PPM Summary Module II PDF

1 COURSE: PRINCIPLES AND PRACTICES OF MANAGEMENT TEXT BOOK: Robbins & Coulter. (2019) Fundamentals of Management. 9th Edition. New Delhi: Prentice Hall of India. SUMMARY_ MODULE-II Organizing Organization Structure The organizational str...

1 COURSE: PRINCIPLES AND PRACTICES OF MANAGEMENT TEXT BOOK: Robbins & Coulter. (2019) Fundamentals of Management. 9th Edition. New Delhi: Prentice Hall of India. SUMMARY_ MODULE-II Organizing Organization Structure The organizational structure defines how tasks are divided, resources are allocated, and departments are coordinated. Example: Apple uses a functional organizational structure, with separate departments for design, engineering, and marketing. An organisational structure is a framework that determines how an organisation is organised, including the arrangement of roles, responsibilities, and tasks. It outlines the hierarchy, reporting relationships, and communication channels within the organisation. By clarifying roles and responsibilities, the structure helps to establish clear lines of authority and decision- making, promoting efficient coordination and control. It also facilitates effective communication and collaboration by defining information flow and channels. Additionally, the structure aids in resource allocation and utilisation, allowing for specialisation and improved productivity. It promotes accountability and performance evaluation by setting clear expectations and enabling assessment of individual and departmental performance. Ultimately, an organisational structure plays a crucial role in shaping the organisational culture, optimising workflows, and driving the achievement of organisational objectives. Types of Organisation Structure 1. Line Organisation Line organisation, also known as a scalar or military organisation, is the simplest and oldest form of organisational structure. It is characterised by a clear and direct chain of command, where authority flows vertically from top to bottom. Each employee has a single supervisor to whom they report, creating a clear line of responsibility and accountability. Decision- making is typically centralised at the top of the hierarchy, with limited delegation. This structure is suitable for small organisations with a straightforward hierarchy, where decision- making needs to be efficient and communication is direct. However, it can lead to delays in decision-making as all decisions must pass through the hierarchy, and communication can be limited to the immediate supervisor. No staff specialists are available in line organisation and all the persons at the same level are independent of each other. 2. Functional Organisation Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  2 Functional organisation is a common structure where departments are organised based on specialised functions or tasks. For example, there might be separate departments for marketing, finance, operations, human resources, and so on. Each department is headed by a functional manager who has expertise in that particular area. This structure allows for the efficient utilisation of specialised skills and knowledge, as employees within each department can focus on their areas of expertise. It also enables clear career paths within each function. Specialists operate here with considerable independence. However, functional organisations can create silos, where departments become inwardly focused, and communication and collaboration between departments may be limited. Coordination across functions can also be challenging. 3. Line and Staff Organisation In a line and staff organisation structure, line positions focus on core operations, while staff positions provide specialised support and guidance. Staff roles, like human resources or legal, offer expertise and advice to line managers. This structure balances operational responsibilities with specialised support, enabling better decision-making and problem- solving. Specialists in such organisations have advisory nature as they do not have the power of command over subordinates in other departments. However, clarifying roles and coordination between line and staff functions is important to avoid conflicts. This can also lead to confusion and can be quite expensive for small firms. 4. Project Organisation Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  3 A project organisation is a temporary structure formed specifically for a particular project or initiative. It is characterised by a project team that is assembled to achieve specific goals within a defined timeframe. The project team is led by a project manager who has authority over team members and resources. This structure allows for a dedicated and focused approach to project management, with team members working together to accomplish project objectives. It facilitates effective coordination, communication, and collaboration within the project team. Once the project is completed, the team is disbanded. Project organisation is particularly useful when organisations need to manage complex, time-limited projects that require cross-functional collaboration and a dedicated team focus. In a Project organisation, unity of command is followed. 5. Matrix Organisation A hybrid grid structure wherein pure project organisation is superimposed on a functional structure is known as Matrix Organisation. It combines elements of both functional and project structures. It involves dual reporting lines, where employees have both a functional manager and a project manager. The functional manager oversees employees’ functional responsibilities, while the project manager manages their involvement in specific projects. This structure allows for flexible resource allocation, as employees can be assigned to different projects based on their skills and availability. There is always a permanent functional setup and temporary cross-functional teams are created to handle short-term projects, which are infrequent in nature. Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  4 It also promotes effective sharing of expertise and knowledge across projects and functional areas. Communication is typically multi-directional, as employees interact with both their functional and project managers. However, a matrix organisation can be complex to manage, as employees have multiple reporting relationships, and conflicts can arise due to competing priorities and demands from different managers. 6. Committee Organisation The committee organisation structure distributes decision-making and authority across committees or groups. These committees are formed to address specific areas or functions within the organisation, bringing together individuals from different departments and levels. Decisions are made collectively through discussions and consensus-building, ensuring diverse perspectives and expertise are considered. The scope of its activities is limited and it cannot handle problems assigned to it. According to Allen,” A committee is a body of persons appointed or elected to meet on an organised basis for the consideration of matters brought before it.” Committee organisation promotes collaboration and participation in decision-making processes. It gives secure viewpoints and consultations of various persons in the organisation. Departmentation Grouping of activities into different departments. For instance, Sony has separate departments for electronics, entertainment, and gaming. Departmentation refers to the process of grouping related activities or functions into specialized units or departments within an organization. It is derived from the word ‘department’, which signifies an organization’s distinct area or division responsible for specific tasks or functions. Departmentation involves organizing and dividing the organization’s workload into smaller, manageable units, allowing employees to focus on their specific areas of expertise. As a result, departmentation streamlines the functioning of an organization and helps in achieving its objectives more efficiently. Need of Departmentation The need for departmentation arises due to various reasons that contribute to an organization’s overall success and efficiency. Some of the key reasons include:  Specialization: Departmentation enables organizations to leverage the benefits of specialization. By dividing work based on expertise, employees can focus on their areas of proficiency, leading to increased productivity and higher-quality output. Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  5  Coordination: Departmentation facilitates improved coordination between different departments, ensuring a smooth workflow. It also helps reduce communication barriers, as each department knows its specific roles and responsibilities.  Control: Departmentation simplifies the process of monitoring and controlling the activities of various departments. By setting departmental goals and performance standards, managers can evaluate each department’s progress and implement corrective actions when necessary.  Accountability: Departmentation fosters a sense of responsibility among employees by clearly defining their roles and responsibilities. This clear demarcation helps employees understand their contribution to the organization and encourages them to take ownership of their work.  Growth and Expansion: As organizations grow, the need for departmentation becomes increasingly critical. A well-structured departmental framework allows organizations to expand their operations and handle increased workloads more efficiently.  Resource Utilization: Departmentation promotes the effective utilization of resources, including human capital, by ensuring that employees with specific skills are assigned to relevant tasks. This leads to better productivity and reduces the wastage of time and resources. Importance of Departmentation Choosing basis for Departmentation Selecting the right way to organize departments is essential for creating an effective organizational structure. The approach for dividing departments can be chosen based on the organization’s needs and goals. Here are some common ways to organize departments:  Function: Grouping departments by the tasks they do, like finance, marketing, human resources, or production, is a popular method. It helps organizations use the skills of their employees efficiently and makes sure each department works well together.  Product: Departments can be organized based on the products they make or the services they provide. This approach helps with managing different products, Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  6 understanding customer needs, and focusing on developing specific products or services.  Location: If an organization operates in multiple areas or countries, it’s helpful to organize departments based on their location. This method makes it easier to manage local resources, follow regional rules, and understand local markets and customers.  Customer: Organizing departments based on different customer groups, like individual people, businesses, or governments, helps organizations meet the unique needs of each group. This approach improves customer satisfaction and allows organizations to adjust their products or services for specific customers.  Process: Departments can be grouped based on the processes they handle, like manufacturing, assembly, or packaging. This way of organizing helps improve processes, makes operations smoother and ensures better control over quality and production schedules.  