Organisation & StaffingUNIT 4

MEANINGWHAT ARE WE DOING??

Is our objective the same??

Are we a group of people working together for the same objective??

IF YES

Then we are an organisation.

Meaning & Definition•Organisations are economic and social entities in which a number of persons perform multiple tasks in order to attain common goals. They are also instruments that may help an individual accomplish personal objectives, that a person cannot achieve alone.

• The goal or purpose may vary from ogranisation to organisation. They set goals in the form of planning and try to achieve these goals by acquiring and allocating the resources.

•It’s a an activity which involves team work of people involved in designing, manufacturing, marketing etc,,

• Each of these activities become an organisation.

Organisations are usually formed to satisfy objectives, ‘that can best be met collectively’ - Argyris

Formal & Informal OrganisationIn a formal organisation the position,

authority, responsibility, accountability of each level are clearly defined. Informal organisation arises fromthe personal and social relations of the people not established byany formal authority

Formal Organisation• Prescribed structure of roles and relationships towards

a common objective• Goals and tasks oriented towards productivity,

profitibility, growth etc,,• It is hierarchical• Superior- subordinate relationship• People are rewarded for desired behaviour and

punished for their undesirable behaviour.• In a formal organisation the position, authority,

responsibility, accountability of each level are clearly defined.

InFormal Organisation• There is no structure of roles and

relationships.• People generally associate with informal

groups beacuse of common interests• There is no hierarchy, authority etc,,• Sense of belonging• Important channel of communication• Less supervision• Rumors (Grapevine)

Importance of Organisation• Helps in administration• Promotes growth and diversification• Easy co-ordination• Training and development of personnel• Encourages initiatives• Better HR• Communication• Job satisfaction• Creative thinking

Steps in OrganisationThe first step in organisation design is analysis of present and future circumstances and environmental factors. It includes the following aspects

Extrenal Environment: :Social, Technical, Economic, Political, International & natural

Overall aims and purpose of the enterprise: Survival, growth, profit, wealth etc,

Activities: Assessment of the work to be done if for achieving objectives

Decisions: Horizontal vertical

Relationships: View point of communication

Organisational Structure: Grouping of activities, span of management, levels

Job Structure: Job design, analysis, description, specification etc,,

Organisational Climate: Working atomsphere, includes teamwork, co-confidence & trust

Management Style: Different kinds of leadership

Human Resource: Skill, knowledge, commitment, aptitude, etc

Characteristics of Organisation

• Division of work• Co-ordination• Common objectives• Co-operative relationship• Well- defined Authority-responsibility relationships

Types of organization• Line organizations• Functional organizational• Line and staff organization• Committee form of organisation

Line organizationsThe flow of work in a line organisation:

Line organisation

Machine shop

workers

Foreman assembly shop

workers

Foreman shipping and receiving

workers

Pure line organisation

Production manager

Departmental line organisation

Features of line organisation

• Authority flows vertically downwards in unbroken straight line.• Simplest and oldest types of organisation• Simple to understand and adopt• Scalar chain- every person is in charge of all the persons under

him and he is accountable to his superior.• Unity of command /military type of structure.• Authority decreases on moving down.

Departmental line organisation

General manager

Finance manager

Production manager

Marketing manager

Personnel manager

Deputy manager

Deputy manager

supervisor supervisor supervisorsupervisor

Features of Departmental Line Organisation

• It divides the organisation into different departments which are convenient for control purposes.

• Line of authority flows from top to bottom.• Different depart are put under control of departmental

managers.• Every department has its own line of organisation• Departmental mangers are equal in status and authority

Functional Organisation

Board of Directors

Chief executive

Works manager

Production Supervisor

Route inspection time disciplinenarian

Clerk card clerk clerk

Gang boss repair boss speed boss inspector

boss

Office specialists Shop specialist

Features of functional organizationTaylor suggested the division of supervisory functions into two groups.

Office specialists – they are concern with the design, scheduling , recording and planning of work.

• Route clerk – is responsible for planning the route from which work will pass from machine to machine.

• Instruction card clerk – they records instructions for doing every piece of work.

• Time and cost clerk – he lays down the standard time for completing particular work.

• Disciplinarian – he ensures the implementation of various rules and regulation.

Shop specialist – they guide and supervise the work in the factory

•Gang boss – he should arrange machines and tools at the work.

•Speed boss – he determine the speed at which work should go on.

•Repair boss – the duty of repair boss is to ensure that machine and tools are maintained in proper condition

•Inspector – the inspector ensures that the work is done according to the prescribed standards and qualities.

Staff or functional organisation

• All activities are grouped together according to certain function like production, marketing, finance, personnel etc. are put under charge of a person controlling that particular function.

• The person in charge is specialist in it and brings out best in himself.

