Planning and Decision-Making PDF

9/22/2024 PLANNING AND DECISION-MAKING Essentials of Planning and Decision-Making Planning…  The most fundamental and basic of all management function  Involves a rational approach in selecti...

9/22/2024 PLANNING AND DECISION-MAKING Essentials of Planning and Decision-Making Planning…  The most fundamental and basic of all management function  Involves a rational approach in selecting and achieving goals and objectives and deciding on the actions to achieve them.  Strongly implies managerial innovation.  Bridges the gap from where we are and to where we want to go. 1  9/22/2024 Close Relationship of Planning and Controlling  Planning and Controlling are inseparable.  They are the Siamese Twins of Management. Close Relationship of Planning and Controlling  Any attempt to control without plans is meaningless, since there is no way for people to tell whether they are going where they want to go (the result of the task of control) unless they first know where they want to go (part of the task of planning).  Plans thus furnish the standards of control. 2  9/22/2024 Planning at various management levels TOP  STRATEGIC PLAN Middle  INTERMEDIATE PLAN Lower  OPERATIONAL PLAN 3  9/22/2024 STRATEGIC PLANNING  PROCESS OF DETERMINING THE MAJOR GOALS OF AN ORGANIZATION AND THE POLICIES AND STRATEGIES FOR OBTAINING AND USING RESOURCES TO ACHIEVE THESE GOALS. INTERMEDIATE PLANNING  THE PROCESS OF DETERMINING THE CONTRIBUTIONS THAT SUBUNITS CAN MAKE WITH ALLOCATED RESOURCES. 4  9/22/2024 OPERATIONAL PLANNING THE PROCESS OF DETERMINING HOW SPECIFIC TASKS CAN BEST BE ACCOMPLISHED ON TIME WITH AVAILABLE RESOURCES. TYPES OF PLANS 5  9/22/2024 Types of Plans 1. Visions  A picture of the state of the desired outcome in the future usually in the long term from current time.  It answers the question “where do we want to go?”  It is a plan, a goal, an objective. It should be specific, measurable, attainable, realistic and time-bound. Developing a Vision  Begins with thinking strategically About the firm’s future makeup; Forming vision of firm’s future in 5-10 years Task is to: - Inject sense of purpose into firm’s activities; - Provide LONG-TERM DIRECTION; - Give the firm STRONG IDENTITY; - Decide “WHO we are, WHAT we do, & WHERE we are - headed” 6  9/22/2024 VISION STATEMENTS FAMOUS COMPANIES COCA-COLA – vision statement  “To bring to the world a portfolio of beverage brands that anticipate and satisfy peoples; desires and needs.” 7  9/22/2024 NIKE – vision statement  "To bring inspiration and innovation to every athlete in the world" AMAZON.COM – vision statement  “To be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” 8  9/22/2024 FORD – vision statement  “To become the world's leading Consumer Company for automotive products and services.” UNILEVER – vision statement  To touch the lives of over 2 billion people every day through our products– whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack. 9  9/22/2024 SONY – vision statement  To continue to be a leading manufacturer of audio, video, communications, and information technology products for the consumer and professional markets. MEDICAL CITY – vision statement  “To always be a leader in shaping how Filipinos think, feel, and behave about health and how health services are accessed by and delivered to them, and to use such leadership to serve equity in health, life and development.” 10  9/22/2024 APPLE – vision statement  Committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings. GMA NETWORK – vision statement  To be the most respected, undisputed leader in the Philippine broadcast industry and the recognized media innovator and pacesetter in Asia.  To be the Filipinos’ favorite network. To be the advertisers’ preferred partner. To be a key partner in promoting the best in the Filipino 11  9/22/2024 MC DONALD’S – vision statement  “To be the world's best quick service restaurant. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile." JOLLIBEE – vision statement  To be the best tasting QSR.. To be the most endearing brand... that has ever been... To lead in product taste at all times... To provide FSC excellence in every encounter... Happiness in every moment... By year 2020, with over 4,000 stores worldwide, we are truly a GLOBAL BRAND. (and the Filipino will be admired worldwide) 12  9/22/2024 STARBUCKS – vision statement  "To establish as the premier purveyor of the finest coffee...” DISNEYLAND – vision statement  To be the happiest place on earth. 13  9/22/2024 MAPUA – vision statement  Shall be a global center of excellence in education by providing instructions that are current in content and state-of-the-art in delivery. Types of Plans 2. Purposes and Missions  Identifies the basic purpose or function or tasks of the organization or any part of it.  