ORGANIZATION AND MANAGEMENT Not Final
ORGANIZATION AND MANAGEMENT Not Final
ORGANIZATION AND MANAGEMENT Not Final
2.2-d Harold Koontz and Cyril O’Donnell In 1976, Harold Koontz and Cyril O’Donnell published an essay
Management: A Systems and Contingency Analysis of Managerial Functions. They felt the previous studies have been
effective in describing the functions, but believed the division should be more detailed. Koontz and O’Donnell
believed there to be five key functions of management: Planning, Organizing, Staffing, Directing/Leading,and
Controlling. These five functions of management have become perhaps the most cited and they are explained
further in the following section. Overall, the quick outlook would hopefully have highlighted the alignment of the
functions of management in different management theories.
3.1 Functions, roles, and skills of a manager
Managers just don't go out and haphazardly perform their responsibilities. Good managers discover how to master
3-1a five basic functions: planning, organizing, staffing, leading, and controlling.
3-1a-1 Planning: This step involves mapping out exactly how to achieve a particular goal. Say, for example, that the
organization's goal is to improve company sales. The manager first needs to decide which steps are necessary to
accomplish that goal. These steps may include increasing advertising, inventory, and sales staff. These necessary
steps are developed into a plan. When the plan is in place, the manager can follow it to accomplish the goal of
improving company sales.
3-1a-2 - Organizing: After a plan is in place, a manager needs to organize her team and materials according to her
plan. Assigning work and granting authority are two important elements of organizing.
3-1a-3 - Staffing: After a manager discerns his area's needs, he may decide to beef up his staffing by recruiting,
selecting, training, and developing employees. A manager in a large organization often works with the company's
human resources department to accomplish this goal.
3-1a-4 - Leading: A manager needs to do more than just plan, organize, and staff her team to achieve a goal. She
must also lead. Leading involves motivating, communicating, guiding, and encouraging. It requires the manager to
coach, assist, and problem solve with employees.
3-1a-5 - Controlling: After the other elements are in place, a manager's job is not finished. He needs to continuously
check results against goals and take any corrective actions necessary to make sure that his area's plans remain on
track. All managers at all levels of every organization perform these functions, but the amount of time a manager
spends on each one depends on both the level of management and the specific organization.
3-2 If Roles performed by managers a manager wears many hats. Not only is a manager a team leader, but he or she
is also a planner, organizer, cheerleader, coach, problem solver, and decision maker — all rolled into one. And these
are just a few of a manager's roles.
In addition, managers' schedules are usually jam‐packed. Whether they're busy with employee meetings,
unexpected problems, or strategy sessions, managers often find little spare time on their calendars. (And that
doesn't even include responding to e‐mail!)
3-2-a In his classic book, The Nature of Managerial Work, Henry Mintzberg describes a set of ten roles that a
manager fills. These roles fall into three categories:
3-2-a -1 a. Interpersonal: This role involves human interaction.
3-2-a -2 b. Informational: This role involves the sharing and analyzing of information.
3-2-a 3 c. Decisional: This role involves decision making
Table 1 contains a more in‐depth look at each category of roles that help managers carry out all five functions
described in the preceding “Functions of Managers” section.
Category Role Activity
Informational Monitor Seek and receive information: scan
periodicals and report: maintain
personal contact with stakeholders.
Disseminator Forward information to
organization members via memos,
report and phone calls.
Spokesperson Transmit information to outside via
reports, memos and speeches
Interpersonal Figurehead Perform ceremonial and symbolic
duties ,such as greeting visitors and
signing legal documents
Leader Direct and motivate subordinates:
counsel and communicate
subordinates
Liaison Maintains information links both
inside and outside organizational
via mail, phones calls and meetings
Decisional Entrepreneur Initiate improvement project:
identity new ideas and delegate
idea responsibility to others.
Disturbance Handler Take corrective action during
disputes or crises: resolves conflict
among subordinates: adapt to
environments
Resource allocator Decide who gets resources: prepare
budgets: set schedules and
determine priorities
Negotiator Represent department during
negotiations or union contracts,
sales, purchases and budgets
Not everyone can be a manager. Certain skills, or abilities to translate knowledge into action that results in desired
performance, are required to help other employees become more productive.
3-3 These skills fall under the following categories:
3-3 a. Technical: This skill requires the ability to use a special proficiency or expertise to perform particular tasks.
Accountants, engineers, market researchers, and computer scientists, as examples, possess technical skills.
Managers acquire these skills initially through formal education and then further develop them through training and
job experience. Technical skills are most important at lower levels of management.
3-3 b. Human: This skill demonstrates the ability to work well in cooperation with others. Human skills emerge in the
workplace as a spirit of trust, enthusiasm, and genuine involvement in interpersonal relationships. A manager with
good human skills has a high degree of self‐awareness and a capacity to understand or empathize with the feelings
of others. Some managers are naturally born with great human skills, while others improve their skills through
classes or experience. No matter how human skills are acquired, they're critical for all managers because of the
highly interpersonal nature of managerial work.
3-3 c. Conceptual: This skill calls for the ability to think analytically. Analytical skills enable managers to break down
problems into smaller parts, to see the relations among the parts, and to recognize the implications of any one
problem for others. As managers assume ever‐higher responsibilities in organizations, they must deal with more
ambiguous problems that have long‐ term consequences. Again, managers may acquire these skills initially through
formal education and then further develop them by training and job experience. The higher the management level,
the more important conceptual skills become.
Although all three categories contain skills essential for managers, their relative importance tends to vary by level of
managerial responsibility.
Business and management educators are increasingly interested in helping people acquire technical, human, and
conceptual skills, and develop specific competencies, or specialized skills, which contribute to high performance in a
management job. Following are some of the skills and personal characteristics that
3-4 the American Assembly of Collegiate Schools of Business (AACSB) is urging business schools to help their
students develop.
Leadership — ability to influence others to perform tasks
Self‐objectivity — ability to evaluate yourself realistically
Analytic thinking — ability to interpret and explain patterns in information
Behavioral flexibility — ability to modify personal behavior to react objectively rather than subjectively to
accomplish organizational goals
Oral communication — ability to express ideas clearly in words
Written communication — ability to express ideas clearly in writing
Personal impact — ability to create a good impression and instill confidence
Resistance to stress — ability to perform under stressful conditions
Tolerance for uncertainty — ability to perform in ambiguous situations
Involves the seeking for and sorting through data about the organization’s environment.
is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes.
It is monitoring and interpreting sweep of social, political, economic, ecological, and technological events to spot
budding trends that could eventually impact industry
2. 1 b COMPONENTS OF ENVIRONMENTAL SCANNING
Is an individual’s ability to favorably receive and adjust to an unfamiliar way of doing things.
2. 1 d MONOCHRONIC CULTURE
Is a culture that is more flexible on time and it is used to accomplish many different things at one time
3.1 Phases of economic development
There are a wide variety of techniques which can be used to help develop ideas and thinking in a programme
or project management environment. Many of these tools have been around for a long time and originated in areas
not directly related to PPM.
Some of the tools and techniques that can be used in programme and project management are outlined
below.
POSITIVE NEGATIVE
INTERNAL STRENGTHS WEAKNESSES
EXTERNAL OPPORTUNITIES THREATS
There are many definitions, tools, and techniques that can be applied to strategy analysis. If you do an
internet search you will find all sorts of options available. The challenge is selecting the best approach, tools, and
techniques to use given the business problem or opportunity.
Another part of the challenge is understanding what strategy analysis means since there can be many
definitions. This can make it confusing. It is best to simply say that strategy analysis is an approach to facilitating,
researching, analyzing, and mapping an organization’s abilities to achieve a future envisioned state based on present
reality and often with consideration of the organization's processes, technologies, business development and people
capabilities. Part of that whole process is the ability to bridge gaps that exist between the strategic, tactical, and
operational aspects of the organization. This requires a look at the present state, the future state, risk and financials
and the creation of change requirements to achieve the desired outcomes.
5.2 Even though the definition of strategy analysis varies, there is common thinking on the key planning
requirements.
*Preparation for planning through the identification and review of information relevant for strategy analysis
*Performing high-level environmental scan looking at the internal and external business environment with
consideration for mission, vision, stakeholders, structure, existing plans, people profiles, and question responses.
*Applying a choice of different tools and techniques to analyze the present state of a business environment and
mapping out its future.
5.3 Some of the more common analysis tools and techniques include:
5.3aVMOST: This stands for Vision, Mission, Objectives, Strategy, and Tactical
Success in an organization happens with top-down or bottom-up alignment. I was recently reminded of is
when working with a client who stated that their tactical is not connected to the strategy. VMOST analysis is meant
to help make that connection.
5.3b SWOT: The standard analysis tool, defined as Strengths, Weaknesses, Opportunities, and Threats.
Strengths and weaknesses are internal to the organization, opportunities and threats are external. SWOT
requires you to be candid and provide an honest assessment of the state of things. It forces you to create a dialogue
with stakeholders to get different viewpoints. Eventually, you focus in on the key issues.
5.3c PEST: This is a great tool to use in tandem with SWOT. The acronym stands for Political, Economic, Social and
Technology.
PEST reveals opportunities and threats better than SWOT, the direction of business change, projects that will
fail beyond your control, and country, region and market issues through helping you create an objective view.
5.3d SOAR: This stands for Strengths, Opportunities, Aspirations, and Results. This is a great tool if you have a
strategic plan completed, and you need to focus on a specific impact zone.
Used SOAR to help a business that needed to focus on their business development requirements due to an
external market change. The organization needed to discuss how they would recapture lost sales by $1 million per
month to ensure they maintained their profitably. Given that they had already done everything they could to cut
costs and operate a lean business, the SOAR was critical in helping define the focus for the next 12 to 24 months.
5.3e Boston Matrix (product and service portfolio): This tool requires you to analyze your business product or
service and determine if it is a cash cow, sick dog, questionable, or a flying star.
Applied this tool to product and service reviews with to help make product decisions with consideration for
market share and market growth. But it has no predictive value, does not consider the environment, and you need
to be careful with your assumptions. It does force discussions on your present offering and whether it makes sense
to maintain or enhance those offerings. For example, maybe you are holding onto a business product that you love
but is really a sick dog and maybe there is a cash cow in your business that you are not optimizing. A decision has to
be made.
