Organizing and

Staffing

Agenda

Nature and scope of organization

Principles of organizations

Types of organization

Departmentation

Committee centralization vs. Decentralization

Span of control

MBO and MBE

Nature and importance of Staffing

Process of Selection and Recruitment

2

EXTERNAL
ENVIRONMENT
Managerial
Knowledge,
Goals of claimants and
use of inputs(Part1
The Basis of
Management Theory
and Science)

EXTERNAL
ENVIRONMENT

Planning (Part 2)
Organizing (Part
3)

Reenergizi
ng the
system

STAFFING (Part 4)

Leading (Part 5)

Controlling (Part
6)

Inputs
1.Human
2.Capital
3.Managerial
4.Technological

Facilitated
by
communicat
ion that also
link the
organizatio
n with the
external
environmen
t (Part 1 &
7. Domestic
and internal
environmen
t)

EXTERNAL
ENVIRONMENT

Goal inputs of claimants

5.
1. Employees
6.
Governments
2. Consumers
Community
7. Other
3. Suppliers
4. Stock
holders

To produce outputs
EXTERNAL
ENVIRONMENT

System Approach to Management Organizing and Staffing

Objectives
Analyze

the
organization

Determine

different

different

forms

of

an

organizational

structures

Organization

An Organization is a social unit or human grouping

deliberately structured for the purpose of attaining specific
goals.
Amitai Etizoni

The rational coordination of the activities of a number of

people for the achievement of some common explicit
purpose or goal, through division of labour and function,
and through a hierarchy of authority and reponsibility.
Sehein

Organization

The process of identifying and grouping of the

work to be performed, defining and delegating
responsibility

and

authority

and

establishing

relationships for the purpose of enabling people to

work most effectively together in accomplishing
their objectives.
Allen
6

Organization

An organization is the pattern of ways in which large

numbers of people, too many to have intimate face to
face contact with all others, and engaged in a
complexity of tasks, relate themselves to each other in
the

conscious,

systematic

establishment

and

accomplishment of mutually agreed purposes.

Pfiffner & Sherwood

Nature of Organization
A

clear concept of the major duties or

activities required to achieve the purpose.

Classification

of activities into jobs

Establishment

of relationships between

these jobs.
8

Purpose of Organizing

The organizing function of mgmt. naturally &

logically follows the planning function.

Through organizing managers decide how the

strategy
&
planned
objectives
will
be
accomplished.

Involves managers in decisions which result in a

system of specialized coordinated jobs.

To achieve coordinated effort through the design

of a structure of task & authority relationships.
9

Principles of organization

Objectives

Responsibility

Specialization

Authority

Efficiency

Simplicity

Span of Control

Exception

Flexibility

Scalar Principle

Balance

Unity of Command

Unity of Direction

Personal ability

Delegation

10

Organization as a System
Environment

INPUT

Environment

Conversion Process

OUTPUT
Products
Services

Land
Labour
Capital
Management

Feedback Information
Comparison: Actual Vs Desired
11

Types of organizations

Line: Line, Military or Scalar Organization

Functional Organization

Line and Staff Organization

Product / Project Organization or Departmentation

Matrix or Grid Organization

Committee Organization

12

Line: Line, Military or Scalar

Organization
Corporate Organization

General Manager

Sales
Manager

Production
Manager

Salesman

Chief
Accounts
Officer
Clerks

Foreman
Foundry

Foreman
Workshop

Foreman
Assembly

Workers

Workers

Workers
13

Line: Line, Military or Scalar

Organization

Merits
Simple
Flexible
Clear-cur division of
authority
Quick decision &
speedy action
Strong in discipline
All rounder executive

Limitations

Overload of work
Lack Specialization
Dictatorial way
Scope for favoritism
Lack of growth
Unsuitable for large
corner