In every social system, enterprises have a basic function or task assigned to them by society.  For example, the purpose of a business generally is the production and distribution of goods and services.  The purpose of a state highway department is the design, building, and operation of a system of state highways.  The purpose of the courts is the interpretation of laws and their application.  The purpose of a university is teaching, research, and providing services to the community. 14  9/22/2024 COCA-COLA – mission statement  To refresh the world...  To inspire moments of optimism and happiness...  To create value and make a difference. NIKE – mission statement  To lead in corporate citizenship through proactive programs that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services to Nike" 15  9/22/2024 AMAZON.COM – mission statement  To continue to offer quality products and services using the best technology available and at a reasonable price. MC DONALD’S – mission statement  "be our customers' favorite place and way to eat." 16  9/22/2024 JOLLIBEE – mission statement  To serve great tasting food, bringing the joy of eating to everyone. NOKIA – mission statement  “Connecting people.” 17  9/22/2024 DISNEYLAND – mission statement  To make people happy. MAPUA – mission statement  The Institute, using the most effective and efficient means, provides its students with highly relevant professional and advanced education in preparation for and furtherance of global practice. 18  9/22/2024 Types of Plans 2. Goals or Objectives  Represent not only the end point of planning, but also the end toward which organizing, directing/leading, and controlling are aimed. TYPES OF OBJECTIVES NEEDED by an Organization:  Financial Objectives Outcomes that relate to improving firm’s financial performance 19  9/22/2024 SPECIFIC FINANCIAL CORPORATE OBJECTIVES  McCORMICK & COMPANY Improve returns from each of our existing operating groups. Achieve a 20% return on equity. Achieve net sales growth rate of 10% per year. Maintain an average earnings per share growth rate of 15% per year. TYPES OF OBJECTIVES NEEDED by an Organization:  Strategic Objectives Outcomes that will result in greater competitiveness & stronger long-term market position 20  9/22/2024 SPECIFIC STRATEGIC CORPORATE OBJECTIVES  NIKE  Protect & improve Nike’s position as the number one athletic brand in America.  Build a strong momentum in growing fitness market.  Intensify the company’s effort to develop products that customers need and want. Types of Plans 3. Strategies  It is defined as the determination of the basic long-term objectives of an enterprise and the adoption of courses of action and allocation of resources necessary to achieve these goals. 21  9/22/2024 WHAT IS A “STRATEGY?” Consists of competitive moves & business approaches to produce successful performance Management’s “game plan” for: Running the business Strengthening firm’s competitive position Satisfying customers Achieving performance targets A strategy without metrics is just a wish. And metrics that are not aligned with strategy are a waste of time. 22  9/22/2024 THINKING STRATEGICALLY: THREE BIG STRATEGIC QUESTIONS 1. WHERE ARE WE NOW? 2. WHERE DO WE WANT TO GO? 3. HOW WILL WE GET THERE? Types of Plans 4. Policies  General statements or understandings that guide or channel thinking in decision making.  They help decide issues before they become problems.  Make it unnecessary to analyze the same situation every time it comes up, and  Unify other plans, thus permitting other managers to delegate authority and still maintain control over what their subordinates do. 23  9/22/2024 Sample - Attendance Policy: No-Fault Point System: The goal of this attendance policy is to reward good attendance and eliminate people with poor attendance. It uses a point system, and does not excuse or unexcuse absences. Each absence = 1 point(no multi-day occurrences) Each late in (tardy) or early out = 1/2 point Each no-show for work = 2 points Each return with no prior call = 1 point Each absence-free quarter eliminates all points and rewards the employee with a day off with pay. Each employee starts fresh, with no points, each year. Disciplinary Action: 7 points = verbal warning 8 points = written warning 9 points = 3 day suspension 10 points = termination Types of Plans 5. Procedures  Plans that establish a chronological sequences of required actions. In handling future activities;  Details of the exact manner in which certain activities must be accomplished.;  An example illustrating the relationship between procedures and policies:  Company policies may grant employees vacations; procedures established to implement this policy will provide for scheduling vacations to avoid disruptions of work, setting rates of vacation pay and methods for calculating them, maintaining records to ensure each employee of a vacation, and spelling out the means for applying for leave. 