This document discusses organizing and staffing in organizations. It covers topics like organization categories, the organizing process, principles of organizing, departmentalization, span of management, authority, responsibility, delegation, decentralization, and staffing functions. The key points are:
1. Organizing involves identifying and grouping work, delegating responsibility, and establishing relationships to enable effective teamwork.
2. There are four categories of organizations - those that benefit owners, members, clients, and society.
3. The staffing process involves recruiting, selecting, and placing the right employees in jobs, as well as inducting new hires.
4. Effective delegation and decentralization of authority are important but must be
2. ORGANIZATION
Allen defines the term as the process of identifying and
grouping of the work to be performed, defining and
delegating responsibility and authority and establishing
relationships for the purpose of enabling people to work
most effectively together in accomplishing their
objectives.
3. ORGANIZATION CATEGORY
1. Organizations which benefit their owners. All business
organizations fall in this category.
2. Organizations which benefit their members. A wide
class of unions, cooperatives and clubs come under
this category.
3. Organizations which benefit their clients. Examples
are insurance companies, private schools etc.
4. Organizations which benefit the whole society
(commonwealth organizations) such as governmental
departments, the armed services and the police.
4. PROCESS OF ORGANIZING
1. Consideration of objectives
2. Deciding organizational boundaries
3. Grouping of activities into departments
4. Deciding which departments will be key departments
5. Determining levels at which various types of decisions
are to be made
6. Determining the span of management
7. Setting up a coordination mechanism
5. PRINCIPLES OF ORGANIZING
Objectives specialization
Span of control Management by
exception
Scalar principle Unity of command
Delegation Responsibility and
authority
Efficiency Unity of direction
Personal ability Acceptability
Balance
6. SPAN OF MANAGEMENT
The term “Span of management” is also referred to as span
of control, span of supervision, span of authority or span of
responsibility. It indicates the number of subordinates who
report directly to a manager. According to Hamilton, the
ideal number of subordinates is 3 to 6. on the other hand,
some experts (e.g., J.C. Worthy) believe that a manager can
effectively manage as many as 20 subordinates. Ernest Dale
in his study of 100 large companies has found that the
median number of executives reporting to company
presidents is 8 and in some cases there are as many as 20 or
more.
7. FACTORS GOVERNING THE
SPAN OF MANAGEMENT
•Ability of the manager
•Ability of the employees
•Type of work
•Well-defined authority and responsibility
•Geographic location
•Sophisticated information and control system
•Level of management
•Economic considerations
9. TYPES OF
DEPARTMENTALIZATION
1. Process Departmentalization
a. Business or organizational functions
b. Technology
2. Purpose Departmentalization
a. Products
b. Customers
c. Regions, territory or location
d. Division
e. Time
f. Combine base
10. CHOICE OF A SUITABLE BASE
•Specialization
•Coordination
•Economy
•Whole task
11. ORGANIZATION STRUCTURE
An organization structure is more or less permanent
arrangement of the parts of a whole, permanent
arrangement of its horizontal and vertical parts. The
horizontal parts are made of different departments. The
vertical parts are made of a number of levels from top to
bottom. Authority flows downward along these levels.
12. ORGANIZATION STRUCTURE
ENABLES:
•To undertake a wide variety of activities according to
departmentalization of tasks and functions,
•Coordinate activities through various coordinating
mechanisms,
•Define boundaries of their organization and its interfaces
with the environment and other organizations with which
it must react, and
•Acquire, store, interpret and use information to be able to
react with flexibility to changing environmental demands.
13. WHAT TYPE OF
STRUCTURE IS BEST?
Environment, Culture and history, Task, Technology,
Strategy, Size, Span of control, Form, Availability of
finance and personnel, Managerial characteristics and
Employee characteristics
17. RESPONSIBILITY
Responsibility if the obligation of a subordinate to obey
commands. Thus, when a superior assigns some work to a
subordinate, it becomes his responsibility to perform it.