5.3f Porter’s Five Forces: This tool helps you understand where your business power lies in terms of present
competitiveness and future positioning strength. It forces you to analyze the bargaining power of suppliers and
customers, the threats to new entrants and substitutes, and competitive rivalry in your marketplace. Using this tool
helps you understand the balance of power and to identify areas of potential profitability. According to Porter, this
model should be used at the line of business level.
5.3g Maturity Models: There are many maturity models that can be applied to a business. From the evolution
model, the technology model, to the team model. The idea is that every business or department goes through a
maturity cycle. The standard cycle is chaotic, reactive, proactive, service, and value. If you were looking at processes
in a department, you would look to see where that process is on the continuum. Then you would determine where
you need to be and what it would take to get to that point of maturity. This is a simple explanation. When using a
maturity model, it is important that you have a clear problem definition and solution context.
5.3h Root Cause Analysis: This is important, as there are times in the strategy analysis process you need to dig
deeper into a problem. This is where RCA is used. The key is that you need to identify and specify the problem
correctly, analyze the root cause using a systematic approach, verify the causes, and determine the corrective
actions. Implementation of the corrective action is extremely important.
There are many definitions, tools, and techniques that could be addressed. The ones mentioned here are
only the tip of the iceberg for strategy analysis and become a foundational part of the strategy analysis toolkit. In a
short blog, there is no way to mention them all. But you could create a tool checklist that you could use in your next
planning and analysis engagement to help you and your team define the present, future, risk and change state that
you need to succeed.
6. Decision making
The Decision Making Process in an Organization for its Effectiveness
Decision making process requires thinking process, time, resources and past experiences. Thinking process
plays an important role in this process. Decision plays important role as they determine both organizational and
managerial activities. Decision is made at every level of management to ensure organization or business goal are
achieved. Every organization needs to make effective decision at one or other as part of managerial process.
Decision made by the organization is to lighten the way forward. The most of the management decisions are taken
under the influence of external and internal environmental constraints. As the environment is constantly changing
and the information is not always complete and available, management decisions can be made in certain, uncertain
and risky conditions. Decisions made in uncertain and risky conditions.
On the basis of several aspects of decision making, the following characteristics may be derived:
a) Decision making is an integral part of planning. Every planner has to choose an appropriate solution or
alternative among the available options.
c) It is not an entirely rational process because decisions are bound to be affected and colored by the
personal likes, dislikes and whims of the manager who makes them.
d) Decisions made by managers involve the commitment of the organization to adopt a specific recourse of
action and utilize resources in a particular manner.
e) Decision making like managing is a human and social process implying the interference of an individual as
well as social factors.
f) An intelligent manager will always take into account the social and human implications of a decision
before making a final choice.
g) Decision making is a purposeful activity because it is directed towards the achievement of a goal and
objectives.
h) Decisions are made by managers to solve problems, resolve crises and conflicts and tackle the situation.
i) Decisions made by managers may sometimes have a negative effect for a short period of time.
j) Decision making requires enough liberty to be given to managers so that they can also make use of their
experience, skill and judgment.
6. 1 Type of Decisions
Programmed decisions are normally repetitive in nature. They are the easiest to make. For example: making
purchase orders, sanctioning of different types of leave, increments in salary, settlement of normal disputes, etc.
Managers in dealing with such issues of routine nature usually follow the established procedures. On the other hand,
nonprogrammer decisions are different in that they are non-routine in nature. They are related to some exceptional
situations for which there are no established methods of handling such things. For example: Issues related to
handling a serious industrial relations problem, declining market share, increasing competition, problems with the
collaborator, growing public hostility towards the organization fall in this category.
Operational or tactical decisions relate to the present. The primary purpose is to achieve high degree of
efficiency in the company‘s ongoing operations. Better working conditions, effective supervision, prudent use of
existing resources, better maintenance of the equipment, etc., fall in this category. One the other hand, expanding
the scale of operations, entering new markets, changing the product mix, shifting the manufacturing facility from
one place to the other, striking alliances with other companies, etc., are strategic in nature. Such decisions will have
far reaching impact on the organization.
Decisions taken by managers in the ordinary course of business in their capacity as managers relating to the
organizational issues are organizational decisions. For example: decisions regarding introducing a new incentive
system, transferring an employee, reallocation or redeployment of employees etc. are taken by managers to achieve
certain objectives. As against such decisions, managers do take some decisions which are purely personal in nature.
However, their impact may not exactly confine to their selves and they may affect the organization also. For
example: the manager‘s decision to quit the organization, though personal in nature, may impact for the
organization.
It is quite common that some decisions are taken by a manager individually while some decisions are taken
collectively by a group of managers. Individual decisions are taken where the problem is of routine nature, whereas
important and strategic decisions which have a bearing on many aspects of the organization are generally taken by a
group. Group decision making is preferred these days because it contributes for better coordination among the
people concerned with the implementation of the decision.
Decision making is an important process in any business organization. Lots of resources are involved in it.
Decision-making process involves the existence of a decision problem which have be understood by the decision-
maker and accurately defined to find opportunities to solve it. Incorrect decisions may lead to downfall of the
organization, that‘s why the process followed needs to be correct. Decision making is an intellectual process of
selecting optimal and best option among many alternative choices. It results in an outcome which can be in form of
action. The stages or steps of decision making process are different according to authors approach. Among the most
used approaches are: decision-making process in 7 steps. In many cases, problem solving and decision-making are
interchangeable terms. Since in the process of solving the problem choosing a solution is one of the steps to follow
and the decision is made in limited time or under pressure, it makes the problem solving and the decision making to
be integrated.
6.2a-1 Identify the decision = To make a decision, you must first identify the problem you need to solve. The
manager should consider critical or strategic factors in defining the problem. These factors are, in fact, obstacles in
the way of finding proper solution. These are also known as limiting factors. This process must, as a minimum,
identify root causes, limiting assumptions, system and organizational boundaries and interfaces. First of all,
managers must identify the problem. The problem has to be found and defined. Symptoms are identified and
problems should be judged, symptoms are not problems. They are warning signs of problems. So, managers should
search for symptoms for identification of problems. The first step needed in taking a decision is to have detected a
difference between the current situation and the desired situation. This discrepancy, or problem, exerts pressure on
the managing director, forcing him/her to take action, whether it is in such fields as company policy, deadlines,
financial recession, or concerning future job evaluations, among other possibilities.
6.2a-2 Collect relevant information = Once you have identified your decision, it‘s time to gather the information
relevant to that choice. After defining and analyzing the problem, the next step is to develop alternative solutions.
The main aim of developing alternative solutions is to have the best possible decision out of the available alternative
courses of action. In developing alternative solutions the manager comes across creative or original solutions to the
problems.
6.2a-3 Identify the alternatives = with relevant information now at your fingertips, identify possible solutions to your
problem. There is usually more than one option to consider when trying meeting a goal—for example, if your
company is trying to gain more engagement on social media, your alternatives could include paid social
advertisements, a change in your organic social media strategy, or a combination of the two.
6.2a-4 Developing alternative solutions = After defining and analyzing the problem, the next step is to develop
alternative solutions. The main aim of developing alternative solutions is to have the best possible decision out of
the available alternative courses of action. In developing alternative solutions the manager comes across creative or
original solutions to the problems. In modern times, the techniques of operations research and computer
applications are immensely helpful in the development of alternative courses of action. Once you have identified
multiple alternatives, weigh the evidence for or against said alternatives. See what companies have done in the past
to succeed in these areas, and take a good hard look at your own organization‘s wins and losses. Identify potential
pitfalls for each of your alternatives, and weigh those against the possible rewards.
6.2a-5 Implementation of the decision = To gathered all relevant information, and developed and considered the
potential paths to take. You are perfectly prepared to choose. After you‘ve ranked your options, you must choose
the one that you think has the strongest chance of achieving your goal. In some instances, you can combine several
options, but in most cases, there will be a clear-cut direction you want to take.
6.2a-6 Take action = Once you‘ve made your decision, act on it! Develop a plan to make your decision tangible and
achievable. Use lucid chart diagrams to plan the projects related to your decision, and then set the team loose on
their tasks once the plan is in place.
6.2a-7 Review decision =Last and important step in the decision making process is evaluating your decision for
effectiveness. Follow- up enables to identify the shortcoming or negatives consequences of the decision. It provides
valuable feed- back on which the decision may be reviewed or reconsidered
Chapter 4 – Organizing
4. Definition What is organizing?
* A Process that initiates implementation of plans by clarifying jobs and working relationship and effectively
deploying resources for attainment of identified and desired results.
Organizing is the process of identifying and grouping 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 objectives.
* Adaptation to change
* Development of personnel
* Work Specialization
* Departmentalization
* Chain of command
* Formalization
* Span of Control
4.a-4 Departmentalization
-Functional
-Geographical
-Product
-Process
-Customer
* Organization with Narrow Span (Pyramid) * Organization with Wide Span (Per Layer)
Identifying, analyzing and classifying the activities necessary to accomplish the objectives
Grouping these activities in the light of human and material resources available and the best way under
the circumstances, of using them
4.b-1 Organizations role in society= Organizations exist to allow accomplishment of work that could not be
achieved by people alone. As long as the goals of an organization are appropriate, society will allow them to exist
and they can contribute to society.
4.b-2 Organizations and People Organizations are strongly influenced by the people that form part of them.
Organizations can take in part the personality of the people within them and the attitudes, perceptions and
behaviors affect how an organization will operate.
4.b-3 Organizations Require Management= Organizations use management to accomplish the work that is required
to achieve the goals.
The external environment is everything outside an organization that might affect it.
The internal environment consists of conditions and forces within the organization.
4.c-1 The external environment= the general environment is the nonspecific dimensions and forces in its
surroundings that might affect its activities.
The task environment consists of specific organizations or groups that are likely to influence an organization.
The technological dimension refers to the methods available for converting resources into products or
services.
The sociocultural dimension, customs, mores, values, and demographic characteristics of the society in
which the organization functions. The political-legal dimension refers to government regulation of business
and the relationship between business and government.
The international dimension refers to the extent to which an organization is involved in or affected by
business in other countries.
Regulators are units in the task environment that have the potential to control, regulate, or influence an
organization's policies and practices.
