The Organizing And Staffing
Function
Organizing is the process:
of identifying and grouping tasks to be
performed.
assigning responsibilities and delegating
authority and
establishing relation ships for the purpose of
enabling workers to work most effectively
together in the accomplishments of objectives.
2
Organizing…
The organizing function involves the following sub
functions:
Identification of activities required for the achievement of
objectives and implementation of plans.
Grouping of activities based on similarity of jobs so as to
create self-contained jobs.
Assignment of jobs to employees.
Delegation of authority so as to enable them to perform
their jobs and to command the resources needed for their
performance.
3
Organizing…
Establishment of a net-work of coordinating relation ships
4
Steps in organizing
1. Reviewing of objectives to be accomplished
Objectives are the most important things in organizing and
organization as they affect the results of organization so it is
necessary to review objectives to be accomplished
2. Determining tasks necessary to accomplish objectives
is to list down activities necessary to accomplish the objectives
E.g advertising, training, sales, accounting, budgeting, assembling
5
Steps in organizing (cont’d)
3. Grouping of activities according to their similarities to form department
Work that is similar in nature is placed together to achieve
organizational objectives.
E.g Sales, Advertisement, Accounting ,Budget Training and
Hiring workers
4.assigning work and delegating authorities
Managers have to assign individuals different tasks and make
them authorize of their activates to enable them perform their
job assignments
6
Steps in organizing (cont’d)
5.Hierarchical relationship development
requires the determination of both vertical and horizontal
operating relationships of organization as a whole
The result of organizing process is organization is predetermined
manner to achieve common goal.
7
Classification of organization
On the basis of authority and responsibility assigned to the
personnel and the relationship with each other organization can
be classified as Formal and Informal organization
Formal organization
is the official organizational structure created by management.
formed purpose fully to achieve well defined and formal
objectives.
represents the classification of activities within the enterprise.
8
Classification of organization
(cont’d)
indicates who reports to whom and explains the vertical journal
of communication which connects the chief executive to the
ordinary workers.
the inter-relationship of staff members can be shown in the
organization chart and manuals.
9
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 provides bases for division of labor.
10
Advantages of formal organization
The definite boundaries of each worker are
clearly fixed
Overlapping of responsibility is easily avoided.
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
employees.
A sense of security arises from classification of
the task.
There is no chance for favoritism in evaluation
and placement of the employee. 11
organization
In certain cases, the formal organization may reduce the spirit of
imitative.
Sometimes authority is used for the sake of convenience of the
employee without considering the need for using the authority.
it does not consider the sentiment and values of the employees in
the social organization
It may reduce the speed of informal communication
It creates the problems of coordination
12
Informal organization
established the relationship on the basis of the likes and dislikes of
officers without considering the rules, regulations and
procedures.
not recognized by officers but only felt, the friendship
Mutual understanding and confidence are some of the reasons for
its existence.
for example, a salesman receives orders or instructions directly
from the sales manger instead of his supervisors
13
Informal organization
give a greater job satisfaction and result in maximum production.
brings cohesiveness to formal organization
It brings to the members of a formal organization a feeling of
belonging, status of self respect and gregarious satisfaction.
14
Characteristics of informal
organization
Group norms:-have no written rules and traditions but are
commonly followed.
Informal organization arises without any external cause i.e.
voluntarily.
it is a social structure formed to meet personal needs.
It has no place in the organization chart.
it acts as an agency of social control.
15
Characteristics of informal
organization….
Can be found on all levels of organization within the managerial
hierarchy.
develops from habits, conduct, customs and behavior of social
groups.
It is one parts of total organization
There is no structure and definiteness to the informal
organization
• group cohesiveness:- the members of informal
organization are stick together
16
Characteristics of informal
organization….
group leader ship:- informal organization has the
informal leader. This person is the most active one
from among the others
Communication net worked:-the organization has
communicate net work called grapevine.
have no boundary:- informal organization cut
across the entire formal organization without
following chain of command so managers can also be
members of the informal group.
17
Advantages of informal
organization
it fills up the gaps and deficiency of the formal organization
gives satisfaction to the workers and maintains the stability of the
work.
it is a useful channel of communication
encourages the executives to plan the work correctly and act
accordingly.
fills up the gaps among the abilities of the managers.
18
Disadvantages of informal organization
It has the nature of upsetting the morality of the workers.
It acts according to mob psychology.
Indirectly reduces the efforts of management to promote greater
productivity.
It spreads rumor among the workers regarding the functioning of
the organization unnecessarily.
19
Impacts of the informal organization
The informal organization can affect the organization positively
and negatively.
