principal or practice of management unit 3
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PRINCIPLES & PRACTICES OF MANAGEMENT (UNIT-3)
S R TRIPATHI (mba)
STAFFING AND DIRECTING
DEFINITION OF STAFFING
Staffing is defined as filling and keeping filled positions in the organization structure. This is done by:
1. Identifying workforce requirement2. Inventorying the people available3. Recruiting4. Selecting5. Placing6. Promoting7. Appraising8. Compensating9. Training
MANPOWER PLANNING According to MacBeath: Manpower planning involves two stages. 1. The first stage is concerned with detailed of planning manpower
requirements of all types and levels of employees throughout the period of the plan and
2. Second stage is concerned with planning manpower supplies to provide the organization with the right type of employees from all sources to meet the planned requirements.
Advantages of Manpower Planning1. It anticipates the personnel needs of the organization in future2. It reveals the potential and shortcomings of existing personnel3. It helps in control4. Helps organizations to achieve objectives5. Helps in making best use of human resource
PROCESS OF MANPOWER PLANNING1. Current Manpower Inventoryi. Current management inventory or skills would reveal the status of
available managerial talent and undeveloped potentialii. Manpower should be evaluated on: Age Group, Skill Group, Level
Group, Potential Wise and Cost Effectiveness2. Determining Manpower Need: Done on quantitative as well as
qualitative wayi. Qualitative: Quality of managers needed is determined with the
help of job designing and job specification
Manpower Programme
Identifying Manpower Gaps
Determining Manpower
requirements
Current Manpower Inventory
PROCESS OF MANPOWER PLANNING
ii. Quantitative: Number of personnel required is identified through quantitative waydentifying Manpower Gaps: Comparison between manpower inventory and manpower forecast will reveal the gaps in terms of number and quality of personnel
3. Manpower Programme: After finding the net requirements for human resources, action plans are formulated to fill the gaps
JOB DESIGNING Job design is the allocation of specific work tasks to individuals and groups.
Allocating jobs and tasks means specifying the contents, method, and relationships of jobs to satisfy technological and organizational requirements, as well as the personal needs of jobholders
Key Elements of Job Design1. It is important to strictly and thoroughly identify tasks that need
completion. 2. Design jobs that motivate employees.3. Jobs need to be constructed so that efficiency of the worker or department
is maximized. 4. Appropriate resource allocation allows large organizations to foster and
develop innovation in their workforce.5. Reward systems include compensation, bonuses, raises, job security,
benefits, and various other methods of reward for employees. An outline or description of reward packages needs to be established while constructing jobs.
JOB DESIGNING Taylorism: Taylorism, also known as scientific management, is a foundation for systematic job design. Frederick Taylor developed this theory in an effort to develop a “science” for every job within an organization according to the following principles:
1. Create a standard method for each job.2. Successfully select and hire proper workers.3. Effectively train these workers.4. Support these workers The Socio-Technical Systems Approach: The Socio-Technical Systems Approach is
designed around the evolution from individual work to work-groups. This approach has the following guiding principles:
1. The design of the organization must fit its goals.2. Employees must be actively involved in designing the structure of the
organization.3. Control of variances in production or service must be undertaken as close to their
source as possible.4. Subsystem must be designed around relatively self-contained and recognizable
units of work.5. The design should allow for a high quality working life.6. Changes should continue to be made as necessary to meet the changing
environmental pressures.
