, weaknesses,
opportunities, and threats lead to fact-based
analysis, fresh perspectives and new ideas.

Meaning
• Planning is the fundamental management function, which
involves deciding in advance,
 what is to be done,
 when is it to be done,
 how it is to be done and
 who is going to do it.
• Planning is nothing but thinking before the action takes
place.
• It involves logical thinking and rational decision making.

1. Managerial function: Planning is a first and
foremost managerial function provides the base
for other functions of the management, i.e.
organizing, staffing, directing and controlling, as
they are performed within the periphery of the
plans made.
2. Goal oriented: It focuses on defining the goals of
the organization, identifying alternative courses
of action and deciding the appropriate action plan,
which is to be undertaken for reaching the goals.

3. Pervasive: It is pervasive in the sense that it is
present in all the segments and is required at all the
levels of the organization. Although the scope of
planning varies at different levels and departments.
4. Continuous Process: Plans are made for a specific
term, say for a month, quarter, year and so on.
Once that period is over, new plans are drawn,
considering the organization's present and future
requirements and conditions. Therefore, it is an
ongoing process, as the plans are framed, executed
and followed by another plan.

5. Intellectual Process: It is a mental exercise at
it involves the application of mind, to think,
forecast, imagine intelligently and innovate
etc.
6. Futuristic: In the process of planning we take
a sneak peek of the future. It encompasses
looking into the future, to analyze and predict
it so that the organization can face future
challenges effectively.

7. Decision making: Decisions are made
regarding the choice of alternative courses of
action that can be undertaken to reach the goal.
The alternative chosen should be best among
all, with the least number of the negative and
highest number of positive outcomes.

Importance of Planning
• It helps managers to improve future performance, by establishing objectives
and selecting a course of action, for the benefit of the organization.
• It minimizes risk and uncertainty, by looking ahead into the future.
• It facilitates the coordination of activities. Thus, reduces overlapping among
activities and eliminates unproductive work.
• It states in advance, what should be done in future, so it provides direction for
action.
• It uncovers and identifies future opportunities and threats.
• It sets out standards for controlling. It compares actual performance with the
standard performance and efforts are made to correct the same.

Process of Planning
• By planning process, an organization not only
gets the insights of the future, but it also helps
the organization to shape its future. Effective
planning involves simplicity of the plan, i.e.
the plan should be clearly stated and easy to
understand because if the plan is too much
complicated it will create chaos among the
members of the organization. Further, the plan
should fulfil all the requirements of the
organization.

1. Analysing the opportunities:
An important part of the planning process is to be
aware of the business opportunities in the firm’s
external environment as well as within the firm.
Once such opportunities get recognized the
managers can recognize the actions that need to be
taken to realize them.
A realistic look must be taken at the prospect of
these new opportunities and SWOT analysis should
be done.

2. Setting Objectives
• This is the second and perhaps the most important step of
the planning process. Here we establish the objectives for
the whole organization and also individual departments.
• Organizational objectives provide a general direction,
objectives of departments will be more planned and
detailed.
• Objectives can be long term and short term as well. They
indicate the end result the company wishes to achieve. So
objectives will percolate down from the managers and will
also guide and push the employees in the correct direction.

3. Developing Premises
• Planning is always done keeping the future in mind, however,
the future is always uncertain. So in the function of
management certain assumptions will have to be made. These
assumptions are the premises.
• Such assumptions are made in the form of forecasts, existing
plans, past policies, etc.
• These planning premises are also of two types – internal and
external. External assumptions deal with factors such as
political environment, social environment, the advancement of
technology, competition, government policies, etc. Internal
assumptions deal with policies, availability of resources,
quality of management, etc.
• These assumptions being made should be uniform across the
organization. All managers should be aware of these premises
and should agree with them.

4. Identifying Alternatives
• The fourth step of the planning process is to identify the
alternatives available to the managers. There is no one way to
achieve the objectives of the firm, there is a multitude of
choices. All of these alternative courses should be identified.
There must be options available to the manager.
• Maybe he chooses an innovative alternative hoping for more
efficient results. If he does not want to experiment he will stick
to the more routine course of action. The problem with this
step is not finding the alternatives but narrowing them down to
a reasonable amount of choices so all of them can be
thoroughly evaluated.