Positive impact
Support management:- some times in providing advices,
generate new ideas in performing activities to attain
organizational objectives.
Creates stability in the work environment:-since workers
have their own group to satisfy their needs they tend to work for
long period of time in the organization.
Provides channels of communication:- individuals who are
new for the organization can easily be informed about the
organization through informal organization members.
20
Negative impact
Creates conflicts: - most of the time members of the informal
organization workers may conflict with their formal boss while
they are trying to satisfy their informal leader.
Change resistance:- some times management may want to
change operational systems. But informal group may not agree
to adopt the changes.
Can expand rumor and false information: - informal
organization may of compurgation inch is informal so the degree
of passing mere gossips and incorrect information may be high
21
How to work with informal
organization
Managers should make use of informal organization for the
benefit of formal organization.
Managers should consider the following factors to use informal
groups.
Realize the existence of informal groups
Identify the roles of members in each informal group
Use information to work with informal groups
22
The difference between formal and informal organizations
formal organization informal organization
arises due to delegation of authority arises due to social interaction of people
gives importance to terms of authority and gives importance to people and functions
their relationships.
created deliberately spontaneous and natural
attached to a position attached to a person.
rules, duties and responsibilities are written No such written rules and duties
authority flows from upwards to downwards flows upwards to downwards or horizon.
may grow to maximum size tends to remain smaller.
Table 4.1 23
Organization Chart
Organization Chart:- is graphic illustration of the
organization’s management hierarchy and departments and their
working relationships.
it provides different important information regarding:-
who reports to whom- that , chain of command.
Span of control
Channels of formal communication:- shown by solid lines
that connect each job(box)
24
Organization Chart…
Activities in each position:- the labels in boxes describe each
individual ‘s activities
The hierarchy of decision making:- where the decision
maker for a problem is located.
authority relationships
solid connections between boxes illustrate line authority, Zigzag
lines show staff authority, and broken line show functional
authority
25
Limitation of Organizational Chart
informal communication channel
Informal relationship among workers
Degree of authority hold by individuals
26
Departmentation
Definition departmentation:- is grouping of related activities
in to units.
Similar activities intimately related with a distinct function are
grouped together to form departments.
It aims at achieving unity of direction, effective communication,
coordination and control.
27
Bases of Departmentation
There are some bases for departmentation but there is no one
best way to departmentalize the activities
the choice of departmentalization depends on the needs of the
organization.
The major bases of departmentation include: function, Product,
customer, and territory.
28
Functional departmentation
It involves organizing departments around essential input activities,
Such as production, marketing and finance, that are managerial or
technological functions.
Advantages
Encourages learning from others doing similar jobs.
Easy for managers to monitor and evaluate
workers.
29
Functional departmentation…
• Allows managers to create the set of functions
they need in order to scan and monitor the
competitive environment
Disadvantages
Difficult for departments to communicate with others.
Preoccupation with own department and losing sight of
organizational goals.
30
Functional departmentation
Head Quarter
Marketing manufacturing Finance personnel
plant2 plant3 plant4
plant1
Figure 4.1 31
Product Departmentation
It involves organizing departments around products or services.
Companies with multiple products commonly use product
departmentalization.
Each department may become self-contained company, making
and selling its own products.
32
Product Departmentation…
CEO
Corporation
Corporate
Managers
Washing Machine Lighting Television
Division Division Division
Figure 4.2
33
Customer Departmentation
Customer departmentation involves organizing departments
around needs of different types of customers. It is grouping of
activities and responsibilities in departments based on the needs
of specific customer groups.
34
Customer Departmentation
CEO
Corporation
Corporate
Managers
Large Business Small Business Educational Individual
Customers Customers Institutions Customers
Figure 4.3
35
Territory (Geographic) Departmentation
Involves grouping of activities and responsibilities according to
territory.
All activities in a geographic area are assigned to a particular
manager
36
Territory (Geographic) Departmentation
CEO
Corporation
Corporate
Managers
Northern Western Southern Eastern
Region Region Region Region
Figure 4.4
37
Matrix departmentation
It combines the functional and product structures.
With matrix departmentation, the employee works
for a functional department and is also assigned to
one or more products or projects. advantage of
matrix departmentation is flexibility.
its disadvantage is that each employee has two bosses
a functional boss and a project boss-conflict can
result when two people give orders
38
Matrix departmentation…
Figure 4.5
39
control)
Span of control:- refers to the number of employees reporting
to manger, in other words, the number of subordinates a manger
directly supervises.
No fixed number of subordinates is there to be supervised by a
single manger,
the number depends on different action which include the
following.
40
Span of management (span of
control)
Complexity and variety of subordinates job
Ability and competence of mangers
mangers willing nears to delegate authority
The geographic location of organizational departments.
