Concepts of Dynamics of Management

Recruitment and Selection

Recruiting involves attracting candidate to fill the positions in the organization structure. Before recruiting, the requirement of positions must be cleared identified. It makes easier to recruit the candidates from the outside. Enterprises with a favorable public image find it easier to attract qualified candidates. Mc Fariand, "The term recruitment applies to the process of attracting potential employees of the company." Flippo, "Recruitment is the process of searching prospective employees and stimulating them to apply for the jobs in the organization."

Selection:

Section is the process of choosing the most suitable person for the current position or for future position from within the organization or from outside the organization. The selection of managers is one of the most critical steps in the entire process of managing. According to Dale Yoder, "Selection is the process in which candidates by employment are divided into two classes those who are to be offered employment and those who are not."

Wide span of control

Span of control is wide when there are many subordinates reporting to a supervisor. The following characteristics are inherent to an organization with wide span of control: - Employees work with little supervision - There is a high level of delegation of authority - Controlling is lighter - There is less time for rewarding behavior

Staffing

Staffing is the managerial function of recruitment, selection, training, developing, promotion and compensation of personnel. Staffing may be defined as the process of hiring and developing the required personnel to fill in the various positions in the organization. It involves estimating the number and type of personnel required, recruiting and developing them, maintaining and improving their competence and performance. Staffing is the process of identifying, assessing, placing, developing and evaluating individuals at work.

Work Specialization

The degree to which tasks are divided in the organization is referred to ask work specialization.

Recruitment through the recommendation of the existing employees

The existing employees recommend the suitable names for the employment.

Flat Structure

The flat organization has few levels of management.

Preliminary Interview

The interviewer has to decide whether the applicant is fit for job or not. By this interview the appearance, attitudes, behavior of the candidate can be known easily.

Narrow span of control

The narrow span of control is characterized by the following: - There is closer relationship between manager and subordinates - There is less delegation of authority - Controlling activities is more tight - There is more time for rewarding behavior

The Organizational Structure

The structure is the means by which the organization will attain its objectives and goals

Tall Structure

The tall structure has many levels of management

Recruitment through employment exchange

The workers who want help in finding jobs make their registration in the nearest employment office where details are recorded. Employment exchanges are the special offices for bringing together those workers who are in need of employment.

Third Party Methods

Third Party Methods includes the use of commercial and private employment agencies, state agencies, placement offices of the colleges and universities, and professional association recruiting firms.

Recruitment through advertisement

This is most common method for recruiting skilled workers, clerical staff, managerial personnel, technical personnel. The vacancies are advertised in the popular daily newspapers and applications are invited from the persons having required qualifications.

Contract labour

Under this method contractor supplies labours to the industrial enterprises according to their requirement.

Need of Recruitment

Vacancies due to transfer, promotion, retirement, permanent disability or death of worker. Creation of vacancies due to expansion, diversification or growth.

Basic Elements of Organizational Structure

Work Specialization Departmentation Pattern of Authority Span of Control Coordination

Marketing Plan

a document for implementing and controlling an organization's marketing activities related to a particular marketing strategy.

Human Resource Plan

a document that indicates the human resource needs of a company detailed in terms of quantity and quality and based on the requirements of the company's strategic plan.

Production Plan

a document that states the quantity of output a company must produce in broad terms and by product family.

Financial Plan

a document that summarizes the current financial situation of the firm, analyzes financial needs, and recommends a direction for financial activities.

Staffing according to Koontz and O'Donnell

"The managerial function of staffing involves manuring the organizational structure through proper and effective selection, appraisal and development of personnel to fill the roles designed into the structure." "Filling and keeping filled, positions in the organizational structure. This is done by identifying work-force requirements, inventorying the people available, recruiting, selecting, placing, promotion, appraising, planning the careers, compensating, training, developing existing staff or new recruits, so that they can accomplish their tasks effectively and efficiently."

Specific guidelines To assure the effectiveness of planning

- A plan should have specific objectives - A good plan should facilitate action. - If many people are involved in planning, coordination and communications become very crucial. - Planning is the first function of management - Good plans are plans that may be constantly improved, redrafted, and re-plan. - Planning maybe delegated to a formal planning staff or group within the company. - All plans are tentative and interim. They are never final.

