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UNIT III
ORGANISING
Organization
It is the management function in which group of people working together to achieve a common goal.
Nature of Organization:
1) The organization structure differs from company to company.
2) An organization is a specified group of people with a common objective.
3) Everyone within organization is assigned with some responsibility and duties.
4) Organizing is the process of defining and grouping of activities of the firm.
5) Organization ensures maximum utilization of available resources.
6) Organization motivates people to increase productivity and efficiency.
7) Organization facilitates administration.
8) Communication among organization members is necessary for exchange of ideas, thoughts and
facts. Authority without communication leads to dictatorship and carelessness.
9) The efficiency and effectiveness of organization implies the existence of formulated and
understood objectives of organization.
10) General structure of organization is like a pyramid i.e. organization structure begins from chief
executive at the top and down to the workers of all level.
Purpose of Organization:
1) To make growth and diversification.
2) To facilitate administration
3) To stimulate independent, creative thinking and initiative through well defined areas of work.
4) To co-ordinate efforts of all departments.
5) To assign responsibility and authority.
6) To ensure optimum use of manpower and resources.
7) For efficient functioning, organization eliminates duplication of work and enhances co-ordinate
efforts.
8) Organization provides a framework where management functions.
9) Organization provides a strong foundation so as to give strength to business.
10) To maintain proper dignity of employee by using human capital, without causing any harm to
the interests of individuals working in the organization.
11) To motivate people to increase productivity and efficiency by providing material, equipment and
authority with encouragement to show maximum efficiency.
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Functions of Management:
1) Determination of activities.
2) Grouping of activities.
3) Allotment of duties to specified persons.
4) Delegation of authority.
5) Defining relationship.
6) Co-ordination of various activities.
Classification of Organization
1) Formal Organization
2) Informal Organization
Formal Organization:
Formal organization is a fixed set of rules of intra-organization procedures and structures. As such, it is
usually set out in writing, with a language of rules that ostensibly leave little discretion for
interpretation. In some societies and in some organization, such rules may be strictly followed; in
others, they may be little more than an empty formalism.
Characteristics of Formal Organization:
1) It is properly planned.
2) It is based on delegated authority.
3) It is deliberately impersonal.
4) The responsibility and accountability at all levels of organization should be clearly defined.
5) Organizational charts are usually drawn.
6) Unity of command is normally maintained.
7) It improves for division of labor.
Advantages of Formal Organization:
1) The definite boundaries of each worker are clearly fixed. It automatically reduces conflict among
the workers. The entire building is kept under control.
2) Overlapping of responsibility is easily avoided. The gaps between the responsibilities of the
employees are filled up.
3) Buck passing is very difficult under the formal organization. Normally exact standards of
performance are established under formal organization. It results in the motivating of the
employees.
4) A sense of security arises from classification of the task.
5) There is no chance for favoritism in evaluation and placement of the emoloyee.
6) It makes the organizational less dependent on one man.
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Disadvantages of Formal Organization:
1) In certain cases the formal organization may reduce the sprit of initiative.
2) Sometimes authority is used for the sake of convenience of the employee without considering
the need for using authority.
3) It does not consider the sentiments and values of the employees in the social organization.
4) The formal organization may reduce the speed of informal communication.
5) It creates the problems of co-ordination.
Informal Organization
Informal organization is an organizational structure which establishes the relationship on the basis of
the likes and dislikes of officers without considering the rules, regulations and procedures.
Characteristics of Informal Organization:
1) Informal organization arises without any external cause, i.e. voluntarily.
2) It is a social structure formed to meet personal needs.
3) Informal organization has no place in the organization chart.
4) It acts as agency of social control.
5) Informal organization can be found on all levels of organization within the managerial hierarchy.
6) The rules and traditions of informal organization are not written but are commonly followed.
7) Informal organization develops from habits, conduct, customs and behavior of social groups.
8) Informal organization is one of the parts of total organization.
9) There is no structure and definiteness to the informal organization.
Advantages of Informal Organization:
1) It fills up the gaps and deficiency of the formal organization.
2) Informal organization gives satisfaction to the workers and maintains the stability of the work.
3) It is a useful channel of communication.
4) The presence of informal organization encourages the executives to plan the work correctly and
act accordingly.
5) The informal organization also fills up the gaps among the abilities of the managers.
Disadvantages of Informal Organization:
1) It has the nature of upsetting the morality of the workers.
2) It acts according to mob psychology.
