MG8591- Principles Of Management Jeppiaar Institute of Technology

UNIT III
ORGANIZING
Nature and purpose – Formal and informal organization – organization chart – organization structure
– types – Line and staff authority – departmentalization – delegation of authority – centralization and
decentralization – Job Design - Human Resource Management – HR Planning, Recruitment, selection,
Training and Development, Performance Management, Career planning
and management
1. NATURE AND PURPOSE
ORGANIZING
DEFINITION
 According to Koontz and O'Donnell, "Organization involves the grouping of activities
necessary to accomplish goals and plans, the assignment of these activities to appropriate
departments and the provision of authority, delegation and co- ordination."
 Organization involves division of work among people whose efforts must be co- ordinated
to achieve specific objectives and to implement pre-determined strategies.
NATURE OR CHARACTERISTICS OF ORGANIZING
From the study of the various definitions given by different management experts the following
information about the characteristics or nature of organization,
(1) Division of Work: Division of work is the basis of an organization. In other words, there can
be no organization without division of work. Under division of work the entire work of business is
divided into many departments .The work of every department is further sub- divided into sub-
works. In this way each individual has to do the saran work repeatedly which gradually makes that
person an expert.
(2) Coordination: Under organizing different persons are assigned different works but the aim of
all these persons happens to be the some - the attainment of the objectives of the enterprise.
Organization ensures that the work of all the persons depends on each other’s work even though it
happens to be different. The work of one person starts from where the work of another person ends.
The non-completion of the work of one person affects the work of everybody. Therefore,
everybody completes his work in time and does not hinder the work of others. It is thus, clear that it
is in the nature of an organization to establish coordination among different works, departments
and posts in the enterprise.
(3) Plurality of Persons: Organization is a group of many persons who assemble to fulfill a
common purpose. A single individual cannot create an organization.
(4) Common Objectives: There are various parts of an organization with different functions to
perform but all move in the direction of achieving a general objective.
(5) Well-defined Authority and Responsibility: Under organization a chain is established
between different posts right from the top to the bottom. It is clearly specified as to what will be the
authority and responsibility of every post. In other words, every individual working in the
organization is given some authority for the efficient work performance and it is also decided
simultaneously as to what will be the responsibility of that individual in case of unsatisfactory work
performance.
(6) Organization is a Structure of Relationship: Relationship between persons working on
different posts in the organization is decided. In other words, it is decided as to who will be the
superior and who will be the subordinate. Leaving the top level post and the lowest level post
everybody is somebody's superior and somebody's subordinate. The person working on the top
level post has no superior and the person working on the lowest level post has no subordinate.
(7) Organization is a Machine of Management: Organization is considered to be a machine of
management because the efficiency of all the functions depends on an effective organization. In the
absence of organization no function can be performed in a planned
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manner. It is appropriate to call organization a machine of management from another point of view.
It is that machine in which no part can afford tube ill-fitting or non-functional. In other words, if
the division of work is not done properly or posts are not created correctly the whole system of
management collapses.
(8) Organization is a Universal Process: Organization is needed both in business and non-
business organizations. Not only this, organization will be needed where two or mom than two
people work jointly. Therefore, organization has the quality of universality.
(9) Organization is a Dynamic Process: Organization is related to people and the knowledge
and experience of the people undergo a change. The impact of this change affects the various
functions of the organizations. Thus, organization is not a process that can be decided for all times
to come but it undergoes changes according to the needs. The example in this case can be the
creation or abolition of a new post according to the need.

IMPORTANCE OR ADVANTAGES OF ORGANIZING

Organization is an instrument that defines relations among different people which helps them to
understand as in who happens to be their superior and who is their subordinate. This information
helps in fixing responsibility and developing coordination. In such circumstances the objectives of
the organization can be easily achieved. That is why, it is said that Organization Is a mechanism of
management. In addition to that it helps in the other functions of management like planning,
staffing, leading, controlling, etc.
The importance of organization or its merits becomes clear from the following facts,
(1) Increase In Managerial Efficiency: A good and balanced organization helps the managers to
increase their efficiency. Managers, through the medium of organization, make a proper
distribution of the whole work among different people according to their ability.
(2) Proper Utilization of Resources: Through the medium of organization optimum utilization of
all the available human and material resources of an enterprise becomes possible. Work is allotted
to every individual according to his ability and capacity and conditions ant created to enable him to
utilize his ability to the maximum extent. For example, if an employee possesses the knowledge of
modem machinery but the modem machinery is not available in the organization, in that case,
efforts are made to make available the modem machinery.
(3) Sound Communication Possible: Communication is essential for taking the right decision at
the right time. However, the establishment of a good communication system is possible only
through an organization. In an organization the time of communication is decided so that all the
useful information reaches the officers concerned which. in turn, helps the decision-making.
(4) Facilitates Coordination: In order to attain successfully the objectives of the organization,
coordination among various activities in the organization is essential. Organization is the only
medium which makes coordination possible. Under organization the division of work is made in
such a manner as to make all the activities complementary to each other increasing their inter-
dependence. Inter-dependence gives rise to the establishment of relations which, in turn, increases
coordination.
(5) Increase in Specialization: Under organization the whole work is divided into different parts.
Competent persons are appointed to handle all the sub-works and by handling a particular work
repeatedly they become specialists. This enables them to have maximum work performance in the
minimum time while the organization gets the benefit of specialization.
(6) Helpful in Expansion: A good organization helps the enterprise in facing competition. When
an enterprise starts making available good quality product at cheap rates, it increases
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the demand for its products. In order to meet the increasing demand for its products an organization
has to expand its business. On the other hand, a good organization has an element of flexibility
which far from impeding the expansion work encourages it.