Regulatory agencies are created by the government to protect the public from certain business
practices or to protect organizations from one another. Examples include the Environmental
Protection Agency and the Department of Occupational Safety, Health and Welfare.
Interest groups are groups organized by their members to attempt to influence organizations.
Examples include the RAC,
Labor includes all workers who provide the service or produce the products. Labor is especially a concern
when it is unionized.
Owners are individuals, groups, or organizations who have a major stake in the organization.
Strategic allies are two or more companies that work together in joint ventures.
4.c-2a Board of directors = is only required of organizations that are incorporated; however, many other firms have
them. The board of directors is elected by the stockholders and is charged with overseeing the general management
of the firm to ensure that it is being run in a way that best serves the stockholders' interests.
4.c-2b Employees= When the organization's employees hold the same values and goals as its management,
everyone wins. However, when managers and employees work toward different goals everyone suffers. The
composition of the organization's employees is changing, and managers must learn how to deal effectively with
these changes.
4.c-2c Culture=The culture of an organization is the set of values that helps its members understand what the
organization stands for, how it does things, and what it considers important.
A strong organizational culture can shape the firm's overall effectiveness and long-term success and help
employees to be more productive.
Culture develops and blossoms over a long period of time. It often starts with the organization's founder,
however, corporate success and shared experiences also shape culture.
If the culture needs to be changed, managers must know what it is they want the culture to be and then
bring in outside people, adopt slogans, or tell stories among other things that will help to change the culture
into the type management wants.
In a hierarchical organization structure, employees are grouped with every employee having one clear
supervisor. The grouping is done based on a few factors, hence many models derived from this.
Function – employees are grouped according to the function they provide. The below image shows a
functional org chart with finance, technical, HR and admin groups.
Geography – employees are grouped based on their region. For example in USA employees might be
grouped according to the state. If it’s a global company the grouping could be done according to countries.
Product – If a company is producing multiple products or offering different services it can be grouped
according to the product or service.
2. b) Matrix Structure=In a Matrix organizational structure, the reporting relationships are set up as a grid, or matrix,
rather than in the traditional hierarchy. It is a type of organizational management in which people with similar skills
are pooled for work assignments, resulting in more than one manager to report to (sometimes referred to as solid
line and dotted line reports, in reference to traditional business organization charts).
For example, all engineers may be in one engineering department and report to an engineering manager.
But these same engineers may be assigned to different projects and might be reporting to those project managers as
well. Therefore some engineers might have to work with multiple managers in their job role.
2.c ) Horizontal/Flat Structure=This is an organizational chart type mostly adopted by small companies and start-ups
in their early stage. It’s almost impossible to use this model for larger companies with many projects and employees.
The most important thing about this structure is that many levels of middle management are eliminated.
This enables employees to make decisions quickly and independently. Thus a well-trained workforce can be more
productive by directly getting involved in the decision-making process.
This works well for small companies because work and effort in a small company are relatively transparent.
This does not mean that employees don’t have superiors and people to report. Just that decision making power is
shared and employees are held accountable for their decisions.
2.d ) Network Structure=Network organizational structure helps visualize both internal and external relationships
between managers and top-level management. They are not only less hierarchical but are also more decentralized
and more flexible than other structures.
The idea behind the network structure is based on social networks. Its structure relies on open
communication and reliable partners; both internal and external. The network structure is viewed as agiler
than other structures because it has few tires, more control and bottom flow of decision making.
Using a Network organizational structure is sometimes a disadvantage because of its complexity. The below
example of network org chart shows the rapid communication between entities.
2.e) Divisional Structure=within a divisional structure, each organizational function has its own division which
corresponds to either products or geographies. Each division contains the necessary resources and functions needed
to support the product line and geography.
=Another form of divisional org chart structure is the multi-divisional structure. It’s also known as M-form.
It’s a legit structure in which one parent company owns several subsidiary companies, each of which uses the parent
company’s brand and name.
The main advantage of the divisional structure is the independent operational flow, that failure of one company
does not threaten the existence of the others.
2.f) Line Organizational Structure=Line organizational structure is one of the simplest types of organizational
structures. Its authority flows from top to bottom. Unlike other structures, specialized and supportive services do
not take place in these organizations.
The chain of command and each department head has control over their departments. The self-contained
department structure can be seen as its main characteristic. Independent decisions can be taken by line officers
because of its unified structure.
The main advantage of a line organizational structure can be identified as the effective communication that
brings stability to the organization.
2.g) Team-based Organizational Structure=Team-based organizational structures are made of teams working
towards a common goal while working on their individual tasks. They are less hierarchical and they have flexible
structures that reinforce problem-solving, decision-making and teamwork.
Team organization structures have changed the way many industries work. Globalization has allowed people
in all industries around the world to produce goods and services cooperatively. Especially, manufacturing companies
must work together with the suppliers around the globe while keeping the cost to a minimum while producing high-
quality products.
The main advantage of a line organizational structure can be identified as the effective communication that
brings stability to the organization.
When an Financial Planning Analysis (FP&A) analyst performs various analyses and financial modeling, corporate
structure is often one of the first things taken into consideration, because how the departments are defined directly
influences the construction of any model.
2.1.a. Corporate structure is the basis for building any financial models
Depending on the kind of products/services a company provides or the industry it is in, its corporate structure can
look very different from that of other businesses. Therefore, it is essential for the FP&A analyst to work closely with
different business units in the company to understand their responsibilities and areas of expertise.
The FP&A analyst should organize regular meetings and communicate consistently with the different business units
to keep up with the latest trends in the market, new and existing projects, short-term and long-term work plans, and
expected opportunities in the project pipeline. That way, not only can the analyst familiarize themselves with the
ongoing activities in each team, they are also able to respond quickly to changes in budgets and forecasts with the
latest information.
2.1.b. Businesses with functional or divisional structures tend to use straightforward modeling
Out of the four organizational structures, functional and divisional structures are the easiest to build financial and
forecasting models on, because of the simplicity of the companies’ departmental structure. An FP&A analyst can
easily gather data, perform analysis and realize variances, identify data trends, and forecast future performance for
each department.
Sometimes, an FP&A analyst may drill down to as deep as each employee when collecting information for detailed
analysis. Because all employees are in a single reporting relationship in a functional or divisional structure, the
analyst can easily track individual performance, working hours, and expenditures. This helps in performing precise
analysis on departmental costs, earnings, and productivity, without simply making a lot of assumptions.
2.1.c. Matrix structure companies may incur more estimations on various factors
In a matrix structure, employees have dual reporting relationships, generally to both a functional manager and a
division/product manager. This can lead to conflicts in resource utilization between a division and a function, making
it more difficult to implement cost allocation because a single employee can be a member of two teams at the same
time.
Moreover, it is more challenging for an FP&A analyst to develop a perfect forecasting model for matrix structure
companies because there are many resources overlapping and ambiguous reporting lines. Measuring employee
productivity rates and project expenses may require some estimations on individual working hours spent on various
products or projects.
American mechanical engineer Frederick Taylor, who was one of the earliest management theorists, pioneered the
scientific management theory. He and his associates were among the first individuals to study work performance
scientifically. Taylor’s philosophy emphasized the fact that forcing people to work hard wasn’t the best way to
optimize results. Instead, Taylor recommended simplifying tasks so as to increase productivity.
The strategy was a bit different from how businesses were conducted beforehand. Initially, a factory executive
enjoyed minimal, if any, contact with his employees. There was absolutely no way of standardizing workplace rules
and the only motivation of the employees was job security.
According to Taylor, money was the key incentive for working, which is why he developed the “fair day’s wages for a
fair day’s work” concept. Since then, the scientific management theory has been practiced worldwide. The resulting
collaboration between employees and employers evolved into the teamwork that people now enjoy.
Systems management offers an alternative approach to the planning and management of organizations. The systems
management theory proposes that businesses, like the human body, consists of multiple components that work
harmoniously so that the larger system can function optimally. According to the theory, the success of an
organization depends on several key elements: synergy, interdependence, and interrelations between various
subsystems.
Employees are one of the most important components of a company. Other elements crucial to the success of a
business are departments, workgroups, and business units. In practice, managers are required to evaluate patterns
and events in their companies so as to determine the best management approach. This way, they are able to
collaborate on different programs so that they can work as a collective whole rather than as isolated units.
Fred Fiedler is the theorist behind the contingency management theory. Fiedler proposed that the traits of a leader
were directly related to how effectively he led. According to Fiedler’s theory, there’s a set of leadership traits handy
for every kind of situation. It means that a leader must be flexible enough to adapt to the changing environment. The
contingency management theory can be summed up as follows:
A leader should be quick to identify the particular management style suitable for a particular situation.
The primary component of Fiedler’s contingency theory is LPC – the least preferred co-worker scale. LPC is used to
assess how well oriented a manager is.
Do you believe that every individual gets maximum satisfaction from the work they do? Or are you of the opinion
that some view work as a burden and only do it for the money? Such assumptions influence how an organization is
run. The assumptions also form the basis of Theory X and Theory Y.
Douglas McGregor is the theorist credited with developing these two contrasting concepts. More specifically, these
theories refer to two management styles: the authoritarian (Theory X) and participative (Theory Y).
In an organization where team members show little passion for their work, leaders are likely to employ the
authoritarian style of management. But if employees demonstrate a willingness to learn and are enthusiastic about
what they do, their leader is likely to use participative management. The management style that a manager adopts
will influence just how well he can keep his team members motivated.
Theory X holds a pessimistic view of employees in the sense that they cannot work in the absence of incentives.
Theory Y, on the other hand, holds an optimistic opinion of employees. The latter theory proposes that employees
and managers can achieve a collaborative and trust-based relationship.
Still, there are a couple of instances where Theory X can be applied. For instance, large corporations that hire
thousands of employees for routine work may find adopting this form of management ideal.
One of the reasons why managers should be interested in learning management theories is because it helps in
maximizing their productivity. Ideally, the theories teach leaders how to make the most of the human assets at their
disposal. So, rather than purchase new equipment or invest in a new marketing strategy, business owners need to
invest in their employees through training.
It can be seen in Taylor’s scientific management theory. As mentioned earlier, Taylor proposed that the best way to
boost workers’ productivity was by first observing their work processes and then creating the best policies.