Other methods of the external sources of recruitment

- Badli Control system or Decasualisation of labour - Contract labour

Flat Structure Advantages

- Communication is generally faster and less distorted - Decisions can be made quickly Supervisors' salaries are eliminated.

Tall Structure Disdvantages

- Communication tends to be slower and distorted because of the number of levels it has to pass through - The number of the management levels also hinders effective decision making rendering such activity slower and less accurate - It is more expensive to maintain as there are more managers to compensate.

Methods and sources of recruitment

- Direct Methods - Indirect Methods - Third Party Methods

The external sources of recruitment

- Direct Recruitment - Recruitment through the jobbers or Intermediaries - Recruitment at the factory gate - Recruitment through advertisement - Recruitment through the recommendation of the existing employees - Recruitment from colleges or universities or educational institutions - Recruitment through employment exchange

Reasons or Factors for joining or forming an Informal Group

- Friendship - Common Interest -like concern for environment or love for classical music - Proximity - which gives people the chance to share ideas, opinions and feelings - Need Satisfaction - love and belongingness - Collective Power - which derives from joining unions, societies, fraternities, etc. - Group Goals

Sources of Recruitment

- Internal sources or from within the organization - External sources or recruitment from outside

Making Planning Effective

- Manager's inability to plan - Improper planning process - Lack of commitment to the planning process Improper information - Focusing on the present at the expense of the future - Too much reliance on the planning department - Concentrating on only the controllable variables Planning: - Gathering as much information as possible - Developing multiple sources of information - Involving others in the Planning Process

Planning

- Planning may be defined as the best course of action in anticipation of future trends so that the desired result may be achieved. - Planning is deciding in advance what to do, how to do it, when to do it, who will do it, and how to measure performance (Hick and Gullet 1976). - Planning is considered as an intellectual process to determine the courses of action to achieve certain goals. - Plan is the output of planning.

Tall Structure Advantages

- Since the average span of control is narrower, the supervisory load is less for each manager - There are more opportunities for promotion because there are more levels of positions - Managers are provided with opportunities to specialize -There is less demand for managers with multiple skills = - Managers are afforded with more time to attend to other important problems.

Determinants of an Organizational Structure

- Strategy or plans for achieving the company's objectives - Technology that will be used in carrying out the strategy - People employed at all levels and their functions - Size of the organization

Advantages of Grouping Jobs

- Supervision is made easier - The sharing of resources results in maximum use - Common measures of performance are established - Communication is encouraged

Flat Structure Disadvantages

- They require managers with experience in the various tasks - A manager may have little time for all subordinates - When the manager is out, the group is without a leader - Managers may have little time to anticipate problems

Organizing

- is a management function which relates to the structuring of resources and activities to accomplish objectives in an effective manner. - The aim of organizing activities is to have a collection of people in the organization who perform activities for a specific purpose. - Organizing is undertaken to facilitate the implementation of plans. - Organizing steps are undertaken to break up the total job into more manageable man-size jobs. - Efforts expended in organizing may also result to easier coordination among the various activities.

The Formal Organization

- is the part of the system that has legitimacy and official recognition. - is depicted in the organization chart which presents the planned structure representing the intended configuration positions, job duties, and lines of authority among the component parts of the organization

The Informal Groups

- when members of an organization spontaneously form a group with friendship as a principal reason for belonging. - It is not a part of the formal organization and its does not have a formal performance purpose.

Kinds of interview

1. Direct Interview 2. Indirect Interview 3. Patterned Interview 4. Stress interview 5. Systematic in - depth interview 6. Board of panel interview 7. Group interview

Types of Plans

1. Functional Areas 2. Time Horizon 3. Frequency of Use

Different Modes and Forms of Planning

1. Inactive Mode 2. Reactive Mode 3. Pre-active Mode 4. Inter-active Mode

Three Characteristics of Planning

1. Involves the future 2. Requires action 3. Personal and organizational identification

4 Types of Functional Area Plans

1. Marketing Plan 2. Production Plan 3. Financial Plan 4. Human Resource Plan

Selection process

1. Receiving and screening the application 2. Sending the Blank application form 3. Preliminary Interview 4. Administering Tests 5. Checking References on Investigation of Previous History 6. Interviewing: 7. Final Selection