24  9/22/2024 Types of Plans 6. Rules  Spell out specific required actions or nonactions.  Usually the simplest type of plan.  The essence of rule is that it reflects a managerial decision that a certain action must – or must not – be taken.  Rules are different from policies in that policies are meant to guide decision making by marking off areas in which managers can use their discretion, while rules allow no discretion in their application. Types of Plans 7. Programs  A complex of goal, policies, procedures, rules, task assignments, steps to be taken, resources to be employed, and other elements necessary to carry out a given course of action;  They are ordinary supported by budgets. 25  9/22/2024 Types of Plans 8. Budgets  A statement of expected results expressed in numerical terms. It may be called a “quantified” plan. In fact, the financial operating budget is often called a “profit plan”.  It may be expressed in financial terms: in terms of labor- hours, units of product, or machine-hours; or in any other numerically measurable terms.  It may deal with operation, it may reflect capital outlays, or it may show cash flow.  They are also control devices. However, making a budget is clearly planning. The budget is the fundamental planning instrument in many companies.  The budget is necessary for control, but it cannot serve as a sensible standard of control unless it reflects plans. STEPS IN PLANNING 26  9/22/2024 Steps in Planning 1. Being Aware of Opportunities All managers should:  Take at preliminary look at possible future opportunities and see them clearly and completely.  Know where their company stands in the light of its strengths and weaknesses.  Understand what problems it has to solve and why.  Know what it can expect to gain. Planning requires a realistic diagnosis of the opportunity situation. Steps in Planning 2. Establishing Objectives  To be done for the long-term as well as for the short range.  Objective specify the expected results and indicate the end points of what is to be done, where the primary emphasis is to be placed, and what is to be accomplished.  Objectives must be SMART. 27  9/22/2024 Steps in Planning 3. Developing Premises  Establish, circulate, and obtain agreement to utilize critical planning premises such as forecasts, applicable basic policies, and existing company plans.  Premises are assumptions about the environment in which the plan is to be carried out. Steps in Planning 4. Determining Alternative Courses  Search for and examine alternative courses of action, especially those not apparent.  The more common problem is not finding alternatives but reducing the number of alternatives so that the most promising may be analyzed.  Even with mathematical techniques and the computer, there is limit of the number of alternatives that can be thoroughly examined. 28  9/22/2024 Steps in Planning 5. Evaluating Alternative Courses  Evaluate the alternatives by weighing them in the light of premises and goals. Steps in Planning 6. Selecting a Course  This is the point at which the plan is adopted – the real point of decision making.  Occasionally, an analysis and evaluation of alternative courses will disclose that two or more are advisable, and the manager may decide to follow several courses rather than the one best course. 29  9/22/2024 Steps in Planning 7. Formulating Derivative Plans  When a decision is made, planning is seldom complete, and a seventh step is indicated.  Derivative or action plans are almost invariably required to support the basic plan. Steps in Planning 8. Quantifying Plans by Budgeting  Quantify decisions and plan by converting them into budgets.  The overall budget of an enterprise represents the sum total of income and expenses, with resultant profit or surplus, and the budgets of major balance sheet items such as cash and capital expenditures.  If done well, budgets become a means of adding various plans and set important standards against which planning progress can be measured. 30  9/22/2024 Steps in Planning SEATWORK Why is planning an important activity for engineer managers? 31  9/22/2024 DECISION MAKING Decision Making  It is defined as the selection of a course of action from among alternatives; it is at the core of planning.  A plan cannot be said to exist unless a decision–a commitment of resources, direction, or reputation–has been made.  