JOB DESIGNING Core Characteristics Model: Another modern job design theory is the Core Characteristics Model, which maintains five important job elements that motivate workers and performance:
1. skill variety2. task identity3. task significance4. autonomy5. job feedback The individual elements are then proposed to lead to positive
outcomes through three psychological states: 1. experienced meaningfulness2. experienced responsibility3. knowledge of results
RECRUITMENT According to E McFarland: The term recruitment applies to the
process of attracting potential employees to the company Recruitment sources depend on1. The level of specialization and training required for employees2. Management policy3. The need for originality and initiative required by the employees4. Training programmes of the organizations5. Trade union attitude towards recruitment
RECRUITMENT Sources of Recruitment: Can be broadly classified into internal and external
Internal Sources of Recruitment It consist of personnel's already working in the organization. Many
organizations fill job vacancies through promotions and transfer of existing staff
Merits1. It keeps employees morale high2. It creates sense of security in employees3. Economical and convenient Demerits1. Internal employees may not be fully qualified for the job2. Recruitment involves inbreeding of new ideas3. Narrows the choice4. Organizations depend on outside sources for entry level jobs
RECRUITMENT External Sources
of Recruitment1. Advertising2. Personnel
consultants3. Educational
institutions4. Employment
exchange5. Unsolicited
applicants6. Jobbers and
contractors Merits1. Wide choice2. Fresh outlook3. Varied Experience
Demerits1. Demoralization of
internal employees
2. Expensive3. Sense of
insecurity4. Danger of
maladjustment
SELECTION Definition: Selection is the process of screening out candidates
for finding out right person for right place
SELECTION PROCESS
Priliminary Interview pre-interview screening
Formal Application
Interview
Reference and credit check
Physical Examination
Employment Offer
Reject
Plac
emen
tIn
duct
ion
Time
Testing
SELECTION PROCESS Preliminary Interview: The initial screening is usually undertaken by
the receptionist. Necessary information about the nature of the job is given to the applicants and their important information such as education, job, salary, experience etc. is taken down If the candidate meets all the requirements he is moved for further rounds if not he is dropped at the preliminary stage.
Formal Application Blank: Categories of information in standard application forms are-
i. Personal Name Address Gender Date of birth Marital Status Children/ dependents
SELECTION PROCESS
ii. Education Schooling: primary/
secondary Higher Education:
Institutions Qualification Specified training
iii. Employment History
No. of jobs held Name of companies
worked for Duration and dates
of employment Positions, duties and
responsibility
iv. Other Interest Sports Hobbies
Membership of club
SELECTION PROCESS Psychological Testing: these tests are divided into four categories:
i. Aptitude Tests/ Ability Test: These are used to measure the talent/ability of a candidate to learn a job or skill. These test are of following type.
a. Mental or intelligence testb. Psychometric test
ii. Personality Tests: These tests try to find out individuals value system, his emotional reactions and maturity and his characteristic mood.
a. Objective testb. Project iveTestsc. Situation Test
iii. Proficiency Tests: This test determines the feasibility and capability of the candidate.
iv. Interest Test: These tests aim at finding out the type of work in which the candidate is interested.
SELECTION PROCESS Interview: It is an attempt at gathering information from the candidate
concerning his suitability for the job under consideration. Interview Decisions: The following important decision have to be taken
by the management regarding interviewsi. Whoii. Whereiii. When Interviewing Techniques: i. Directed/ Pattern/ Structured interviewii. Depth Interviewiii. Stress interviewiv. Board or panel interviewv. Group Interview
SELECTION PROCESS Reference Check
Physical Examination: Sales persons job requires unusual stamina, strength or tolerance of hard working conditions these qualities of a candidate is examined by physical examination
Rating of Interviewee One is given to a perfect match Two is given to an average match Three is given to below average match Four is given to totally unsatisfactory match
Employment Offer Placement and Induction Probation
TRAINING AND DEVELOPMENT
Training is an organized process for increasing the knowledge and skills of people for doing a particular job whereas development is growth of individuals in all aspects
Need for Training:1. New Environment: Induction or orientation training2. Lack of trained personnel: Job training3. Advancement of technology: Refresher training4. Faulty methods: Remedial training5. Prevention of accidents: Safety training6. Career development: Promotional training
TRAINING AND DEVELOPMENT Advantages of training1. Increased productivity2. Job satisfaction3. Reduction in accidents4. Better use of resources5. Reduced supervision6. Management by exception7. Greater flexibility8. Stability and growth
TRAINING AND DEVELOPMENT Methods of training and development On the job training1. Learning by doing2. Coaching3. Understudy4. Position rotation5. Special projects and task forces6. Committee assignments7. Multiple management
TRAINING AND DEVELOPMENT Off-the-job training1. Selected reading2. Conferences and seminars3. Special courses4. Case study5. `Programmed instruction/ Simulation6. Brain storming7. Role playing8. Management games
PERFORMANCE APPRAISAL It is the process of determining and communicating to an employee how well he
is performing the job Methods of performance appraisal1. Rating Scales: Rating scales consists of several numerical scales representing
job related performance criterions such as dependability, initiative, output, attendance, attitude etc. Each scales ranges from excellent to poor. The total numerical scores are computed and final conclusions are derived.