3) Informal organization indirectly reduces the efforts of management to promote greater
productivity.
4) It spreads rumor among the workers regarding the functioning of the organization
unnecessarily.
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Difference between Formal Organization and Informal Organization
Formal Organization Informal Organization
It arises due to delegation of authority. It arises due to social interaction of people
It gives importance to terms of authority and functions.
It gives importance to people and their relationships.
It is created deliberately. It is spontaneous and natural.
The formal authority is attached to a position. The informal authority is attached to a person.
Rules, Duties and responsibilities of workers are given in writing.
No such written rules and duties followed in informal organization.
Formal organization comes from outsiders who are superior in the line of organization.
Informal organization comes from those persons who are objects of control.
Formal authority flows from upwards to downwards.
Informal authority flows from upwards to downwards or horizontally.
Formal organization may grow to maximum size. Informal organization tends to remain smaller.
It is created for technological purposes. It arises from man’s quest for social satisfaction.
Formal organization is permanent and stable. There is no such permanent nature and stability.
Organizational Structure
Organization structure refers to the systematic arrangement of the people working for the organization to
achieve the desired goals and objectives.
Organization Structure Types
Pre-bureaucratic structures
Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This structure is most
common in smaller organizations and is best used to solve simple tasks. The structure is totally
centralized. The strategic leader makes all key decisions and most communication is done by one
on one conversations. It is particularly useful for new (entrepreneurial) business as it enables the
founder to control growth and development.
Bureaucratic structures
Bureaucratic structures have a certain degree of standardization. They are better suited for more
complex or larger scale organizations. They usually adopt a tall structure. Then tension between
bureaucratic structures and non-bureaucratic is echoed in Burns and Stalker distinction between
mechanistic and organic structures.
Post-Bureaucratic
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The term of post bureaucratic is used in two senses in the organizational literature: one generic
and one much more specific. In the generic sense the term post bureaucratic is often used to
describe a range of ideas developed since the 1980s that specifically contrast themselves with
Weber's ideal type Bureaucracy. This may include Total Quality Management, Culture
Management and the Matrix Organization amongst others. None of these however has left
behind the core tenets of Bureaucracy. Hierarchies still exist, authority is still Weber's rational,
legal type, and the organization is still rule bound. Heckshcer, arguing along these lines,
describes them as cleaned up bureaucracies, rather than a fundamental shift away from
bureaucracy. Gideon Kunda, in his classic study of culture management at 'Tech' argued that 'the
essence of bureaucratic control - the formalization, codification and enforcement of rules and
regulations - does not change in principle.....it shifts focus from organizational structure to the
organization's culture'.
Another smaller group of theorists have developed the theory of the Post-Bureaucratic
Organization., provide a detailed discussion which attempts to describe an organization that is
fundamentally not bureaucratic. Charles Heckscher has developed an ideal type Post-
Bureaucratic Organization in which decisions are based on dialogue and consensus rather than
authority and command, the organization is a network rather than a hierarchy, open at the
boundaries (in direct contrast to culture management); there is an emphasis on meta-decision
making rules rather than decision making rules. This sort of horizontal decision making by
consensus model is often used in Housing cooperatives, other Cooperatives and when running a
non-profit or Community organization. It is used in order to encourage participation and help to
empower people who normally experience Oppression in groups.
Still other theorists are developing a resurgence of interest in Complexity Theory and
Organizations, and have focused on how simple structures can be used to engender
organizational adaptations. For instance, Miner and colleagues (2000) studied how simple
structures could be used to generate improvisational outcomes in product development. Their
study makes links to simple structures and improvises learning. Other scholars such as Jan
Rivkin and Sigglekow, and Nelson Repining revive an older interest in how structure and
strategy relate in dynamic environments.
Functional Structures
The functional structure group employees together based upon the functions of specific jobs
within the organization. For example, a division of an internet service provider (ISP) with a
functional organizational structure might be as follows:
Vice President
Sales Department (sales function) Customer Service Department (customer service function) Engineering Department (engineering function) Accounting Department (accounting function) Administration Department (administration function)
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Matrix Structure
Matrix structure groups employees by both function and product. This structure can combine the
best of both separate structures. A matrix organization frequently uses teams of employees to
accomplish work, in order to take advantage of the strengths, as well as make up for the
weaknesses, of functional and decentralized forms. An example would be a company that
produces two products, "product a" and "product b". Using the matrix structure, this company
would organize functions within the company as follows: "product a" sales department, "product
a" customer service department, "product a" accounting, "product b" sales department, "product
b" customer service department, "product b" accounting department. Matrix structure is the most
complex of the different organizational structures.