Project: Sometimes, departments can be organized based on specific projects or tasks. This method works well for organizations that focus on projects, like construction, software development, or consulting companies. Organizing by project helps allocate resources better, manage projects efficiently, and hold people accountable. Thus, the best way to organize departments depends on the organization’s unique needs, goals, and strategies. Analyzing the organization’s work, industry, and outside factors can help choose the right approach. Sometimes, organizations might use a mix of these methods to create a department structure that fits their needs best. Types of Departmentation Departmentation is a valuable tool in organizational management that involves dividing an organization’s workload into smaller, more manageable units known as departments. This approach provides a range of benefits, including increased specialization and efficiency in the organization’s operations, as employees can focus on their areas of expertise. Additionally, departmentation helps the organization allocate resources more effectively by identifying the resources needed for each task and allocating them accordingly. Clear communication and coordination between employees are also facilitated by grouping similar tasks. Departmentation further provides a transparent hierarchy of authority and responsibility, which enhances decision-making and goal achievement. In conclusion, departmentation is a vital strategy that supports the smooth running of an organization and its successful attainment of objectives. Bases and Types of Departmentation Under bases and types of departmentation, there could be the following categories: 1. Functional Departmentation Functional departmentation is a widely used organizational structure that groups employees based on their specialized knowledge and skills. Each major or basic function, such as production, sales, finance, and personnel, is organized as a separate department, which allows for efficient and effective collaboration among employees with similar expertise. This approach promotes specialization, simplifies decision-making, and provides employees with clear career paths and development opportunities. However, it may also create silos, where departments focus solely on their function, leading to slower decision-making when Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  7 addressing complex issues spanning multiple functional areas. Despite these potential drawbacks, functional departmentation remains a popular organizational approach, allowing organizations to capitalize on economies of scale and promoting efficiency, coordination, and specialization within each department. Advantages:  Grouping employees with similar skills and expertise together allows for increased efficiency and effectiveness, as they can share knowledge and experience to complete their tasks.  Functional departmentation allows for better communication and a more streamlined workflow within each department.  Functional departmentation promotes specialization, leading to increased productivity and better quality output.  Managers can consult with functional experts when needed, simplifying the decision- making process.  Functional departmentation provides clear career paths and development opportunities for employees within each department. Disadvantages:  Departments may become silos, focusing solely on their functions, leading to a lack of collaboration and coordination between departments.  Functional departmentation can lead to slower decision-making as decisions often require input from multiple functional areas.  It can be challenging to address complex issues that span multiple functional areas using a functional departmentation structure.  Functional departmentation can create inter-departmental conflict as departments may prioritize their interests over the organization’s goals.  There may be duplication of effort, as each department may have its own resources, leading to a waste of resources and inefficiency. 2. Product Departmentation Product departmentation is an effective organizational structure that groups employees based on the specific products or product lines they work on. Under this approach, each product or product line is treated as a separate department, allowing organizations to focus on specific products and tailor their activities and resources accordingly. This can lead to increased efficiency and effectiveness as employees specialize in their specific product area, enabling them to respond quickly to changes in customer demand and market trends. It is essential to be aware of the potential drawbacks of product departmentation. It can create duplication of effort and resources, as each department may have its own marketing, design, and production resources, which can lead to inefficiency. Additionally, coordinating activities and decision- making between product departments may be challenging, leading to potential conflicts and slower decision-making Advantages:  Product departmentation allows for a high degree of specialization, with each department focusing on a specific product or product line, leading to increased efficiency and effectiveness.  Since each department is focused on a specific product or product line, decision- making is faster and more efficient, leading to quicker response times to changes in customer demand or market trends. Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  8  Each product department has clear accountability for the performance of its specific product or product line, leading to a higher level of responsibility among employees.  Since each department is focused on a specific product or product line, they can be more innovative and creative in developing new products and solutions.  By having departments focus on specific products or product lines, organizations can improve their customer focus and provide better customer service. Disadvantages:  Product departmentation can lead to duplication of effort and resources as each department may have its own marketing, design, and production resources.  Coordinating activities and decision-making between product departments can be challenging, leading to potential conflicts and slower decision-making.  Each department may become siloed and not communicate or collaborate effectively with other departments, leading to a lack of coordination and slower decision-making.  Product departmentation can create competition and conflicts between departments, leading to a lack of cooperation and teamwork.  It can be challenging to find managers with the necessary expertise to lead each product department effectively, leading to potential leadership and management issues. 3. Territorial (Geographical) Departmentation Territorial departmentation is an organizational structure where employees are grouped based on their geographical location or territory. For example, a company may divide its operations into different regions, such as North America, Europe, and Asia, with each region being a separate department. This approach allows companies to tailor their operations and strategies according to the needs of each specific location. For instance, different regions may have different customer needs, preferences, or regulations, and by grouping employees based on their geographical location, companies can better address these differences. Territorial departmentation enables better coordination and communication between employees in the same geographic location leading to improved teamwork and collaboration. It also allows for better control and monitoring of operations, as managers can closely oversee and manage employees in each location. Advantages:  Territorial departmentation enables organizations to customize their operations and strategies according to local needs and preferences leading to improved customer satisfaction and organizational performance.  By grouping employees based on their geographic location, territorial departmentation can enhance communication and coordination between employees in the same region, resulting in better teamwork and collaboration.  Territorial departmentation allows managers to closely supervise and manage employees in each location, leading to better control and monitoring of operations.  By having employees located in different regions, territorial departmentation can respond faster to changes in customer demand or market trends.  Each territorial department has clear accountability for the performance of its geographic area, leading to higher levels of responsibility among employees. Disadvantages: Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  9  Territorial departmentation can lead to duplication of effort and resources as each department may have its own marketing, design, and production resources.  Territorial departmentation can create competition and conflicts between departments, resulting in a lack of cooperation and teamwork.  Coordinating activities and decision-making between territorial departments may be difficult, leading to potential conflicts and slower decision-making.  Territorial departmentation can result in higher costs as each department may require its resources and infrastructure.  Territorial departmentation may not be suitable for organizations that need to quickly adapt to changes in market conditions or customer needs, as changes may be slower to implement across different geographic locations. 4. Customer Departmentation Customer departmentation is an organizational structure that groups employees based on specific customer groups or segments. This approach enables organizations to focus on the unique needs and preferences of each customer group, which can enhance customer satisfaction and improve performance. By grouping employees based on customer segments, companies can better understand the needs of each customer group and tailor their products, services, and marketing efforts accordingly. It can also foster increased customer loyalty, as customers may feel that their needs are being addressed in a personalized manner. Moreover, it can facilitate better communication and coordination among employees in the same customer segment leading to improved teamwork and collaboration. Advantages:  Customer departmentation enables organizations to focus on specific customer segments, leading to a better understanding of customer needs and preferences, and enabling companies to tailor their products, services, and marketing efforts to meet those needs.  By focusing on specific customer groups, companies can provide more personalized and tailored services leading to increased customer satisfaction and loyalty.  By grouping employees based on customer segments, customer departmentation can lead to better communication and coordination among employees in the same customer segment, resulting in improved teamwork and collaboration.  Customer departmentation can lead to faster and more effective decision-making, as employees are better equipped to make decisions based on the specific needs and preferences of each customer segment.  Customer departmentation provides clear accountability for each department’s performance in serving its specific customer group, leading to a higher level of responsibility and motivation among employees. Disadvantages:  Customer departmentation can lead to duplication of effort and resources as each department may have its own marketing, design, and production resources.  