Based on the numbers of subordinates supervised by mangers in
organizational departments, span of control can be classified in to
1.wide span of control and
2.narrow span of control.
41
Wide and narrow spans of control
wide span of control:- span of control in which as many as 10
or 15 people may report to the same person, results in a flat
organization structure.
Flat structures and have fewer levels
Structure results in quick communications but can lead to
overworked managers
If the number of subordinates is many it is wide span of control.
42
wide span of control
Figure 4.6
43
narrow span of control
A narrow span of control:- span of control in a tall
organizational structure.
If number of subordinates is few it is narrow span of control
nearly, but not always real, if number of subordinates is 10 to 12
and if it is <10. it is narrow span of control.
Resulted in tall organizational l structure and a relatively large
number of hierarchical levels.
There is tight control
44
narrow span of control
Figure 4.7
45
Authority and power and their
sources
Authority: - is the formal and legitimate right of a manger to
make decisions, give orders, and allocate resources,
Is the right to command
Source of authority
the position he or she occupies in the organization
46
Types of authority
Line authority
Functional authority Types of authority
Staff authority
i)Line authority :-defines the relationship between superior
and subordinates.
Any manager who supervises operating employees or other
manger has line authority.
It allows mangers to give direct orders, evaluate the actions,
reward and punish employees.
It is responsible to make decisions and issue orders down the
chain of command.
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Types of authority…
ii. Staff authority: is the authority to serve in an advisory
capacity.
managers who provide advice or technical assistance are granted
advisory authority.
They have no basis for direct control over the subordinates or
activities of other departments; however, with in the staff
managers own department, he or she can exercise line authority.
Staff authority, in the form of advice/ assistance flows upward to
the decision maker.
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Types of authority…
Staff authority is responsible to advice and assist other personnel
III,Functional authority:- an authority which permits staff
mangers make decision about specific activities performed by
employees with in other departments.
Staff departments often use functional authority to control their
procedures in other departments.
Ex. The maintenance department assists production by keeping the
operating activity .
If the maintenance determines that a machine is unsafe, the
department may issue an order to line manger to use the machine, but
it cannot suggest which products are produced.
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Types of authority…
50
Power and its sources
Power:- is ability to exert influence in the organization
It is ability to influence others’ behavior.
Power can be positional and personal.
Position power :is derived from top management and is
delegated down the chain of command.
Personal power is derived from the follower based on the
individual behavior.
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Power and its sources
Power:- It is ability to influence others’ behavior.
A person does not need to be manager to have power
Power can be positional and personal.
Position power is derived from top management and is
delegated down the chain of command.
Personal power is derived from the follower based on the
individual behavior.
Some administrative assistants of top mangers have considerable
power, but no authority.
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Power and its sources…
Manager can a acquire power from several different sources,
based on these sources power can be:
(i). Legitimate or position power:-The power possessed by
manger and derived from the positions they occupy in the
formal organization.
(ii) Reward power:- The power that comes from the ability to
promise or grant rewards. Mangers have the ability to decide
on raises, promotion favorable performance appraisals, and
preferred work sheifs
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Power and its sources…
iii) Coercive power:- is a power which enables mangers to
force individuals to attain their work assignments or to punish
those workers who failed to attain their job assignments.
It is dependent on fear. The punishment may include; demotion,
terminating employment etc
(iv) Referent (charismatic) power:-is the power that is based
on the kind of personality or charisma an individuals has and how
others perceive it
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Power and its sources…
It is the power obtained from the attitude of people toward some
one or from idea that one has on himself
V)Expert Power:- is power derived from an individual’s
knowledge and expertise. Others listen to and follow the person
with expert power because she/he is regarded as capable and
knows how to do things right. Employees with expert power are
often promoted to management.
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Delegation, Centralization and
Decentralization
Delegation is the process of assigning authority and creating
obligation to accomplish objectives.
is the down ward transfer of formal authority from one person to
another
Process of Delegation
Assignment of tasks
Delegation of authority
Creation of obligation
Establishment of control system
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Merits of delegation
It freed managers from routine activities and enables them
to focus on critical ones.
It acts as a tool of development and motivation of employees.
It is means of pushing down decision to lower level so decisions
are likely to be more timely as well as realistic.
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Obstacles to Delegations
Managers believe that they can do better decisions
Managers are afraid of loosing importance
Some managers do not know how or what to delegate
Subordinates lack confidence in their activities etc.
58
Centralization and decentralization
Centralization is a philosophy of management that focuses on
systematical retaining of authority in the hand of higher level
managers.