2. Checklist: Under this method, checklist of statements of traits of employee in the form of Yes or No based questions is prepared. Here the rater only does the reporting or checking and HR department does the actual evaluation. Eg he is punctual - yes
3. Forced Choice Method: The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false. The rater is forced to make a choice. HR department does actual assessment. Eg. He is hardworking - false
4. Critical Incidents Method: The approach is focused on certain critical behaviors of employee that makes all the difference in the performance. Supervisors as and when they occur record such incidents. Eg refused to obey orders, suggested improvements
PERFORMANCE APPRAISAL5 Field Review Method: This is an appraisal done by someone outside
employees’ own department usually from corporate or HR department.6. Performance Tests & Observations: This is based on the test of knowledge
or skills. The tests may be written or an actual presentation of skills. Tests must be reliable and validated to be useful.
7. Confidential Records: Mostly used by government departments, however its application in industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR) and may record ratings with respect to following items; attendance, self expression, team work, leadership, initiative, technical ability, reasoning ability, originality and resourcefulness etc. The system is highly secretive and confidential. Feedback to the assessee is given only in case of an adverse entry.
8. Essay Method: In this method the rater writes down the employee description in detail within a number of broad categories like, overall impression of performance, promotion ability of employee, existing capabilities and qualifications of performing jobs, strengths and weaknesses and training needs of the employee.
PERFORMANCE APPRAISAL9. Cost Accounting Method: Here performance is evaluated from the
monetary returns yields to his or her organization. Cost to keep employee, and benefit the organization derives is ascertained. Hence it is more dependent upon cost and benefit analysis.
10.Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of different methods that compare performance with that of other co-workers. The usual techniques used may be ranking methods and paired comparison method.
i. Ranking Methods: Superior ranks his worker based on merit, from best to worst. However how best and why best are not elaborated in this method. It is easy to administer and explanation.
ii. Paired Comparison Methods: In this method each employee is rated with another employee in the form of pairs. The number of comparisons may be calculated with the help of a formula as. N x (N-1) / 2
PERFORMANCE APPRAISAL Future Oriented Methods 1. Management By Objectives: It means management by objectives and the
performance is rated against the achievement of objectives stated by the management. MBO process goes as under.
Establish goals and desired outcomes for each subordinate Setting performance standards Comparison of actual goals with goals attained by the employee Establish new goals and new strategies for goals not achieved in previous year.2. Psychological Appraisals: These appraisals are more directed to assess employees
potential for future performance rather than the past one. It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other evaluations. It is more focused on employees emotional, intellectual, and motivational and other personal characteristics affecting his performance. This approach is slow and costly and may be useful for bright young members who may have considerable potential. However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation.
PERFORMANCE APPRAISAL3. Assessment Centers: This technique was first developed in USA and UK in
1943. An assessment center is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. It is more focused on observation of behaviors across a series of select exercises or work samples. Assessees are requested to participate in in-basket exercises, work groups, computer simulations, role playing and other similar activities which require same attributes for successful performance in actual job. The characteristics assessed in assessment center can be assertiveness, persuasive ability, communicating ability, planning and organizational ability, self confidence, resistance to stress, energy level, decision making, sensitivity to feelings, administrative ability, creativity and mental alertness etc.