ORGANIZING PROCESS
Organization is the process of establishing relationship among the members of the enterprise.
The relationships are created in terms of authority and responsibility. To organize is to harmonize,
coordinate or arrange in a logical and orderly manner. Each member in the organization is assigned
a specific responsibility or duty to perform and is granted the corresponding authority to perform
his duty. The managerial function of organizing consists in making a rational division of work into
groups of activities and tying together the positions representing grouping of activities so as to
achieve a rational, well-coordinated and orderly structure for the accomplishment of work.
According to Louis A Allen, "Organizing involves identification and grouping the activities to be
performed and dividing them among the individuals and creating authority and responsibility
relationships among them for the accomplishment of organizational objectives."
The various steps involved in this process are:
a) Determination of Objectives:
It is the first step in building up an organization. Organization is always related to certain
objectives. Therefore, it is essential for the management to identify the objectives before starting
any activity. Organization structure is built on the basis of the objectives of the enterprise. That
means, the structure of the organization can be determined by the management only after knowing
the objectives to be accomplished through the organization. This step helps the management not
only in framing the organization structure but also in achieving the enterprise objectives with
minimum cost and efforts. Determination of objectives will consist in deciding as to why the
proposed organization is to be set up and, therefore, what will be the nature of the work to be
accomplished through the organization.
b) Enumeration of Objectives:
If the members of the group are to pool their efforts effectively, there must be proper division of
the major activities. The first step in organizing group effort is the division of the total job into
essential activities. Each job should be properly classified and grouped. This will enable the people
to know what is expected of them as members of the group and will help in avoiding duplication of
efforts. For example, the work of an industrial concern may be divided into the following major
functions – production, financing, personnel, sales, purchase, etc.
c) Classification of Activities:
The next step will be to classify activities according to similarities and common purposes and
functions and taking the human and material resources into account. Then, closely related and
similar activities are grouped into divisions and departments and the departmental activities are
further divided into sections.
d) Assignment of Duties:
Here, specific job assignments are made to different subordinates for ensuring a certainty of work
performance. Each individual should be given a specific job to do according to his ability and made
responsible for that. He should also be given the adequate authority to do the job assigned to him.
In the words of Kimball and Kimball - "Organization embraces the duties of designating the
departments and the personnel that are to carry on the work, defining their functions and specifying
the relations that are to exist between department and individuals."
e) Delegation of Authority:
Since so many individuals work in the same organization, it is the responsibility of management to
lay down structure of relationship in the organization. Authority without
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responsibility is a dangerous thing and similarly responsibility without authority is an empty vessel.
Everybody should clearly know to whom he is accountable; corresponding to the responsibility
authority is delegated to the subordinates for enabling them to show work performance. This will
help in the smooth working of the enterprise by facilitating delegation of responsibility and
authority.

2. FORMAL AND INFORMAL ORGANIZATION

Organizations are basically classified on the basis of relationships. There are two types of
organizations formed on the basis of relationships in an organization
1. Formal Organization - This is one which refers to a structure of well defined jobs each
bearing a measure of authority and responsibility. It is a conscious determination by which
people accomplish goals by adhering to the norms laid down by the structure. This kind of
organization is an arbitrary set up in which each person is responsible for his performance.
Formal organization has a formal set up to achieve pre- determined goals.
2. Informal Organization - It refers to a network of personal and social relationships which
spontaneously originates within the formal set up. Informal organizations develop
relationships which are built on likes, dislikes, feelings and emotions. Therefore, the network
of social groups based on friendships can be called as informal organizations. There is no
conscious effort made to have informal organization. It emerges from the formal organization
and it is not based on any rules and regulations as in case of formal organization.
Relationship between Formal and Informal Organizations
Formal Organizations Informal Organizations

Formal Organization is an organization in Informal Organization is formed within the

which job of each member clearly defined, formal organization as a network of the
whose authority, responsibility and interpersonal relationship when people
accountability fixed interact with each other.
Formal organization originates from the set informal organization originates from
organizational structure formal organization
Formal organization can work Informal organization depends totally upon
independently the formal organization.
The formal organization is goal-oriented An informal organization, on the other hand,
develops automatically and
spontaneously.
The behaviour of the members of the formal The behaviour of the members of the informal
group is according to rules and regulations set group is according to the individual and group
by the management. interests.
Focus on Work Performance Focus on Interpersonal relationship
Features of Formal organisation:
(1) The formal organisational structure is created intentionally by the process of organising.
(2) The purpose of formal organisation structure is achievement of organisational goal.
(3) In formal organisational structure each individual is assigned a specific job.
(4) In formal organisation every individual is assigned a fixed authority or decision-making
power.
(5) Formal organisational structure results in creation of superior-subordinate relations.
(6) Formal organisational structure creates a scalar chain of communication in the organisation.
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Advantages of Formal Organisation:

1. Systematic Working:
Formal organisation structure results in systematic and smooth functioning of an
organisation.
2. Achievement of Organisational Objectives:
Formal organisational structure is established to achieve organisational objectives.
3. No Overlapping of Work:
In formal organisation structure work is systematically divided among various departments and
employees. So there is no chance of duplication or overlapping of work.
4. Co-ordination:
Formal organisational structure results in coordinating the activities of various departments.
5. Creation of Chain of Command:
Formal organisational structure clearly defines superior subordinate relationship, i.e., who
reports to whom.
6. More Emphasis on Work:
Formal organisational structure lays more emphasis on work than interpersonal relations.