Customer departmentation can create competition and conflicts between departments, leading to a lack of cooperation and teamwork.  It may be challenging to coordinate activities and decision-making between customer departments, leading to potential conflicts and slower decision-making. Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  10  Customer departmentation may not be suitable for organizations that need to quickly adapt to changes in market conditions or customer needs, as changes may be slower to implement across different customer segments.  Customer departmentation can result in higher costs as each department may require its own resources and infrastructure 5. Process or Equipment Departmentation Process or equipment departmentation is a type of organizational structure that groups employees based on the equipment or technology they use or the specific processes they perform. For example, a manufacturing company may organize its operations into departments based on the types of equipment, such as milling machines, lathes, or welding machines. This structure allows organizations to capitalize on specialized equipment and technology and group employees with the expertise and skills required to operate and maintain specific equipment or perform particular processes. The approach promotes efficiency and effectiveness since employees with similar skills and knowledge work together to complete specific tasks. Process or equipment departmentation can streamline decision- making, improve coordination, and enhance communication among employees in the same department, resulting in better teamwork and collaboration. This structure can also facilitate better monitoring and control of processes and equipment, leading to higher-quality output and more efficient use of resources. Advantages:  Process or equipment departmentation allows for a high level of specialization, resulting in better quality output and more efficient use of resources.  By grouping employees with similar skills and expertise, process or equipment departmentation can streamline decision-making and reduce the time and effort needed for communication and coordination.  Process or equipment departmentation can facilitate better monitoring and control of processes and equipment, leading to higher-quality output and more efficient resource utilization.  Each department is accountable for its specific equipment or process, leading to a higher level of responsibility and motivation among employees.  Process or equipment departmentation provides clear career paths and development opportunities for employees within each department. Disadvantages:  Process or equipment departmentation can result in silos, with employees focusing solely on their specific equipment or processes, leading to a lack of collaboration and communication across departments.  Process or equipment departmentation may limit cross-functional knowledge and skills among employees, reducing flexibility and adaptability.  Process or equipment departmentation can lead to duplication of effort and resources as each department may have its own marketing, design, and production resources.  It may be challenging to coordinate activities and decision-making between departments, leading to potential conflicts and slower decision-making.  Process or equipment departmentation can result in higher costs as each department may require its own resources and infrastructure. 6. Time Departmentation Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  11 Time departmentation is an organizational structure in which employees are grouped based on the time of day or week that they work. This approach enables companies to manage their workforce more efficiently and ensure that operations run smoothly without interruptions. For example, a manufacturing company may organize its operations into departments based on different shifts, such as day shift, night shift or weekend shift. Grouping employees based on their availability and work schedules can ensure that the organization has the necessary resources available at the right time to meet business demands. This approach can also increase productivity, as employees may be more focused and efficient during specific hours of the day or week. Additionally, time departmentation can promote a better work-life balance for employees, as they have more flexibility in choosing their work schedules. This can lead to higher job satisfaction and employee retention. Advantages:  Time departmentation enables organizations to manage their workforce more efficiently and ensure that operations are continuously running without interruptions.  Grouping employees based on their availability and work schedules can increase productivity as employees may be more focused and efficient during specific hours of the day or week.  Time departmentation can promote a better work-life balance for employees, allowing them more flexibility in choosing their work schedules and leading to higher job satisfaction and employee retention.  Time departmentation can ensure that the organization has the necessary resources available at the right time to meet business demands, leading to better resource allocation and improved operational efficiency.  Time departmentation can enable the organization to provide better customer service by ensuring that there are employees available to meet customer needs during specific hours of the day or week. Disadvantages:  Time departmentation may lead to limited communication and collaboration between employees in different shifts, leading to silos and reduced cooperation.  It may be challenging to coordinate activities and decision-making across different shifts, leading to potential conflicts and slower decision-making.  Time departmentation may reduce flexibility in terms of employee work schedules, which may be challenging for employees with personal or family commitments.  Time departmentation may require the organization to pay employees a premium for working during non-standard hours, leading to higher labor costs.  Time departmentation may result in limited knowledge and skill sharing across different shifts, leading to reduced cross-functional knowledge and skills among employees. 7. Combined Departmentation Combined departmentation is an organizational structure that incorporates two or more types of departmentation. It allows companies to leverage the benefits of different departmentation methods to improve their operational efficiency and effectiveness. For instance, a company can use a combination of functional and product departmentation by organizing its operations into departments based on both functions and products. This approach groups employees with similar skills and expertise in each department while also grouping employees based on the specific products they produce or manage. Combined departmentation can promote better Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  12 communication and coordination across different departments, leading to enhanced teamwork and collaboration. Furthermore, it allows companies to specialize in different areas and meet the needs of different customer segments effectively. Advantages:  Combined departmentation can promote better coordination and communication across different departments, leading to enhanced teamwork and collaboration.  By leveraging multiple departmentation methods, companies can enhance their operational efficiency and effectiveness.  Combined departmentation allows companies to specialize in different areas and meet the needs of different customer segments more effectively.  Each department is accountable for its specific function or product, leading to a higher level of responsibility and motivation among employees.  Combined departmentation allows companies to be more strategically flexible by adjusting their departmentation methods to meet changing business needs. Disadvantages:  Combined departmentation can result in a more complex organizational structure, making it more challenging to coordinate activities and decision-making.  Implementing multiple departmentation methods may require more resources and infrastructure, resulting in higher costs.  Multiple departmentation methods may result in a greater potential for conflict and competition between departments.  There may be limited communication and collaboration between employees in different departments leading to silos and reduced cooperation.  Combined departmentation may reduce flexibility in terms of employee work schedules and the ability to adapt to changing business needs. Span of Control The number of subordinates a manager can effectively manage. In a largescale manufacturing plant like Toyota, managers may have a narrow span of control to maintain quality. The span of management refers to the ideal number of subordinates who report to and are supervised by one manager. Also known as the span of control (SOC), it determines how many subordinates are able to provide maximum output without costing too much under one manager/supervisor. It also relates to the Unity of Command principle under Fayolism, which discusses that there should be one manager who should be providing guidance to subordinates. Without determining an optimal number, a manager may be unable to perform the controlling function. Likewise, coordinating, directing, etc., will also suffer. With that, the long-term plans suffer. Types of Span of Management There are two basic types when it comes to discussing the span of management. 1. Wider Span of Management: It refers to situations when the organisational hierarchy consists of one manager and many subordinates. For this span of management type, the manager supervises many subordinates who are themselves skilled to conduct duties without much directing and controlling. 2. Narrow Span of Management: This is the opposite situation, when there is more than one manager in an organisation to handle a few subordinates. One of the best Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  13 advantages here is that the subordinates get thoroughly supervised and the manager can exercise their duties more efficiently. Factors that Affect Span of Management Look into the most important factors that will help you understand the span of management in more detail.  Manager’s Capability & Competence: The more competent the manager is, the more likely it is that they will be able to supervise more subordinates than a less competent one. Skilled managers are able to make better decisions that help not just the organisation, but also the professional growth of the subordinates.  Subordinate’s Capability & Competence: When the subordinates are not well- trained, it is ideal to have a narrow span of management. The reason is because the manager would have to spend more time to train them.  On the other hand, the subordinates are highly skilled, the manager will not have to deal with intervening in every action taken by the subordinate.  Nature & Complexity of Work: When the workload is repetitive, it does not matter how many of the subordinates are under one manager. It is essential to have a narrow span of management when the work is more complex and non-repetitive.  Complete Supervision: Supervision when required is crucial. A manager should have the time to provide it to subordinates when they need it. A situation where the manager does not have the bandwidth to provide supervision is not ideal for the long term.  