Managers sometime see decision making as their central job because they must constantly choose what is to be done, who is to do it, and when, where, and occasionally even how it will be done. 32  9/22/2024 Major Steps in Decision Making 1. Identifying Alternatives and the Limiting Factor  The ability to develop alternatives (by ingenuity, research, and common sense), is often as important as being able to select correctly among them.  The manager needs help in this situation, as well as assistance in choosing the best alternative, is found in the concept of the limiting or strategic factor.  A limiting factor is something that stands in the way of accomplishing a desired objective.  The principle of the limiting factor states that, by recognizing and overcoming those factors that stand critically in the way of a goal, the best alternative course of action can be selected. Steps in Decision Making 2. Evaluation of Alternatives  This is the point of ultimate decision making, although decisions must also be made in the other steps of planning—in selecting goals, in choosing critical premises, and even in selecting alternatives.  Because of complexities in evaluating alternatives, newer methodologies and applications and analysis are needed:  Advantages/ Disadvantages  Strengths/ Weaknesses  Cost-Benefit Analysis (C.B.A.)  Decision Trees 33  9/22/2024 Steps in Decision Making 3. Selecting an Alternative: Three Approaches Decision Making under Certainty, Uncertainty, and Risk 1. Certainty  In a situation involving certainty, people are reasonably sure about what will happen when they make a decision. The information is reliable and is considered to be reliable, and the cause and effect relationships are known. 2. Uncertainty  In a situation of uncertainty, on the other hand, people have only a meager database, they do not know whether or not the data are reliable, and they very unsure about whether or not the situation may change. 3. Risk  In a situation with risks, factual information may exist, but it may be incomplete. To improve decision making, one may estimate the objective probability of an outcome by using, for example, mathematical models. On the other hand, subjective probability, based on judgment and experience, may be used. Reference : Management - A Global Perspective by Weihrich and Koontz 11th Edition Prepared by : Prof. E.S.Bio / Prof. Mc.O.Mendoza / Prof. E.M.Fantillo/Prof. JdcGerman/Jonathan S. Bio 34  9/22/2024 PLANNING and DECISION MAKING TOOLS & TECHNIQUES Gantt Charts Pert-CPM Chart Flow Process Charts Cause & Effect Diagrams Others Gantt Chart – Work Schedule 35  9/22/2024 Gantt Chart – Project Development PERT/CPM Chart – PC Card 36  9/22/2024 Deployment Flowchart – New Product Development Cause & Effect Diagram 37  9/22/2024 Cause & Effect Diagram Process Mapping 38  9/22/2024 The TOWS Matrix: A Modern Tool for Analysis of the Situation  The TOWS Matrix has been introduced for analyzing the competitive situation of the company that leads to the development of the four distinct sets of strategic alternatives.  The TOWS Matrix has a wider scope and a different emphasis from the business portfolio matrix and SWOT analysis.  The TOWS Matrix is a conceptual framework for a systematic analysis that facilitates matching of the external threats and opportunities with the internal weaknesses and strengths of the organization. An Illustration: The Procter & Gamble Company Profile The Procter & Gamble Company (P&G) boasts boatloads of brands. The world's #1 maker of household products courts market share and billion-dollar names. It's divided into three global units: health and well being, beauty, and household care. The company also makes pet food and water filters and produces a soap opera. Some two-dozen of P&G's brands are billion-dollar sellers, including Fusion, Always/Whisper, Braun, Bounty, Charmin, Crest, Downy/Lenor, Gillette, Iams, Olay, Pampers, Pantene, Pringles, Tide, and Wella, among others. P&G shed its coffee brands in late 2008. Being the acquisitive type, with Clairol and Wella as notable conquests, P&G's biggest buy in company history was Gillette in late 2005. 