5. Examining Alternate Course of Action
• The next step of the planning process is to evaluate and
closely examine each of the alternative plans.
• Every option will go through an examination where all there
pros and cons will be weighed. The alternative plans need to
be evaluated in light of the organizational objectives.
• For example, if it is a financial plan. Then it that case its
risk-return evaluation will be done. Detailed calculation and
analysis are done to ensure that the plan is capable of
achieving the objectives in the best and most efficient
manner possible.

6. Selecting the Alternative
• Finally, we reach the decision making stage of the planning
process. Now the best and most feasible plan will be chosen
to be implemented. The ideal plan is the most profitable one
with the least amount of negative consequences and is also
adaptable to dynamic situations.
• The choice is obviously based on scientific analysis and
mathematical equations. But a managers intuition and
experience should also play a big part in this decision.
Sometimes a few different aspects of different plans are
combined to come up with the one ideal plan.

7. Formulating Supporting Plan
• Once you have chosen the plan to be implemented, managers
will have to come up with one or more supporting plans.
• These secondary plans help with the implementation of the
main plan.
• For example plans to hire more people, train personnel, expand
the office etc are supporting plans for the main plan of
launching a new product. So all these secondary plans are in
fact part of the main plan.

8. Implementation of the Plan
• And finally, come to the last step of the planning process,
implementation of the plan.
• This is when all the other functions of management come into
play and the plan is put into action to achieve the objectives of
the organization.
• The tools required for such implementation involve the types
of plans- procedures, policies, budgets, rules, standards etc.

Meaning of Performance Appraisal
Performance appraisal is a systematic process in which employee’s job
performance is evaluated in relation to the projects on which employee has
worked and his contribution to the organization.
It is the systematic evaluation of the performance of employees and to understand
the abilities of a person for further growth and development.
Promotion, transfer, salary increase etc. are some of the matters that are
dependent upon the evaluation of the performance of an employee.
It is generally done in systematic ways which are as follows:
• The supervisors measure the pay of employees and compare it with targets and
plans.
• The supervisor analyses the factors behind work performances of employees.
• The employers are in position to guide the employees for a better
performance.

Features of Performance Appraisal
1. Systematic process of evaluation of an employee.
2. Analysis of the strengths and weaknesses of an
employee.
3. To find out how well an employee is performing
the job.
4. Appraisal is done periodically.
5. It is based on a definite plan.
6. Performance appraisal is different from job
evaluation.
7. Performance appraisal is a continuous process that
is accepted by every organization.

Objectives of Performance Appraisal
1. To maintain records in order to determine compensation
packages, wage structure, salaries raises, etc.
2. To identify the strengths and weaknesses of employees to
place right men on right job.
3. To maintain and assess the potential present in a person for
further growth and development.
4. To provide a feedback to employees regarding their
performance and related status.
5. It serves as a basis for influencing working habits of the
employees.
6. To review and retain the promotional and other training
programmes.

Advantages of Performance Appraisal
• Promotion: Performance Appraisal helps the supervisors to chalk out the
promotion programmes for efficient employees. In this regards, inefficient
workers can be dismissed or demoted in case.
• Compensation: Performance Appraisal helps in chalking out compensation
packages for employees. Merit rating is possible through performance appraisal.
Performance Appraisal tries to give worth to a performance. Compensation
packages which includes bonus, high salary rates, extra benefits, allowances and
pre-requisites are dependent on performance appraisal. The criteria should be
merit rather than seniority.
• Employees Development: The systematic procedure of performance appraisal
helps the supervisors to frame training policies and programmes. It helps to
analyze strengths and weaknesses of employees so that new jobs can be designed
for efficient employees. It also helps in framing future development programmes.
• Selection Validation: Performance Appraisal helps the supervisors to understand
the validity and importance of the selection procedure. The supervisors come to
know the validity and thereby the strengths and weaknesses of selection
procedure. Future changes in selection methods can be made in this regard.