Organisational Planning: It is essential to determine the span of management when planning is done on an organisational level. Planning should state how many subordinates should report to one manager and have some amount of contingency in case, the plan does not work out.  Levels of Management: The span of management is directly related to the levels of management. When there are more levels, there is more hierarchy, which means it will be a narrow span of management. How to Identify the Right Span of Control Identifying the right span of control is important in every organisation. Usually, the human resources department calculates the span of control ratio using the formula. Span of Control = No. of employees / No. of managers This is a starting point, though. Because there cannot be a predefined number to justify the right span of control ratio. Instead, the way to define it properly is by mapping how many ‘direct reports’ go to the manager. Delegation of Authority Delegation involves assigning responsibility to subordinates while granting them the authority to make decisions. Example: Nestle delegates significant decisionmaking authority to regional managers to cater to local tastes and preferences. The delegation of authority is the process by which a manager divides and assigns work to his subordinates. The manager himself only performs the tasks that require his special talents and expertize. Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  14 The rest of the work and its responsibility he will divide and delegate to his subordinates. Along with the responsibilities the manager will also share the authority, i.e. the power that enables the subordinates to carry out the tasks. In the delegation of authority, the sharing of authority is downwards in the management structure. The manager cannot accomplish all tasks by himself, so he assigns the responsibilities to his subordinates. This will reduce the work burden of the manager. The manager will not give up all his authority, he will only delegate that much authority that the subordinate can fulfill his responsibilities and accomplish his tasks efficiently. Elements of Delegation of Authority When we talk about the delegation of any authority in an organization, there are three main elements of such delegation. Let us take a look at them in some detail. 1] Responsibility: A manager will assign some specific work or task to his subordinate. Thus he is assigning his team-member or subordinate with some responsibilities. It is not the job of this subordinate to work efficiently and use his mental and physical capacity to accomplish the task and hence fulfill his responsibility. So a manager can only assign these responsibilities to his subordinates. If he fails to carry out the tasks correctly then the blame falls on the manager himself. This means in an organization responsibility flows upwards. 2] Authority: Now if the subordinate has to fulfill his responsibility he will need the tools to do so. One of these tools is the authority that comes with responsibility. This is the power to take certain decisions in order to accomplish tasks. So when the manager will delegate the work, he also delegates the authority. This will allow the subordinates to take independent decisions needed to finish the tasks efficiently and in a timely manner. One point to note is that the authority must be equal to responsibility. The authority must be sufficient to complete the work efficiently. And in the organizational structure authority also increases as we go up the chain of command, i.e. flows upwards. 3] Accountability: Once the manager delegates the work and the authority, he needs to check on the work of his subordinates. He is accountable for the work done by his subordinates. Unlike authority, accountability cannot be delegated. So the incapability of the subordinate to complete the task satisfactorily will be the manager’s fault. Staffing Staffing is the continuous process of recruiting, evaluating, and hiring employees with appropriate skills for specific positions. It’s a temporary solution to fill vacant positions for a short period of time. Such employees usually work in factories, offices, warehouses, and other customer service positions. For example, a business that has an increased demand for warehouse workers for order fulfillment will hire temporary workers to meet such staffing needs. Steps in Staffing Process The staffing process starts with finding the right talent and ends with the transfer of employees. The main purpose is to ensure that the organization misses nothing in terms of talent and skills. There are 11 steps involved in the staffing process: 1. Manpower planning and job analysis Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  15 Manpower planning refers to the measurement of workforce required in an organization. The first step in staffing helps identify the requirements of business to properly determine the number of employees, the skills, and qualifications required. Job analysis is the process of collecting information related to a job. It includes skills, responsibilities, roles, and other requirements. Job analysis helps determine the talent required so as to match it with the business requirements. 2. Recruitment After planning the manpower and conducting job analysis, recruitment is the second step in staffing. Once the organization has determined the skills and knowledge required to perform certain roles, the recruitment process begins. This process involves advertising for open positions within the organization through various media. After receiving enough job applications, the organization evaluates them based on the eligibility criteria set in the first step. 3. Selection After evaluating the job applicants against eligibility, the selection process screens employees and identifies the ones who are most suitable for specific jobs. This is a crucial step as selecting the set of skills that do not match the vacant positions can lead to unproductivity and low job satisfaction. In the staffing process, it is important to eliminate those that are unsuitable and appear unpromising. 4. Orientation and placement Once the suitable candidates are selected, employees are made familiar with each other, their teams, the organization, and the work they will be performing. After this, the right employees are placed in the right positions. 5. Remuneration Remuneration refers to the compensation given to the employees in exchange for the work done. Remuneration is usually decided at the time of interview or selection process. It’s predetermined but can be negotiated as well, according to the type of work and experience of the employee hired. 6. Training Training is a primary part of the staffing process. The main objective of training is to help employees learn new skills and develop knowledge. Organizations design training programs after a TNA (Training Needs Analysis) to make sure that the employees keep up with any new requirements. 7. Performance evaluation Employees get to their work after they have been placed and trained. Their work performance is evaluated based on their attitude, behavior, and work done. Such assessments aim to determine the success of the recruitment process and if the employee needs further improvement or had been placed wrongly. The performance evaluation step in the staffing process serves as the base for designing training/development programs, promotions, appraisals, etc. 8. Development After the performance of an employee is evaluated, the organization determines if there’s a need for improving the existing skills and competencies. It aims to better equip the employees to perform their current roles or adapt to the+.029++ changing business requirements. This also helps employees advance in their careers by leveling up their skills and knowledge. 9. Appraisal Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  16 Performance evaluations also determine if an employee is eligible for appraisal. Appraisals aim to show how well an employee has performed in a specific period and how his knowledge, aptitude, and other qualities gave value to the success of an operation. 10. Promotion If an employee shows growth and improvement beyond what was expected of them, they are likely eligible for promotion. It is the process of upgrading an employee to a higher or better position within the organization. It is also linked to increased incentives, higher compensation, and other extra benefits. 11. Transfer The last step in the staffing process is transfer. In transfer, the employee performs in the same position but is shifted to another business unit or a different department. There will be no change in the compensation structure. Transfers are mostly undertaken to meet sudden or urgent organizational needs. Sometimes, they also aim to let employees develop their skills and knowledge. They can be temporary or long-term, depending on the need. This process has to be evaluated periodically to meet the staffing needs. Job Analysis Job Analysis is defined as the process of determining all the necessary information about a particular job i.e., records information about the task involved in the job, the knowledge and skillset required to perform that job, the responsibilities and abilities required for the successful performance of that job. Job Description A description of the tasks, duties, responsibilities and functions associated with the job is prepared. For example, the job description for a marketing manager is to manage and coordinate all marketing, advertising and promotional staff and activities. Job Specification The job specification caters to a complete picture of the competencies and abilities required to perform functions and duties associated with a particular job. For example, in order to perform the role of a marketing manager, the person holding the position should have a degree in marketing management as well as experience in all aspects of developing and managing marketing strategies. Human Resource Planning Human Resource Planning is a process that forecasts the company’s future manpower demand by analyzing the current supply and the gaps if any. The ultimate mission or purpose of Human Resource Planning is to align the future human resources to future organizational strategies and needs so as to maximize the future returns on investment in human resources. It ensures that an organization is always equipped with the right number and kind of people, at the right place and time. They should be capable of effectively and efficiently accomplish their tasks that are required to achieve the goal of the organization as a whole. According to Geisler, “Manpower planning is the process including forecasting, developing and controlling by which a firm ensures that it has-  The right number of people,  The right kind of people,  At the right places, Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  17  At the right time,  Doing work for which they are economically most useful”. Objectives of Human Resource Planning are:  To Forecast Future Requirements for HR  Realizing Organizational Goal  Effective Management of Change  Effective Utilization of Human Resources  Promoting Employees Human Resource Planning Process Human Resource Planning is a process whereby organizations forecast the future personnel needs required to meet business and customer demands. Human Resource Planning Process usually consists of the following steps: 1. Forecasting Manpower Need 2. Assessing Current Manpower Inventory 3. Identifying