Weak/Functional Matrix: A project manager with only limited authority is assigned to oversee the cross- functional aspects of the project. The functional managers maintain control over their resources and project areas.
Balanced/Functional Matrix: A project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers. It brings the best aspects of functional and projectized organizations. However, this is the most difficult system to maintain as the sharing power is delicate proposition.
Strong/Project Matrix: A project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources as needed.
Among these matrixes, there is no best format; implementation success always depends on
organization’s purpose and function
Designing of organization structure involves the following;
1) Determining objectives
2) Define activities
3) Classify activities
4) Identify individual for functions
5) Assign authority for action
6) Prepare code of conduct
Need for Organization Structure;
1) To achieve specific goal
2) To define personal identity
3) Assigning responsibility
4) Assigning authority
5) To achieve co-ordination
6) To promote division of work that leads to specialization
7) Optimum utilization of staff and resources
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8) For efficient functioning
Organization process
1) Establishing objectives
2) Identifying and classification of required activities
3) Grouping of activities into departments or divisions
4) Collecting human and material resources
5) Assigning authority and responsibility
6) Designing a hierarchy of relationships
7) Determining the span of control and decentralization
8) Setting up a co-ordinate mechanism
9) Monitoring the effectiveness
10) Staffing, Directing and Controlling
Span of Control
Span of control, also known as span of management, is a human resources management term
that refers to the number of subordinates a supervisor can effectively manage. It is a particularly
important concept for small business owners to understand. "Span of control is widely taught in
management schools and widely employed in large organizations like the military, government
agencies, and educational institutions," Mark Hendricks wrote in an article for Entrepreneur.
"Yet few entrepreneurs know the term or are willing to admit any limit to the number of people
they directly oversee." When a small business owner's span of control becomes too large, it can
limit the growth of his or her company. Even the best managers tend to lose their effectiveness
when they spend all their time managing people and their issues and are unable to focus on
long-term plans and competitive positioning for the business as a whole.
Departmentation (Grouping)
One reason organizations exist is to do things that would be hard for one person to do by
themselves. For example, it's hard to conceive of one person building an office building. Instead,
we have organizations of thousands of people with diverse skills that work together to build
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buildings. However, coordinating, controlling and just keeping track of a lot of individuals
introduces its own problems.
One way to solve these problems is to create a hierarchical system of supervision, so that small
groups of workers (up to say, 50 people) are supervised by coordinators (managers). Depending
on how many people there are in the organization, the coordinators themselves need to be
organized into groups supervised by higher level managers, and so on. Part and parcel of this
hierarchical supervisory system is the cutting up of the organization into groups (departments).
The question arises: On what basis should we carve up the members of the organization into
subunits? What would happen if we did it randomly, without regard for tasks? One problem
would be that each manager would have to be aware of what needed to be done in every area of
the organization, in order to direct his/her workers. This would be impossible in most cases.
Common Bases for Departmentation
What organizations actually do is a group person in a way that relates to the task they perform.
This still leaves a lot of possibilities. Here are six common bases for departmentation:
1. Knowledge and Skill. People are grouped by what they know. For example, hospitals have departments like Neurology, Allergy, Cardiology, Internal Medicine, Gastro-Enterology, etc.
2. Work Process. Workers are grouped based on the process or activity used by the worker. For example, a manufacturing company may create separate casting, welding and machining groups. Often, it is the underlying technology that determines the departmentation. For example, a print shop may have separate letterpress and offset departments -- two different processes for getting the same outputs.
3. Business Function. Grouping by the basic function in the organization: purchase supplies, raise capital, generate research, etc. This leads to the familiar departments of manufacturing, marketing, engineering, finance, and so on.
4. Time. When work is done. For example, shifts in a factory or hospital or hotel. 5. Output. Grouping based on the products or services that the employee works on. For example, a
manufacturer may have different divisions for each of its product lines. 6. Client. Grouping based on the type of clients their work is ultimately sold to. For example,
computer companies often have different sales departments for home, small business, educational, government and large business customers.
7. Place. Groups are based on the geographical areas that they serve. For example, during WW2, the US War Dept. was organized into 7 "theatres" corresponding to regions of the world where the US was fighting. Similarly, Post Offices are often divided by regions and zipcodes.
