STAFFING

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 Human Resource Management

The integration of all

processes, programs, and systems in an
organization that ensure staff are acquired and
used in an effective way

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 Human Resource Management (Contd.)

HR is multidisciplinary: It applies the disciplines of

Economics (wages, markets, resources),
Psychology (motivation, satisfaction),
Sociology (organization structure, culture) and
Law (min. wage, labor contracts)

What HR Professionals Do?

HR planning
Recruitment & Selection
Training and development
Compensation & Performance review
Labor relations
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 Human Resource Planning

Assessing Future
Assessing Current
Human Resource
Human Resources
Needs

Developing a
Program to Meet
Needs
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 Human Resource Planning

The process of systematically

reviewing HR requirements to ensure
that the required number of
employees, with the required skills, are
available when they are needed

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 HR Planning
We have found the gap, how do we fill this void?
Internal Labour Supply
Skill Inventory
Succession Planning
Replacement Planning
– Inventory Chart
• Present & Future staffing situations
• Helps in retention & expulsion strategy

External Labour Supply

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 Job Analysis
(Functional Job Analysis, Position analysis questionnaire)
A Basic Human Resource Management Tool
Human Resource
Tasks Responsibilities Duties Planning
Recruitment
Selection
Training and
Job
Development
Descriptions
Job Performance Appraisal
Analysis Job Compensation and
Specifications Benefits
Safety and Health
Employee and Labor
Relations
Knowledge Skills Abilities Legal Considerations
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Job Analysis for Teams
 Definitions
Job - Consists of a group of tasks that must be
performed for an organization to achieve its goals
Position - Collection of tasks and responsibilities
performed by one person; there is a position for every
individual in an organization
Job analysis - Systematic process of determining the
skills, duties, and knowledge required for performing jobs
in an organization (functional job analysis , position
analysis questionnaire)
Job description – document providing information
regarding tasks, duties, and responsibilities of job
Job specification – minimum qualifications to perform a
particular job 8
Recruitment
Process of
locating, identifying, and
attracting capable
candidates
Can be for current or future
needs
Critical activity for some
corporations.
What sources do we use for
recruitment

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Sources of Recruitment

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 School
Placement Employee
Referrals

Internal
Searches Recruitment
Voluntary
Sources Applicants

Employment
Agencies Advertisements
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 SELECTION

A series of steps from initial applicant

screening to final hiring of the new
employee.
Selection process.
Step 1 Completing application materials.
Step 2 Conducting an interview.
Step 3 Completing any necessary tests.
Step 4 Doing a background investigation.
Step 5 Deciding to hire or not to hire.
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 Selection process
Step 1 Completing application materials.
Gathering information regarding an applicant’s background and
experiences.
Typical application materials.
Traditional application forms.
Résumés.
Sometimes tests may be included with application materials.

Step 2 Conducting an interview.

Typically used though they are subject to perceptual distortions.
Interviews can provide rough ideas concerning the person’s fit with
the job and the organization.

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 Selection process
Step 3 Completing any necessary tests.
Administered before or after the interview.
Common examples of employment tests.
Cognitive, clerical, or mechanical aptitudes or
abilities.
Personality.
Step 4 Doing a background investigation.
Can be used early or late in selection process.

Background investigations include:

Basic level checks.

Reference checks.
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 Selection process
Step 5 Deciding to hire or not to hire.
Draws on information produced in preceding selection steps.
A job offer is made.
A physical examination may be required if it is relevant to job
performance.
Negotiation of salary and/or benefits for some jobs.

Step 6 Socialization.
The final step in the staffing process.
Involves orienting new employees to:
The firm.
The work units in which they will be working.
The firm’s policies and procedures.
The firm’s organizational culture. 15
Performance Appraisal

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 Performance Appraisal

The identification, measurement,

and management of human
performance in organizations.

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 Why Conduct Performance Appraisals?

Make decisions about that person's future

with the organization
Identify training requirements
Employee improvement
Pay, promotion, and other personnel
decisions
Research
Validation of selection techniques and criteria
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A Model of Performance Appraisal

Skills/Activities/Output

Performance Appraisal System

Reward/Training/Punishment

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 Techniques for Evaluating Managers
Evaluation by superiors
Evaluation by colleagues
Peer ratings tend to be more favorable for
career development than for promotion
decisions
Self-evaluation
Self-ratings suffer from leniency
Subordinate evaluation
Effective in developing leadership
Leads to improved performance
360 degree feedback (multi-source)
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 360 Feedback

The combination of peer,

subordinate, and self-review

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Key Steps in Implementing 360° Appraisal
Top management communicates the goals
Employees and managers are involved in the
development of the appraisal criteria and process.
Employees are trained in giving & receiving feedback.