Manpower Gap 4. Formulating Manpower Plan Forecasting Manpower Need HR Planning ensures that a predetermined number of people with correct qualification and skill sets are available for the future. This needs to be done to guarantee the availability of the human resources needed by an organization to meet its strategic business objectives. The basis of forecasting is that the annual budgets and long term projections are divided into activity levels for each function and department. This further helps in determining the quality and quantity of personnel required to perform those activities effectively. Assessing Current Manpower Inventory The next step in HR Planning is to estimate the quantity and quality of employees available within the organization to fill the positions. In case of internal labour supply the HRIS (human resource information system) is referred to, HRIS uses computers for collecting, storing, maintaining and updating data from time to time of its employees. In order to foresee and estimate the absenteeism, turnover and attrition rate historical trends are recorded and examined. This gives an idea of an approximate time period when the important positions might fall vacant and the number of employees who will be present in the various positions within the organization at any given point in time. Identifying Manpower Gap Once the number and type of employees needed are determined and the supply of manpower is estimated, a reconciliation of the two will determine the quantitative and qualitative gaps in the organization. It will throw a light on the number of people to be recruited or make the organization aware whether there has been overstaffing. This forms the foundation of preparing an HR plan. Formulating Manpower Plan Once the human resource requirements and necessary changes to be applied are identified, they need to be translated into a concrete HR plan supported by policies, programs, strategies etc. Below are some of the plans and strategies implemented to achieve the goals: 1. Recruitment and selection plan: Recruitment and selection is the process of hiring the right number and type of people at the right place and at the right time. To do this Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  18 there are plans charted out to recruit the right people. After recruitment, the selection process is also professionally designed. 2. Redeployment and training: To keep the employees abreast with the changing technology or product lines they should be imparted new skills. 3. Alternatives to Hiring: There are other alternatives that can be undertaken as an alternative to hiring additional employees for e.g encouraging employees nearing retirement to extend their years of service by rewarding late retirements, rehire, launching overtime schemes by paying a higher commission for overtime etc. 4. Retention Plans: Various retention plans are implemented to avoid attrition in an organization. Organizations might increase the wages, provide better career opportunities, improve the working conditions, avoid hiring unstable recruits etc. 5. Downsizing Plan: Organizations resort to downsizing plans when the supply of manpower exceeds the demand and there is a surplus in the staff. In such a case staff is underutilized and there is a need for trimming the labour force. Example: voluntary retirement schemes to the employees, laying off the redundant staff etc. Recruitment According to Yoder “ Recruitment is a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force.” According to Edwin Flippo, “Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.” Recruitment Process The major steps of the recruitment process are stated as: 1. Job Design 2. Opening Job Position 3. Collecting and Presenting Job Resumes 4. Job Interviews 5. Job Offer Job Design Job design is the most important part of the recruitment process. The job design is a phase about the design of the job profile and a clear agreement between the line manager and the HRM Function. The Job Design is about the agreement about the profile of the ideal job candidate and the agreement about the skills and competencies, which are essential. The information gathered can be used during other steps of the recruitment process to speed it up. Opening Job Position The Opening of the Job Position is generally the job of the HR Recruiter. Skilled and experienced HR Recruiter should decide about the right mix of recruitment sources to find the best candidates for the job position. This is another key step in the recruitment process. Collecting and Presenting Job Resumes The next step is collecting of job resumes and their pre-selection. This step in the recruitment process is very important today as many organizations lose a lot of time in this step. Today, the organization cannot wait with the pre-selection of the job resumes. Generally, this should be the last step done purely by the HRM Function. Job Interviews Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  19 The job interviews are the main step in the recruitment process, which should be clearly designed and agreed between HRM and line management. The job interview should discover the job candidate, who meets the requirements and fits best the corporate culture and the department. Job Offer The job offer is the last step of the recruitment process, which is done by the HRM Function, it finalizes all the other steps and the winner of the job interviews gets the offer from the organization to join. Recruitment Techniques Recruitment techniques are the means or media by which management contacts prospective employees or provide necessary information or exchange ideas or stimulate them to apply for jobs. Recruitment techniques are: 1. Internal Methods: They are for recruiting internal candidates. These include methods like: (a) Promotion & Transfers (b) Job Posting (c) Employee Referrals 2. Direct Methods: These include sending travelling recruiters to educational and professional institutions and employees’ contacts with the public. (a) Campus Recruitment Nature of Recruitment Recruitment involves the following features:  Recruitment is the first step of appointment.  It is a continuous process.  It is a process of identifying sources of human force, attracting and motivating them to apply for jobs in organizations.  It is a development manpower or to work at the last stage.  It is a positive process.  It fulfills needs, both the present, and the future. Purpose of Recruitment  Finding out and developing the source here required number and kind of employees will be available.  Developing suitable techniques to attract the desirable candidate.  Employing the technique to attract employees.  Stimulating as many candidates as possible and asking them to apply for jobs irrespective of the number of candidates required in order to increase the selection ratio (i.e., number of application per one job vacancy) due to lower yield ratio. Difference Between Recruitment and Selection  Recruitment means searching for sources of labor and stimulating people to apply for jobs, whereas selection means selecting of right kind of people for various jobs.  Recruitment is a positive process whereas selection is a negative process. Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  20  It creates a large pool of applicants whereas selection leads to a screening of unsuitable candidates.  Recruitment is a simple process, it involves contracting the various sources of labor whereas selection is a complex and time-consuming process. The candidate has to clear a number of hurdles before they are selected for a job. Sources of Recruitment A source from where candidates are identified, attracted and selected can be classified into two: Internal Sources and External Sources. Modes of Recruitment are: 1. Transfers 2. Promotions 3. Retired and Retrenched Employees 4. Employee Referrals 5. Job Postings 6. Deceased and Disabled Employees 7. Campus Recruitments 8. Management Consultants 9. Advertisements 10. Trade Associations 11. Walk in Interview 12. Job Fairs Internal Sources This approach includes recruiting, developing and promoting the employees from within the organization. Internal recruitments are cost-effective, more reliable as the organization is aware of the candidate’s skillset and knowledge and it also motivates the employees and increases their commitment towards the organization. Internal sourcing can be done in the following ways: Transfers An employee may be shifted from one job to another internally generally of the same level. The roles and responsibilities of the employees might change but not necessarily the salary. This helps the employees to get motivated and try something new, helps them break the monotony of the old job and encourages them to grow by gaining more knowledge. Promotions As recognition of their efficiency and experience the employees are moved from a position to a higher position. There is a change in their duties and responsibilities accompanied with a change in salary and status. It helps the employee to grow vertically in the organization. It refrains him from leaving the company for greener pastures. Retired and Retrenched Employees Retired and retrenched employees may also be recruited back in case there is high demand and shortage of supply in the industry or there is sudden increase in work load. These employees are already aware of the processes, procedures and culture of the organization hence they prove to be cost effective. Employee Referrals In this case each employee of the company acts as a recruiter. The employees are encouraged to recommend the names of their friends or relatives working in other organizations. For this they are even rewarded monetarily. Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  21 The benefit of employee referral is that the potential candidate gets first hand information about the job and organization culture from the already working employee. Since he knows what he is getting into he is expected to stay longer in the organization. Also since the credibility of those who recommend is at stake, they tend to recommend those who are highly motivated and competent. Job Postings The Company posts the current and expected vacancy on bulletin boards, electronic media and similar common portals. This gives an opportunity to the employees to undertake career shift and help them grow within the company. Deceased and Disabled Employees In order to make the families of the deceased and disabled employees self-sufficient their relatives or dependents may be offered a job in case of any vacancy. Advantage of Internal Sourcing  Internal recruitment is less time consuming and economical.  It is reliable as the organization is aware of the employee’s knowledge and skill set.  There is no need of induction and training as the employee is already aware of the processes, procedures and culture of the organization.  It increases the motivation level of the employees as they look forward to getting a higher job in the organization instead of looking for greener pastures outside.  It boosts the morale of the employees, improves their relations with the organization and reduces employee turnover.  It develops the spirit of loyalty in the employees, ensures continuity of employment and organizational stability. Disadvantage of Internal Sourcing  Internal sourcing prevents new blood, originality and innovative ideas from entering the organization.  