organization and staffing linux

8/4/2019 Organization and Staffing Linux

http://slidepdf.com/reader/full/organization-and-staffing-linux 1/39

Chapter 5

Organization & Staffing



Louis A. Allen:

Organization is the process ofidentifying and grouping the work to be performed,defining and delegating responsibility and

authorityand establishing relationship

for the purpose of enabling people to workmost effectively together in accomplishing

objectives.

Organization



Facilitates administration

Facilitates growth and diversification

Permits optimum use of resources

Stimulate creativity

Encourages humanistic approach

Importance of Organization



Principle of

ObjectiveSpecialization

Co-ordinationAuthority & Responsibility

Definition

ControlBalance Continuity

Uniformity Command

Exception Simplicity Efficiency

Scalar Principle

Principles of Organization (14)



Division of work

Grouping of activities

Allotment of duties

Delegation of authority

Steps in Organization



An organizational chart is a diagram that shows the

structure of an organization and the relationships and

relative ranks of its parts and positions/jobs.

3 types of Orgl. Charts

Vertical

Horizontal

Circular

Organization Chart & Types of charts



Vertical Organization Chart

Board of Directors

Chief Executive

VP Marketing VP Human Resource

Mgr. South Mgr. NorthMgr. Recruitment Mgr. Trainin

Exec.Sales

Exec.Mktg

Exec.Sales

Exec.Mktg

Exec.Recruitment

Exec.Training



horizontal Organization ChartBoa

rd

of

Direct

ors

C

hief E

xecutiv

e

VPMktg

Mgr. South

Mgr. North

Mgr. Recruitment

Mgr. Training

Exec. Sales

Exec. Recruitment

Exec. Training

VPHR

Exec. Mktg

Exec. Sales

Exec. Mktg



Circular Organization Chart

Board ofDirectors

VP Mktg

VPHR

VP Fin

Chief Executive



Formal vs Informal

Vertical vs Horizontal

Line Organization

Functional Organization

Line and Staff

Committee

Matrix

Types of Organization structure



Formal Organization

Formal organization is a fixed set of rules of intra-organization procedures andstructures. It is usually set out in writing, with a language of rules that leave

little discretion for interpretation .

It is a structure of well defined jobs, each bearing a definite measure of authorityresponsibility and accountability. Every member is responsible for theperformance of a specified task assigned to him on the basis of authorityresponsibility relationship in an organization.

Well defined rules and regulation

Determined objectives and policies

Limitation on the activities of the individual

Strict observance of the principle of co-ordination

Messages are communicated through scalar chain Easily understood and explained

Critical for dealing with situations that are known and consistent



Informal Organization

Informal organization refers to the relationship between people in anorganization based on personal attitudes, emotion, likes and dislikes etc.These relations are not developed according to procedures and regulationlaid down in the formal organization.

Dynamic and responsive

Excellent at motivation

Resistance to change

Treats people as individuals

Promote communication among members

Role conflict

Difficult to pin down

Essential for situations that change quickly or are not yet fully understood

Fills gap in management ability



Advantages – Informal Org.1. To employees

(i) Sense of belongingness

(ii) Value for emotional problems:

(iii) Aid on the job

(iv) Innovation and originality: By enabling members to modify the jobsituation more to their liking, the informal organizationcreates the necessary environment for individual innovationand originality. The individual can experiment with his ideas.

(v) Important channel of communication: They are transmitters and receiverof information before it is officially released.

(vi) Check on authority

2. To management

(i) Less supervision

(ii) An aid to management

Di d t I f l O



Disadvantages - Informal Org.

– Resistance to change

– Role conflict

– Subordination of Group interest to individual interest

– Rumour / Grapevine communication

– Group think philosophy: Workers become loyal to theirgroups.



Vertical (tall): T hese structures are hierarchical, with

graduating levels of responsibility and power in one directionand diminishing levels of autonomy and authority in the other.

Vertical structure can be efficient because there is ultimatelyone point of authority to make decisions and execute initiatives

Horizontal (Flat): is the level distribution of power.

Horizontal organizational structure allows each individual shapethe company in which he works. It deemphasizes the value ofpower and underlines the value of collaboration.

Vertical & Horizontal

Advantages & Disadvantages of



Benefits

Better at designating tasks to employees or departmentsHave well-defined responsibilities for employeesEasier to manage.

DisadvantagesDependent on a strong leader at the top. Weak upper

management means that each successivehierarchical structure will get frustrated by poordecision making by the superior.

Lack of transparency

Advantages & Disadvantages ofVertical

Advantages & Disadvantages of



Benefits

Tend to have the best employee moraleCosts less to run a horizontal company because managers

cost more than rank-and-file employees.

DisadvantagesHarder to implement than vertical companiesEmployees may be less sure about their roles and

responsibilitiesManagers can be frustrated by their lack of authority.

