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Organisation & Staffing

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1 Organisation & Staffing
UNIT 4 Organisation & Staffing

2 Are we a group of people working together for the same objective??
MEANING WHAT 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.

3 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

4 Formal & Informal Organisation
In a formal organisation the position, authority, responsibility, accountability of each level are clearly defined. Informal organisation arises from the personal and social relations of the people not established by any formal authority

5 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.

6 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)

7 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

8 Steps in Organisation The 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

9 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

10 Characteristics of Organisation
Division of work Co-ordination Common objectives Co-operative relationship Well- defined Authority-responsibility relationships

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

12 Foreman shipping and receiving
Line organizations The flow of work in a line organisation: Line organisation Departmental line organisation Pure line organisation Production manager Foreman assembly shop Foreman shipping and receiving Machine shop workers workers workers

13 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.

14 Departmental line organisation
General manager Marketing manager Personnel manager Production manager Finance manager Deputy manager Deputy manager supervisor supervisor supervisor supervisor

15 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

16 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

17 Features of functional organization
Taylor 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.

18 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.

19 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.

20 Line and staff organisation
Board of directors Chief Executive Assistant Assistant Finance manager Production manager Sales manager Personnel manager Foreman III Foreman II Foreman I Workers Workers Workers

21 Features of line and staff organisation
It 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.

22 Committee form of organisation
A 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

23 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.

24 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

25 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

26 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

27 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

28 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 Departmentation Functional Departmentation Product Departmentation Territorial or geographical Departmentation Customer wise Departmentation Process or equipment wise Departmentation

29 Functional Departmentation
Chief Executive Production Purchase Sales Marketing Finance

30 Product wise Departmentation
Chief Executive Television Radio Computers

31 Territorial or Geographical Departmentation
Chief Executive Manager Manager Manager North Zone South Zone East Zone

32 Customer wise Departmentation
Chief Executive Businessmen Professionals Students

33 Process or Equipmentwise Departmentation
Chief Executive Manager Manager Manager Spinning Weaving Dyeing & Printing

34 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

35 Process of selection It 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

36 Instruments of Staffing
Interview 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.

37 Instruments of Staffing
Tests Proficiency 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.


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