The scope is limited as not all the vacancies can be filled by the limited pool of talent available in the organization.  The position of the person who is transferred or promoted falls vacant.  It can create dissatisfaction amongst the rest of the employees as there can be bias or partiality in promoting an employee in the organization. External Sources New candidates are recruited from outside the organization by different means and methods. It is more commonly used than internal sources. External recruitments are helpful in acquiring skills that are not possessed by the current employees; it also helps to bring onboard employees from different backgrounds that get a diversity of ideas on the table. Campus Recruitments When companies are in search of fresh talents and are focusing on knowledge, communication skill and talent than experience, they approach management colleges, technical institutes etc. The company makes a presentation about its organization in order to attract the students. Whoever finds it matching with their career plans applies for the job. These applicants are then made to go through series of selection processes like analytical and psychological tests, group discussions, interviews etc before the final selection is done. Management Consultants Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  22 Management consultants act as representatives of the employer. They perform the recruitment function on behalf of the client company by charging them fees or commissions. These consultants are able to tailor their services according to the specific needs of the clients thus relieving the line managers from their recruitment function. Advertisements This media of recruitment is very popular and commonly used as it reaches out a wide range of people. It can also be targeted at a specific group or a particular geographic area by choosing a specific newspaper, radio channel etc. e.g Business journal. In certain advertisements company name, job description and salary packages are mentioned. There are blind advertisements as well where no identification of the firm is given. These advertisements are published mostly when the organization wants to fill an internal vacancy or planning to displace an existing employee. Trade Associations There are associations that create a database of job seekers and provide it to its members during regional or national conventions. They also publish classified advertisements for employers interested in recruiting their members. Walk in Interview Another upcoming method of recruitment is walk-in interviews. There is no time and meeting schedule for each individual. An advertisement regarding the time and the location of the interview is given in the newspaper. The candidates are required to carry their CVs and directly appear for the interview. It is a very common mode of recruitment amongst BPOs and call centres. Job Fairs Job fairs are an effective way of getting in touch with potential employees and candidates. There are HR hiring managers of various companies under one roof. Information and business cards can be exchanged and resumes can be submitted by the candidates. Employers can spot the right applicants, similarly the applicants can apply in many organizations together, wherever they feel the offer is best and suits their interest. Advantage of External Sourcing  New and young blood enters the organization, which have innovative ideas, new approaches that can help to stir up the existing employees.  It offers a wider pool for selection. Companies can pick up candidates with requisite qualification.  It creates a competitive environment as it helps the existing employees to work harder in order to match the standard that the new employees bring in.  It leads to long term benefits to the organization. Talented pools of people bring along with them new methods of working and new approaches to situations that helps the organization to stay abreast with the competitive world outside. Disadvantage of External Sourcing  It is a time consuming process as it involves attracting the right candidates, screening them, going through a series of tests and interviews etc. When suitable candidates are not available this process has to be repeated again and again.  This process proves to be very expensive for the organization as the companies have to resort to advertisements, hiring consultants etc for attracting the right pool of talent.  It can lower the morale and demotivate the existing employees as they can feel that their services have not been recognized. Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  23  It is less reliable than internal sourcing. Since the organizations hire candidates on the basis of their resumes, tests, interviews etc they may not turn out to be as expected. It may end up hiring someone who ends up being a misfit and may not be able to adjust in the new set up. Selection  Selection is defined as the process of choosing the best-fit candidate from a pool of qualified applicants, based on the candidate’s knowledge, skills, abilities, and other relevant characteristics. – Gatewood, Feild, and Barrick (2015)  The Society for Human Resource Management (SHRM) defines selection as the process of screening job candidates to ensure that the most qualified individuals are hired.  Milkovich and Newman (2017) describe selection as the process of gathering information about job candidates and using that information to make hiring decisions that best meet the needs of the organization. Selection Process Preliminary Interview When a large number of applicants are available, the preliminary interview is desirable for both the company and the applicant. The main objective of such an interview is to screen out undesirable unqualified candidates at the very outset. Application Form It is traditional & widely accepted for serving information from the prospective candidate. Many companies formulate their own style of application form depending upon the requirement of information based on the size of the company, nature of the business activity, type & level of the job. They also formulate different application forms for different jobs at the level. It includes the following items:  Biographical Data: It includes name, present and permanent address, gender, date of birth, marital status, nationality, height, weight and number of dependents. They provide information regarding the applicant’s socioeconomic background, family status & its impact on employee’s behaviour. This information can be used by the management to know the suitability of the candidate.  Educational Attainments: Education (subjects offered and grades secured) training acquired in special fields & knowledge gained from professional/technical institute or evening classes or through correspondence courses.  Work Experience: Previous experience, number of the job held, nature of duties & responsibilities, duration of various assignments, the reason for leaving the previous employer.  Salary: Demanded & other benefits expected.  Personal Items: Association membership, personal likes & dislikes, hobbies.  References: Name & address of previous employer & references. Employment Test They are used to get information about the candidate, which is not available from application blank or interview. They help in matching the characteristics of individuals with a vacant job so as to employ the right type of personnel. Following the type of test are used: Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  24  Intelligence Tests: It is a mental ability test. They measure learning ability, ability to understand instructions and make judgments. They measure several abilities such as memory, vocabulary, verbal fluency, numerical ability, perception.  Achievement Tests: Achievement tests are designed to measure what the applicant can do on the job currently.  For example, Typing test shows typing proficiency, a shorthand test measures the person’s ability to take dictation. They are also known as work sampling tests, wherein a job applicant’s ability to do a small portion of the job is tested. They involve: o Motor-involving physical manipulation of things o Verbal  Aptitude Test: Measures an individual’s potential to learn certain skills-clerical, mechanical, mathematical. These tests indicate whether an individual has the ability to learn a given job quickly and efficiently.  Personality Test: Personality tests measure an individual’s personality factors and the relationship between personality factors and actual job criteria. The personality aspects which are evaluated are as follows – motivation, emotional balance, self- confidence, interpersonal behavior.  Assessment Centre: Assessment center is an extended work sample. It uses groups and individual exercises. A batch of applicants is assessed by a team of 6 to 8 trained assessors. Techniques are: o In baskets o Group Discussions o Business games o Individual Presentation o Structured Interview  Graphology Tests: Analysis of lines, loops, hooks, strokes, curves in a person’s handwriting to assess the person’s personality and emotional makeup.  Polygraph Tests: Also known as lie diction test, records physical changes in the body such respiration, blood pressure and perspiration on a moving roll of paper while answering a series of questions. Suitable for government agencies for filling security, police, fire and health positions.  Issues: Is it possible to prove that the responses recorded by the polygraph occur only because a lie has been told? What about those situations in which a person lies without guilt (pathological liar) or lies believing the response to be true.  Integrity Tests: To measure an employee’s honesty to predict those who are more likely to steal from an employer.  Such questions are generally asked: o Do you carry office stationery back to your home for occasional use? o Do you mark attendance for your colleagues also? o Have you ever told a lie? Employment Interview It is the oral examination of candidates for employment. In this step, the interviewer matches the information obtained about the candidate through various means to the job requirements and to the information obtained through his own observations during the interview. Difference Between Recruitment and Selection Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  25  Recruitment means searching for sources of labor and stimulating people to apply for jobs, whereas selection means selecting of right kind of people for various jobs.  Recruitment is a positive process whereas selection is a negative process.  Recruitment creates a large pool of applicants whereas selection leads to the screening of unsuitable candidates.  Recruitment is a simple process, it involves contracting the various sources of labour whereas selection is a complex and time-consuming process. The candidate has to clear a number of hurdles before they are selected for a job. Types of Interview Non-directive Interview In this, the recruiter ask questions as they come to mind. There is no specific format. The question can take any direction. Patterned Interview The employees follow a predetermined sequence of questions. Questions regarding his technical competence, personality traits, attitudes, motivation, etc. Structural Interview They are fixed job-related questions presented to each applicant. They are asked for a specific job. Panel Interview In this type of interview, the candidate is interviewed by a group of panellists representing the various stakeholders in the hiring process. Within this format, there are several approaches to conducting the interview. Stress Interview It is an interview in which the applicant is made uncomfortable by a series of often rude, annoying or embarrassing questions to test the applicant’s confidence level and ability to stand erect in a difficult situation is put to test. Steps in Interview Process Checking References An applicant may be asked to in the application blank to supply two types of references:  Character references  Experiences references Medical Examination A proper medical examination will ensure a higher standard of health and physical fitness of the employee and will reduce the rate of accidents, labor turnover & absenteeism. The advantages of the medical examination are:  It serves to ascertain the applicants physical Capabilities to meet the job requirement.  