18. Delegation of authority
Louis A. Allen, “ if the manager requires this
subordinate to perform the work, he must
entrust him with part of the rights and powers
which he otherwise would have to exercise
himself to get that work done”
19. ADVANTAGES OF EFFECTIVE
DELEGATION
•It relieves the manager of his heavy workload
•It leads to better decisions
•It speeds up decision making
•It helps train subordinates and builds morale
•It serves as compensation to those employees who face the
prospect of limited advancement
•It helps create a formal organization structure
20. BARRIERS TO EFFECTIVE
DELEGATION
On manager’s side:
•Fear of loss of power
•The “I can do it better myself” fallacy
•Lack of confidence in subordinates
•Fear of being exposed
•Difficulty in briefing
•Inability to establish and exercise proper controls
21. ON SUBORDINATES SIDE:
•Fear of criticism by their superior
•Lack mental and physical ability,adequate informationa
nd resources
•Authority is inconsistent with the purposes of the
organization
•No positive personal gains
•Outside certain limits or unacceptable
22. DECENTRALIZATION OF
AUTHORITY
In the words of Fayol, “Everything that goes to increase
the importance of the subordinate’s role is
decentralization and everything that goes to reudce it is
centralization.”
23. DISTINCTION BETWEEN
DELEGATION AND
DECENTRALIZATIONDelegation Decentralization
It is a process. It is the end result of
delegation.
Superior continues to be
responsible for the work
delegated to his
subordinates.
Superior is relieved from
his responsibility for the
work decentralized and the
subordinate becomes liable
for that.
It is vital and essential to
the management process.
It is optional.
24. FACTORS DETERMINING THE
APPROPRIATE
DECENTRALIZATION FOR AN
ORGANIZATION ARE:
•Size of the organization
•History and age of the organization
•Philosophy of top management
•Abilities of lower level managers
•Strategy and the organization's environment
•Nature of management function
•Available control
•Costliness and significance of decisions
25. STAFFING
“The managerial function of staffing involves manning the
organisational structure through effective and proper
selection, appraisal, and development of personnel to fill
the roles designed into the structure.” — Koontz and
O’Donnell
26. IMPORTANCE OF STAFFING
1. It helps in discovering talented and competent workers
and developing them to move up the corporate ladder.
2. It ensures greater production by putting the right man
in the right job.
3. It helps to avoid a sudden disruption of an enterprise’s
production run by indicating shortages of personnel, if
any, in advance.
4. It helps to prevent underutilization of personnel
through over manning and the resultant high labor cost
and low profit margins.
27. STAFFING FUNCTION
1. People centered
2. Responsibility of every manager
3. Human skills
4. Continuous function
28. RECRUITMENT
According to Dalton E. McFarland, it is the process of
attracting potential employees to the company.
Sources of Recruitment:
Re-employing former employees, friends and relatives of
present employees, college and technical institutions,
employment exchanges, advertising the vacancy and
labour unions.
29. SELECTION
Stone defines, ‘Selection is the process of differentiating
between applicants in order to identify (and hire) those
with a greater likelihood of success in a job’.
Selection process:
1. Application blank
2. Initial interview of the candidate
3. Employment tests
4. Checking references
5. Physical or medical examination
6. Final interview
30. PLACEMENT
The process of placing the right man on the right job is
called placement.
Induction:
It is the process of acclimatizing a new employee to the
new social setting of his work. This should take into
account these two:
1. Familiarizing the new employee with his new
surroundings, and company rules and regulations; and
2. Developing in him a favorable attitude towards the
company.
31. SOURCES OF RECRUITMENT
IN INDIA
1. Internal sources
2. External sources
a. Badli workers
b. Employment exchanges
c. Advertisement in newspapers
d. Labor contractors and outsourcing
e. Technical and other institutes
f. Relations of existing employees
g. Walk-in interviews
h. Employee referrals
i. Bureau of public enterprises, poaching or head-hunting and
advertisement on the net.