• Communication: For an organization, effective communication between
employees and employers is very important.
• Through performance appraisal, communication can be sought for in the
following ways:
• Through performance appraisal, the employers can understand and
accept skills of subordinates.
• The subordinates can also understand and create a trust and confidence
in superiors.
• It also helps in maintaining cordial and congenial labor management
relationship.
• It develops the spirit of work and boosts the morale of employees.
• All the above factors ensure effective communication.
• Motivation: Performance appraisal serves as a motivation tool. Through
evaluating performance of employees, a person’s efficiency can be
determined if the targets are achieved. This very well motivates a person
for better job and helps him to improve his performance in the future.

Disadvantages of Performance
Appraisal
• If the factors being used in the performance appraisal are
incorrect or not relevant, the appraisal will fail to provide any
useful or effective data.
• Sometimes, equal weightage is not given to important factors
when performing an appraisal.
• Some objective factors are very vague and difficult to measure
like attitude and initiative.
• There is no scientific method to measure the factors like
loyalty, honesty, initiative etc.
• Managers are sometimes not qualified enough to correctly
assess the employees and their abilities. Thus, these mistakes
can be very detrimental to the growth of the company.

Performance Appraisal Process
• Setting performance standards
• Set up measurable goals
• Measure actual performance
• Compare with preset standards and goals
• Discuss with the employee – met the expectations,
below the expectations,
exceeded the expectations
• Take corrective actions
• Set standards for next cycle

Methods of Performance Appraisal
• There are various methods that are used by
managers and employers to evaluate the
performance of the employees, but they can be put
into two categories:
1. Traditional Methods
2. Modern Methods

Traditional Methods of Performance Appraisal
1. Confidential Report
• This is a traditional method of appraisal.
• Generally, government organizations use it for
appraisal.
• Employee’s immediate superior prepares this report.
• It covers the strengths and weaknesses, main
achievements and failure, etc. of the employee.
• Hence, it becomes a descriptive report for the
promotions and transfers of the employees.
• One of the disadvantages of this method is its
dependability on impressions rather than data. This
method focuses on evaluation rather than developing
employees.

2. Free Form or Essay Method
Under this method, the evaluator writes a short
essay on the employee’s performance on the basis of
overall impressions.
It provides a good amount of information about the
employee.
This method suffers some drawbacks like biases due
to the high level of subjectivity, the dependence of
evaluation on the writing ability of the evaluator,
etc.

3. Straight Ranking Method
• In this technique, the evaluator assigns relative
ranks to all the employees in the same work unit
doing the same job.
• The evaluator provides a rank to the employees
from good to poor on the basis of their
performance.
• For Example, if five persons A, B, C, D, and E get
a rank on the basis of their performance, 1, 2, 3, 4,
and 5

4. Paired Comparison Method
• This traditional method of appraisal is a
modification to the straight ranking method.
• Under this method, unlike the straight ranking
method, all the employees are put to relative
comparisons.
• After the comparison, the employee gets a rank on
the basis of his status of being better than other
employees.

5. Forced Distribution System
• In this technique, the rater distributes his rating in
the form of a normal frequency distribution.
• Its basic purpose is to eliminate the rater’s bias of
central tendency.
• This method is extremely easy to apply and
understand.
• One of the disadvantages of this method is that the
rater cannot explain why an employee is there in a
particular category.

6. Graphic Rating Scales
• It is a numerical scale which
states different degrees of a particular trait.
• Under this method, the company or organization
provides a form to each evaluator.
• Each form contains many characteristics relating
to the personality and performance of the
employee.
• Hence, the rater records his judgment on the
employee’s trait on the scale.

7. Checklist Method
• This is one of the traditional methods of appraisal.
• A checklist is nothing but a list of statements that
describe the characteristics and performance of
employees on the job.
• The rater ticks/checks to indicate if the employee
possesses any specific trait/quality or not.
• Hence, the number of ticks describe the rating or
result of the employee.