It serves to protect the organization against the unwarranted claims under workmen compensation laws or against law suits for damages.  It helps to prevent communicable diseases entering the organization. Job Offer It is made through a letter of appointment. It contains a date by which the appointee must report on duty. Decency demands that the rejected applicants be informed about their non- selection. Performance Appraisal Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  26 According to Dale Yoder, Performance appraisal consists of all formal procedures used in working organizations to evaluate the personalities and contributions and potentials of group members. Methods of Performance Appraisal Rating Scale The typical rating scale system consists of several numerical scales, each representing a job- related performance criterion such as dependability, initiative, output, attendance, attitude, cooperation etc., each scale ranges from excellent to poor. The disadvantage includes the rater’s biases to influence evaluation. Furthermore, numerical scoring gives an illusion of precision that is really unfounded. Checklists Under this method, a checklist of statements on statements on the traits of the employee and his or her job is prepared in two columns i.e., the ‘YES’ column and ‘NO’ column. All that the rater is to do is to tick the ‘YES’ if the answer is positive and tick ‘NO’ if the answer is ‘NO’. The HR dept. gives a point for every “YES’ when points are allotted the technique becomes a weighted checklist.  The advantages are economy, ease of administration, limited training of rater & standardization.  The disadvantage includes improper weights by the HR department. Forced choice Method The rater is given a series of statements about the employee these are arranged in the blocks of two or more, and the rater indicates which statement is most or least descriptive of the employee.  Learns fast———————————————————works hard  Absent often——————————————others usually tardy The HR department does actual assessment.  The advantage is the absence of personal bias in rating.  A disadvantage is that the statement may not be properly framed. Critical Incident Method It focuses on certain critical behaviors of an employee that make all the difference between the effective and non-effective performance of a job. Such incidents are recorded by the superiors as and when they occur.  One of the advantages of this is that the evaluation is based on actual job-behaviour. It also increases the chance that the subordinate will improve because they learn more precisely what is expected of them.  As a disadvantage, negative incidents are generally more noticeable than positive ones. Behaviorally Anchored Rating Scales In this, the scale represents a range of descriptive statements of behavior varying from the least to the most effective. A rater must indicate which behavior on each scale best describes an employee’s performance. BARS the following feature:  Areas of performance to be evaluated are identified and defined by the people who will use the scales.  The scales are anchored by description of actual job behavior that supervisors agree, represent specific level of performance. Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  27  All dimensions of performance to be evaluated are based on observable behaviors and are relevant to the job being evaluated since BARS are tailored made.  Since the raters who will actually use the scale are actively involved in the development process, they are more likely to be committed to the final product.  Unfortunately, this also suffers from distortions inherent in most rating techniques. 360-degree Feedback Where multiple raters are involved in evaluating performance, the technique is called 360- degree appraisal. The 360- degree technique is understood as a systematic collection of performance data on an individual or group, derived from a number of stakeholders include immediate supervisors, team members, customers, peers, and self. Objectives of Performance Appraisal Pay Rise Performance appraisal can be used as a yardstick to decide upon the pay raises and other benefits to be given to an employee. It should be based on employee performance and merit rather than seniority. This keeps the employee motivated. Promotions Since it evaluates the employees on the basis of their merit and performance quality it helps in taking decisions regarding the promotions and job change of the employees. Feedback System It acts as a feedback platform where the employee can be made aware of how well he is performing the job, his strengths and weaknesses can be discussed. Training and Development Program After performance appraisals, gaps between the standards achieved by the employees can be measured. Employees can be informed about the skills they need to develop for improving their current performance or for further promotion or pay raise. Improves Supervision Since performance appraisal happens periodically it becomes important for the supervisor to observe their subordinates closely and continuously so as to give clear and proper feedback at the time of performance appraisal. Career Planning Performance appraisal facilitates career planning for the employees. Their strengths and weaknesses are analyzed and discussed. The areas where they have the potential to grow are identified which helps the management in human resource planning. Healthy and Productive Work Environment Since the achievements and hard work of the employees are identified and awarded there is a sense of satisfaction amongst the workers. They are motivated to achieve higher standards and quality of output in order to gain more appreciation, incentives and bonuses, etc. Improves Communication Performance appraisal is a continuous process. It timely provides a format for dialogue between the supervisor and the subordinate. It gives a platform where they can freely talk about their personal goals and concerns. It helps in improving the relationship and trust between the supervisor and the subordinate. Essentials of Performance Appraisal Reliable Measures Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  28 In order to achieve consistent and valid results and information from a performance appraisal system it is important to use reliable measures to quantify all observations and reports to rate an employee’s performance. Standardization There should be well-defined criteria, appraisal procedures and rating systems to appraise the employees. Just and Fair Employee performance appraisal is done on objective and subjective measures. It should be made sure that there is no bias or favouritism while ratings are decided by the supervisor. Viability The technique should be realistic in terms of its implementation and cost involved. Clear Objective The key to an effective appraisal is the establishment of appraisal objectives behind the performance appraisal being undertaken. Trained Appraisers An effective outcome of the performance appraisal process highly depends on how well is the evaluator or the appraiser is trained in conducting a performance appraisal in an efficient manner. Feedback and Participation The main purpose of performance appraisal is to make the employee aware of his performance levels, strengths and weaknesses, and areas that require improvement. Confidential Appraisal results should be handled as private and confidential information. In order to maintain a healthy competitive atmosphere in the organization, only people with an approved need to know should have access to an employee’s performance appraisal results. Limitations of Performance Appraisal Judgment Errors People commit mistakes while evaluating people and their performance. Biases and judgment errors of various kinds may spoil the show. The bias here refers to the distortion of a measurement. These are of various types: 1. Primacy Effect: The appraiser’s first impression of a candidate may color his evaluation of all subsequent behavior. In the case of a negative primacy effect, the employee may seem to do nothing right; in the case of a positive primacy effect, the employee can do no wrong (Harris, p.192). 2. Halo: The Halo error occurs when one aspect of the subordinate’s performance affects the rater’s evaluation of other performance dimensions. If a worker has few absences, his supervisor might give the worker a high rating in all other areas of work. Similarly, an employee might be rated high on performance simply because he has a good dress sense and comes to the office punctually! 3. Horn effect: The rater’s bias is in the other direction, where one negative quality of the employee is being rated harshly. For example, the rates rarely smile, so he cannot get along with people! 4. Leniency: Depending on the rater’s own mental make-up at the time of appraisal, raters may be rated very strictly or very leniently. Appraisers generally find evaluating others difficult, especially where negative ratings have to be given. Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  29 A professor might hesitate to fail a candidate when all other students have cleared the examination. The leniency error can render an appraisal system ineffective. If everyone is to be rated high, the system has not done anything to differentiate among employees. 5. Central tendency: An alternative to the leniency effect is the central tendency, which occurs when appraisers rate all employees as average performers. For example, a professor, with a view to playing it safe, might give class grades nearly equal to B, regardless of the differences in individual performance. 6. Stereotyping: Stereotyping is a mental picture that an individual holds about a person because of that person’s sex, age, religion, caste, etc. By generalizing behavior on the basis of such blurred images, the rater grossly overestimates or underestimates a person’s performance. For example, employees from rural areas might be rated poorly by raters having a sophisticated urban background, if they view rural background negatively. 7. Recency effect: In this case, the rater gives greater weightage to recent occurrences than earlier performance. For example, an excellent performance that maybe six or seven months old is conveniently forgotten while giving a poor rating to an employee’s performance which is not so good in recent weeks. Alternatively, the appraisal process may suffer due to a ‘spillover effect’ which takes place when past performance influences present ratings. Poor Appraisal Forms The appraisal process might also be influenced by the following factors relating to the forms that are used by raters: 1. The rating scale may be quite vague and unclear. 