4. 360-Degree Feedback: It is a technique which is systematic collection of performance data on an individual group, derived from a number of stakeholders like immediate supervisors, team members, customers, peers and self. In fact anyone who has useful information on how an employee does a job may be one of the appraisers.
PERFORMANCE APPRAISAL Appraisal Interview1. Tell and sell interview2. Tell and listen interview3. Problem solving interview
SYSTEMS APPROACH TO STAFFINGExternal
Environment
Analysis of present
and future needs for managersManagers
Inventory
Number and kinds of
managers required
External Sources
Internal Sources
Appraisal Career
Strategy
Training and
Development
Recruitment Selection Placement Promotion Separation
Organization Plans
Leading and
Controlling
Internal Environment
Personnel Policies
Reward System
DIRECTING Directing is the managerial function of guiding, inspiring, instructing
and harnessing people towards the accomplishment of desired results Directing is the guidance the inspiration of those men and women
that contribute the real core of the responsibilities of management. Urwick and Brech
The process of Directing consists of following steps:1. Issuing orders and instructions that are clear, complete and within
the capabilities of subordinates2. Continuing guidance and supervision to ensure that the assigned
tasks are carried out effectively and efficiently3. Maintaining discipline and rewarding those who perform well4. Inspiring the subordinates to work hard for the achievement of
predetermined targets
NATURE OF DIRECTING1. Pervasive Function Directing is a managerial function performed by all managers at all
levels of the organization All manager provide guidance and inspiration to his subordinates2. Continuing Function It is an ongoing process Continues through the life of the organization Manager continue to guide and inspire his subordinates3. Linking Function Serves as a connecting link between preparatory functions Provides material for comparisons with the plans
NATURE OF DIRECTING4. Creative Function Converts plans into performance Use of creativity in directing different employees5. Human Factor Interpersonal aspect of managing Help in use of human factor for effectively and efficiently attain the
enterprise goal Without it human factor remains inactive and unutilized6. Chain of Command Starts from top and ends at bottom through the hierarchy Emphasizes that subordinate is to be directed by his own superiors
SCOPE OR SIGNIFICANCE OF DIRECTING
1. Initiates Action Sets organizations motions People should be directed for efficient use of resources Without direction, planning, organizing and staffing become ineffective Activates things as originally planned Makes it possible to achieve mission and objective of organization2. Ensures Coordination Functions of individuals are affected by other and they affect
functioning of others Direction helps in coordination among various operations of the
enterprise
SCOPE OR SIGNIFICANCE OF DIRECTING3. Improves Efficiency
Through direction managers motivate and provide leadership to employees
Without direction potential of employees may be underutilized4. Facilitates Change Organizations should adapt itself to environmental changes Changes in organization structure and members can be done by
motivating and leadership5. Assists Stability and Growth To survive in long run organization must maintain balance in its
different parts Effective leadership and communication provide stability in the
organization and help its parts to work in a harmonious way
PRINCIPLES OF DIRECTING1. Harmony of objectives Individuals join organizations to satisfy physiological and psychological
needs but expected to work for organizational objectives Management should reconcile employee and organizational goals2. Maximum individual contribution Managers should try to elicit maximum possible contribution from each
subordinate3. Unity of command Subordinate should get orders from one boss If a person is accountable to two bosses simultaneously can create
confusion, conflict, disorder and indiscipline in the organization
PRINCIPLES OF DIRECTING4. Appropriate technique Managers should use correct direction techniques to ensure efficiency
of direction It should be suitable to superior, subordinate and situation5. Direct supervision Direct contact improves the morale and commitment of employees6. Strategic use of informal organization Management should try to understand and make use of informal group
to strengthen formal or official relationships7. Managerial communication Helps in improving mutual understanding Helps superiors in understanding subordinates (upward
communication)
PRINCIPLES OF DIRECTING8. Comprehension Management should ensure that subordinates correctly understand