14

Functional Organization
General Manager

Office
Route
Clerk

Instructio
n Clerk

Shop
Disciplinaria
n

Time &
Cost Clerk

WORKERS

Inspecto
r

Speed
Boss
Gang
Boss

Repair
Boss

WORKERS

15

Functional Organization

Merits

Limitations

Specialization

Indiscipline

Cost Reduction

Fixing of Responsibility

Mass Production

Kills the initiative of

workers

No need for all round

executives

Indifference of foremen
Personal relationship
No all-round executives

16

Line and Staff Organization

Company Secretary

Board of Directors

Market Research
Other Consultants
Sales
Manager
Design Engineer

Purchase Manager
General Manager

Production
Manager

Safety Officer
Foreman
Machine
Shop
Workers

Legal Advisor

HRD Manager
Chief
Accounts
Officer
Industrial Engineer
Safety Officer

Foreman
Foundry

Workers

Foreman
Assembly
Workers
17

Line and Staff Organization

Merits
Expert advice
Relieving Line executives
Well defined authority and
Responsibility as well as

Limitations
Cost increase
Chances of mis-interpretation
Chances of friction
Loss of initiative
Accountability

specialization
Less Wastage
Improved Quality
No confusion or conflicts

18

Product Organization Chart

Board of Directors
Managing Director
General
Manager Small
Car Division

Production
Departme
nt

800 CC
Zen
WagonR
Van
Alto

Sales
Departmen
t

Accounts
Departme
nt

Esteem
Baleno

Production
Departme
nt

General
Manager Large
Car Division

Sales
Departmen
t

Accounts
Departme
nt

19

Project Organization Chart

Chairman
Managing Director
General
Manager
Finance
Software
Vertical 1

General Manager
Production
Software
Vertical 2

Vertical 3
CAD / CAM
Project

GIC
Projec
t

General Manager
Business &
Accounting Software

Stock
Exchang
e
Project

General Manager
Internet &
Telecom
Software
Vertical 3

Robotics
Project

ICICI
Projec
t

Indya.Com
Project
Citi Bank
Debit Card
Project

KSRTC
Reservatio
n Project

Airtel
Mobile
Service
Project
20

Product / Project Organization

Chart

Merits
Specialization
Increase in efficiency

Limitations
Duplication of work
Inadequate Centralization

No interference

Clamour for the same

department

Competitive Spirit

Narrow thinking

Initiative to Managers

Only for big organization

Easy evaluation

Under Utilization.

Ease of Budgeting
Flexibility
21

Matrix or Grid Organization Chart

Director of
Engineering
Chief
Design

Manager
Project A

Chief
Mechanica
l
Engineerin
g

Chief
Electrical
Engineerin
g

Chief
Mechanica
l
Engineerin
g

Manager
Project B
Manager
Project C
Manager
Project D

22

Matrix or Grid Organization Chart

Merits
Flexible and Versatile
Oriented towards end results.
Responsibility of each project is clearly defined and
fixed with respective project managers, who control
the project from start to finish.
The cost of projects is reduced because of sharing of
manpower and other resources.
Better professional identification is maintained.

23

Matrix or Grid Organization

Chart

Limitations
Chance of conflict in organization authority exists.
Unit of command principles is violated where the
chiefs of each department are responsibility to
more than one project manager.
Work may get piled up at any one department
while other departments may not have much work.
24

Matrix or Grid Organization

Chart

Limitations
Requires extreme planning for optimum utilization
of resources.
Better relationships may not exist between the
members of project group because they have
been temporarily gathered only for that project.
Professional management skills are required to
make this type of organization work.
25

Committee Organization

A committee organization is not exactly a type of

organization structure different from the other types.

Smaller

structure

within

larger

organization

consisting of a few individuals and having its own

objectives.

A Committee is formed when a group of individuals

come together to discuss, decide and recommend
solution to certain problems of organization.
26

Types of Committees

Ad-hoc Committee

Standing or permanent Committee

Advisory Committee

Education Committee

27

Committee Organization

Merits
Decision are taken based on the collective wisdom of the
committee members.
Provides integration of ideas of various experts.
Different department are represented in the committee to
safeguard their interests and the decisions this taken will be
acceptable to all
Helps in throwing up new ideas, innovations and new scheme
Committees promote mutual understanding of the members
drawn from various disciplines.