Decentralization is a philosophy of management that focuses on
systematical delegation of authority through out the organization
to middle and lower level managers.
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Centralization and decentralization
If authority is decentralized:
Greater number of decision will be made at lower level
Important decisions are made at lower level, and subordinates will refer
less their superiors to make decisions.
The reverse is true if authority is centralized.
In centralization decision making criteria are limited to top level
management. But
In decentralization are delegated to lower level.
Tall organization structures are more of centralized.
Flat organization Structures are more of decentralize.
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Groups and committees
Group:-is a social unit consisting of two or more
interdependent, interactive individuals who are striving to attain
common goals.
Types of groups
Formal groups:- are groups established by an organization,
their membership and structure are formed by the management
of the organization
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Formal groups
Formal groups are may be classified as follows
Task group:-work group consists of people with different skill
for performance of a common task.
Command group:- consists of managers and their employees
formed due to authority and responsibility relationship.
Mediating group:- a group formed to resolve conflict that
may arise between departments and individuals.
Policy making group:- a group established to formulate
operating policy.
62
Informal groups
are groups created spontaneously when member join together
voluntarily because of similar interest.
63
Committees
Committee is a group of members that represents functional
areas of expertise.
It is best example of formal group
The primary function of committee is to make or suggest
decisions on problems requiring integration of different
departments.
Types of committee
Generally committees can be ad hoc or standing
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Types of committee
Ad hoc committees:- are those formed for a particular purpose.
If the objectives are for which they are established have been
met, they are disbanded (dispersed). They are temporary.
Standing committee:- are permanent in nature. They are not
disbanded. In large organizations they often take the form of
finance committees and personnel committee and there is always
enough work to justify their existence.
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Staffing an Organization
DEFINITIONS: Staffing is the process by which an
organization creates a pool of applicants and makes a choice
from that pool to provide the right person at the right place
at the right time to increase the organizational effectiveness.
• Staffing is the process of acquiring, deploying, and retaining
a workforce of sufficient quantity and quality to create
positive impacts on the organization's effectiveness
66
Main objective of staffing
to understand the nature of staffing and how it is a function of all
managers in an organization.
to understand manpower planning so that people are available at
right time and at right place
to understand the issues related to job analysis and the uses for
which it is undertaken
67
IMPORTANCE OF STAFFING
filling organizational positions: concerned with filling of
good systematic staffing.
developing competencies: right job according to right
person.
retaining personnel: continuing them in the organization.
68
ELEMENTS OF STAFFING
Elements of staffing include:-
i. Manpower planning
ii. Job analysis
iii. Recruitment and selection
iv. Training and Development
v. Performance appraisal
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i)MANPOWER PLANNING:-
Manpower planning is the process by which an organization
ensures that it has the right number and the kind of people, at the
right place, at the right time, capable of effectively and efficiently
completing those tasks that will help the organization achieve its
overall objectives.
70
Importance of manpower
planning
Defining future personnel need. (Basis of recruiting and
developing personnel)
Coping with changes. (Future changes can be cope up with
effective planning)
Providing base for developing talents. (Setting up the
priorities before recruiting)
Increasing investment in human resources. (Provides the way
for effective utilization of talents)
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ii)Job analysis
Job analysis is the process of studying and collecting information
relating to the operations and responsibilities of a specific job.
The immediate products of this analysis are job descriptions and
job specifications
72
a)Job Description :
Describes the job itself, it usually includes:
job title
objective of each positions
Authorities and responsibilities
Tasks and duties to be performed.
Relationship between this position and other
positions (superiors , Subordinates and peers
73
b)job specification:-
Job specification is lists of the education, experience and skill
requirements for someone to be given the job
iii)Recruitment and selection
Recruitment: - is the process of finding and attracting capable
applicants for employment.
The process begins when new recruits are sought and ends when their
applications are submitted.
The result is a pool of applicants from which new employees are
selected.
Selection:- is the process of differentiating between applicants in
order to identify and hire those with a greater likelihood of success in
a job.
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Iv)Training & development functions
Training :-is a short term process utilizing a systematic and
organized procedure by which non managerial personnel learn
technical knowledge and skills for a definite purpose.
development:-is a long term educational process utilizing a
systematic and organized procedure by which managerial
personnel learn conceptual and theoretical knowledge for
general purpose.
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V)Performance appraisal
Performance appraisal : is a periodic formal evaluation of how
well personnel have performed their duties during a specific
period.
it is major key to managing
It is Basis of determining who is promotable to higher position
It determines strengths and weaknesses of a manager.
Measures performance in accomplishing goals and plans
It is Integral part of organization
Recognize legitimate desire of employees for progress
Essential for effective management
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