Employees are informed of the nature of the 360

appraisal instrument and process.
The 360 system undergoes pilot testing
Management continuously reinforces the goals of the
360 appraisal and is ready to change the process
when necessary.
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Measurement Tools

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 Relative and Absolute Judgment
Relative Judgment

An appraisal format that asks supervisors to

compare an employee's performance to the
performance of other employees doing the same
job.

Absolute Judgment

An appraisal format that asks supervisors to make

judgments about an employee’s performance
based solely on performance standards.
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 Rating Methods
Performance rating scales
Supervisors indicate how or to what degree a worker possesses a
relevant job characteristic
Ranking technique
Supervisors list the workers in order from highest to lowest
Paired-comparison technique
Compares the performance of each worker with that of every other
person in the group
Forced choice technique
Raters are presented with groups of descriptive statements and are
asked to select the phrase in each group that is most descriptive
of the worker being evaluated

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 Rating Methods
Behaviorally anchored rating scales (BARS)
Appraisers rate critical employee behavior
Critical-incident behaviors are established
These behaviors are used as standards for appraising effectiveness
The BARS items can be scored objectively by indicating whether the
employee displays that behavior
Behavioral observation scales (BOS)
Appraisers rate the frequency of critical employee behaviors
The ratings are assigned on a five point scale
The evaluation yields a total score
Management by objectives (MBO)

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Appraising Managers as Managers

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Organizational Change

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 Concept of Organizational Change

Defined as adoption of a new idea or behavior

by an organization.

Organizations need to continuously adapt to

new situations if they are to survive and
prosper

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Planned and Unplanned Organizational
Changes

Organizational
Change

Planned Changes Unplanned Changes

• Changes in products and • Changing employee
services demographics
• Changes in administrative • Performance gaps
systems • Governmental regulations
• Changes in organizational • Economic competition in the
size or structure global arena
• Introduction of new
technologies
• Advances in information
processing and
communication
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 Workforce
World
Technology
Politics
Forces For
Change
Social Economic
Trends Shocks
Competition

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Resistance to Change - Forms

Overt and immediate

Voicing complaints, engaging in job
actions

Implicit and deferred

Loss of employee loyalty and
motivation, increased errors or
mistakes, increased absenteeism

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 Resistance to Change

Selective Force of
Information Habit
Processing

Individual

Fear of Need for

the Unknown Security
Economic
Factors
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 Resistance to Change

Structural & Threat to establish

Group Inertia resource allocation

Organization

Limited Focus Threat to Expertise

Threat to establish
power relationship
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 Overcoming
Resistance to Change
Education and
Participation
Communication

Facilitation
Negotiation
and Support

Manipulation
Coercion
and Cooptation
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 Organizational Change

Unfreezing Changing Refreezing

Lewin’s Three-Step Process

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 Unfreezing the Status Quo

Desired
State
Restraining
Forces

Status
Quo
Driving
Forces

Time
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 Definition of OD

OD is a planned process of change in an

organization’s culture through the utilization
of behavioral science
technology, research, and theory.

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 Organization Development is...

a systemwide application and transfer of

behavioral science knowledge to the
planned development, improvement, and
reinforcement of the
strategies, structures, and processes that
lead to organization effectiveness.

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Organizational Development - The
Premises

Respect for people

Trust and support

Power equalization

Confrontation

Participation
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 OD Process

Diagnosis Intervention Evaluation

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.
 OD Interventions
Intergroup development

Process consultation

Sensitivity training

Third Party Intervention

Survey feedback

Team building
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Culture Change
 Manager Development
On the Job Training
Planned Progression
Job Rotation
Creation of “assistant-to”
Temporary promotion
Committees
Off the Job
Training
Conference
MDPs
Business Simulations 43
Organizational Conflicts

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 Sources of Conflict

Competition for scarce resources

Time pressure
Unreasonable standards, policies, rules or
procedures
Communication breakdowns
Personality clashes
Ambiguous or overlapping jurisdictions
Unrealized expectations
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 Managing Conflicts

Avoidance
Problem solving
Compromise
Forcing
Smoothing
Structural change
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Training & Development

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 Training and Development (T&D)

 Training - Designed to provide learners with the knowledge and

skills needed for their present jobs – formal and informal
 Development - Involves learning that goes beyond today's job –
more long-term focus
 Learning Organization – firms that recognize critical importance
of continuous performance-related training and development an
take appropriate action

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 Factors Influencing T&D

 Top management support

 Commitment from specialists and generalists
 Technological advances
 Organizational complexity
 Learning style

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The Training and Development
(T&D) Process
Determine T&D Needs

Establish Specific
Objectives

Select T&D Method(s)

Implement T&D Programs

Evaluate T&D Programs

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Determining Training and Development
Needs

In order to compete
effectively, firms must keep
employees well trained.