Another area where management theories have proven to be useful is in the decision-making process. Max Weber
proposed that hierarchical systems encourage informed decision-making. A report written by the Institute for
Employment Studies suggests that flattening the hierarchy paves the way for local innovation while speeding up the
decision-making process. Flattening out entails getting rid of job titles and senior positions so as to inspire a cohesive
work environment.
Key Takeaway
Throughout history, companies have been putting different management theories into practice. Not only have they
helped to increase productivity but they have also improved the quality of services. Although these management
theories were developed ages ago, they help in creating interconnected work environments where employees and
employers work hand-in-hand. Some of the most popular management theories that are applied nowadays are
systems theory, contingency theory, Theory X and Theory Y, and the scientific management theory.
4. Delegation is an important management skill. These rules and techniques will provide you with valuable insights
into effective delegation methods (and will help you when your manager is delegating a new task or responsibility to
you) - delegation is a two-way process.
4.1 Why is Delegation a Critical Skill?
Good delegation saves you time, develops your people, grooms a successor, and motivates. On the other hand, poor
delegation will cause you frustration, demotivates and confuses the other person, and fails to achieve the task or
purpose itself.
Delegation is a management skill that's worth improving. Here are some simple steps to follow if you want to get it
right, with different levels of delegation freedom that you can offer.
This delegation skills guide deals with the general principles and processes, which apply to individuals and teams, or
to specially formed groups of people for individual projects (including 'virtual teams').
4.1-aThe Importance of Effective Delegation
*Delegation is a very helpful aid for succession planning, personal development - and seeking and encouraging
promotion. Its how we grow in the job - being appointed more tasks enables us to gain experience to take on higher
responsibilities.
*Delegation is vital for effective leadership. See the Leadership Tips and Leadership Theories webpages for guidance
and explanation of how delegation enables and increases leadership effectiveness.
*Effective delegation is crucial for management and leadership succession. For the successor, and the manager or
leader too: the main task of a manager in a growing thriving organization is ultimately to develop a successor. This
plays a crucial role in the succession and progression of an organisation.
4.1-b Delegation - A Two-Way Process
Delegation can be used to develop your people and yourself - it is not just a management technique for freeing up
the boss's time. Learning delegation techniques are useful for bosses and anyone seeking or being given new
responsibilities. Why?
*As someone appointing tasks, you must ensure this happens properly.
*Just as significantly, as the recipient of tasks you have the opportunity to 'manage upwards' and suggest
improvements to the process - especially if your boss could use the help.
*Managing the way you receive and agree to do delegated tasks is one of the central skills of 'managing upwards'
Therefore whilst improving your delegation skills as a manager are important, the basic principle of delegation can
be just as useful for people being managed.
Authority always flows from top to bottom. It explains how a superior gets work done from his
subordinate by clearly explaining what is expected of him and how he should go about it. Authority should
be accompanied with an equal amount of responsibility. Delegating the authority to someone else doesn’t
imply escaping from accountability. Accountability still rest with the person having the utmost authority.
4.2-b Responsibility - is the duty of the person to complete the task assigned to him. A person who is given
the responsibility should ensure that he accomplishes the tasks assigned to him. If the tasks for which he
was held responsible are not completed, then he should not give explanations or excuses. Responsibility
without adequate authority leads to discontent and dissatisfaction among the person. Responsibility flows
from bottom to top. The middle level and lower level management holds more responsibility. The person
held responsible for a job is answerable for it. If he performs the tasks assigned as expected, he is bound
for praises. While if he doesn’t accomplish tasks assigned as expected, then also he is answerable for that.
4.2-c Accountability - means giving explanations for any variance in the actual performance from the
expectations set. Accountability cannot be delegated. For example, if ’A’ is given a task with sufficient
authority, and ’A’ delegates this task to B and asks him to ensure that task is done well, responsibility rest
with ’B’, but accountability still rest with ’A’. The top level management is most accountable. Being
accountable means being innovative as the person will think beyond his scope of job. Accountability, in
short, means being answerable for the end result. Accountability can’t be escaped. It arises from
responsibility.
4.3 Delegation of authority is the base of superior-subordinate relationship, it involves following steps:-
For achieving delegation, a manager has to work in a system and has to perform
4.3-a Assignment of Duties - The delegator first tries to define the task and duties to the subordinate. He
also has to define the result expected from the subordinates. Clarity of duty as well as result expected has
to be the first step in delegation.
4.3-b Granting of authority - Subdivision of authority takes place when a superior divides and shares his
authority with the subordinate. It is for this reason, every subordinate should be given enough
independence to carry the task given to him by his superiors. The managers at all levels delegate authority
and power which is attached to their job positions. The subdivision of powers is very important to get
effective results.
4.3-c Creating Responsibility and Accountability - The delegation process does not end once powers are
granted to the subordinates. They at the same time have to be obligatory towards the duties assigned to
them. Responsibility is said to be the factor or obligation of an individual to carry out his duties in best of
his ability as per the directions of superior. Responsibility is very important. Therefore, it is that which gives
effectiveness to authority. At the same time, responsibility is absolute and cannot be shifted.
Accountability, on the others hand, is the obligation of the individual to carry out his duties as per the
standards of performance. Therefore, it is said that authority is delegated, responsibility is created and
accountability is imposed. Accountability arises out of responsibility and responsibility arises out of
authority. Therefore, it becomes important that with every authority position an equal and opposite
responsibility should be attached.
Therefore every manager or the delegator has to follow a system to finish up the delegation process.
Equally important is the delegate’s role which means his responsibility and accountability is attached with
the authority over to here.
Authority is the legal right of person or superior to command his subordinates while accountability is the
obligation of individual to carry out his duties as per standards of performance Authority flows from the
superiors to subordinates, in which orders and instructions are given to subordinates to complete the task.
It is only through authority, a manager exercises control. In a way through exercising the control the
superior is demanding accountability from subordinates. If the marketing manager directs the sales
supervisor for 50 units of sale to be undertaken in a month. If the above standards are not accomplished, it
is the marketing manager who will be accountable to the chief executive officer. Therefore, we can say that
authority flows from top to bottom and responsibility flows from bottom to top. Accountability is a result
of responsibility and responsibility is result of authority. Therefore, for every authority an equal
accountability is attached.
Authority Responsibility
It is the legal right of a person or a superior to command his It is the obligation of subordinate to perform the work
subordinates. assigned to him.
Authority is attached to the position of a superior in concern. Responsibility arises out of superior-subordinate relationship
in which subordinate agrees to carry out duty given to him.
Authority can be delegated by a superior to a subordinate Responsibility cannot be shifted and is absolute
It flows from top to bottom. It flows from bottom to top
4.5-a Principle of result excepted- suggests that every manager before delegating the powers to the
subordinate should be able to clearly define the goals as well as results expected from them. The goals and
targets should be completely and clearly defined and the standards of performance should also be notified
clearly. For example, a marketing manager explains the salesmen regarding the units of sale to take place
in a particular day, say ten units a day have to be the target sales. While a marketing manger provides
these guidelines of sales, mentioning the target sales is very important so that the salesman can perform
his duty efficiently with a clear set of mind.
4.5-b Principle of Parity of Authority and Responsibility- According to this principle, the manager should
keep a balance between authority and responsibility. Both of them should go hand in hand.
According to this principle, if a subordinate is given a responsibility to perform a task, then at the same
time he should be given enough independence and power to carry out that task effectively. This principle
also does not provide excessive authority to the subordinate which at times can be misused by him. The
authority should be given in such a way which matches the task given to him. Therefore, there should be
no degree of disparity between the two.
4.5-c Principle of absolute responsibility- This says that the authority can be delegated but responsibility
cannot be delegated by managers to his subordinates which means responsibility is fixed. The manager at
every level, no matter what is his authority, is always responsible to his superior for carrying out his task by
delegating the powers. It does not means that he can escape from his responsibility. He will always remain
responsible till the completion of task.
Every superior is responsible for the acts of their subordinates and are accountable to their superior
therefore the superiors cannot pass the blame to the subordinates even if he has delegated certain powers
to subordinates example if the production manager has been given a work and the machine breaks down.
If repairmen is not able to get repair work done, production manager will be responsible to CEO if their
production is not completed.
4.5-d Principle of Authority level- This principle suggests that a manager should exercise his authority
within the jurisdiction/framework given. The manager should be forced to consult their superiors with
those matters of which the authority is not given that means before a manager takes any important
decision, he should make sure that he has the authority to do that on the other hand, subordinate should
also not frequently go with regards to their complaints as well as suggestions to their superior if they are
not asked to do. This principle emphasizes on the degree of authority and the level up to which it has to be
maintained.
Formal Organization=is a system of well-defined jobs, each bearing a definite measure of authority,
responsibility and accountability. Louis Allen
Formal Organization=is a system of consciously coordinated activities of two or more persons toward a
common objective. Chester Barnard.
5.1-a Features
It is deliberately designed by the top management
It places more emphasis on work to be performed than interpersonal relationships among the employees.
It specifies the relationships among various job positions and the nature of their inter-relationship.
Efforts of various departments are coordinated, interlinked and integrated through the formal
organisation.
5.1-b Advantages
5.1-c Limitations
More emphasis on Structure and Work, difficult to understand all human relationships in an enterprise as it
places
An Informal organization is an aggregate of interpersonal relationships without any conscious purpose but
which may contribute to joint results. Chester Barnard
Informal organization is a network of interpersonal relationship that arise when people associate with one
another. Keith Davis
5.2-a Features
Originates from within the formal organisation as a result of personal interaction among employees.
Independent channels of communication without specified direction of flow of information are developed
by group members.
5.2-b Advantages:
It contributes towards fulfillment of organizational objectives. For example, employee’s reactions towards
plans and policies can be tested through the informal network.
5.2-c Disadvantages:
It spreads rumors. This may work against the interest of the formal organisation.
The management may not be successful in implementing changes if the informal organisation opposes
them. Such resistance to change may delay or restrict growth.
Meaning
Origin
Authority
Behavior
Leadership
Chapter 5 – Staffing
1. Definition and nature of staffing
1.1 Definition- The term ‘Staffing’ relates to the recruitment, selection, development, training and
compensation of the managerial personnel. Staffing, like all other managerial functions, is the duty which
the apex management performs at all times. In a newly created enterprise, the staffing would come as a.
third step—next to planning and organizing—but in a going enterprise the staffing process is continuous.