Types of Departmentation
1. By Functions
2. By Process
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3. By Products
4. By Location or area or territory
5. By customers
Advantages:
1. There is logical reflection of the function
2. It follows principles of specialization
3. It is a good mechanism for control
4. It maintains power and prestige of functions performed
5. Training is simplified.
Disadvantages;
1. It is not suitable for an enterprise operating over large area.
2. Responsibility for profit is at the top.
3. Decision making becomes slow as the functional managers have to get the approval of
the headquarters.
4. Co-ordination among departments becomes difficult.
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Advantages;
1. Economic advantage can be achieved.
2. It uses specialized technologies.
Disadvantages;
1. Co-ordination among department is difficult. 2. Responsibility for profit is at the top level only.
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Advantages;
1. Greater emphasis on product lines.
2. Since the revenues and costs are assigned to particular product, cost centers can be
established, high profit areas can be encouraged and unprofitable product line can be
dropped.
3. Can provide better customer service.
4. Enables quick response to changes in environment as compared with functionally
organized firm.
5. Provides managers a training ground in general management which is useful in
overcoming narrowness of interests.
6. Expansion and diversification of activities is made easy by creating new departments for
the new products.
Disadvantages;
1. Requires more persons.
2. A customer has to deal with different sales persons.
3. Cost of infrastructure set up is increased.
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4. Controlling of all product line is difficult.
Advantages;
1. It generates regional expertise and managers can tackle customers and better competition.
2. It places responsibility of lower management level.
3. It reduces costs of operation and maintenance because of the proximity to the territory
operation.
4. It gets benefits of lower freight, lower labor cost.
5. It provides special attention to the needs and problems of local market.
6. It improves co-ordination on a regional basis.
7. It improves face to face communication with local customers.
8. In this type of organization the manager in the territory has to carry out many different
functional and managerial activities. It thus provides a better training ground for
managers.
Disadvantages;
1. It requires higher cost of co-ordination and control from headquarters.
2. It results in more managerial levels which increases overhead cost.
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3. It is not suitable for departments like finance, where no gains are possible through
specialization on local markets.
4. It increases problems of top management control.
Advantages;
1. It provides greater specialized customer service.
2. It is very useful where marketing channels are considerably different for various
customers.
3. It develops expertness in customer area.
Disadvantages;
1. There may not be enough work leading to under employment of facilities and manpower
specialized in terms of customer groups.
2. Problems of co-ordination may cause difficulties.
3. It leads to unequal development of customer groups.
4. It requires expertise in customer problems.
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Types of Organization based on Structure
1. Line Organization
2. Functional Organization
3. Line and staff Organization
LINE ORGANISATION/SCALER ORGANIZATION
Line Organization is the traditional and simplest form of organization structure.
Advantages of Line Organization;
1. Easy to establish and operate.
2. No confusion as authority and responsibilities of each employee are clearly defined.
Board of
Directors
G.M
Works
Manager
Forman
Supervisor
Engineer
Workers
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3. It is flexible in nature, since its expansion and contraction is easy and also can be
adjusted to the changing circumstances.
4. Discipline and loyalty is ensured due to unified command.
5. It is economical and easy to understand.
6. There is a direct chain of command and thus decisions are rapidly made and
implemented.
7. Co-ordination of the activities of members of a department is simplified because of this
directness of control.
8. Because of its simple structure, line organization promotes staff discipline more easily
than other forms.
Disadvantages;
1. Specialized variety of job is difficult to supervise by a supervisor.
2. Line organization is not suitable for large scale enterprise where high level of
specialization is required.
3. It is autocrative and dictorial in nature.
4. It requires consultation or coordination of the managerial level across the organization.
5. To all intents and purposes each department is autonomous within its own sphere of
activity. This leads to limited opportunities for its members to acquire experience of the
other functions of the enterprise.
FUNCTIONAL ORGANIZATION
Functional organization is suggested by F.W.Taylor. In functional organization different experts
guide the subordinates in organization. Workers are subordinates thus receive the order from several
specialists or officers and are responsible for their performance to different experts.
M.D
Finance
Manager
Production
Manager
Purchase
Manager
Sales Manager
Workers
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Advantages of Functional Organization
1. The organization structure is flexible and is able to respond to external or internal changes
quickly.
2. Since output/product is based on experts knowledge, better quality is assured.
3. Functional efficiency is more.
4. Expert knowledge reduces wastages and possibility of accidents.
5. Reduces work load and responsibility of specialists.
6. Planning and actual performing separated i.e. metal and manual work is separated (division of
labor and specialization)
7. Functional experts are not involved in day to day activity, so they can concentrate on their
function and its application.