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Establishing Training and Development
Objectives

 Desired end results

 Clear and concise objectives must be formulated

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 T&D Methods

 Classroom Programs  Distance Learning

 Mentoring and
 Coaching
Videoconferencing
 Role Playing
 E-learning
 Simulations
 On-the-Job Training
 Job Rotation
 Internships

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 Classroom Programs

 Continue to be
effective for many
types of employee
training
 May incorporate some
of other methods

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 Mentoring

 Approach to advising, coaching, and

nurturing, for creating practical relationship to
enhance individual career, personal, and
professional growth and development
 Mentor may be located elsewhere in
organization or in another firm
 Relationship may be formal or informal

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 Coaching

 Often considered responsibility of

immediate boss
 Provides assistance much as a mentor

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 Role Playing
 Respond to specific problems they may
actually encounter in jobs
 Used to teach such skills as:
 interviewing
 grievance handling
 performance appraisal reviews
conference leadership
 team problem solving
 communication

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Simulations

Training devices that

model the real world or
programs replicating
tasks away from the job
site

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Distance Learning and Videoconferencing

 Interactive training
 Used to:
increase access to training
ensure consistency of instruction
reduce cost of delivering T&D
programs

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 E-Learning

Umbrella term describing

online instruction

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 On-the-Job Training

 Informal approach that permits employee to learn job

tasks by actually performing them
 Most commonly used T&D method
 No problem transferring what has been learned to the
task

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Job Rotation

 Employees move from one

job to another to broaden
experience
 Helps new employees
understand variety of jobs

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 Internships

 Training approach where university students divide their

time between attending classes and working for an
organization
 Excellent means of viewing potential permanent employee
at work
 Students are enabled to integrate theory with practice

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 Management Development
 All learning experiences resulting in upgrading of
skills and knowledge needed in current and future
managerial positions
 Imperative managers keep up with latest
developments in their fields while managing ever-
changing workforce in a dynamic environment
 Requires personal commitment of individual
manager

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Reasons to Conduct Management
Training Outside of the Company
 An outside perspective
 New viewpoints
 Possibility of taking
executives out of work
environment
 Exposure to faculty
experts and research
 Broader vision

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Reasons to Conduct Management
Training Inside of the Company
 Training more specific to
needs
 Lower costs
 Less time
 Consistent, relevant material
 More control of content and
faculty

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Orientation

 Initial T&D effort designed

for employees
 Strives to inform them
about company, job and
workgroup
 On-boarding

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Organization Development

 Survey feedback process

 Quality circles
 Team building
 Sensitivity training

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 Survey Feedback Description
 Process of collecting data from organizational
unit through use of questionnaires, interviews
and other objective data
 Can create working environments that lead to
better working relationships, greater
productivity and increased profitability

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Quality Circles

 Groups of employees who

voluntarily meet regularly
with their supervisors to
discuss problems
 Investigate causes
 Recommend solutions

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Team Building

 Conscious effort to develop

effective workgroups
 Uses self-directed teams
 Small group of employees
responsible for an entire work
process
 Members work together to
improve their operation

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 Laboratory/ Sensitivity / T-Group Training

 Participants learn about themselves and

how others perceive them
 No agenda, leaders, authority, power
positions
 People learn through dialogue
 Participants encouraged to learn about
themselves and others in group
 Also called T-group training

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 Evaluating Human Resource
Development

 Ask participant’s opinions

 Determine extent of learning
 Will training change behavior?
 Have T&D objectives been accomplished?
 Benchmarking
 Evaluation difficult, but necessary

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Directing & Controlling

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 Introduction
Directing/Direction is a function of management performed by
top level management in order to achieve organizational
goals. It is very important and necessary function of
management.

Management has to undertake various activities like, guide

people, inspired and lead them as well as supervision of their
activity is required in order to achieve desired results.

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 Meaning and Definition
Direction consists of the process and techniques
utilized in issuing instructions and making certain
that operations are carried as originally planned.