The Planning Process

1. Setting Organizational, Divisional, or Unit Goals 2. Developing Strategies or Tactics to reach Goals 3. Determining Resources needed 4. Setting Standards

2 Plans with Time Horizon

1. Short-range Plans 2. Long-range Plans

Importance of staffing

1. Staffing helps in discovering and obtaining competent and personnel for various jobs 2. It helps to improve the quantity and quality of the output by putting the right person on the right job. 3. It helps to improve job satisfaction of employees. 4. It facilitates higher productive performance by appointing right man for right job. 5. It reduces the cost of personnel by avoiding wastage of human resources. 6. It facilitates growth and diversification of business. 7. It provides continuous survival and growth of the business through development of employees.

2 Plans with varied Frequency of Use

1. Standing Plans 2. Single-Use Plans

Planning at Various Management Levels

1. Strategic Planning (1 to 10 years) 2. Intermediate Planning (6 months to 2 years) 3. Operational Planning (1 week to 1 year)

Standing Plans

1. these are plans that used again and again, and they focus on managerial situations that recur repeatedly. a. Policies - refer to broad guidelines used by managers to help make decisions and take actions on specific circumstances. b. Procedures - are plans that describe the exact series of actions to be taken in a given situation. c. Rules - are statements that either require or forbid a certain action.

Single-Use Plans

1. these plans are specifically developed to implement courses of action that are relatively unique and are unlikely to be repeated. a. Budget Plan - sets forth the projected expenditures for a certain activity and explains where the required funds will come from. b. Program Plan - designed to coordinate a large set of activities. c. Project Plan - usually more limited in scope than a program plan and is sometimes prepared to support a program.

Administering Tests

Different types of tests may be undertaken. Tests are conducted for the knowledge of personal behavior, efficiency of work and interest. Generally, following types of tests are conducted. i) Achievement Test ii) Aptitude test iii) Trade Test iv) Interest Test v) Intelligence Test etc.

Direct Methods

Direct Methods include travelling visitors to educational and professional institutions, employee's contacts with public and manned exhibits and waiting lists

Levels on Management and Supervision

Flat Structure Tall Structure

Basic Organizational Designs

Functional Design Divisional Design Hybrid Design Matrix Design

Recruitment through the jobbers or Intermediaries

In India mostly unskilled or illiterate workers are recruited through this method. Under this system the intermediary keeps a vital link between workers and employers. They are always willing to supply the required number of workers.

Indirect Methods

Indirect Methods include advertising in newspaper radio, in trade and professional journals, technical journals, brochures etc.

External sources or recruitment from outside

Internal sources may not always fulfill the needs of an organisation. Naturally, most of the concerns have to look for the external sources for recruitment the required number of employees with the requisite qualifications.

Interviewing:

Interview is the most important step in the selection procedure. In interview, the intimation given in the application form is checked. Interview helps in finding out the physical appearance and mental alertness of the candidate and whether he possesses the required qualities.

Badli Control system or Decasualisation of labour

It means efforts taken for regularizing the system or recruitment by means of controlling substitute of badli labour. Under this system, on the first day of each month, special badli cards are given to a selected number of persons who are advised to present themselves every morning at the factory when temporary vacancies are filled up from amount them.

Internal sources or from within the organization

Many organisations in India give preference to people within the company because the best employees can be found from within the organisation itself. Under this policy, if there is any vacancy the persons already working in the organisation are appointed to fill it. This method is followed mostly in Government organisations.

Direct Recruitment

Many organizations having one separate department called personnel department to select right employees. For that organisaton may receive direct applications from the candidate. The technical and clerical staff is appointed in this way.

Sending the Blank application form

After preparing the list of candidates suitable for job, blank application forms will be sent to the candidates. In this application form information should be given about the name and address of the candidate, educational qualification, experience, salary expected etc.

Receiving and screening the application

After receiving the applications have to be screened. In this process the applications of candidates without the requisite qualification are rejected.