Disadvantages of Formal Organisation:

1. Delay in Action:
While following scalar chain and chain of command actions get delayed in formal structure.
2. Ignores Social Needs of Employees:
Formal organisational structure does not give importance to psychological and social need of
employees which may lead to demotivation of employees.
3. Emphasis on Work Only:
Formal organisational structure gives importance to work only; it ignores human relations,
creativity, talents, etc.

Features of informal organisation:

(1)Informal organisational structure gets created automatically without any intended efforts of
managers.
(2)Informal organisational structure is formed by the employees to get psychological
satisfaction.
(3)Informal organisational structure does not follow any fixed path of flow of authority or
communication.
(4)Source of information cannot be known under informal structure as any person can
communicate with anyone in the organisation.
(5) The existence of this organisational structure depends on formal organisation structure.

Advantages of Informal Organisation:

1. Fast Communication:
Informal structure does not follow scalar chain so there can be faster spread of
communication.
2. Fulfills Social Needs:
Informal communication gives due importance to psychological and social need of employees
which motivate the employees.
3. Correct Feedback:
Through informal structure the top level managers can know the real feedback of employees on
various policies and plans.
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Disadvantages of Informal organisation:

1. Spread Rumours:
According to a survey 70% of information spread through informal organisational structure are
rumours which may mislead the employees.
2. No Systematic Working:
Informal structure does not form a structure for smooth working of an organisation.
3. May Bring Negative Results:
If informal organisation opposes the policies and changes of management, then it becomes very
difficult to implement them in organisation.
4. More Emphasis to Individual Interest:
Informal structure gives more importance to satisfaction of individual interest as compared to
organisational interest.

3. ORGANIZATION CHART
The definition of an organization chart or "org chart" is a diagram that displays a reporting or
relationship hierarchy. The most frequent application of an org chart is to show the structure of a
business, government, or other organization.
Org charts have a variety of uses, and can be structured in many different ways. They might be
used as a management tool, for planning purposes, or as a personnel directory, for example. Perhaps
organization doesn't operate in a "command and control" style, but instead relies on teams.
Organizational charts are useful in a number of ways.
 Show work responsibilities and reporting relationships.
 Allow leadership to more effectively manage growth or change.
 Allow employees to understand how their work fits into the organization's overall scheme.
 Improve lines of communication.
 Create a visual employee directory.
 Present other types of information, such as business entity structures and data
 hierarchies.
The type of organization chart you make should mirror the managament philosophy and
organizational structure of the company.
There are four basic types of organizational charts:
1. Functional Top-Down
2. Divisional Structure
3. Matrix Organizational Chart
4. Flat Organizational Chart
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4. ORGANIZATION STRUCTURE
An organization structure is a framework that allots a particular space for a particular department or
an individual and shows its relationship to the other. An organization structure shows the authority
and responsibility relationships between the various positions in the organization by showing who
reports to whom. It is an established pattern of relationship among the components of the
organization.

March and Simon have stated that-"Organization structure consists simply of those aspects of
pattern of behaviour in the organization that are relatively stable and change only slowly." The
structure of an organization is generally shown on an organization chart. It shows the authority and
responsibility relationships between various positions in the organization while designing the
organization structure, due attention should be given to the principles of sound organization.

Significance of Organization Structure

 Properly designed organization can help improve teamwork and productivity by providing a
framework within which the people can work together most effectively.
 Organization structure determines the location of decision-making in the organization.
 Sound organization structure stimulates creative thinking and initiative among organizational
members by providing well defined patterns of authority.
 A sound organization structure facilitates growth of enterprise by increasing its capacity to
handle increased level of authority.
 Organization structure provides the pattern of communication and coordination.
 The organization structure helps a member to know what his role is and how it relates to other
roles.

PRINCIPLES OF ORGANIZATION STRUCTURE

Modern organizational structures have evolved from several organizational theories, which have
identified certain principles as basic to any organization structure.
a) Line and Staff Relationships:
Line authority refers to the scalar chain, or to the superior-subordinate linkages, that extend
throughout the hierarchy (Koontz, O'Donnell and Weihrich). Line employees are responsible for
achieving the basic or strategic objectives of the organization, while staff plays a supporting role to
line employees and provides services. The relationship between line and staff is crucial in
organizational structure, design and efficiency. It is also an important aid to information processing
and coordination.
b) Departmentalization:
Departmentalization is a process of horizontal clustering of different types of functions and
activities on any one level of the hierarchy. Departmentalization is conventionally based on
purpose, product, process, function, personal things and place.
c) Span of Control:
This refers to the number of specialized activities or individuals supervised by one person.
Deciding the span of control is important for coordinating different types of activities effectively.
d) De-centralization and Centralization:
De-centralization refers to decision making at lower levels in the hierarchy of authority. In contrast,
decision making in a centralized type of organizational structure is at higher levels. The degree of
centralization and de-centralization depends on the number of levels of hierarchy, degree of
coordination, specialization and span of control.
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Every organizational structure contains both centralization and de-centralization, but to varying
degrees. The extent of this can be determined by identifying how much of the decision making is
concentrated at the top and how much is delegated to lower levels. Modern organizational
structures show a strong tendency towards de-centralization.