Line and staff organisation

Board of directors

Chief Executive

Assistant Assistant

Personnel manager

Finance manager

Production manager Sales manager

Foreman IForeman II Foreman III

Workers Workers Workers

Features of line and staff organisationIt is a blend of line and staff organisations.

Types of staff

– Specialist staff – they are technically qualified persons who provide service to whole organisation. They serve line and other staff in planning , organisation, organizing and co-coordinating their work.

– Personnel staff – personnel staff is attached individual line officers they help their bosses in every possible way

– General staff – this staff consists of persons attached to the key executive. They may be appointed as deputy managers, assistant managers , special assistants.

Committee form of organisationA number of person may come together to take decision, decide a course of action, advise line officers on some matters , it is committee forms of organisation.

Types of committee Formal and informal committees Advisory committees Line committees

Centralization and decentralization • It refers to the location of decision making power.

• If the power to take decisions vests in one person at the top it will be a case of centralization, on the other hand if the decision making power is dispersed among many persons it will a case of decentralization.

Centralization • It is common practice in small enterprises. It means

concentration of decision-making power at the top hierarchy of management.

• Middle level of management perform operative functions.

• Lower level of management operate under the direct command , direction and control of the top level management. Thus it reduces the power of the subordinates.

• It facilitates uniformity of action , policies and practice at all level.

• Promotes personnel leadership skills of top managers

Decentralization

• It implies the dispersion of decision making power at lower levels of management.

• Diversification of activities , product expansion make decentralization necessary.

• It relieves the top managers from excessive workload• Improved decision making and helps in developing future

executive.• Motivates employees and develop sense of competition among

different department• Lack of co-ordination, difficulty in control and lack of able

manager can be the disadvantage

Span of control

It is also called ‘span of management’ which refers to the number of subordinates a manger can effectively supervise

In the words of Spriegal ,”span of control means the number of people reporting directly to an authority.’

• Wider span of supervision• Narrow Span of supervision

Factors determining span of control• Ability of superior – leadership , decision making ability and

communication skill

• Nature of work – repetitive work the span of control can be wider.

• Ability of the supervisor – for well trained ,experience, competent , dynamic subordinates span can be wider

• Levels of management – higher management the span can be narrower

• The degree of decentralization

• Effectiveness of the System of communication

• Degree of physical dispersion

• Assistance of experts

Departmentation

It is the process of grouping various activities into separate units of departments. A department is a distinct section of the business establishment concerned with a particular group of business activities of like nature.Methods and basis of DepartmentationFunctional DepartmentationProduct DepartmentationTerritorial or geographical DepartmentationCustomer wise DepartmentationProcess or equipment wise Departmentation

Functional Departmentation

Chief Executive

Production Purchase Sales

Marketing Finance

Product wise Departmentation

Chief Executive

Television Radio Computers

Territorial or Geographical Departmentation

Chief Executive

Manager Manager Manager North Zone South Zone East Zone

Customer wise Departmentation

Chief Executive

Businessmen Professionals Students

Process or Equipmentwise Departmentation

Chief Executive

Manager Manager Manager Spinning Weaving Dyeing & Printing

Staffing Meaning: Staffing which is one of the managerial functions, is concerned with assessment of the manpower requirement, recruitment and selection of personnel and periodic appraisal of the performance of the personnel.

Definition: “The management function of staffing involves managing the organisation structure through proper and effective selection, appraisal and development of personnel to fill the roles designed into the structure. -Koontz & O’ Donnell

“The process involved in identifying, assessing, placing, evaluation and directing individuals at work.” - S. Benjamin

Process of selectionIt consist of series of methods or step or stages by which additional information is secured about an applicant.•Receipt and scrutiny of applicants•Preliminary interview•Blank application form•Tests•Interview•Checking references•Final selection•Physical examination•Placement and orientation

Instruments of StaffingInterview•Preliminary interview - It is the first occasion when applicants come into contact with company officials.

•Structured interview : It is basically a planned interview. It has a format of question which are prepared before the interview to screen the candidate.

• Free interview : It is a unstructured interview , it has no planned format. The person is asked to express his view on certain topics.

•Action interview : This is a semi-structured interview : question are asked to check knowledge about subject studied, previous job experience to asses the potentiality of the candidate.

• Panel interview :This type of interview involve group of expert ask question to the candidate to judge his competency.

•Stress interview: This interview is conducted to check how candidate behave in critical situation.

Instruments of StaffingTestsProficiency test:• Achievement test : to check the skill or training of the applicant his ability to perform

•Dexterity test: To check how effectively hands can be used

Aptitude test•Intelligence tests : This test is done to check the I.Q level of the candidate.

•Personality test : This test is done generally by the company to identify the behaviour , attitude and personality of the candidate

•Interest test : This test is important in identifying the interest of the candidate , which further help in job placement.