28

Committee Organization

Limitations
Sometimes a committee may take a week or two
to arrive at a decision where as competent
individual would have taken a day for the same.
In a committee, no individual can be held
responsibility for anything.
Final decision may not be fully acceptable to
everyone on the committee.
29

Committee Organization

Limitations
Very often aggressive members in the committee
may influence the final decision similarly some
weak members may fail to understand and
analyse the problems and surrender to other
members.

30

Virtual Organizations

IT has made it possible for an individual to work for

an organization and live anywhere

Virtual organization structure is networked.

Extensive
collaboration
electronically (e-mail).

takes

place

Managers in a virtual environment monitor results,

not progress

Forms are electronic, tech. support through a web

interface

Business processes are designed differently.

31

Virtual Teams

Virtual
Teams
are
geographically
and/or
organizationally dispersed co-workers assembled
using telecommunications and IT to accomplish an
organizational task.

Several reasons explain their growing popularity:

As information needs mushroom, firms rely on the
skills and knowledge of individuals dispersed
across countries/time zones, etc
Enhanced bandwidths promote the use of networks
linking individuals, internal and external to the
organization
32

Virtual Teams
Technology (group support systems, groupware,
etc) is available to assist collaboration
Difficulties in getting relevant stakeholders together
physically are relaxed
Growing pressures for off-shoring has resulted in
systems development by global virtual teams
whose members are located around the world.

33

Departmentation

The horizontal differentiation of tasks or activities

into discrete segments is called Departmentation.

Departmentalization is one important step of

building an organization.

The aim is to take advantage of the division of

labour and specialization upto certain limit.
34

Several Basis of
Departmentation

Functions

Products

Customers

Regions or Territory

Divisional Structures

Time

Process Combined Base

35

Centralization Decentralization

Centralization

Decreasing

the

role

of

subordinates in decision making is centralization.

Decentralization: is the tendency to disperse

decision making authority in an organized
structure. It is fundamental aspect of delegation.

36

Centralization and
Decentralization as tendencies
Complete
centralization (no
organization
structure)

Complete
decentralization (no
organization
structure)

Authority delegated

Authority not delegated

37

Span of Management Control

The number of subordinates reporting directly to

given managers.

The following two types shows the relationship

between

the

span

of

management

&

other

organizational level.
Organization with Narrow Spans
Organization with Wide Spans

38

Organization with Narrow

Spans

39

Organization with Narrow Spans

Merits
Close Supervision
Close Control
Fast Communication
between subordinates
and superiors

Limitations
Superiors tend to get too
involved in subordinates
work
Manly levels of
management
High costs due to many
levels
Excessive distance
between lowest level and
top level
40

Organization with wide Spans

41

Organization with Wide Spans

Merits

Superiors are forced to

delegate
Clear policies must be
made
Subordinates must be

Limitations
Tendency of overload
superiors to become
decision bottlenecks
Danger of superiors
loss of control
Requires exceptional
quality of managers

carefully selected

42

Management by Objectives
(MBO)

The concept of MBO was first proposed by Peter Drucker in

1954.

For each employee and then comparing and directing their

performance against the objectives which have been set.

Aims to increase organizational performance by aligning goals

and subordinate objectives throughout the organization.

MBO includes ongoing tracking and feedback in the process to

reach objectives.

43

Management by Objectives
(MBO)

One of the concepts of MBO was that instead of just a few

top-managers, all managers of a firm should participate in
the strategic planning process, in order to improve the
implementability of the plan.

Another concept of MBO was the managers should

implement a range of performance systems, designed to
help the organizations stay on the right track.

MBO can thus be seen as a predecessor of Value Based

Management.
44

Management by Exception

A Management style wherein managers intervene only

when their employees fail to meet their performance
standards.

If the personal are performing as expected, the

manager will take no action.

The term is also used to describe provision of

information to management in which only significant
deviations from budgets or plans are reviewed as the
basis of corrective action.
45

Management by Exception

The object is to reduce the quality of detail contained

in manager reports and statistics to date on which
action can be taken.