5. TYPES- LINE AND STAFF AUTHORITY

In an organization, the line authority flows from top to bottom and the staff authority is exercised
by the specialists over the line managers who advise them on important matters. These specialists
stand ready with their specialty to serve line mangers as and when their services are called for, to
collect information and to give help which will enable the line officials to carry out their activities
better. The staff officers do not have any power of command in the organization as they are employed
to provide expert advice to the line officers. The 'line' maintains discipline and stability; the 'staff'
provides expert information. The line gets out the production, the staffs carries on the research,
planning, scheduling, establishing of standards and recording of performance. The authority by which
the staff performs these functions is delegated by the line and the performance must be acceptable to
the line before action is taken. The following figure depicts the line and staff authority:
Types of Staff
The staff position established as a measure of support for the line managers may take the following
forms:
1. Personal Staff: Here the staff official is attached as a personal assistant or adviser to the line
manager. For example, Assistant to managing director.
2. Specialized Staff: Such staff acts as the fountainhead of expertise in specialized areas like R & D,
personnel, accounting etc.
3. General Staff: This category of staff consists of a set of experts in different areas who are meant to
advise and assist the top management on matters called for expertise. For example, Financial advisor,
technical advisor etc.
Features of line and staff organization
 Under this system, there are line officers who have authority and command over the
subordinates and are accountable for the tasks entrusted to them. The staff officers are
specialists who offer expert advice to the line officers to perform their tasks efficiently.
 Under this system, the staff officers prepare the plans and give advice to the line officers and
the line officers execute the plan with the help of workers.
 The line and staff organization is based on the principle of specialization.
Advantages
 It brings expert knowledge to bear upon management and operating problems. Thus, the line
managers get the benefit of specialized knowledge of staff specialists at various levels.
 The expert advice and guidance given by the staff officers to the line officers benefit the entire
organization.
 As the staff officers look after the detailed analysis of each important managerial activity, it
relieves the line managers of the botheration of concentrating on specialized functions.
 Staff specialists help the line managers in taking better decisions by providing expert advice.
Therefore, there will be sound managerial decisions under this system.
 It makes possible the principle of undivided responsibility and authority, and at the same time
permits staff specialization. Thus, the organization takes advantage of functional organization
while maintaining the unity of command.
 It is based upon planned specialization.
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 Line and staff organization has greater flexibility, in the sense that new specialized activities
can be added to the line activities without disturbing the line procedure.

Disadvantages
 Unless the duties and responsibilities of the staff members are clearly indicated by charts and
manuals, there may be considerable confusion throughout the organization as to the functions
and positions of staff members with relation to the line supervisors.
 There is generally a conflict between the line and staff executives. The line managers feel that
staff specialists do not always give right type of advice, and staff officials generally complain
that their advice is not properly attended to.
 Line managers sometimes may resent the activities of staff members, feeling that prestige and
influence of line managers suffer from the presence of the specialists.
 The staff experts may be ineffective because they do not get the authority to implement their
recommendations.
 This type of organization requires the appointment of large number of staff officers or experts
in addition to the line officers. As a result, this system becomes quite expensive.
 Although expert information and advice are available, they reach the workers through the
officers and thus run the risk of misunderstanding and misinterpretation.
 Since staff managers are not accountable for the results, they may not be performing their
duties well.
 Line mangers deal with problems in a more practical manner. But staff officials who are
specialists in their fields tend to be more theoretical. This may hamper coordination in the
organization.

6. DEPARTMENTALIZATION
Departmentation means “group of activities and employees into departments.” It is, as Allen wrote a
means of dividing the large and monolithic functional organization into smaller, flexible
administrative units.
Processes of Departmentation
Departmentation is done through the following processes:
a. Identification of tasks orduties.
b. Analysis of details of each task.
c. Description of the functions.
d. Entrusting the groups of functions to separate specialist heads and providing
them with suitable staff.
e. Delineation of scope of authority and responsibility of departmental heads.
Types of Departmentation
There are several bases of Departmentation. The more commonly used bases are— function,
product, territory, process, customer, time etc.
(A) Departmentation by Functions
The enterprise may be divided into departments on the basis of functions like production, purchasing,
sales, financing, personnel etc. This is the most popular basis of departmentation. If necessary, a major
function may be divided into sub-functions. For example, the activities in the production department
may be classified into quality control, processing of materials, and repairs and maintenance.
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Advantages
The advantages of functional departmentation include the following:
 It is the most logical and natural form of departmentation.
 It ensures the performance of all activities necessary for achieving the organisational
objectives.
 It provides occupational specialisation which makes optimum utilisation of manpower.
 It facilitates delegation of authority.
 It enables the top managers to exercise effective control over a limited number of functions.
 It eliminates duplication of activities.
 It simplifies training because the managers are experts only in a narrow range of skills.
Disadvantages:
There are some problems associated with functional departmentation.
 There may be conflicts between departments.
 The scope for management development is limited. Functional managers do not get training for
top management positions. The responsibility for results cannot be fixed on any one functional
head.
 There is too much emphasis on specialization.
 There may be difficulties in coordinating the activities of different departments.
 There may be inflexibility and complexity of operations.
(B) Departmentation by Products
 In product departmentation, every major product is organized as a separate department. Each
department looks after the production, sales and financing of one product. Product
departmentation is useful when the expansion, diversification, manufacturing and marketing
characteristics of each product are primarily significant.
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 It is generally used when the production line is complex and diverse requiring specialized
knowledge and huge capital is required for plant, equipment and other facilities such as in
automobile and electronic industries.
In fact, many large companies are diversifying in different fields and they prefer product
departmentation. For example, a big company with a diversified product line may have three product
divisions, one each for plastics, chemicals, and metals. Each division may be sub-divided into
production, sales, financing, and personnel activities.
Advantages:
Product departmentation provides several advantages which may be stated as follows:
 Product departmentation focuses individual attention to each product line which facilitates the
expansion and diversification of the products.
 It ensures full use of specialized production facilities. Personal skill and specialized knowledge
of the production managers can be fully utilized.
 The production managers can be held accountable for the profitability of each product. Each
product division is semi-autonomous and contains different functions. So, product
departmentation provides an excellent training facility for the top managers.
 The performance of each product division and its contribution to total results can be easily
evaluated.
 It is more flexible and adaptable to change.
Disadvantages
Product departmentation presents some problems as follows:
 It creates the problem of effective control over the product divisions by the top managers.
 Each production manager asserts his autonomy disregarding the interests of the organisation.
 The advantages of centralization of certain activities like financing, and accounting are not
available.
 There is duplication of physical facilities and functions. Each product division maintains its
own specialized personnel due to which operating costs may be high.
 There may be under-utilization of plant capacity when the demand for a particular product is
not adequate.
(C) Departmentation by Territory
Territorial or geographical departmentation is specially useful to large -scale enterprises whose
activities are widely dispersed. Banks, insurance companies, transport companies, distribution
agencies etc, are some examples of such enterprises, where all the activities of a given area of
operations are grouped into zones, branches, divisions etc.