what they have to do, how and when Helps in avoiding unnecessary queries and explanation9. Effective leadership Helps in avoiding dissatisfying activities Help in guiding and counseling subordinates in their personal
problems Win confidence and trust of subordinates10. Principle of follow through Managers should continuously see whether subordinates are working
properly, what problems they are facing, modify if necessary tasks
TECHNIQUES OF DIRECTING Orders and Instructions: Is a process by means of which activities
are started, altered, guided and terminated Essentials of a good order1. Clear2. Complete3. Compatible with objectives4. Time 5. Reasonable6. Acceptance should be taken7. It should be in writing8. Chain of command should be followed9. Follow up
TECHNIQUES OF DIRECTING Delegation: Implies the superior entrusts his subordinate with
certain rights and powers in order to get the work done. Supervision: overseeing the people at work
MOTIVATION AND LEADERSHIP FOR DIRECTION Motivation is the process that accounts for an individuals
intensity, direction and persistence of efforts towards attaining a goal
Leadership: Leadership is an activity of influencing people to strive willingly for group objectives
LEADERSHIPVARIABLE MANAGER LEADER
1. Relationship
Management implies superior-subordinate relationship. It is possible only in formal and organized group
Leadership can occur anywhere within or without organizational context, formal and informal groups
2. Source of influence
A manager is appointed and he obtain authority from his position
Leadership is not always appointed, he derives his power from his followers
3. Sanctions A manager has command over the allocation and distribution of rewards
A leader has command over social satisfaction and related task rewards
4. Basis of following
People follow a manager because of their job description in a system of reward and punishment
People follow leader on voluntary basis
5. Accountability
A manager is accountable for his own behavior as well as for the job behavior of his subordinates
Leader is not accountable for behavior in same way. More concerned of group satisfaction
6. Functions Performs all function planning, organizing, staffing, directing and controlling
Part of directing guides and inspires people
LEADERSHIP STYLES1. Autocratic or
Authoritarian Leadership
Exercises complete control over the subordinates
Centralizes power Dominates and
drives his group through coercion and command
Gives orders
Advantages Permits quick
decision making Yield positive results
in hurry Appropriate when
employees are uneducated, unskilled and submissive
Disadvantages Leads to frustration
and low morale and conflict
Subordinates avoid responsibility and initiative
Subordinates don’t work with full potential and don’t put forward their creative ideas
LEADERSHIP STYLES2. Democratic and
Participative Takes decision in
consultation and participation of subordinates
Decentralizes authority The leader follows the
majority opinion Provides freedom of
thinking and expression
Advantages
Improves job satisfaction and morale
Cultivates decision making ability in subordinates
Multiplies his ability through contribution of followers
Develops positive attitude and reduces resistance to change
Labor absenteeism and turnover is reduced
Disadvantages Time consuming and
results in delays May not yield positive
result when subordinates do not interact with leader
Subordinates may develop habit of consultation
Can be interpreted as leaders incompetency
Requires communication and persuasive skills
LEADERSHIP STYLES3. Free Rain or
Laissez-Faire Leadership
Involve complete delegation of authority
Avoids power and relinquishes leadership position
Acts as a contact to bring information and resources needed by subordinates
Advantages Positive effect on job
satisfaction and morale of subordinates
Scope of development of employees widens
Full potential utilization of subordinates
Disadvantages Subordinates don’t
get guidance and support of leader
Ignores leaders contribution
Subordinates may move in different directions
SUPERVISION Supervision: Overseeing the subordinates at work to ensure that
they are working according to the plans and policies. Responsibilities of a supervisor:1. Planning and Scheduling work2. Communicate managerial policies and decisions3. Assign work4. Select, train and inspire5. Issue orders and instructions6. Prescribe work methods and procedures7. Organizing resources8. Enforce rules and regulations9. Performance Appraisal
SUPERVISION Qualities of a good supervisor1. Knowledge of work2. Knowledge of the organization3. Communication skills4. Human relations skills5. Physical vigor6. Decisiveness7. Integrity