Disadvantages of functional Organization
1. Principle of unity of command is not followed since workers are to follow instructions from
various supervisors.
2. Workers always confused about their activity.
3. Co-ordination of various supervisors is essential which is difficult.
4. It is difficult to point out the causes of poor performance.
5. Worker’s initiative, ingenuity has no chance.
LINE AND STAFF ORGANIZATION
In line and staff organization, the line executives are responsible for maintaining discipline, production
and the staff division is responsible for research, planning, scheduling, establishing standards and
recording of performance.
M.D
G.M
Production
Manager
A.P.M
Foreman
Technical
Advisor
Finance
Manager
Design Engineer
Industrial
Engineer
Stores Officer
Quality Control
Engineer
Marketing
Manager
Secretary
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Advantages of Line and staff organization
1. Staff department provides their expert knowledge.
2. Operational efficiency is increased.
3. Wastage of raw material, machine hours are reduced considerably.
4. Line and staff organization offer greater flexibility.
5. The work load of line executives is reduced much hence they can concentrate more on the
quality of the product.
6. Line and staff functions are clearly defined, there is no possibility confusion.
7. It possesses all the advantages of line and functional organization.
8. Services of staff executives can be used to train line executives.
9. Policy decision making becomes easier because of staff executives.
10. Better chances of advancement for both line and staff employees.
11. Discipline and stability can be achieved.
Disadvantages
1. Frequently conflict arises between line and staff departments.
2. Possibility of misunderstanding between line and staff employees if functions are not defined
clearly.
3. Because of overloads of line and staff departments separately the product cost becomes very
high.
4. Line executives depend too much on staff executives, in such conditions line executive may lose
their initiative and creativity.
5. Line manager’s approach to the problem is practical while the staff management approach
being experts in their field is theoretical.
Line and Staff authority
Line authority
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1. Line departments have line authority, which is authority that follows the chain of commands
established by the formal hierarchy.
2. The clearer the line of authority is an enterprise to every position; the clearer will be the
responsibility for decision making and effective communication. This is called as scalar principle
in organization.
3. Line authority follows the scalar principle.
Staff authority/ Functional authority
1. Staff departments have functional authority, which is authority that is delegated to an individual
or a department to control specified processes or matters related directly to their respective
functions.
2. Staff departments facilitate vertical coordination by making their considerable expertise
available where it is needed, rather than following the strict chain of command.
DECENTRALIZATION OF AUTHORITY
1. Decentralization of authority is the extent to which power and authority are delegated to
lower levels in an organized structure.
2. Opposite of decentralization is centralization of authority.
3. Various organizations have obtained positive results by using highly decentralized
organization structure.
Factors determining the degree of Decentralization of authority
1. Ability of managers
2. Control Techniques
3. Desire for Independence
4. Uniformity of policy
5. Geographical Dispersion
6. Management philosophy
7. Economy of decisions
8. History of enterprise
Advantages of Decentralization
1. Savings of time
2. Greater efficiency and output
3. Maintenance of secrecy
4. Departmental loyalty
Disadvantages of Decentralization
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1. No proper division of work.
2. Duplication of work.
3. No standardization
4. Heavy expenditure
AUTHORITY AND POWER
Authority is the power to make decisions which guide the action of others.
Power is defined as the capacity/ability to influence others.
Characteristics of Authority
1. Basis of getting things done
2. Legitimacy ( a legal right available to the superiors within the organization)
3. Decision making
4. Implementation
Types of power
1. Position Power
2. Personal Power
1. Position Power
Legitimate: How much authority does the organization give to your position?
Reward: Are you able to give others the rewards they want?
Coercive: Are you able to punish others or with hold rewards?
2. Personal Power
Expert: Do you have knowledge that others need?
Referent: Do others respect you and want to be like you?
Informational: Information about organizational operations
DELEGATION
Delegation is a process which enables a person to assign a work to others and delegate them with adequate authority to do it. Delegation is the dynamic of management, it is the process a manager follows in dividing the work assigned to him so that he performs that part which only he, because of his unique organizational placement, can perform effectively and so that he can get other to help them with what remains.