It is obviously not possible for one functional manager to manage efficiently such widely spread
activities. This makes it necessary to appoint regional managers for different regions.
Advantages
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Territorial departmentation offers certain facilities in operation. These are pointed out below:
 Every regional manager can specialize himself in the peculiar problems of his region.
 It facilitates the expansion of business to various regions.
 It helps in achieving the benefits of local operations. The local managers are more familiar with
the local customs, preferences, styles, fashion, etc. The enterprise can gain intimate knowledge
of the conditions in the local markets.
 It results in savings in freight, rents, and labor costs. It also saves time.
 There is better co-ordination of activities in a locality through setting up regional divisions.
 It provides adequate autonomy to each regional manager and opportunity to train him as he
looks after the entire operation of a unit.
Disadvantages
Territorial departmentation have the following problems:
 There is the problem of communication.
 It requires more managers with general managerial abilities. Such managers may not be always
available.
 There may be conflict between the regional managers.
 Co-ordination and control of different branches from the head office become less effective.
 Owing to duplication of physical facilities, costs of operation are usually high.
 There is multiplication of personnel, accounting and other services at the regional level.
(D) Departmentation by Customers
In such method of departmentation, the activities are grouped according to the type of customers. For
example, a large cloth store may be divided into wholesale, retail, and export divisions. This type of
departmentation is useful for the enterprises which sell a product or service to a number of clearly
defined customer groups. For instance, a large readymade garment store may have a separate
department each for men, women, and children. A bank may have separate loan departments for large-
scale and small- scale businessmen.

Advantages
The important advantages of customer departmentation are the following:
 Special attention can be given to the particular tastes and preferences of each type of customer.
 Different types of customers can be satisfied, easily through specialized staff. Customers’
satisfaction enhances the goodwill and sale of the enterprise.
 The benefits of specialization can be gained.
 The enterprise may acquire intimate knowledge of the needs of each category of customers.
Disadvantages:
This method of departmentation may have certain disadvantages, specially when it is followed very
rigidly. These are as follows:
 Co-ordination between sales and other functions becomes difficult because this method
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can be followed only in marketing division.

 There may be under-utilization of facilities and manpower in some departments, particularly
during the period of low demand.
 It may lead to duplication of activities and heavy overheads,
 The managers of customer departments may put pressures for special benefits and facilities.
(E) Departmentation by Process or Equipment
In such type or departmentation the activities are grouped on the basis of production processes
involved or equipment used. This is generally used in manufacturing and distribution enterprises and
at lower levels of organisation. For instance, a textile mill may be organised into ginning, spinning,
weaving, dyeing and finishing departments. Similarly, a printing press may have composing, proof
reading, printing and binding departments. Such departmentation may also be employed in
engineering and oil industries.

Advantages:
 The basic object of such departmentation is to achieve efficiency and economy of operations.
 The processes are set in such a way that a series of operations is feasible making operations
economic. Efficiency can be achieved if departments are created for each process as each one
has its peculiarities.
 It provides the advantages of specialization required at each level of the total processes. The
maintenance of plant can be done in better way and manpower can be utilized effectively.
Disadvantages
 In such departmentation, there may be difficulty in coordinating the different process-
departments, because the work of each process depends fully on the preceding process. So,
there are chances of conflicts among the managers looking after the different processes. It
cannot be used where manufacturing activity does not involve distinct processes.
(F) Departmentation by Time and Numbers
 Under this method of departmentation the activities are grouped on the basis of the time of
their performance. For instance, a factory operating 24 hours may have three departments for
three shifts—one for the morning, the second for the day, and the third for the night.
 In the case of departmentation by numbers, the activities are grouped on the basis of their
performance by a certain number of persons. For instance, in the army, the soldiers are
grouped into squads, companies, battalions, regiments and brigades on the basis of the number
prescribed for each unit.
 Such type of departmentation is useful where the work is repetitive, manpower is an important
factor, group efforts are more significant than individual efforts, and group
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performance can be measured. It is used at the lowest level of organisation.