39  9/22/2024 Procter & Gamble SWOT Analysis: STRENGHTS WEAKNESSESS  New Management  Top Brands Losing Market Share  Gross Margin 15 Times the Industry Average  Health and Beauty Women Only  One of the best marketers in the world  Lagging behind in online media presence & leadership  Diversified brand portfolio: more than 300 brands with more  Missing opportunity: Refuses to manufacture private label than 79 billion in Revenue products for its retail customers  Tightly integrated with the largest retailers in the US and  Slow Process Heavy Culture around the world  Weak brands (Duracell, Iam, Braun, Pringles)  Product innovation  Views Product Performance only  Talented management  Distribute to 80 Countries  Distribution channels all over the world  New Billion Dollar brands OPPORTUNITIES THREATS  Health and Beauty for Men  Substitute brands that have a cheaper price  Doubling Environmental Goals for 2012  Private label growth  Adding Value for the Conspiracy  Slowdown in consumer spending in the US & globally  Utilizing online social networks  Key competitors expanding their product portfolios through  Going Green/Eco Friendly acquisitions  Capitalizing on online media  Increase in raw material price  Continue to divest brands that don't align with the company's  Commodity cost and currency exchange rate placed tremendous long-term goals (i.e., Folgers) pressure on the business  Emerging markets  New acquisition opportunities  Selling directly to consumers  Design for better product experience The TOWS Matrix: A Modern Tool for Analysis of the Situation Internal strengths (S) Internal weaknesses (W) Internal e.g., strengths in management, e.g., weaknesses in areas shown factors operations, finance, marketing, in the “strengths” box. External research and development, engineering. factors External opportunities (O) SO strategy: Maxi-Maxi WO strategy: Mini-Maxi (consider risks also) e.g., current Potentially the most successful e.g., development strategy to and future economic conditions; strategy, utilizing the overcome weaknesses in order to political and social changes; new organization’s strengths to take take advantage of opportunities. products, services, and advantage of opportunities. technology. External threats (T) ST strategy: Maxi-Mini WT strategy: Mini-Mini e.g., energy shortage, Use of strengths to cope with e.g., retrenchment, liquidation, or competition, and areas similar to threats or to avoid with threats. joint venture to minimize both those shown in the “opportunities” weaknesses and threats. box above. 40  9/22/2024 ORGANIZING AND STAFFING E.S. BIO Source: Management - A Global Perspective by Weihrich and Koontz 11th Edition Organizing is…  The identification and classification of required activities.  The grouping of similar activities necessary to attain objectives.  The assignment of each group to a manager with the authority necessary to supervise it.  The provision for coordination horizontally (on the same or a similar organizational level) and vertically (e.g., between corporate headquarters, division, and department) in the organization structure. 41  9/22/2024 The Logic of Organizing 1. Establishing enterprise objectives 2. Formulating supporting objectives, policies, and plans 3. Identifying, analyzing, and classifying the activities necessary to accomplish these objectives 4. Grouping these activities in light of the human and material resources 5. Delegating to the head of each group the authority necessary to perform the activities 6. Tying the groups together horizontally and vertically, though authority relationships and information flows. The Organizing Process 42  9/22/2024 Organization  It is a formalized intentional structure of roles or positions.  It includes all the behaviors of all participants.  It is the total system of social and cultural relationships. Formal Organization  Formal Organization means the intentional structure of roles in formally organized enterprise.  A formal organization must be flexible.  Individual effort in group situation must be channeled toward group and organizational goals. 43  9/22/2024 Informal Organization  It is a network of interpersonal relationships that arise when people associate with each other.  It can also be described as any joint personal activity without conscious joint purpose, although contributing to joint results.  Thus, informal organizations—relationships that do not appear on the organization chart—might include the machine shop group, the sixth floor crowd, the Friday evening bowling gang, and the morning coffee “regulars”. Formal and Informal Organizations 44  9/22/2024 Organizational Division: The Department  One aspect of organizing is the establishment of departments.  A department is a distinct area, division, or branch of an organization over which a manager has authority for the performance of the specified activities. Organizational Levels and the Span of Management*  While the purpose of organizing is to make human cooperation effective, the reason for levels of organization is the limitation of the span of management.  