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Elements of Delegation
1. Assignment of duties or responsibilities
2. Delegation of authority
3. Accountability
Principles of Delegation
1. Delegation to go by expected
2. Non-Delegation of responsibility
3. Authority and responsibility should commensurate with each other
4. Unity of command
5. Well definition of limitations of authority
Types of Delegation
1. General
2. Specific
3. Written
4. Unwritten
5. Formal
6. Informal
7. Downward
8. Accrued
9. Sideward
Steps involved in Successful delegation
1. Establishment of definite goals
2. Developing personal discipline for supervision
3. Establishment of definite responsibility
4. Motivation
5. Determining what to delegate
6. Training
7. Report
8. Control
Guidelines for effective Delegation
1. Define assignments and delegate authority in light of results to be achieved
2. Select right person
3. Open communication
4. Establish adequate controls
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5. Proper incentives
Advantages of Delegation
1. Basis of effective functioning
2. Saving of time
3. Reduction of work
4. Opportunity for Development
5. Benefit of specialized service
6. Efficient running of branches
7. Interest and initiative
8. Satisfaction to subordinates
9. Expansion and diversification of business activity
Disadvantages
1. Every superior is expected to delegate part of his duties and responsibilities
2. A single person cannot do all the works
3. The proper delegation of authority is made only at the time of proper balance between feelings
of superior and subordinates.
STAFFING
The managerial function of staffing involves managing the organization structure through proper and
effective selection, appraisal and development of personnel to fill the roles designed in to the structure.
Elements of Staffing
1. Effective recruitment and selection
2. Proper classification of personal and pay fixed to them
3. Proper placement
4. Adequate and appropriate training for development
5. Satisfactory and fair transfer and promotion
6. Sound relationship between management and workers
7. Adequate provision for retirement
Functions of staffing
1. Manpower planning
2. Development
3. Fixing the employment standards
4. Sources
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5. Selection and placement
6. Training
Processing of staffing
1. Planning
2. Recruitment and selection
3. Training and developments
4. Performance operation
Advantages of Staffing
1. It helps in the recruitment of efficient staff members
2. It helps the proper placement of staff members according to their ability
3. Proper selection, training and development of staff members, will result in the maximum
production in an organization
4. Increasing the efficiency of the workers will increase the earning capacity of the workers
Recruitment
The term recruitment applies to the process of attaching potential employees of the company.
Sources of Recruitment
1. Internal Sources
a) Transfer
b) Promotion
2. External sources
a) Advertisement
b) Recommendations
c) Gate applicants
d) Employment exchange
e) Personal consultants
f) Educational Institutes
g) Waiting list
h) Unsolicited applicants
i) Jobbers and contractors
j) Field trips
k) Leasing
Advantages of Internal Sources
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1. It increases the morale among the staff members of the company
2. Giving promotion keeps the employee happy
3. It attracts efficient staff members
4. The training expenses may be reduced to some extent
5. A person who has got a promotion, inspires the staff members to acquire a thorough knowledge
of his job
6. Internal promotion helps the staff members to drive job satisfaction
7. A promotional staff member may make use of his past experience in the new post.
8. It increases the security of the job of the staff member
9. A new responsibility can be entrusted safely to the promoted staff members on the basis of the
contents of service register
10. It ensures the continuity of job to the staff members and stability of the organization
Disadvantages of Internal sources
1. If the higher post is filled internally, the company will not be able to get fresh and original ideas
and initiative from the staff members.
2. The outsiders do not have a scope to show their ability in the performance of the work
3. An under qualified person may be appointed in the higher post
4. If the promotion is guarantee to the internal staff members after the expiry of a specific period,
the concerned staff member does not care to work efficiently.
Advantages of External sources
1. Choice is more
2. New outlook
3. Wide experienced person
Disadvantages of External sources
1. Grudging of old employees
2. Lack of co-operation
3. Expensive
4. Trade union
5. Danger of non-adjustment
SELECTION
Selection is the process adopted by an organization to select adequate number of persons who are fit
for the job.
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Stages of selection procedure
1. Receiving and screening of application forms
2. Initial interview
3. Application blank in company format
4. Written test
a) Efficiency test
b) Ability test
c) Aptitude test
d) Personality test
e) Management skill test
5. Checking references
6. Interview
a) Attitude
b) Maturity
c) Enthusiasm
d) Confidence
e) Initiative
f) Interest
g) Work experience
h) Emotional stability
7. Medical Examination
8. Placement and Training
Human Resource Development
After selecting a suitable employee for the post, following are the steps carry out by the HRD
1. Education
2. Training
3. Development
Objectives of Training
1. Competencies and performance
2. Future Human Resource requirements
3. Less learning time
4. Economy
5. Uniformity
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