Modern methods of Performance
Appraisal
1. Management by Objectives (MBO)
2. Behaviorally Anchored Rating Scale (BARS)
3. 360 Degree Appraisal method
4. Assessment Centre method
5. Psychological Appraisal method

1. Management by Objectives
• Management by objectives (MBO) is the appraisal method where managers
and employees together identify, plan, organize, and communicate objectives
to focus on during a specific appraisal period.
• After setting clear goals, managers and subordinates periodically discuss the
progress made to control and debate on the feasibility of achieving those set
objectives.
• The main feature of this method was the mutual establishment of goals or
targets by the managers and employees.
• It ensured that employees had an actual realistic target they could actually
achieve.
• Employees feel highly satisfied and the coordination between the workers and
managers improves. This approach is much better than the traditional approach
as it gives concrete verifiable results.
• Success is rewarded with promotion and a salary hike whereas failure is dealt
with transfer or further training. This process usually lays more stress on
tangible goals and intangible aspects like interpersonal skills, commitment, etc.

2. Behaviourally Anchored Rating Scales
• Behaviourally anchored rating scale(BARS) is a method
used to identify the most important areas of an employees
performance and how much he needs to improve in what
aspect of his achieve his objectives or goals.
• BARS compares employee performance with specific
behavioral examples that are anchored to numerical ratings.
• There is a predetermined behaviour that has shown the most
effective and efficient work performance. Thus, the
employees’ behaviour is measured by comparing them to
the predetermined behaviour and how much they deviate
from this behaviour.

3. 360-Degree Feedback
• 360-degree feedback is a multidimensional
performance appraisal method that evaluates
an employee using feedback collected from the
employee’s circle of influence namely
managers, peers, customers, and direct reports.
• This method will not only eliminate bias in
performance reviews but also offer a clear
understanding of an individual’s competence.

4. Assessment Centre Method
• The assessment centre method enables
employees to get a clear picture of how others
observe them and the impact it has on their
performance.
• The main advantage of this method is that it
will not only assess the existing performance
of an individual but also predict future job
performance.

5. Psychological Appraisals
• Psychological appraisals come in handy to
determine the hidden potential of employees.
• This method focuses on analyzing an employee’s
future performance rather than their past work.
• These appraisals are used to analyze seven major
components of an employee’s performance such
as interpersonal skills, cognitive abilities,
intellectual traits, leadership skills, personality
traits, emotional quotient, and other related skills.

6. Human-Resource (Cost) Accounting Method
• Human resource (cost) accounting method analyses an
employee’s performance through the monetary benefits
he/she yields to the company.
• It is obtained by comparing the cost of retaining an
employee (cost to company) and the monetary benefits
(contributions) an organization has ascertained from that
specific employee.
• When an employee’s performance is evaluated based on
cost accounting methods, factors like unit-wise average
service value, quality, overhead cost, interpersonal
relationships, and more are taken into account.

• Performance Appraisal is regarded as a most significant tool
for the success of any concern. The main objective of
performance appraisal is to improve the efficiency of a
concern by mobilizing the best possible efforts from
individuals employed in it.
• It is a method of evaluating the actions and performance of
employees at workplace. This includes appraisal of both
qualitative and quantitative aspects of job performance.

Job Design
• Job design follows job analysis i.e. it is the next step after job analysis.
• It aims at outlining and organizing tasks, duties and responsibilities
into a single unit of work for the achievement of certain objectives.
• It also outlines the methods and relationships that are essential for the
success of a certain job.
• In simpler terms it refers to the what, how much, how many and the
order of the tasks for a jobs.
• It outlines the job responsibilities very clearly and also helps in
attracting the right candidates to the right job.
• Further it also makes the job look interesting and specialized.

There are various steps involved in job design:
• What tasks are required to be done or what tasks
is part of the job?
• How are the tasks performed?
• What amount are tasks are required to be done?
• What is the sequence of performing these tasks?
A well defined job encourages feeling of
achievement among the employees and a sense of
high self esteem.