In other words, organizational levels exist because the is a limit to the number of persons a manager can supervise effectively, even thought this limit varies depending on situations.  A wide span of management is associated with a few organizational levels; a narrow span, with many levels. * In much of the literature on management, this is referred to as the span of control. Despite the widespread use of this term, in this lecture span of management will be used, since the span is one of management and not merely of control, which is only one function of managing. 45  9/22/2024 Organization Structures with Narrow and Wide Spans Factors Determining an Effective Span  The number of subordinates a manager can effectively manage on the impact of underlying factors.  Aside from such personal capacities as comprehending quickly, getting along with people, and commanding loyalty and respect, the most important determinant is a manager’s ability to reduce the time he or she spends with subordinates. 46  9/22/2024 Factors Determining an Effective Span Organization Structure 1. Departmentation by Enterprise Function  It is the grouping of activities according to the functions of the enterprise, such as production, selling, and financing. 47  9/22/2024 Organization Structure Organization Structure 2. Departmentation by Territory or Geography  It is the grouping of activities by area or territory that is common in enterprises operating over wide geographic areas. 48  9/22/2024 Organization Structure Organization Structure 3. Departmentation by Customer Group  It is the grouping of activities that reflects a primary interest in customers. 49  9/22/2024 Organization Structure Organization Structure 4. Departmentation by Product  It is the grouping of activities according to products or product line, especially in multiline, large enterprises. 50  9/22/2024 Organization Structure Organization Structure 5. Matrix Organization  It is the combining of functional and project or product patterns of departmentation in the same organization structure. 51  9/22/2024 Organization Structure Line / Staff Authority and Decentralization Authority and Power  Power is the ability of individuals or groups to induce or influence the beliefs or actions of other persons or groups.  Authority is the right in a position to exercise discretion in making decisions affecting others. 52  9/22/2024 Bases of Power 1. Legitimate Power  It normally arises from and derives from our cultural system of rights, obligations, and duties whereby a “position” is accepted by people as being “legitimate”. 2. Expertness of a person or a group  This is the power of knowledge. Physicians, lawyers, and university professors may have considerable influence on others because they are respected for their specialized knowledge. 3. Referent Power  It is an influence that people or groups may exercise because people believe in them and their ideas. Bases of Power 4. Reward Power  It refers to the power that arises from the ability of some people to grant rewards. 5. Coercive Power  It is the power to punish, whether by firing a subordinate or by withholding a merit pay increase. 53  9/22/2024 Line / Staff Concepts and Functional Authority 1. Scalar principle  “The clearer the line of authority, the clearer will be the responsibility for decision making and the more effective will be organizational communication.” 2. Line authority  The relationship in which a superior exercises direct supervision over a subordinate. 3. Staff relationship  It’s nature is advisory. Decentralization of Authority Decentralization is the tendency to disperse decision-making authority in an organized structure. 54  9/22/2024 Delegation of Authority  Authority is delegated when a superior gives a subordinate discretion to make decisions.  Clearly, supervisors cannot delegate authority they do not have, whether they are members, presidents, vice presidents, or supervisors. Delegation of Authority The process of delegation involves: 1. Determining the results expected from a position 2. Assigning tasks to the position 3. Delegating authority for accomplishing these tasks 4. Holding the person in that position responsible for the accomplishment of the tasks. 55  9/22/2024 The Art of Delegation Personal Attitudes toward Delegation  Receptiveness An underlying attribute of managers who will delegate authority is a willingness to give other people’s ideas a chance. Decision making always involves some discretion, and a subordinate’s decision is not exactly the one a superior would have made. The Art of Delegation  Willingness to let go  A manager who will effectively delegate authority must be willing to release them to make decisions to subordinates.  