An organizational system in which managers delegate

as much responsibility and activity as possible to
those below them, stepping in only when absolutely
necessary.
46

Organizational Structure
for different
Organizations

47

1.ORGANIZATION STUDY
Organization Structure

D
H

I N

A M N

M
AC

D
RE

D
KP

UE

RT

CI N L H EG A G S A E PL M
EP
A N D ( p r o j e
G E N E aR n A d L e
A D M
I N Id S i Tv iR s Ai

DR
c t
n g
o Tn

UP L C C T
f( gp . l a n
g . a n d
c
I )O N d i v i s
m

PQI O U
l o
o n
i o n

N A L PI
g i s t ( i pc
t r o ld e
)
d e

TD Y D
sr o d u
s i g n
v e l o

TOYOTA KIRLOSKAR MOTOR, Bidadi, Bangalore

48

ORGANIZATION STRUCTURE
General manager

Manager
despatch/ stores

Manager
Syrup/
Liniment

Manager
Quality
Manager
Extraction/
Asawarishta

Manager
Tabs/caps/gel

OM Pharmaceuticals, Bangalore
49

Organization structure
GM
(Aerospace)
AGM (Mfg)
DGM (Mfg)

SM(IT)

SM (TP)

DGM (Fin)
SM(TD)

CM
CNC & Weld

CM (IM)

CM (Plan)

CM (QC)

SM (MS)

CM (Prod)
M (OS)

SM
Carnation Weld
CM
Assembly
SM
PSLV Assy

SM
Prithvi Assy

CM
Maintenance
SM
New Projects
SM
Prithvi
SM
Lp Engine

Aerospace Division
Hindustan Aeronautics Limited
50

Staffing
Filling and keeping the positions provided for by
the organizations structure filled with the right
people is the staffing.

51

Nature of Staffing
It includes
identifying workforce requirements
inventorying the people available and
recruiting, selecting, placing, promoting, apprising,
planning the careers.
Staffing is closely linked with organizing.
52

Nature of Staffing
Recruiting or getting applicants for jobs as they open
up.
Selection of best qualified from those who seek the job
Transfer and Promotions
Training those who need further instructions to perform
their work effectively or to qualify for promotions

53

Importance of Staffing

Helps in discovering talented and competent

workers and developing them to move up the
corporate ladder

Ensures greater productions by putting the right

man in right job

54

Importance of Staffing contd..

Provide sudden disruption of an enterprises production run by indicating

shortages of personnel, if any, in advance.

Prevent under utilization of personnel through over manning and

resultant high labour cost and low profit margin

Provides information to management for the internal succession of

managerial personnel in the event of an un anticipated turn over

55

Process of Selection
Selection is the process of differentiating
between applicants in order to identify and
hire those with a greater likelihood of
success in a job.

56

Process of Selection
Preliminary

interview
Selection tests
Employment interview
Reference and background analysis
Selection decision physical examination
Job offer
Employment contract
Evaluation
57

Recruitment

It can be defined as the process of identifying the

sources for prospective candidates and to stimulates
them to apply for the jobs.

Generating of applications or applicants for specific

positions.

Attracting potential of employees to the company.

58

Recruitment

The management should have a proper plan

of recruitment regarding the quantity and
quality of personnel required and the time
when it is needed.

59

Sources of Recruitment

There are basically two broad sources of

recruitment.
Internal sources i.e, recruitment within the
organization.
External sources i.e, recruitment from outside.

60

Internal Source Recruitment

Internal source refers to people currently

working in the organization. From this source,
Position are filled either through
Promotion
Through transfer from other positions.

61

External Source Recruitment

Following are the different sources external to organization.

Former Employees
Recommendations
Employment exchange
Campus Interview
Advertisement
Voluntary or Walk-in applicants
Private Employment Agencies of HR Consultants
Labour Unions

62

Internal
Searche
s

Employee
Leasing

School
Placement

Traditional
Recruiting
Sources

Employment
Agencies

Employee
Referrals

Temp
Services

Advertisem
ents
63

References

Ess ential of Management, Harold Koontz, Heinz

Weihrich, Tata McGraw hill

Management James A F Stoner, R Edward

Freeman, Daniel R Gilbert, PHI

Principles of Management-P C Tripathi, P N

Reddy; TMH

64

65