Benefits of Job Design
• Employee Input: A good job design enables a good job feedback. Employees have
the option to vary tasks as per their personal and social needs, habits and
circumstances in the workplace.
• Employee Training: Training is an integral part of job design. Contrary to the
philosophy of “leave them alone’ job design lays due emphasis on training people so
that are well aware of what their job demands and how it is to be done.
• Work / Rest Schedules: Job design offers good work and rest schedule by clearly
defining the number of hours an individual has to spend in his/her job.
• Adjustments: A good job designs allows for adjustments for physically demanding
jobs by minimizing the energy spent doing the job and by aligning the manpower
requirements for the same.
Job design is a continuous and ever evolving process that is aimed at helping employees
make adjustments with the changes in the workplace.
The end goal is reducing dissatisfaction, enhancing motivation and employee
engagement at the workplace.

Factors affecting Job Design
• A well defined job will make the job interesting and
satisfying for the employee.
• The result is increased performance and productivity.
• If a job fails to appear compelling or interesting and leads to
employee dissatisfaction, it means the job has to be
redesigned based upon the feedback from the employees.
• Broadly speaking the various factors that affect a job design
can classified under three heads. They are:
1. Organizational Factors
2. Environmental Factors
3. Behavioural Factors

1. Organizational Factors
Organizational factors that affect job design can be work nature or characteristics, work flow, and
organizational practices and ergonomics.
• Work Nature: There are various elements of a job and job design is required to classify various tasks into
a job or a coherent set of jobs. The various tasks may be planning, executing, monitoring, controlling etc
and all these are to be taken into consideration while designing a job.
• Ergonomics: Ergonomics aims at designing jobs in such a way that the physical abilities and individual
traits of employees are taken into consideration so as to ensure efficiency and productivity.
• Workflow: Product and service type often determines the sequence of work flow. A balance is required
between various product or service processes and a job design ensures this.
• Culture: Organizational culture determines the way tasks are carried out at the work places. Practices are
methods or standards laid out for carrying out a certain task. These practices often affect the job design
especially when the practices are not aligned to the interests of the unions.

2. Environmental Factors
Environmental factors affect the job design to a considerable extent. These factors include both the internal as
well as external factors. They include factors like employee skills and abilities, their availability, and their
socio economic and cultural prospects.
• Employee availability and abilities: Employee skills, abilities and time of availability play a crucial role
while designing of the jobs. The above mentioned factors of employees who will actually perform the job
are taken into consideration. Designing a job that is more demanding and above their skill set will lead to
decreased productivity and employee satisfaction.
• Socio economic and cultural expectations: Jobs are nowadays becoming more employee centered rather
than process centered. They are therefore designed keeping the employees into consideration. In addition
the literacy level among the employees is also on the rise. They now demand jobs that are to their liking
and competency and which they can perform the best.

3. Behavioural Factors
Behavioural factors or human factors are those that pertain to the human need and that need to be satisfied for
ensuring productivity at workplace. They include the elements like autonomy, diversity, feedback etc. A brief
explanation of some is given below:
• Autonomy: Employees should work in an open environment rather than one that contains fear. It
promotes creativity, independence and leads to increased efficiency.
• Feedback: Feedback should be an integral part of work. Each employee should receive proper feedback
about his work performance.
• Diversity: Repetitive jobs often make work monotonous which leads to boredom. A job should carry
sufficient diversity and variety so that it remains as interesting with every passing day. Job variety /
diversity should be given due importance while designing a job.
• Use of Skills and abilities: Jobs should be employee rather than process centered. Though due emphasis
needs to be given to the latter but jobs should be designed in a manner such that an employee is able to
make full use of his abilities and perform the job effectively.

Human Resource Planning
Human resource Planning
The actual human resource process begun with
the estimation of the number and the type of
the people needed during the period. After this
only people can be hired to fill the jobs. This is
called human resource planning. This is the
most crucial step in the overall human resource
management process.

Human resource planning is a process that
identifies current and future human
resources needs for an organization to achieve
its goals. Human resource planning should
serve as a link between human
resource management and the overall
strategic plan of an organization.

• In simple words human resource planning is the process
of forecasting an organization future demand of human
resource. From where it will be supplied. Right type of
people in the right number.
• After this human resource mgt. dept. can initiate the
process of recruitment and selection.
• Human resource planning is the sub-system in the total
organizational planning.
• Organizational planning include managerial activities
that sets the company objectives for the future and
determine the appropriate means’s for achieving those
objectives.