Advantages & Disadvantages ofHorizontal

Li O i ti



Line Organization

1. Simplest form of organization.

2. Line of authority flows from top to bottom.

3. Specialized and supportive services do not take

place in these org.

4. Unified control by the line officers can bemaintained since they can independently takedecisions in their areas and spheres.

M it f Li O i ti



Merits of Line Organization

1. Simplest

2. Unity of Command

3. Better discipline4. Fixed responsibility

5. Prompt decision

D it f Li O i ti



Demerits of Line Organization

1. Over reliance

2. Lack of specialization

3. Inadequate communication. There is one way

communication. Wrong decisions might beimplemented.

5. Autocratic leadership- misuse of authority andmonopoly.



1. The entire organizational activities are divided intospecific functions such as operations, finance,marketing and personal relations.

2. Each functional area is put under the charge offunctional specialists and he has got the authority togive all decisions regarding the function whenever thefunction is performed throughout the enterprise.

3. Principle of unity of command does not apply to suchorganization as it is present in line organization.

Functional (staff) Organization



1. Specialization

2. Effective Control- Management control issimplified as the mental functions areseparated from manual functions.

Specialists may be asked to judge theperformance of various sections.

3. Efficiency

4. Economy

Merits of Functional Org.



1. Confusion

2. Lack of Co-ordination- as there is no unityof command.

3. Difficulty in fixing responsibility- Because

of multiple authority.

4. Conflicts- among the supervisory staff ofequal ranks. They may not agree on certainissues.

5. Costly

Demerits of Functional Org.

L d ff



–

The whole organization is divided into differentfunctional areas to which staff specialists areattached.

– There are two lines of authority which flow at onetime in a concern:

1. Line Authority2. Staff Authority

– Power of command remains with the line executive andstaff executive serves only as counselors.

Line and Staff Organization

Merits of Line and Staff Organization



– Relief to line executives- Advice and counseling isprovided by staff executive. Hence line executives can

concentrate on the execution of plans.

– Expert advice by the staff specialist.

–

Benefit of Specialization

– Benefits of Research and Development

– Training- Presence of staff specialists serves as groun

for training to line officials.

– Unity of action

Merits of Line and Staff Organization

Demerits of Line and Staff Organization



– Line and staff conflicts

– Costly

– Assumption of authority

– Staff steals the show- In a line and staffconcern, the higher returns are considered tobe a product of staff advice and counseling.

Demerits of Line and Staff Organization

C itt f f O i ti



Committee form of Organization

M t i f f O i ti



Matrix form of Organization

M h d (b i ) f d i



Methods (basis) of departmentation

C li i & d li i



Centralization & decentralization



Span of management

Span of control is a span of supervision whichdepicts the number of employees that can be

handled and controlled effectively by a singlemanager.

Types of span of control



Types of span of control

Narrow span of control: Manager supervises a selected number of employees at one time.

The features are:-1. Work which requires tight control and supervision, for example, handicrafts, ivory work, etc. which

requires craftsmanship, there narrow span is more helpful.

2. Co-ordination is difficult to be achieved.

3. Communication gaps can come.

4. Messages can be distorted.

5. Specialization work can be achieved.

1. Wide span of control- one manager can effectively and efficiently handle a large number of subordinatesone time.

The features of this span are:-

1. Less overhead cost of supervision

2. Prompt response from the employees

3. Better communication

4. Better supervision

5. Better co-ordination

6. Suitable for repetitive jobs

Factors influencing span of control



Factors influencing span of control

Managerial abilities

Competence of subordinates

Nature of work

Delegation of authorityDegree of decentralization

Staffing



Staffing

• Filling & Keeping filled, positions in the

organization

• The process by which an organization creates apool of applicants and makes a choice from that

pool to provide the right person at the right place athe right time to increase the organizationaleffectiveness.

•

The selection and training of individuals forspecific job functions, and charging them withthe associated responsibilities.

HR Planning - STEPS



HR Planning STEPS

DemandForecasting

Inventory

Analysis andSupply

Forecasting

Reconciliation Cost – Benefitanalysis

Implementaand contro

Recruitment & Selection



Recruitment & Selection

Recruitment – process of searching for

prospective employees and stimulatingthem to apply for jobs in the organization.

Selection – Process of choosing duly qualifiedpersons according to the requirement of the

job.

Factors affecting Recruitment



Factors affecting Recruitment

•Size of Organization

• Salary structure and working

conditions

• Rate of growth of the organization

• Employment conditions in thecountry

Sources of Recruitment



Internal Sources

•

Transfers

•Promotions

•Reference from present employees

External Sources

•Advertisement

•Employment exchanges

•Educational institutions

•Unsolicited applications

•Placement agencies

•Labour contractors

•Data banks

•Competitors

Steps in Selection



Steps in Selection

Receipt & Scrutinyof application

PreliminaryInterviewBlank Applicationform

TestsInterviews

Reference

Check

FinalSelection

PhysicalExamination

Placement &Orientation

organization and staffing linux

Documents