2. The rating form may ignore important aspects of job performance. 3. The rating form may contain additional, irrelevant performance dimensions. 4. The forms may be too long and complex. Lack of Rater Preparedness The raters may not be adequately trained to carry out performance management activities. This becomes a serious limitation when the technical competence of a rate is going to be evaluated by a rater who has limited functional specialization in that area. Ineffective Organizational Policies and Practices If the sincere appraisal effort put in by a rater is not suitably rewarded, the motivation to do the job thoroughly finishes off. Sometimes, low ratings given by raters are viewed negatively by management – as a sign of failure on the part of the rater or as an indication of employee discontent. If the sincere appraisal effort put in by a rater is not suitably rewarded, the motivation to do the job thoroughly finishes off. Sometimes, low ratings given by raters are viewed negatively by management – as a sign of failure on the part of the rater or as an indication of employee discontent. Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  30 So, most employees receive satisfactory ratings, despite poor performance. Normally, the rater’s immediate supervisor must approve the ratings. However, in actual practice, this does not happen. As a result, the rater ‘goes off the hook’ and causes considerable damage to the rating process. TRAINING According to Edwin Flippo “Training is the act of increasing the knowledge & skill of an employee for doing a particular job.” The following features have been directly associated with improved employee and organizational outcomes: Start with training needs assessment. Identify and communicate purpose, objectives, and outcome. Relevant content. Active demonstration. Opportunities for practice. Regular feedback during training. PROCESS OF TRAINING Assessment of Training Needs: Training needs are those aspects necessary to perform the job in an organization in which employee is lacking attitude/aptitude, knowledge, skill etc. Training need assessment stage includes the following: Organizational analysis. Departmental analysis. Job/Role analysis. Employee analysis. Assessment methods: Organizational requirements. Department requirements Job & employee specifications. Identifying specific problems. Anticipating future problems. Management’s requests. Observation Interviews Group Conferences. Questionnaire surveys. Test or examinations Check lists Performance appraisal Classification of Training objectives: Innovative Anticipating problems before they occur. Team building sessions with the department Problem Solving Training clerks to reduce complaints Training supervisors in communications to reduce grievances. Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  31 Regular Orientation Recurring training of interviewers. Refresher courses on Training procedures Developing Training policy and plan: After assessing training needs for the organisation, training and development objectives are to be established. These objectives are essential for designing training programs. Objective can help in measuring the training programmes effectiveness. Such objective should be tangible and measurable. It is easy to evaluate skills in terms of results, etc. But not in case of behavioral objectives. However, some behaviour standards can be planned and then evaluated. Designing Training programmes: Design of training program should focus on i. Instructional objectives ii. Principles of learning and teaching iii. Principles of training iv. Characteristics of instructor v. Content of the program The training programme will consist of the following steps: Responsibility for Training Selection and motivation of the trainees. Preparation of trainer. Training material. Training period. Performance tryout. Follow up Conducting or Implementation of Training programmes: It is the responsibility of the instructor to implement the training programme by choosing an appropriate method of training: Training Methods Evaluation of Training: It has been defined as “any attempt to obtain information on the effects of training performance and to assess the value of training in the light of that information Methods of Training: On-the-job Training Method and Off-the-Job Methods Management development is a systematic process of growth and development by which the managers develop their abilities to manage. It is concerned with not only improving the performance of managers but also giving them opportunities for growth and development. There are two methods through which managers can improve their knowledge and skills. One is through formal training and other is through on the job experiences. On the job training is very important since real learning takes place only when one practices what they have studied. But it is also equally important in gaining knowledge through classroom learning. Learning becomes fruitful only when theory is combined with practice. Therefore on the job methods can be balanced with classroom training methods (off-the-job methods). Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  32 1. On-the-job Training (OJT) Methods: This is the most common method of training in which a trainee is placed on a specific job and taught the skills and knowledge necessary to perform it. The advantages of OJT are as follows: 1. On the job method is a flexible method. 2. It is a less expensive method. 3. The trainee is highly motivated and encouraged to learn. 4. Much arrangement for the training is not required. On-the-job training methods are as follows: 1. Job rotation: This training method involves movement of trainee from one job to another gain knowledge and experience from different job assignments. This method helps the trainee understand the problems of other employees. 2. Coaching: Under this method, the trainee is placed under a particular supervisor who functions as a coach in training and provides feedback to the trainee. Sometimes the trainee may not get an opportunity to express his ideas. 3. Job instructions: Also known as step-by-step training in which the trainer explains the way of doing the jobs to the trainee and in case of mistakes, corrects the trainee. 4. Committee assignments: A group of trainees are asked to solve a given organizational problem by discussing the problem. This helps to improve team work. 5. Internship training: Under this method, instructions through theoretical and practical aspects are provided to the trainees. Usually, students from the engineering and commerce colleges receive this type of training for a small stipend. 2. Off-the-job Methods: On the job training methods have their own limitations, and in order to have the overall development of employee’s off-the-job training can also be imparted. The methods of training which are adopted for the development of employees away from the field of the job are known as off-the-job methods. The following are some of the off-the-job techniques: 1. Case study method: Usually case study deals with any problem confronted by a business which can be solved by an employee. The trainee is given an opportunity to analyse the case and come out with all possible solutions. This method can enhance analytic and critical thinking of an employee. 2. Incident method: Incidents are prepared on the basis of actual situations which happened in different organizations and each employee in the training group is asked to make decisions as if it is a real-life situation. Later on, the entire group discusses the incident and takes decisions related to the incident on the basis of individual and group decisions. 3. Role play: In this case also a problem situation is simulated asking the employee to assume the role of a particular person in the situation. The participant interacts with other participants assuming different roles. The whole play will be recorded and trainee gets an opportunity to examine their own performance. 5. In-basket method: The employees are given information about an imaginary company, its activities and products, HR employed and all data related to the firm. The trainee (employee under training) has to make notes, delegate tasks and prepare schedules within a specified time. This can develop situational judgments and quick decision making skills of employees. 6. Business games: According to this method the trainees are divided into groups and each group has to discuss about various activities and functions of an imaginary Dr. Aneesya Sharma, Associate Prof. IBM, GLAU Mathura  33 organization. They will discuss and decide about various subjects like production, promotion, pricing etc. This gives result in co-operative decision making process. 7. Lectures: This will be a suitable method when the numbers of trainees are quite large. Lectures can be very much helpful in explaining the concepts and principles very clearly, and face to face interaction is very much possible. 8. Simulation: Under this method an imaginary situation is created and trainees are asked to act on it. For e.g., assuming the role of a marketing manager solving the marketing problems or creating a new strategy etc. 9. Management education: At present universities and management institutes gives great emphasis on management education. For e.g., Mumbai University has started bachelors and postgraduate degree in Management. Many management Institutes provide not only degrees but also hands on experience having collaboration with business concerns. 10. Conferences: A meeting of several people to discuss any subject is called conference. Each participant contributes by analyzing and discussing various issues related to the topic. Everyone can express their own view point. Leadership The process of influencing the behaviour of people towards achievement of organisational goals is known as Leadership. It indicates the ability of an individual to maintain good interpersonal relations with followers and motivate them to contribute to achieving organisational objectives. An individual who has the attributes of leadership is known as a leader. “Leadership is the activity of influencing people to strive willingly for group objectives”. – George Terry “Leadership is the art or process of influencing people so that they will strive willingly and enthusiastically towards achievement of group goals”. – Koontz and Weihrich “Leadership is a set of interpersonal behaviour designed to influence employees to cooperate in the achievement of objectives”. – Glueck Types of Leadership Styles The process of influencing the behaviour of people towards the achievement of organisational goals is known as Leadership. It indicates the ability of an individual to maintain good interpersonal relations with followers and motivate them to contribute to achieving organisational objectives. An individual who has the attributes of leadership is known as a leader. The behaviour pattern which is reflected by a leader in his role is known as the Leadership style. It is the result of the philosophy, personality, experience, and value system of a leader. The type of followers and the atmosphere prevailing in the organisation also affect leadership styles. 1. Autocratic Leadership or Authoritative Leadership The leadership style under which a leader centralises all decision-making powers and exercises full control over his subordinates is known as Autocratic or Authoritative leadership. The leader here gives