“Directing involves determining the

course, giving order and instruction and
providing dynamic leadership” – Marshall

“Activating means and moving into action-

supplying simulative power to the group”- G.R
Terry

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 Directing involves…..
Telling people what is to be done and explaining how to
do it.
Issuing instructions and orders to subordinates.
Inspiring them to contribute towards the achievement of
objectives,
Supervising their activities;
Providing leadership and motivation

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 ELEMENTS OF DIRECTION

Communication
Leading
Motivation
Supervision
Coordination

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 PRINCIPLES OF DIRECTION

Harmony of Objectives
Unity of Command / Direction
Direct Supervision
Democratic Managerial Style
Follow Through

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 TECHNIQUES OF DIRECTION

Consultative Direction
Free Rein Direction
Autocratic Direction

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SUPERVISION

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 Supervision implies expert overseeing of
subor-dinates -at work in order to guide and regulate their
efforts. Every manager has to supervise the work of his
subordinates to see that they do their work as desired. But
supervision is particularly important at the operat-ing level
of management or at the low-level management.

The supervisor is in direct personal contact with the

workers and he acts as the link between workers and
manage-ment. He communicates the policies, plans and
orders of management to the workers. He also brings
workers' grievances, suggestions and appeals to the notice
of management. Effective supervision is essential for the
accomplishment of desired goals.

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 The direction of people at work is the most
difficult of all production related tasks. Supervision
means constantly functioning in a state of flux and
ambiguity and few people feel satisfaction from
being a supervisor. The reason this is worth
mentioning is because many new supervisors feel
that something is "wrong" when they are
constantly faced with problems relating to their
workforce. This state of flux and ambiguity is
normal to supervision and success is measured in
percentages rather than absolutes.

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 All work requires the coordination of effort. We accomplish
this by giving workers assigned tasks and assigned time in which
they are to accomplish these tasks. But just giving instructions is
not enough. You must give clear, specific instructions on what is to
be done, monitor the worker in the course of their efforts and hold
them accountable for specific results. These three elements;
specific instructions on what is to be done, monitoring them
periodically to make sure it is being done, and making the
employee accountable for the results are the core of the
supervisory process. It is the responsibility of the supervisor to do
this. Workers who do not receive good instruction and direction;
who are allowed to do work incorrectly without correction and who
do not have a review of their performance have not had proper
supervision and hence have not been allowed to perform properly.

The purpose of supervision is to ensure that subordinates

perform their tasks according to prescribed procedures and as
efficiently as possible.
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 In Supervising

1. Set realistic expectations. The expectations that are often

left unstated need to be openly discussed.

2. Establish clear goals. Goal setting gives purpose and

direction to the work of the individual subordinates as well as
to the manager. It ensures alignment to corporate strategy.

3. Communicate. Successful communication is a learned

process that must accommodate individual needs. As the
boss, you establish the norms. Solicit feedback, encourage
discussion (especially alternate points of view), and be
accessible.

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4. Support. A manager is not made by title alone. Anyone
new to a supervisory position needs to develop certain
professional skills. Your mentoring will be the key to success.

5. Be the Model Manager . Lead the way! Have others do as

you say and do.

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COORDINATION

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 What's Coordination?

Co-ordination is the
unification, integration, synchronization of the efforts of
group members so as to provide unity of action in the
pursuit of common goals. It is a hidden force which binds
all the other functions of management.
According to Mooney and Reelay, “Co-ordination is orderly
arrangement of group efforts to provide unity of action in
the pursuit of common goals”.
According to Charles Worth, “Coordination is the
integration of several parts into an orderly hole to achieve
the purpose of understanding”.

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Management seeks to achieve co-ordination through its
basic functions of planning, organizing, staffing, directing
and controlling. That is why, co-ordination is not a separate
function of management because achieving of harmony
between individuals efforts towards achievement of group
goals is a key to success of management. Co-ordination is
the essence of management and is implicit and inherent in
all functions of management.
A manager can be compared to an orchestra conductor
since both of them have to create rhythm and unity in the
activities of group members.

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CONTROL

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 Organizational Control
Organizational Control
Managers monitor and regulate how efficiently
and effectively an organization and its members
are performing the activities necessary to
achieve organizational goals

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 Organizational Control
Managers must monitor and evaluate:
Is the firm efficiently converting inputs into
outputs?
Are units of inputs and outputs measured
accurately?
Is product quality improving?
Is the firm’s quality competitive with other
firms?
Are employees responsive to customers?
Are customers satisfied with the services
offered?
Are our managers innovative in outlook?
Does the control system encourage risk-
taking? 92
 Control Systems
Control Systems
Formal, target-setting, monitoring, evaluation
and feedback systems that provide managers
with information about whether the
organization’s strategy and structure are
working efficiently and effectively.