In order to define and clarify the group of employees included in the staffing concept, it must be stated
that the staffing function is concerned with the placement, growth and development of all of those
members of the organization whose function it is to get things done through one effort of other
individuals.
This definition includes all levels of management because those who will occupy positions in the top two or
three levels of management fifteen or twenty years from now are likely to be found in the lower levels
today.
“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
Staffing is an integral part of human resource management. It facilitates procurement and
placement of right people on the right jobs.
1.2 The nature of staffing function is discussed below:
1.2a People Centred: Staffing is people centred and is relevant in all types of organisations. It is concerned
with all categories of personnel from top to bottom of the organisation.
The broad classification of personnel may be as follows:
i) Blue collar workers (i.e., those working on the machines and engaged in loading, unloading etc.) and
white collar workers (i.e., clerical employees).
(ii) Managerial and non-managerial personnel.
1.4 f. Building Higher Morale: Right type of climate should be created for the workers to contribute to the
achievement of the organisational objectives. By performing the staffing function effectively, management
can show the significance it attaches to the personnel working in the enterprise. This will increase the
morale of the employees.
2. Recruitment
Obviously, the main reason why the recruitment process is implemented is to find the persons who are
best qualified for the positions within the company, and who will help them towards attaining
organizational goals. But there are other reasons why a recruitment process is important.
Through recruitment, organizations make sure that the skill sets of the staff or manpower of the company
remains aligned to its initiatives and goals.
In the event that they notice some positions do not really contribute to the advancement of the
organization towards its goals, then it can take the proper action to correct this, probably through job
redesign, restructuring of the workforce, or conduct of job enrichment programs.
Effective recruiting means that the person employed for the job is the best possible candidate for it, with
all the required skills, talents and qualifications of the job. Efficient recruiting, on the other hand, means
that the process has been carried out without incurring a lot of costs on the part of the organization. By
following the process, there is a greater chance that the human resources department can get the best
possible person for the job.
Organizations may carry out their hiring processes their own way, but without a system or set guidelines in
place for its conduct and implementation, there is a risk that the company may incur more expenses than
necessary.
The company will also end up wasting its resources if the wrong or unqualified person was actually hired.
Not only will this create problems for the company in the long run, particularly in the attainment of its
goals, but it would mean that the organization would also have wasted its resources in training an
employee that is not right for the job after all.
There are various rules, laws and regulations that organizations must adhere to when it comes to its
human resources management. Equal opportunity employment and non-discrimination in hiring are two of
them. By following a recruitment process, the chances of the organization violating these policies will be
low.
2.2 FACTORS THAT INFLUENCE RECRUITMENT is affected by several factors. These factors play a big part
on whether the recruitment process will be successful or not.
2.2-a Size of the organization A large organization is bound to have a higher demand for new employees. It is
bound to look for more people, since the structure will require more manpower. On the other end of the spectrum,
a small enterprise, like a new company just starting its operations, will require only a lean staff.
Comparing the two, it is clear that the smaller enterprise will have a simpler, more straightforward and
shorter recruitment process, conducted by only one or two people. The larger organization, however, will
have a lengthier and more complex recruitment process, one where several members of the organization
will take part in.
Try comparing employment opportunities in a country with a developed economy with that of an
underdeveloped one. An organization operating in an underdeveloped economy may have difficulty finding
the candidates with the talents and skills it requires.
The availability of prospective talents is one huge issue with respect to the economy that an enterprise
belongs to. The company will have to design and implement its recruitment process in a way that will
address this issue.
Say one company is known to provide higher salaries and wages to its employees. Once it advertises its
open position, candidates are likely to line up submitting their resumes. However, a company known to be
quite stingy with its wages will have more difficulty recruiting top talents.
In addition, it may even have problems keeping or retaining its employees, since no employee would want
to stay for a long time in a company that will not pay him enough for his services.
Maintaining employees’ job satisfaction is one way for organizations to keep its employees, and attract
new ones.
Prospective candidates will first look for work in companies or organizations that are known to provide
good working conditions and looks out for the health and well-being of their employees.
There are organizations that grow at a fast rate, which means that they will require new employees from
time to time. However, there are also organizations that do not grow as much, or even at all. The only time
that these organizations with low growth rates are likely to recruit new employees would be when the old
ones retire or resign.
Before we fully launch into the recruitment process, let us address one question first: who conducts the
recruitment process?
The answer is largely dependent on the size of the organization, as well as its culture and practices. Large
companies have their own human resource departments, where they have in-house hiring managers. They
may also acquire the services of third-party and independent human resource professionals and
recruitment agencies
* Résumés.
* Interviews can provide rough ideas concerning the person’s fit with the job and the organization.
*Personality.
* Reference checks. 14
*The firm.
*Training - Designed to provide learners with the knowledge and skills needed for their present jobs – formal and
informal
* Development - Involves learning that goes beyond today's job – more long-term focus
* Learning Organization – firms that recognize critical importance of continuous performance-related training and
development an take appropriate action
*Technological advances
*Organizational complexity
*Learning style
*Classroom Programs
*Mentoring
Approach to advising, coaching, and nurturing, for creating practical relationship to enhance individual career,
personal, and professional growth and development
* Coaching
* Role Playing
interviewing
grievance handling
communication
* Simulations Training devices that model the real world or programs replicating tasks away from the job site
Interactive training
Used to: increase access to training ensure consistency of instruction reduce cost of delivering T&D programs
*On-the-Job
Informal approach that permits employee to learn job tasks by actually performing them
*Internships
Training approach where university students divide their time between attending classes and working for an
organization
*Employee improvement
*Research
*Evaluation by superiors
*Evaluation by colleagues
* Peer ratings tend to be more favorable for career development than for promotion decisions
*Self-evaluation
*Subordinate evaluation
*Employees and managers are involved in the development of the appraisal criteria and process.
*Employees are informed of the nature of the 360 appraisal instrument and process.
*Management continuously reinforces the goals of the 360 appraisal and is ready to change the process when
necessary.
*Relative Judgment An appraisal format that asks supervisors to compare an employee's performance to the
performance of other employees doing the same job.
*Absolute Judgment An appraisal format that asks supervisors to make judgments about an employee’s
performance based solely on performance standards.
*Performance rating scales = Supervisors indicate how or to what degree a worker possesses a relevant job
characteristic
*Ranking technique = Supervisors list the workers in order from highest to lowest
*Paired-comparison technique = Compares the performance of each worker with that of every other person in the
group
*Forced choice technique = Raters are presented with groups of descriptive statements and are asked to select the
phrase in each group that is most descriptive of the worker being evaluated
*The BARS items can be scored objectively by indicating whether the employee displays that behavior
Behavioral observation scales (BOS)
64. Management Development All learning experiences resulting in upgrading of skills and knowledge needed in
current and future managerial positions Imperative managers keep up with latest developments in their fields
while managing everchanging workforce in a dynamic environment Requires personal commitment of individual
manager 64
65. Reasons to Conduct Management Training Outside of the Company An outside perspective New viewpoints
Possibility of taking executives out of work environment Exposure to faculty experts and research Broader vision
65
66. Reasons to Conduct Management Training Inside of the Company Training more specific to needs Lower
costs Less time Consistent, relevant material More control of content and faculty 66
67. Orientation Initial T&D effort designed for employees Strives to inform them about company, job and
workgroup On-boarding 67
68. Organization Development Survey feedback process Quality circles Team building Sensitivity training 68
69. Survey Feedback Description Process of collecting data from organizational unit through use of questionnaires,
interviews and other objective data Can create working environments that lead to better working relationships,
greater productivity and increased profitability 69
70. Quality Circles Groups of employees who voluntarily meet regularly with their supervisors to discuss problems
Investigate causes Recommend solutions 70
71. Team Building Conscious effort to develop effective workgroups Uses self-directed teams Small group of
employees responsible for an entire work process Members work together to improve their operation 71
72. Laboratory/ Sensitivity / T-Group Training Participants learn about themselves and how others perceive
them No agenda, leaders, authority, power positions People learn through dialogue Participants encouraged to learn
about themselves and others in group Also called T-group training 72
73. Evaluating Human Resource Development Ask participant’s opinions Determine extent of learning Will
training change behavior? Have T&D objectives been accomplished? Benchmarking Evaluation difficult, but
necessary 73
75. Introduction Directing/Direction is a function of management performed by top level management in order to
achieve organizational goals. It is very important and necessary function of management. Management has to
undertake various activities like, guide people, inspired and lead them as well as supervision of their activity is
required in order to achieve desired results. 75
76. Meaning and Definition Direction consists of the process and techniques utilized in issuing instructions and
making certain that operations are carried as originally planned. “Directing involves determining the course, giving
order and instruction and providing dynamic leadership” – Marshall “Activating means and moving into
actionsupplying simulative power to the group”- G.R Terry 76
77. Directing involves….. Telling people what is to be done and explaining how to do it. Issuing instructions and
orders to subordinates. Inspiring them to contribute towards the achievement of objectives, Supervising their
activities; Providing leadership and motivation 77
79. PRINCIPLES OF DIRECTION Harmony of Objectives Unity of Command / Direction Direct Supervision Democratic
Managerial Style Follow Through 79
80. TECHNIQUES OF DIRECTION Consultative Direction Free Rein Direction Autocratic Direction 80
81. SUPERVISION 81
82. Supervision implies expert overseeing of subor-dinates -at work in order to guide and regulate their efforts. Every
manager has to supervise the work of his subordinates to see that they do their work as desired. But supervision is
particularly important at the operat-ing level of management or at the low-level management. The supervisor is in
direct personal contact with the workers and he acts as the link between workers and manage-ment. He
communicates the policies, plans and orders of management to the workers. He also brings workers' grievances,
suggestions and appeals to the notice of management. Effective supervision is essential for the accomplishment of
desired goals. 82
83. The direction of people at work is the most difficult of all production related tasks. Supervision means constantly
functioning in a state of flux and ambiguity and few people feel satisfaction from being a supervisor. The reason this
is worth mentioning is because many new supervisors feel that something is "wrong" when they are constantly faced
with problems relating to their workforce. This state of flux and ambiguity is normal to supervision and success is
measured in percentages rather than absolutes. 83