7. DELEGATION OF AUTHORITY
A manager alone cannot perform all the tasks assigned to him. In order to meet the targets, the
manager should delegate authority. Delegation of Authority means division of authority and powers
downwards to the subordinate. Delegation is about entrusting someone else to do parts of your job.
Delegation of authority can be defined as subdivision and sub-allocation of powers to the subordinates
in order to achieve effective results.

Elements of Delegation

1. Authority - in context of a business organization, authority can be defined as the power and right of
a person to use and allocate the resources efficiently, to take decisions and to give orders so as to
achieve the organizational objectives. Authority must be well- defined. All people who have the
authority should know what is the scope of their authority is and they shouldn’t misutilize it. Authority
is the right to give commands, orders and get the things done. The top level management has greatest
authority. Authority always flows from top to bottom. It explains how a superior gets work done from
his subordinate by clearly explaining what is expected of him and how he should go about it.
Authority should be accompanied with an equal amount of responsibility. Delegating the authority to
someone else doesn’t imply escaping from accountability. Accountability still rest with the person
having the utmost authority.

2. Responsibility - is the duty of the person to complete the task assigned to him. A person who is
given the responsibility should ensure that he accomplishes the tasks assigned to him. If the tasks for
which he was held responsible are not completed, then he should not give explanations or excuses.
Responsibility without adequate authority leads to discontent and dissatisfaction among the person.
Responsibility flows from bottom to top. The middle level and lower level management holds more
responsibility. The person held responsible for a job is answerable for it. If he performs the tasks
assigned as expected, he is bound for praises. While if he doesn’t accomplish tasks assigned as
expected, then also he is answerable for that.

3. Accountability - means giving explanations for any variance in the actual performance from the
expectations set. Accountability cannot be delegated. For example, if ’A’ is given a task with
sufficient authority, and ’A’ delegates this task to B and asks him to ensure that task is done well,
responsibility rest with ’B’, but accountability still rest with ’A’. The top level management is most
accountable. Being accountable means being innovative as the person will think beyond his scope of
job. Accountability ,in short, means being answerable for the end result. Accountability can’t be
escaped. It arises from responsibility.
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DELEGATION PROCESS
The steps involved in delegation are given below

1. Allocation of duties – The delegator first tries to define the task and duties to the subordinate. He
also has to define the result expected from the subordinates. Clarity of duty as well as result expected
has to be the first step in delegation.

2. Granting of authority – Subdivision of authority takes place when a superior divides and shares
his authority with the subordinate. It is for this reason; every subordinate should be given enough
independence to carry the task given to him by his superiors. The managers at all levels delegate
authority and power which is attached to their job positions. The subdivision of powers is very
important to get effective results.

3. Assigning of Responsibility and Accountability – The delegation process does not end once
powers are granted to the subordinates. They at the same time have to be obligatory towards the duties
assigned to them. Responsibility is said to be the factor or obligation of an individual to carry out his
duties in best of his ability as per the directions of superior. Therefore, it is that which gives
effectiveness to authority. At the same time, responsibility is absolute and cannot be shifted.

4. Creation of accountability – Accountability, on the others hand, is the obligation of the individual
to carry out his duties as per the standards of performance. Therefore, it is said that authority is
delegated, responsibility is created and accountability is imposed. Accountability arises out of
responsibility and responsibility arises out of authority. Therefore, it becomes important that with
every authority position an equal and opposite responsibility should be attached.

Therefore every manager, i.e., the delegator has to follow a system to finish up the delegation process.
Equally important is the delegatee’s role which means his responsibility and accountability is attached
with the authority over to here.

8. Centralization and Decentralization

CENTRALIZATION:
It is the process of transferring and assigning decision-making authority to higher levels of an
organizational hierarchy. The span of control of top managers is relatively broad, and there are
relatively many tiers in the organization.
Characteristics
 Philosophy / emphasis on: top-down control, leadership, vision, strategy.
 Decision-making: strong, authoritarian, visionary, charismatic.
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 Organizational change: shaped by top, vision of leader.

 Execution: decisive, fast, coordinated. Able to respond quickly to major issues and changes.
 Uniformity. Low risk of dissent or conflicts between parts of the organization.
Advantages of Centralization
 Provide Power and prestige for manager
 Promote uniformity of policies, practices and decisions
 Minimal extensive controlling procedures and practices
 Minimize duplication of function
Disadvantages of Centralization
 Neglected functions for mid. Level, and less motivated beside personnel.
 Nursing supervisor functions as a link officer between nursing director and first-line
management.

DECENTRALIZATION:
It is the process of transferring and assigning decision-making authority to lower levels of an
organizational hierarchy. The span of control of top managers is relatively small, and there are
relatively few tears in the organization, because there is more autonomy in the lower ranks.

Characteristics
 Philosophy / emphasis on: bottom-up, political, cultural and learning dynamics.
 Decision-making: democratic, participative, detailed.
 Organizational change: emerging from interactions, organizational dynamics.
 Execution: evolutionary, emergent. Flexible to adapt to minor issues and changes.
 Participation, accountability. Low risk of not-invented-here behavior.