• Human resource planning facilitates the
realization of the company objectives by
providing the right type and the right number of
employees.
• Human resource planning is also compared to
material planning that estimate the type and
quality of materials and supplies need to facilitate
the manufacturing activities of the organization.
• Human resource planning variously called
manpower planning, personnel planning, and
employment planning.

Importance of HRP
• Determine the future staff needs
• Creating highly talented personnel
• Protection of weaker section
• Increase investment in human resource
• Foundation of personnel function
• International strategy

Recruitment
Meaning :
• Recruitment is the processes of finding the apt
candidates and inducing them to apply for the job in an
organization. The recruitment should be a sound one. If
it is not so, the morale of the staff will be very low and
the image of the company will be tarnished.
• The main purpose of recruitment is searching of
suitable candidates for filling the vacancies of the
organization. It is a process of bringing together
prospective employees and employer with a view to
stimulate the prospective employees to offer their
services in the working organization.

Definition of recruitment
• “Recruitment as process of searching for
prospective employees and stimulating them to
apply for jobs in the organization.” — Edwin B.
Flippo
• “Recruitment is the development and
maintenance of adequate manpower resources. It
involves the creation of a pool of available labour
force upon whom the organisation can draw when
it needs additional employees.” —Dale S. Beach

• Recruitment is a continuous process by which
an organization seeks to develop a pool of
qualified applicants for the future human
resource needs, even though specific vacancies
do not exist at present.

Objectives of recruitment
• To attract people with multi-dimensional skills and experiences
• To induct outsiders with a new perspective to lead the company
• To infuse fresh blood at all levels of the organisation
• To develop an organisational culture that attracts competent people to
the company
• To search people whose skills fit the company’s value
• To seek out non-conventional development grounds of talent
• To search talent globally and not just within the company
• To anticipate and find people for positions that does not exit yet.

Features of recruitment
• Recruitment is a searching and attraction function : It is
mainly concerned with searching and attracting the potential
candidates towards organization.
• Recruitment is not a selection: Recruitment involves
searching the potential candidates and attracting them
towards organization to apply for the job. But selection
involves choosing suitable candidate among those who have
applied for job.
• It is a process: Recruitment is a process of series of
activities like recruitment policy, sources of recruitment,
technique of tapping those sources and evaluation of those
sources etc. It is a linking activity – Recruitment brings
together those who have a job (employer) and those who
search a job (employees)

• It is a pervasive function: This function
needs to be performed by all organizations
which need human resources.
• It is one of the functions of personnel
management: It is an important function of
personnel management as it helps in acquiring
different number and types of persons for
continued functioning of an organization.

• Internal sources : Internal sources of recruitment refer
to seeking the employees from within the organization to
fill up the vacant position. Many companies consider
internal recruitment as a great option since it is cost-
effective, and they tend to hire employees who have a
better know how the organization and its policies.
• Promotion
• Transfer
• Employee recommendation
• Departmental exam
• Internal advertisement

• External source: External sources of
recruitment signify the hiring of those
employees who have never been associated
with the organization before. The organization
needs to include new and fresh talent to
become successful and to survive in the
competition. Large organizations mostly
depend on external sources of recruitment.
• Internet advertisement
• News paper advertisement

Stages in recruitment process
1. Vacant or New position occurs
2. Generate candidate pool via internal or external
recruitment methods
3. Evaluate Candidates via Selection process
4. Impress Candidates
5. Make Offer

Selection
Meaning
• Selection is the procedure of choosing persons who
have appropriate qualifications to occupy jobs in the
company. The primary function is to select the persons
who can favorably perform the job, from the pool of
competent applicants.
• Selection is the procedure of selecting from a number
of applicants, the most suitable candidate for the
relevant job. It is a process by which all applicants are
split into two categories, i.e., selected and rejected.
• Selection is the process of screening of job applicants
to ensure that the most appropriate candidates are hired

Objectives of selection
• To weed out ineligible employees from the list of
potential hires.
• To sort out candidates who have the likelihood of
success on the jobs.
• To staff the organization with qualified and high
caliber candidates.
• To reduce the burden of interviewing every single
candidate and reduce cost of recruitment.
• To evaluate the success of recruitment process.