84. All work requires the coordination of effort. We accomplish this by giving workers assigned tasks and assigned
time in which they are to accomplish these tasks. But just giving instructions is not enough. You must give clear,
specific instructions on what is to be done, monitor the worker in the course of their efforts and hold them
accountable for specific results. These three elements; specific instructions on what is to be done, monitoring them
periodically to make sure it is being done, and making the employee accountable for the results are the core of the
supervisory process. It is the responsibility of the supervisor to do this. Workers who do not receive good instruction
and direction; who are allowed to do work incorrectly without correction and who do not have a review of their
performance have not had proper supervision and hence have not been allowed to perform properly. The purpose
of supervision is to ensure that subordinates perform their tasks according to prescribed procedures and as
efficiently as possible. 84
85. In Supervising 1. Set realistic expectations. The expectations that are often left unstated need to be openly
discussed. 2. Establish clear goals. Goal setting gives purpose and direction to the work of the individual subordinates
as well as to the manager. It ensures alignment to corporate strategy. 3. Communicate. Successful communication is
a learned process that must accommodate individual needs. As the boss, you establish the norms. Solicit feedback,
encourage discussion (especially alternate points of view), and be accessible. 85
86. 4. Support. A manager is not made by title alone. Anyone new to a supervisory position needs to develop certain
professional skills. Your mentoring will be the key to success. 5. Be the Model Manager . Lead the way! Have others
do as you say and do. 86
87. COORDINATION 87
88. What's Coordination? Co-ordination is the unification, integration, synchronization of the efforts of group
members so as to provide unity of action in the pursuit of common goals. It is a hidden force which binds all the
other functions of management. According to Mooney and Reelay, “Co-ordination is orderly arrangement of group
efforts to provide unity of action in the pursuit of common goals”. According to Charles Worth, “Coordination is the
integration of several parts into an orderly hole to achieve the purpose of understanding”. 88
89. Management seeks to achieve co-ordination through its basic functions of planning, organizing, staffing, directing
and controlling. That is why, co-ordination is not a separate function of management because achieving of harmony
between individuals efforts towards achievement of group goals is a key to success of management. Co-ordination is
the essence of management and is implicit and inherent in all functions of management. A manager can be
compared to an orchestra conductor since both of them have to create rhythm and unity in the activities of group
members. 89
90. CONTROL 90
91. Organizational Control Organizational Control Managers monitor and regulate how efficiently and effectively an
organization and its members are performing the activities necessary to achieve organizational goals 91
92. Organizational Control Managers must monitor and evaluate: Is the firm efficiently converting inputs into
outputs? Are units of inputs and outputs measured accurately? Is product quality improving? Is the firm’s quality
competitive with other firms? Are employees responsive to customers? Are customers satisfied with the services
offered? Are our managers innovative in outlook? Does the control system encourage risktaking? 92
93. Control Systems Control Systems Formal, target-setting, monitoring, evaluation and feedback systems that
provide managers with information about whether the organization’s strategy and structure are working efficiently
and effectively. 93 11-93
94. Control Systems A good control system should: be flexible so managers can respond as needed. provide accurate
information about the organization. provide information in a timely manner. 94
96. Types of Control Feedforward Controls Used to anticipate problems before they arise so that problems do not
occur later during the conversion process Giving stringent product specifications to suppliers in advance IT can be
used to keep in contact with suppliers and to monitor their progress 96
97. Types of Control Concurrent Controls Give managers immediate feedback on how efficiently inputs are being
transformed into outputs Allows managers to correct problems as they arise 97 11-97
98. Types of Control Feedback Controls Used to provide information at the output stage about customers’ reactions
to goods and services so that corrective action can be taken if necessary 98 11-98
100. The Control Process 1. Establish standards of performance, goals, or targets against which performance is to be
evaluated. Managers at each organizational level need to set their own standards. 100
101. The Control Process 2. Measure actual performance Managers can measure outputs resulting from worker
behavior or they can measure the behavior themselves. The more non-routine the task, the harder it is to measure
behavior or outputs 101
102. The Control Process 3. Compare actual performance against chosen standards of performance Managers
evaluate whether – and to what extent – performance deviates from the standards of performance chosen in step 1
102
103. The Control Process 4. Evaluate result and initiate corrective action if the standard is not being achieved If
managers decide that the level of performance is unacceptable, they must try to change the way work activities are
performed to solve the problem 103
105. Financial Measures of Performance Profit Ratios – measure how efficiently managers are using the
organization’s resources to generate profits Return on Investment (ROI) – most commonly used financial
performance measure organization’s net income before taxes divided by its total assets 105 11-105
106. Financial Measures of Performance Operating margin calculated by dividing a companies operating profit by
sales revenue Provides managers with information about how efficiently an organization is utilizing its resources 106
107. Financial Measures of Performance Liquidity ratios measure how well managers have protected organizational
resources to be able to meet short-term obligations Leverage ratios measure the degree to which managers use debt
or equity to finance ongoing operations 107
108. Financial Measures of Performance Activity ratios provide measures of how well managers are creating value
from organizational assets 108
109. Output Control Organizational Goals Each division within the firm is given specific goals that must be met in
order to attain overall organizational goals. Goals should be set appropriately so that managers are motivated to
accomplish them 109
111. Output Control Operating Budgets Blueprint that states how managers intend to use organizational resources to
achieve organizational goals efficiently. 111
112. Effective Output Control 1. 2. 3. Objective financial measures Challenging goals and performance standards
Appropriate operating budgets 112
113. Problems with Output Control Managers must create output standards that motivate at all levels Should not
cause managers to behave in inappropriate ways to achieve organizational goals 113
114. Behavior Control Direct supervision managers who actively monitor and observe the behavior of their
subordinates Teach subordinates appropriate behaviors Intervene to take corrective action Most immediate and
potent form of behavioral control Can be an effective way of motivating employees 114
115. Problems with Direct Supervision Very expensive because a manager can personally manage only a relatively
small number of subordinates effectively Can demotivate subordinates if they feel that they are under such close
scrutiny that they are not free to make their own decisions 115
117. Management by Objectives Management by Objectives (MBO) formal system of evaluating subordinates for
their ability to achieve specific organizational goals or performance standards and to meet operating budgets 117
118. Management by Objectives 1. 2. 3. Specific goals and objectives are established at each level of the organization
Managers and their subordinates together determine the subordinates’ goals Managers and their subordinates
periodically review the subordinates’ progress toward meeting goals 118
119. Bureaucratic Control Bureaucratic Control Control through a system of rules and standard operating procedures
(SOPs) that shapes and regulates the behavior of divisions, functions, and individuals. 119 11-119
120. Bureaucratic Control Problems with Bureaucratic Control Rules easier to make than than discarding them,
leading to bureaucratic “red tape” and slowing organizational reaction times to problems. Firms become too
standardized and lose flexibility to learn, to create new ideas, and solve to new problems. 120
121. Clan Control Clan Control The control exerted on individuals and groups in an organization by shared values,
norms, standards of behavior, and expectations. 121
Organizations, depending on their structure and specific needs, may have special procedures that they
integrate into their recruitment process. For purposes of discussion, however, we will take a look at the
general approach of a recruitment process, one that is used by most organizations or companies across
various industries.
Many say that recruitment begins when the job description is already in place and the hiring managers
begin the process of actually looking for candidates. However, if we are looking at it more holistically, the
process begins way earlier than that.
Prior to the recruitment process, the organization must first identify the vacancy and evaluate the need for
that position. Will the organization suffer if that vacancy is not filled up? Is there really a need for that open
position to be occupied by someone? If the answer is affirmative, then you can proceed to the recruitment.
Basically, this step will allow the human resources manager, hiring manager, and other members of
management on what the new employee will be required to do in the position that is currently open for
filling up. This has to be done in a systematic manner, which is what the job analysis is for.
According to human resource managers, the position or job description is the “core of a successful
recruitment process”. After all, it is the main tool used in developing assessment tests and interview
questions for the applicants.
Job analysis involves identification of the activities of the job, and the attributes that are needed for it.
These are the main parts that will make up the job description. This part has to be done right, since the job
description will also be used in the job advertisement when it is time to source out talents.
There are three positive outcomes from conducting a review of the job description:
To evaluate competencies for each position. Jobs evolve. In as much as circumstances and work
conditions change, so will the requirements for the job. It is possible that a job may require a new
competency from the worker that it did not need before. By evaluating the competencies, the impact of
the job within the organizational structure is ensured.
To evaluate the wages or compensation for each position. Without management knowing it, the
worker or employee performing a specific job may be undercompensated, leading to dissatisfaction. By
reviewing the job description, management can assess whether the job is getting paid an amount that is
commensurate to the skills and competencies required.
Finally, you should then have an effective job description ready for attracting talent.
c. Set minimum qualifications for the employee who will do the job.
These are the basic requirements that applicants are required to have in order to be considered for the
position. These are required for the employee to be able to accomplish the essential functions of the job.
Therefore, they should be relevant and directly relate to the identified duties and responsibilities of the
position.
The organization may also opt to include other preferred qualifications that they are looking for, on top of
the minimum or basic qualifications.
The job must belong to a salary range that is deemed commensurate to the duties and responsibilities that
come with the position. Aside from complying with legislation (such as laws on minimum wages and other
compensation required by law), the organization should also base this on prevailing industry rates.
For example, if the position is that of a computer programmer, then the salary range should be within the
same range that other companies within the same industry offer.
This is the stage where the organization will let it be known to everyone that there is an open position, and
that they are looking for someone to fill it up.
Before advertising, however, the organization must first know where to look for potential candidates. They
should search out the sources where the persons that can potentially fill the job are going to be available
for recruitment. That way, they will know where to direct their advertising efforts.
Various methods are employed by organizations in order to advertise the open position.
Networking. Word-of-mouth is the best form of advertising, and when it takes the form of
networking, it becomes more effective. In recruitment, this is often done through representatives of the
company attending college and career fairs, letting them know about the opening in their organization.
This is a tactic employed by large software and tech companies that want to hire fresh, young and brilliant
minds into their organization. They personally visit colleges, targeting the top students. They also use their
connections within the industry to attract the attention of talents with the highest potential.