Three Forms of decentralization

 De-concentration. The weakest form of decentralization. Decision making authority is
redistributed to lower or regional levels of the same central organization.
 Delegation. A more extensive form of decentralization. Through delegation the responsibility
for decision-making are transferred to semi-autonomous organizations not wholly controlled
by the central organization, but ultimately accountable to it.
 Devolution. A third type of decentralization is devolution. The authority for decision- making
is transferred completely to autonomous organizational units.

Advantages of Decentralization
 Raise morale and promote interpersonal relationships
 Relieve from the daily administration
 Bring decision-making close to action
 Develop Second-line managers
 Promote employee’s enthusiasm and coordination
 Facilitate actions by lower-level managers
Disadvantages of Decentralization
 Top-level administration may feel it would decrease their status
 Managers may not permit full and maximum utilization of highly qualified personnel
 Increased costs. It requires more managers and large staff
 It may lead to overlapping and duplication of effort

Centralization and Decentralization are two opposite ways to transfer decision-making power
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and to change the organizational structure of organizations accordingly.

There must be a good balance between centralization and decentralization of authority and power.
Extreme centralization and decentralization must be avoided.

9. Job Design
The Logical Sequence to Job Analysis is Job Design.

Definition 1: Integration of work, rewards and qualification

“Job Design integrates work content (tasks, functions, and relationships), the rewards and
qualifications required including skills, knowledge and abilities for each job in a way that meets the
needs of employees and the organization.”
Steps in Job Design: -
1. Specification of Individual Tasks
2. Specification of Methods of Tasks Performance
3. Combination of Tasks into Specific Jobs to be assigned to individuals
Factors affecting Job Design: -
Organizational factors:
 Characteristics of Tasks (Planning, Execution and Controlling of Task)
 Work Flow (Process Sequences)
 Ergonomics (Time & Motion Study)
 Work Practices (Set of ways of performing tasks)
Environmental Factors:
 Employee Abilities and Availability
 Social and Cultural Expectations
Behavioral Elements:
 Feedback
 Autonomy
 Use of Abilities
 Variety

TECHNIQUES OF JOB DESIGN: -

1) Work Simplification: Job is simplified or specialized. The job is broken down into small
parts and each part is assigned to an individual. To be more specific, work simplification is
mechanical pacing of work, repetitive work processes, working only on one part of a product,
predetermining tools and techniques, restricting interaction amongst employees, few skills
requirement. Work simplification is used when jobs are not specialized.
2) Job Rotation: When incumbents become bore of routine jobs, job rotation is an answer to it.
Here jobs remain unchanged, but the incumbents shift from one job to another. On the positive
side, it increases the intrinsic reward potential of a job because of different skills and abilities
needed to perform it. Workers become more competent in several jobs, know variety of jobs
and improve the self-image, personal growth. Further the worker becomes more valuable to the
organization. Periodic job changes can improve interdepartmental cooperation. On the
negative side, it may not be much enthusiastic or efficiency may not be more. Besides jobs
may not improve the relationships between task, while activities and objectives remain
unchanged. Further training costs also rise and it can also de-motivate intelligent and
ambitious trainees who seek specific responsibilities in their chosen specialties.
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3) Job Enlargement: It means expanding the number of tasks, or duties assigned to a given job.
Job enlargement is naturally opposite to work simplification. Adding more tasks or duties to a
job does not mean that new skills and abilities are needed. There is only horizontal expansion.
It is with same skills taking additional responsibilities like extending working hours etc. Job
enlargement may involve breaking up of the existing work system and redesigning a new work
system. For this employees also need to be trained to adjust to the new system. Job
enlargement is said to contribute to employee motivation but the claim is not validated in
practice.
Benefits of Job Enlargement:
 Task Variety
 Meaningful Work Modules
 Full Ability Utilization
 Worker Paced Control
 Meaningful Performance Feedback
Disadvantages of Job Enlargement
 High Training Costs
 Redesigning existing work system required
 Productivity may not increase necessarily
 Workload increases
 Unions demand pay–hike
 Jobs may still remain boring and routine
4) Job Enrichment: Job enrichment is improvisation of both tasks efficiency and human
satisfaction by building into people’s jobs, quite specifically, greater scope for personal
achievement and recognition, more challenging and responsible work and more opportunity
for individual advancement and growth. An enriched job will have more responsibility, more
autonomy (vertical enrichment), more variety of tasks (horizontal enrichment) and more
growth opportunities. The employee does more planning and controlling with less supervision
but more self-evaluation. In other words, transferring some of the supervisor’s tasks to the
employee and making his job enriched.
Benefits of Job enrichment
 It benefits employee and organization in terms of increased motivation, performance,
satisfaction, job involvement and reduced absenteeism.
 Additional features in job meet certain psychological needs of jobholders due to skill
variety, identity, significance of job etc.
 It also adds to employee self-esteem and self-control.
 Job enrichment gives status to jobholder and acts as a strong satisfier in one’s life.
 Job enrichment stimulates improvements in other areas of organization.
 Empowerment is a by-product of job enrichment. It means passing on more authority and
responsibility.
Demerits of Job Enrichment
 Lazy employees may not be able to take additional responsibilities and power. It won’t
fetch the desired results for an employee who is not attentive towards his job.
 Unions resistance, increased cost of design and implementation and limited research on
long term effect of job enrichment are some of the other demerits.
 Job enrichment itself might not be a great motivator since it is job-intrinsic factor. As per
the two-factor motivation theory, job enrichment is not enough. It should be preceded by
hygienic factors etc.
 Job enrichment assumes that workers want more responsibilities and those
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workers who are motivated by less responsibility, job enrichment surely de- motivates
them
 Workers participation may affect the enrichment process itself.
 Change is difficult to implement and is always resisted as job enrichment brings in a
changes the responsibility.
5) Autonomous of Self-Directed Teams: Empowerment results in self-directed work teams. A
self –directed team is an intact group of employees responsible for whole work segment, they
work together, handle day-to-day problems, plan and control, and are highly effective teams.
6) High Performance Work Design: Improving performance in an environment where positive
and demanding goals are set leads to high performance work design. It starts from the principle
of autonomous groups working and developing an approach, which enables group to work
effectively together in situations where the rate of innovation is very high. Operational
flexibility is important and there is the need for employees to gain and apply new skills
quickly with minimum supervision. However due to bureaucracy high performance work
design does not work.