Stages of selection process
1. Initial screening
2. Completed Application
3. Selection Tests
4. Employment Interview
5. Background Investigation
6. Medical Examination
7. Final Selection

Methods of selection
1. Testing
2. Gathering information
3. Interviewing

Training
Meaning
• Human Resources are the lifeblood of any organization.
• Only through well-trained personnel, can an organization achieve its
goals.
• Training usually has been introduced as a teaching specific skill and
a critical strategic tool.
• Training means to instruct and discipline in or for some particular
art, profession, occupation or practice, to make proficient by such
instruction and practice.
• For the endurance of the company, it is necessary that the individual
must flourish and develop through training.
• It is a significant sub-system of human resource management and is
a specific developmental function of the company.

Definitions of training
• According to Garry Dessler, “Training is the process of
teaching new employees the basic skills they need to
perform their jobs”.
• According to Jack Halloran, “Training is the process of
transmitting and receiving information related to
problem-solving”.
• Edwin B. Flippo Said, “Training is the act of increasing
the knowledge and skills of an employee for doing a
particular job”.
• According to Dale S. Beach, “Training is the organized
procedure by which people learn knowledge and
improve skill for a definite purpose.”

Development
• Development is a process by means of which an
individual attains overall improvement in ability
and competence, makes progress towards
maturity and actualization of personality.
• The basic difference between training and
development is that 'Training' focuses on
specific job knowledge and skill is to be applied
in the short run. On the contrary, 'Development'
focuses on broad knowledge and insights that
may be required for adaptation to environmental
demands in future.

Purpose of training and development
Purpose of
training and
development
Acquiring
Intellectual
Knowledge.
Acquiring
Manual Skills.
Acquiring
Problem Solving
Skills

Objectives of training
• Meeting manpower needs: When skills of a specific order are required, it
is often impracticable for a concern to recruit skilled personnel from the
open market.
• Improved performance: The elimination of incorrect working procedures
and poor work habits by skilled trainees ensure that only the best methods
are taught.
• Reduced wastage: Material and equipment costs can be often cut by the
implementation of an efficient training scheme.
• Fewer accidents: Accidents among untrained persons are three times
more than those among the trained staff.
• Reduced learning time: When skills and knowledge are systematically
taught, the trainees are brought to efficient performance more quickly than
if they had to proceed by trial and error.

Objectives of development
• Increased Productivity
• Quality Improvement
• Learning time Reduction
• Safety First
• Labour Turnover Reduction
• Keeping yourself Updated with Technology
• Effective Management

Methods of training
• 1. On- the-Job training : it is delivered to employees
while they perform their regular jobs. In this way, they
do not lose time while they are learning.
– On-the-job techniques include orientations, job instruction
training, apprenticeships, internships and assistantships, job
rotation and coaching.
• 2. Off-the-job techniques: it includes the lectures,
special study, films, television conferences or
discussions, Notes case studies, role playing,
simulation, programmed instruction and laboratory
training. Most of these techniques can be used by small
businesses although, some may be too costly.

Process of training
Identify the
needs
Design the
training
Implement
the
training
Evaluate
the
training

Difference between training and
development
Training
• Designed for non-managers
as well as managers
• Short run process
• Specific job related purpose
• Immediate improvement of
employees
• Learning new things and
refreshing old one
Development
• Involves only managerial
personnel
• Long term in nature
• Broader overview and
general knowledge
• Make employees enough
efficient to handle the
Critical situation in future
• Implementing the skills and
knowledge

Advantages of training and
development
• 1. Organisation
Gets more effective in decision-making and problem-solving
Improve the morale of the workforce.
Helps people identify the organizational goal.
Creates an appropriate climate for growth and communication.
Helps employees adjust to change.
• 2. Employees
Increases job satisfaction and recognition.
Helps to handle stress, tension, frustration and conflict.
Helps in eliminating fear of attempting new tasks.
Provides information for improving leadership, communication skills and attitudes.

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