Posting. Recruitment often involves the application of candidates both from within and outside the
company. Thus, in order to attract the best possible talents, it is recommended that the posting of the
open positions be made internally and externally. Internal posting usually takes the form of the vacancy
announcement being displayed in bulletin boards and other areas within the business premises where the
employees and visitors to the company are likely to see it. Posting externally may be in the form of flyers
being distributed, or vacancy notices being displayed in other areas outside of the business premises.
Companies with websites often post open positions on their company site, while some also use job boards.
Print and media advertising. One classic example of this would be the Classifieds section of the
local daily or weekly newspaper. Companies looking for people to fill up open positions make the
announcement in the newspapers, providing the qualifications and the contact details where prospective
applicants may submit their application documents. When trying to attract the attention of suitable
candidates, the organization makes use of various tools and techniques. If it wants to get the best
candidates, then it should not be haphazard about things.
Developing and using proper techniques. The company may include various offerings in order to
attract the best candidates. Examples are attractive salaries, bonus and incentive packages, additional
perks and opportunities that come with the job, proper facilities at work, and various programs for
development.
Using the reputation of the company. Perhaps the best publicity that the company can use to
attract candidates is its own reputation in the market. If the company is known for being a good employer
– one that aids in its employees’ personal and professional growth and development – then it is a good
point for the company to capitalize on in advertising its open positions.
2.3-c Step 3: Screening of applicants
This is most probably the part of the recruitment process that requires the most amount of work. This is
where the applicants’ skills and personalities are going to be tested and evaluated, to ascertain whether
they are a good fit for the job and its description.
Preliminary screening. It is often the case, especially in large organizations, where one open
position will receive hundreds to thousands of applications from candidates. In an ideal world, it would be
good for the hiring managers to be able to interview each and every single one of them. However, that is
also impractical, and very tedious. Not really advisable, especially if the organization is in need of
manpower in the soonest possible time. Thus, there is a need to shorten the list of candidates, and that is
done through a preliminary screening. Usually, this is conducted by going through the submitted resumes
and choosing only those that are able to meet the minimum qualifications. It is possible that this would
shorten the list of applicants, leaving a more manageable number.
Initial interview. The candidates who were able to pass the preliminary screening will now undergo
the initial interview. In most cases, the initial interview is done through phone. There are those who also
conduct interviews through videos using their internet connection. Often a basic interview, this may
involve the candidates being asked questions to evaluate or assess their basic skills and various personal
characteristics that are relevant to the open position.
Conduct of various tests for recruitment. The hiring managers may conduct tests on the skills of
the candidates and how they use these skills and talents. Other tests that are often employed are
behavioral tests and personality assessment tests.
Final interview. Usually depending on the number of candidates for the job, and the preference of
the hiring managers and senior management, a series of interviews may be conducted, gradually
narrowing down the list of candidates. This may go on until the company has finally come up with a
shortlist of candidates that will undergo a final interview. Often, the final interview requires a face-to-face
meeting between the candidate and the hiring managers, as well as other members of the organization.
Top management may even be involved during the final interview, depending on the job or position that
will be filled up.
Selection. In this stage, the hiring managers, human resources representatives, and other members
of the organization who participated in the process meet together to finally make a selection among the
candidates who underwent the final interview. During the discussion, the matters considered are:
o Qualifications of the candidates who were able to reach the last stage of the screening
process
o Results of the assessments and interviews that the final pool of candidates were subjected
to
There will be no problem if they have a unanimous decision on the candidate that the job will be offered
to. In case of varying opinions, the majority will prevail.
If they do not arrive at a decision, there may be a need to restart the recruiting process, until such time
that they are able to reach a decision that everyone will be satisfied with.
The last step of the previous phase involves the selection of the best candidate out of the pool of
applicants. It is now time for the organization to offer the job to the selected applicant.
Making the offer: To make things more formal, a representative of the company or of the human
resources department will contact the candidate and inform him that he has been selected for the job. In
this stage, complete details of the compensation package will also be made known to the applicant.
Acceptance of the offer by the applicant: The applicant should also communicate his acceptance of
the offer for it to be final. Take note that, if the selected applicant does not accept the job offer and
declines it, the recruitment process will have to start all over again.
2.3-e Step 5: Introduction and induction of the new employee
The moment that the applicant accepted the job offer, he has officially gone from being an applicant to an
employee of the organization. The induction process will now begin.
Usually, the beginning of the induction process is marked by the signing of the employment contract, along
with a welcome package given to the new employee. The date for the first day that the employee will have
to report for work and start working in the company will be determined and communicated to the newly
hired employee.
However, it doesn’t end there. The employee will still have to undergo pre-employment screening, which
often includes background and reference checks. When all these pre-employment information have been
verified, the employee will now be introduced to the organization.
3. Selection The selection process can be defined as the process of selection and shortlisting of the right
candidates with the necessary qualifications and skill set to fill the vacancies in an organisation. The
selection process varies from industry to industry, company to company and even amongst departments of
the same company.
3.1 Selection Process Every organisation creates a selection process because they have their own
requirements. Although, the main steps remain the same. So, let’s understand in brief how the selection
process works.
4.1-a Technical Training – Technical training is that type of training that is aimed at teaching employees how a
particular technology or a machine.
4.1-b Quality Training – Quality training is usually performed in companies who physically produce a product.
Quality training teaches employees to identify faulty products and only allow perfect products to go out to the
markets.
4.1-c Skills Training – Skills training refers to training given to employees so as to perform their particular jobs. For
e.g. A receptionist would be specifically taught to answer calls and handle the answering machine.
4.1-d Soft Skills – Soft skills training includes personality development, being welcoming and friendly to clients,
building rapport, training on sexual harassment etc.
4.1-e Professional Training – Professional Training is done for jobs that have constantly changing and evolving work
like the field of medicine and research. People working in these sectors have to be regularly updated on matters of
the industry.
4.1-f Team Training – Team training establishes a level of trust and synchronicity between team members for
increased efficiency.
4.2-a Training improves the quantity and quality of the workforce. It increases the skills and knowledge base of the
employees.
4.2-b It improves upon the time and money required to reach the company’s goals. For e.g. Trained salesmen
achieve and exceed their targets faster than inexperienced and untrained salesmen.
4.2-c Training helps to identify the highly skilled and talented employees and the company can give them jobs of
higher responsibilities.
4.2-e Reduces the need to constantly supervise and overlook the employees.
4.3-a Exposes executives to the latest techniques and trends in their professional fields.
4.3-b Ensures that the company has an adequate number of managers with knowledge and skill at any given point.
4.3-d Creates an effective team of managers who can handle the company issues without fail.
4.3-f Ensures that the employees utilize their managerial and leadership skills in particular to the fullest.
5. Compensation/wages and performance evaluation/appraisal
5.1 Performance Appraisal is the systematic evaluation of the performance of employees and to understand the
abilities of a person for further growth and development. Performance appraisal is generally done in systematic ways
which are as follows:
5.1-a The supervisors measure the pay of employees and compare it with targets and plans.
5.1-b The supervisor analyses the factors behind work performances of employees.
5.1-c The employers are in position to guide the employees for a better performance.
5.2 Objectives of Performance Appraisal Performance Appraisal can be done with following objectives in mind:
5.2-a To maintain records in order to determine compensation packages, wage structure, salaries raises, etc.
5.2-b To identify the strengths and weaknesses of employees to place right men on right job.
5.2-c To maintain and assess the potential present in a person for further growth and development.
5.2-d To provide a feedback to employees regarding their performance and related status.
5.2-e To provide a feedback to employees regarding their performance and related status.
5.2-g To review and retain the promotional and other training programmes.
5.3 Advantages of Performance Appraisal It is said that performance appraisal is an investment for the company
which can be justified by following advantages:
5.3-a Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient
employees. In this regards, inefficient workers can be dismissed or demoted in case.
5.3-b Compensation: Performance Appraisal helps in chalking out compensation packages for employees. Merit
rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance.
Compensation packages which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are
dependent on performance appraisal. The criteria should be merit rather than seniority.
5.3-c Employees Development: The systematic procedure of performance appraisal helps the supervisors to frame
training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can
be designed for efficient employees. It also helps in framing future development programmes.
5.3-d Selection Validation: Performance Appraisal helps the supervisors to understand the validity and
importance of the selection procedure. The supervisors come to know the validity and thereby the
strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this
regard.
a. Through performance appraisal, the employers can understand and accept skills of
subordinates.
b. The subordinates can also understand and create a trust and confidence in superiors.
c. It also helps in maintaining cordial and congenial labour management relationship.
d. It develops the spirit of work and boosts the morale of employees.
5.4a Ranking Method The ranking system requires the rater to rank his subordinates on overall
performance. This consists in simply putting a man in a rank order. Under this method, the ranking of an
employee in a work group is done against that of another employee. The relative position of each
employee is tested in terms of his numerical rank. It may also be done by ranking a person on his job
performance against another member of the competitive group.
Advantages of Ranking Method
*Employees are ranked according to their performance levels.
*It is easier to rank the best and the worst employee.
Limitations of Ranking Method
*The “whole man” is compared with another “whole man” in this method. In practice, it is very difficult to
compare individuals possessing various individual traits.
*This method speaks only of the position where an employee stands in his group. It does not test anything
about how much better or how much worse an employee is when compared to another employee.
*When a large number of employees are working, ranking of individuals become a difficult issue.
*There is no systematic procedure for ranking individuals in the organization. The ranking system does not
eliminate the possibility of snap judgements.
5.4b Forced Distribution method This is a ranking technique where raters are required to allocate a certain
percentage of rates to certain categories (eg: superior, above average, average) or percentiles (eg: top 10
percent, bottom 20 percent etc). Both the number of categories and percentage of employees to be
allotted to each category are a function of performance appraisal design and format. The workers of
outstanding merit may be placed at top 10 percent of the scale, the rest may be placed as 20 % good, 40 %
outstanding, 20 % fair and 10 % fair.
5.4c Critical Incident techniques under this method, the manager prepares lists of statements of very
effective and ineffective behaviour of an employee. These critical incidents or events represent the
outstanding or poor behaviour of employees or the job. The manager maintains logs of each employee,
whereby he periodically records critical incidents of the workers behaviour. At the end of the rating period,
these recorded critical incidents are used in the evaluation of the worker’s performance. Example of a
good critical incident of a Customer Relations Officer is: March 12 - The Officer patiently attended to a
customer’s complaint. He was very polite and prompt in attending the customer’s problem.