A major fault of some managers who move up the executive ladder—or of the pioneer who has built a large business from the small beginning of, say, a garage machine shop—is that they want to continue making decisions for the positions they have left. 56  9/22/2024 The Art of Delegation  Willingness to allow mistakes by subordinates  Although no responsible manager would sit idly by and let a subordinate make a mistake that would endanger the company or the subordinate’s position in the company, continual checking on the subordinate to ensure that no mistakes are ever made will make true delegation impossible.  Since everyone makes mistakes, a subordinate must be allowed to make some, and their cost must considered an investment in personal development. The Art of Delegation  Willingness to trust subordinates  Superiors have no alternative to trusting their subordinates, for delegation implies a trustful attitude between them.  Willingness to establish and use broad controls  Since superiors cannot delegate responsibility for performance, they should not delegate authority unless they are willing to find means of getting feedback, that is, of assuring themselves that authority is being used to support enterprise or departmental goals and plans. 57  9/22/2024 Three (3) Elements of Delegation 1. Responsibility – means that a person is assigned a task that he or she is supposed to carry out. 2. Authority – means that the person has the power and the right to give orders, draws upon resources, and do whatever else is necessary to fulfill the responsibility. 3. Accountability – means that the subordinate’s manager has the right to expect the subordinate to perform the job and to take corrective action in the event the subordinate fails to do so. Recentralization of Authority and Balance as the Key to Decentralization  Recentralization is centralization of authority that was once decentralized; normally not a complete reversal of decentralization, as the authority delegated is not wholly withdrawn. 58  9/22/2024 Staffing  It is defined as filling, and keeping filled, positions in the organizational structure.  Work specialization – degree to which the work necessary to achieve organizational goals is broken down into various jobs.  Job design – specification of task activities associated with a particular job (e.g. a job as an administrative assistant may include typing, filing and photocopying, or it could involve such activities as coordinating travels and meetings, investigating trouble spots, and making decisions about a certain range of issues). Staffing Approaches to Job Design  Job simplification – the process of designing jobs so that jobholders have only a small number of narrow activities to perform.  Job rotation – practice of periodically shifting workers through a set of jobs in a planned sequence.  Job enlargement – the allocation of a wider variety of similar tasks to a job in order to make it more challenging.  Job enrichment – process of upgrading the job-task mix in order to increase significantly the potential for growth, achievement, responsibility, and recognition. 59  9/22/2024 Job Simplification Job Rotation 60  9/22/2024 Job Enlargement Movement of Personnel  RECRUITMENT is the process of encouraging, inducing, or influencing applicants to apply for a certain vacant position.  SELECTION is the process of getting the most qualified applicant from among different job seekers.  TRAINING is the systematic development of the attitude/knowledge/behaviour patterns for the adequate performance of a given job or task.  TRANSFER refers to the shifting of an employee from one position to another without increasing his duties, responsibilities, or pay.  PROMOTION refers to the shifting of an employee to a new position to which both his status and responsibilities are increased. 61  9/22/2024 Movement of Personnel  OUTPLACEMENT is the process of helping people who have been dismissed from the company to regain employment elsewhere.  LAY-OFF is a type of separation, temporary and involuntary, usually traceable to a negative business condition  DISCHARGE is a permanent separation of an employee, at the will of an employer, if a person is not competent in his job, guilty of breaking rules like delinquency and insubordination, and other violations  RESIGNATION is voluntary and permanent separation of an employee due to due to low morale, low salary, etc.  RETIREMENT can either be voluntary or involuntary; if an employee retires upon reaching the number of years of services in a company as provided for by its policies or upon reaching the age of 65.  PERFORMANCE APPRAISAL is the process of defining, measuring, evaluating, and recording expectations from employee performance. 62