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11-93
 Control Systems

A good control system should:

be flexible so managers can respond as
needed.
provide accurate information about the
organization.
provide information in a timely manner.

94
Three Types of Control

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 Types of Control
Feedforward Controls
Used to anticipate problems before they arise
so that problems do not occur later during the
conversion process
Giving stringent product specifications to
suppliers in advance
IT can be used to keep in contact with suppliers
and to monitor their progress

96
 Types of Control

Concurrent Controls
Give managers immediate feedback on how
efficiently inputs are being transformed into
outputs
Allows managers to correct problems as
they arise

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11-97
 Types of Control
Feedback Controls
Used to provide information at the output stage
about customers’ reactions to goods and
services so that corrective action can be taken
if necessary

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11-98
Control Process Steps

99
 The Control Process
1. Establish standards of performance, goals, or
targets against which performance is to be
evaluated.
Managers at each organizational level need to
set their own standards.

100
 The Control Process
2. Measure actual performance
Managers can measure outputs resulting
from worker behavior or they can measure
the behavior themselves.
The more non-routine the task, the harder
it is to measure behavior or outputs

101
 The Control Process
3. Compare actual performance against chosen
standards of performance
Managers evaluate whether – and to what
extent – performance deviates from the
standards of
performance
chosen in step 1

102
 The Control Process

4. Evaluate result and initiate corrective action if

the standard is not being achieved
If managers decide that the level of
performance is unacceptable, they must try
to change the way work activities are
performed to solve the problem

103
Three Organizational Control Systems

104
 Financial Measures of Performance
Profit Ratios –
measure how efficiently managers are using the
organization’s resources to generate profits
Return on Investment (ROI) –
most commonly used financial performance measure
organization’s net income before taxes divided by its total
assets

105
11-105
 Financial Measures of Performance

Operating margin
calculated by dividing a companies operating
profit by sales revenue
Provides managers with information about
how efficiently an organization is utilizing its
resources

106
 Financial Measures of Performance

Liquidity ratios
measure how well managers have protected
organizational resources to be able to meet
short-term obligations
Leverage ratios
measure the degree to which managers use
debt or equity to finance ongoing operations

107
 Financial Measures of Performance

Activity ratios
provide measures
of how well
managers are
creating value from
organizational
assets

108
 Output Control
Organizational Goals
Each division within the firm is given specific
goals that must be met in order to attain overall
organizational goals.
Goals should be set appropriately so that
managers are motivated to accomplish them

109
Organization-Wide Goal Setting

110
 Output Control
Operating Budgets
Blueprint that states how managers intend to use
organizational resources to achieve
organizational goals efficiently.

111
 Effective Output Control

1. Objective financial measures

2. Challenging goals and performance standards
3. Appropriate operating budgets

112
 Problems with Output Control
Managers must create output standards that motivate at all
levels
Should not cause managers to behave in inappropriate ways
to achieve organizational goals

113
 Behavior Control
Direct supervision
managers who actively monitor and observe the behavior
of their subordinates
Teach subordinates appropriate behaviors
Intervene to take corrective action
Most immediate and potent form of behavioral control
Can be an effective way of motivating employees

114
 Problems with Direct Supervision

Very expensive because a manager can personally manage

only a relatively small number of subordinates effectively
Can demotivate subordinates if they feel that they are under
such close scrutiny that they are not free to make their own
decisions

115
MBO

116
 Management by Objectives

Management by Objectives (MBO)

formal system of evaluating subordinates for
their ability to achieve specific organizational
goals or performance standards and to
meet operating
budgets

117
 Management by Objectives

1. Specific goals and objectives are established at

each level of the organization
2. Managers and their subordinates together
determine the subordinates’ goals
3. Managers and their subordinates periodically
review the subordinates’ progress toward
meeting goals

118
 Bureaucratic Control
Bureaucratic Control
Control through a system of rules and standard
operating procedures (SOPs) that shapes and
regulates the behavior of
divisions, functions, and individuals.

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11-119
 Bureaucratic Control
Problems with Bureaucratic Control
Rules easier to make than than discarding
them, leading to bureaucratic “red tape” and
slowing organizational reaction times to
problems.
Firms become too standardized and lose
flexibility to learn, to create new ideas, and
solve to new problems.

120
 Clan Control
Clan Control
The control exerted on individuals and groups
in an organization by shared
values, norms, standards of behavior, and
expectations.

121