5.4 d Checklists and Weighted Checklists In this system, a large number of statements that describe a
specific job are given. Each statement has a weight or scale value attached to it. While rating an employee
the supervisor checks all those statements that most closely describe the behaviour of the individual under
assessment. The rating sheet is then scored by averaging the weights of all the statements checked by the
rater. A checklist is constructed for each job by having persons who are quite familiar with the jobs. These
statements are then categorized by the judges and weights are assigned to the statements in accordance
with the value attached by the judges.
6. Employee relations an organization can’t perform only with the help of chairs, tables, fans or other non-
living entities. It needs human beings who work together and perform to achieve the goals and objectives
of the organization. The human beings working together towards a common goal at a common place
(organization) are called employees. Infact the employees are the major assets of an organization.
6.1 What is Employee Relations? Every individual shares a certain relationship with his colleagues at the
workplace. The relationship is either warm, so-so or bad. The relationship can be between any one in the
organization - between coworkers, between an employee and his superior, between two members in the
management and so on. It is important that the employees share a healthy relationship with each other to
deliver their best performances.
An individual spends his maximum time at the workplace and his fellow workers are the ones with
whom he spends the maximum hours in a day. No way can he afford to fight with his colleagues. Conflicts
and misunderstandings only add to tensions and in turn decrease the productivity of the individual. One
needs to discuss so many things at work and needs the advice and suggestions of all to reach to a solution
which would benefit the individual as well as the organization.
No individual can work alone. He needs the support and guidance of his fellow workers to come out
with a brilliant idea and deliver his level best.
6.2 Importance of Employee Relations - Why Employee Relations at Workplace?
It is important that employees share a healthy relation with each other at the work place. Let us
find out why employee relations are important in an organization:
6.2-a There are several issues on which an individual cannot take decisions alone. He needs the guidance
and advice of others as well. Sometimes we might miss out on important points, but our fellow workers
may come out with a brilliant idea which would help us to achieve our targets at a much faster rate. Before
implementing any plan, the pros and cons must be evaluated on an open forum where every employee has
the right to express his opinions freely. On your own, you will never come to know where you are going
wrong, you need people who can act as critic and correct you wherever you are wrong. If you do not enjoy
a good relation with others no one will ever come to help you.
6.2-b Work becomes easy if it is shared among all. A healthy relation with your fellow workers would ease
the work load on you and in turn increases your productivity. One cannot do everything on his own.
Responsibilities must be divided among team members to accomplish the assigned tasks within the
stipulated time frame. If you have a good rapport with your colleagues, he will always be eager to assist
you in your assignments making your work easier.
6.2-c An individual feels motivated in the company of others whom he can trust and fall back on
whenever needed. One feels secure and confident and thus delivers his best. It is okay if you share your
secrets with your colleagues but you should know where to draw the line. A sense of trust is important.
6.2-d Healthy employee relations also discourage conflicts and fights among individuals. People tend to
adjust more and stop finding faults in each other. Individuals don’t waste their time in meaningless
conflicts and disputes, rather concentrate on their work and strive hard to perform better. They start
treating each other as friends and try their level best to compromise and make everyone happy.
6.2-e A healthy employee relation reduces the problem of absenteeism at the work place. Individuals are
more serious towards their work and feel like coming to office daily. They do not take frequent leaves and
start enjoying their work. Employees stop complaining against each other and give their best
It is wise to share a warm relation with your fellow workers, because you never know when you need
them. You may need them any time. They would come to your help only when you are nice to them. You
might need leaves for some personal reasons; you must have a trusted colleague who can handle the work
on your behalf. Moreover healthy employee relations also spread positivity around.
6.3 Strategies to Improve Employee Relations It is important that the management promotes healthy
employee relations at workplace to extract the best out of each individual. Competition is essential but it
should not promote negativity or any kind of enmity among the employees.
Let us go through some steps and strategies for a healthy employee relationship in the organization.
6.3-a. Involve your team members: They should feel important and indispensable for the organization. An
individual must be assigned responsibilities according to their interests and responsibilities. Don’t impose
work on them. Let them willingly accept challenges. They must enjoy whatever they do otherwise they
would end up fighting with their superiors and fellow workers.
6.3-b. Encourage individuals to share their work with each other: This way people tend to talk with each
other more, discuss things among themselves and thus the comfort level increases. Let them work
together and take decisions on their own. A team leader should intervene only in extreme cases of
conflicts and severe misunderstandings.
6.3-c. Assign them targets and ask all your team members to contribute equally and achieve the target
within the desired time frame. Motivate them to work in groups. This way employees have no other
choice than to trust their fellow workers and take each other’s help as well. An employee must have the
liberty to express his ideas and all of them should sit together to decide on something which would be
beneficial to all.
6.3-d. One should try his level best that all the employees must have their lunch together at the same
time. Half an hour to fourty five minutes must be dedicated to lunch and one should not discuss work
during lunch time. There are other topics as well. Discuss movies, sports, shopping or any other thing
under the sun. There will be no harm if the employees go out together once in a while for get togethers,
picnics or shopping. Ask them to bring their family members as well.
6.3-e. Encourage effective communication among the team members. It has been observed that poor
communication leads to confusions and misunderstandings. The communication has to be precise and
relevant. One should not play with words and be very specific about his expectations from his fellow
workers as well as the organization. If you are not very happy with your colleague’s proposal, don’t keep
things to yourself. Voice your opinion and do express your displeasure. It will definitely prevent a conflict
among employees later and improve the relations among them. Be straightforward. Don’t pretend things
just to please your boss. If you find anything unacceptable, discuss with your superior but in a polite way.
6.3-f. Written modes of communication must be promoted among the employees for better
transparency. Verbal communication is not as reliable as written communication. The agendas, minutes of
the meeting, important issues must be circulated among all through emails. Make sure that all the related
employees are in the loop. Don’t communicate individually with any of the employees as the other one
might feel neglected and left out.
6.3-g. Morning meeting is another effective way to improve the relation among the employees. Let
everyone come together on a common platform and discuss whatever issues they have. The meetings
must not be too formal. Allow the team members to bring their cups of coffee. Start your day with a
positive mind. Greet everyone with a warm smile. Exchange greetings and compliments. If any of your
team member is not in a pleasant mood, do take the initiative and ask what is wrong with him. Try your
level best to provide him a solution.
6.3-h. Organize birthday parties, Christmas parties, New Year parties etc. at the workplace. These small
initiatives actually go a long way in strengthening the bond among the employees. Ask all of them to
decorate the office, their work stations and make all the necessary arrangements themselves. You will
actually be surprised to find out that everyone would be ready with some thing or the other. Employees
would actually take the initiative and organize things on their own. Let them enjoy with each other and
have fun.
Praise the individual if he has done something exceptionally well. Reward him suitably. The names of the
top performers must be displayed on the notice boards for others to draw inspiration from them.
Encourage everyone to perform well to live up to the expectations of the superiors as well as the
management.
A healthy relation among employees promotes a positive ambience at the work place and employees feel
happy and satisfied at work. They look forward to going to office daily and also work hard to realize their
team’s as well as organization’s goals.
7. Employee movements
8. Rewards System
Chapter 6 – Leading
1. Definition
2. Motivation
3. Leadership theories
4. Communication
Chapter 7 – Controlling
b. Marketing Management
c. Operations Management
d. Financial Management
References:
CHAPTER 1
https://www.cleverism.com/functions-of-management-planning-organizing-staffing/
https://www.managementstudyhq.com/henri-fayol-principles-of-management.html
http://www.mindtools.com/pages/article/henri-fayol.htm
https://www.managementstudyhq.com/advantages-and-disadvantages-of-MBO.html
https://www.managementstudyhq.com/what-is-organization-culture.html
CHAPTER 2
https://www.cliffsnotes.com/study-guides/principles-of-management/the-nature-of-management/functions-of
managers
http://instructor.mstc.edu/instructor/ctomski/Presentation%20LP1-
Functions, %20Roles,%20and%20Skills%20of%20managers.pptx
https://www.slideshare.net/ramoj14/abm-organization-and-management/2
http://www.ncert.nic.in/ncerts/l/lebs104.pdf
CHAPTER 3
https://www.iedunote.com/planning-nature-importance-types
https://prezi.com/p/f1llxol0vjk_/chapter-3-lesson-3-planning-at-different-levels-in-the-firm/
https://www.slideshare.net/dmattison2005/chapter-9-planning-tools-techniques-ppt09
https://www.finance-ni.gov.uk/articles/programme-and-project-management-tools-and-techniques
https://www.batimes.com/articles/8-tools-and-techniques-to-apply-to-strategic-analysis-and-planning.html
http://www.theijbmt.com/archive/0925/2143635892.pdf
CHAPTER 4
https://www.slideshare.net/PranavKumarOjha/nature-of-organizing-formal-and-informal-organization?
next_slideshow=1
http://courses.washington.edu/inde495/leca.htm
https://creately.com/blog/diagrams/types-of-organizational-charts/
https://corporatefinanceinstitute.com/resources/knowledge/finance/corporate-structure/
https://corporatefinanceinstitute.com/resources/careers/soft-skills/management-theories/
https://www.businessballs.com/team-management/delegation-how-to/
https://www.managementstudyguide.com/delegation_of_authority.htm
https://www.managementstudyguide.com/principles_of_delegation.htm
https://www.slideshare.net/PranavKumarOjha/nature-of-organizing-formal-and-informal-organization?
next_slideshow=1
CHAPTER 5
https://www.yourarticlelibrary.com/business-management/staffing-its-meaning-nature-and-importance-
business-management/27912
https://www.slideshare.net/RajatGupta46/chapter-5-6-7-8-staffing
https://www.cleverism.com/what-is-recruitment/
https://www.toppr.com/guides/business-management-and-entrepreneurship/human-resource-
management/selection-process/
https://www.toppr.com/guides/business-management-and-entrepreneurship/human-resource-
management/training-and-development/
https://www.managementstudyguide.com/performance-appraisal-tools.htm
https://www.managementstudyguide.com/what-is-employee-relations.htm