Recruitment at the factory gate

Mostly unskilled workers are appointed through this method. Under this system, large number of unemployed workers assemble at the factory gate for employment. The factory manager, or labour superintendent or some other official may select the necessary workers.

Final Selection

On the basic of results of previous interview the candidate is informed whether he/she is selected for the said post or not.

Checking References on Investigation of Previous History

Applicants are generally asked to give names of at least two persons to whom the firm may make a reference.

The formal structure is described by management through

Organization Chart Organization Manual Policy Manual

Developing Strategies or Tactics to reach Goals

after determining the goals, the next task is to devise some means to realize them.

Divisional Design

all activities needed to produce a good or service are grouped together into independent units.

Goals

are precise statements of results sought, quantified in time and magnitude, where possible.

Strategies

are ways chosen to realize the goals. This may be defined as a course of action aimed at ensuring that the organization will achieve its objectives.

Policy Manual

describes personnel activities and company policies.

Functional Design

employees are grouped together in separate departments on the basis of common tasks, skills or activities

Hybrid Design

is a combination of divisional units and functional department.

Organization Chart

is a diagram of the organization's official positions and formal lines authority.

Standard

is a quantitative or qualitative measuring device designed to help monitor the performance of people, capital, goods, or processes.

Tactic

is a short-term action by management to adjust to negative or external influences. These are formulated and implemented in support of the firm's strategies.

Recruitment from colleges or universities or educational institutions

is method is used in some enterprises or Government department, when the recruitment of persons required for administration and technical personnel.

Matrix Design

one that implements functional and divisional structures simultaneously in each department. The employee is supervised by the functional manager in his work as specialist. The divisional manager integrates the activities of the specialists.

Organization Manual

provides written descriptions of authority relationships, details the functions of major organizational units, and describe job procedures.

Pattern of Authority

refers to the extent by which organization members are allowed to make decisions without getting the approval of another member. This may be centralized or decentralized.

Departmentation

refers to the grouping of job based on criteria that managers believe help in the coordination and control of activities.

Coordination

refers to the linking of activities in the organization that serve to achieve a common goal or objective. - As the total job is divided into several tasks and each task is assigned to a corresponding unit, there is a risk that one task may be done too well or too early to the detriment of the other tasks. - For instance, a company's aggressive sales force may not be matched by the ability of the manufacturing unit to produce what can be sold. This kind of problem can be minimized if the activities of the various units are properly coordinated.

Span of Control

refers to the number of subordinates reporting to a single supervisor. This may either be narrow or wide. It is narrow when there are few subordinates reporting to a supervisor

Operational Planning

refers to the process of determining how specific tasks can best be accomplished on time with available resources. It must be performed in support of the Strategic and Intermediate Plans.

Intermediate Planning

refers to the process of determining the contributions that subunits can make with allocated resources. Intermediate Plan is designed to support the Strategic Plan.

Strategic Planning

refers to the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals. Strategic Plan is the output of strategic planning, which spells out the decision about long-range goals and the course of action to achieve those goals.

Setting Organizational, Divisional, or Unit Goals

the setting of goals provides an answer to the said concern.

Setting Standards

the standards for measuring performance may be set at the planning stage. When actual performance does not match with the planned performance, corrections may be made or reinforcements given.

Long-range Plans

these are plans covering a time span of more than one year. Middle and top management mostly undertake these plans.

Short-range Plans

these are plans intended to cover a period of less than one year. First line supervisors are mostly concerned with these plans.

Inter-active Mode

this is the best planning mode. The company owner or business manager will focus on the past, present, and future, and be action oriented.

Decentralized

when decision making authority is granted to middle and lower-level management positions.

Centralized

when decision making is concentrated in the hands of higher- level managers.

Determining Resources needed

when particular sets of strategies or tactics have been devised, the manager will then determine the human and non- human resources required by such strategies or tactics. Even if the resource requirements are currently available, they must be specified.

Inactive Mode

where the company owner or business manager tends to wait and see in his planning style.

Pre-active Mode

where the company owner or business manager will focus on the future. The tendency is to make predictions and projections, to do a lot of environmental scanning and analysis.

Reactive Mode

where the company owner or business manager will focus on the past. The company depends on the state of their craft and their knowledge of the business.