10. Human Resource Management

Human Resource Management is the process of managing people in an organization in systematic
and organised manner. The main goal of human Resource management is maximize the productivity
by enhancing efficiency of employees in an organisation. To manage efficiently and accomplish the
goals of any organisation, Human Resource Management is composed with various interrelated
activities.
Human resource management activities:
1) Recruitment: Recruitment is one of the major functions of HRM. To attract and maintain skilled,
experienced, dedicated, and well-motivated employees, a high level of resources and commitment
is essential. Recruitment process involves various tasks those are developing the job specifications,
advertising, sorting applications, job interviews and posting.
2) Training and Development: On –the-job and refresher training for newly and existing employees
is responsible of HR department. Training enhances specific skill among personnel of organization.
Training programs might be specific job skills, communication skills, team building and legal and
policy issues.
3) Payroll: Accurate and on time handling compensation and payroll to everyone at the organisation
is a chief duty of the HRM. Compensation might be guaranteed and variable pay. Bonuses or
incentive pay is contingent on performance. Hourly wages or fixed salary is guaranteed pay.
4) Employee and Labour/Management Relations: Managing harmonious relations between
employees and management is key role of the human resource management department. Employee
rights must be protected weather they are represented by unions or not.
5) Human Resource planning: The key functions of planning are anticipating future and avoid
predicted problems.
6) Wage and salary administration: A better wage and salary system in an organisation enable to
attract and keep employees long term as well as motivate them to perform their best. Hence, HRM
should design effective pay system and implement with utmost care.
7) Job analysis: Job analysis provides the knowledge about manpower planning. Job analysis is a
process of collecting job related information, which helps to job description and specification. Job
description involves title of job, location, duties, Working conditions, hazards, duties, machines
and tools. Job specification contains education, training, communication skills, physical skills,
emotional characteristics and initiative.
8) Performance appraisal: Performance appraisal is major activity of HRM to provide training and
development, making decisions on promotions, transfer and increment to their employees.
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Performance appraisal is assessment of individual performance in an organisation.it is systematic

way to appraise the ability of employee related to performing job.
9) Industrial relations: Progress of any organisation depends on labour management harmonious
relations. Hence, managing industrial harmony is one of the key functions of HRM deportment.
Employers, employee and government involved in industrial relations.
10) Compensation: Compensation is an important tool to HRM department to attract, motivate and
retain employees. Compensation not only dealing with monitory rewards but also non-monitory
rewards like insurance, travel allowance, maternity benefits, retirement and other special benefits.
11)Health, Safety, and Security: Health, safety, and security aspects are important in any
organisation to work at safe environment and well-being of workers In modern concept Physical as
well as mental health and problems related to substance abuse, job stress, diversity and
discrimination, sexual harassment and violence also concerns through employment assistance
programmes.
12) Motivation: Intellectual, biological, emotional and social aspects determine motivation among
individuals. Since organisation lies on more and more on people to get competitive advantage
HRM deportment should formulate and implement essential intrinsic and extrinsic programmes to
motivate their employees.

11. Recruitment
Recruitment is the process of finding and attempting to attract job candidates who are capable of
effectively filling job vacancies. The recruitment process consists of the following steps
 Identification of vacancy
 Preparation of job description and job specification
 Selection of sources
 Advertising the vacancy
 Managing the response

a) Identification of vacancy:
The recruitment process begins with the human resource department receiving requisitions for
recruitment from any department of the company. These contain:
 Posts to be filled
 Number of persons
 Duties to be performed
 Qualifications required
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b) Preparation of job description and job specification:

A job description is a list of the general tasks, or functions, and responsibilities of a position. It may
often include to whom the position reports, specifications such as the qualifications or skills needed
by the person in the job, or a salary range. A job specification describes the knowledge, skills,
education, experience, and abilities you believe are essential to performing a particular job.

c) Selection of sources:
Every organization has the option of choosing the candidates for its recruitment processes from two
kinds of sources: internal and external sources. The sources within the organization itself (like transfer
of employees from one department to other, promotions) to fill a position are known as the internal
sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies
etc.) are known as the external sources of the recruitment.

d) Advertising the vacancy:

After choosing the appropriate sources, the vacancy is communicated to the candidates by means of a
suitable media such as television, radio, newspaper, internet, direct mail etc.

e) Managing the response:

After receiving an adequate number of responses from job seekers, the sieving process of the resumes
begins. This is a very essential step of the recruitment selection process, because selecting the correct
resumes that match the job profile, is very important. Naturally, it has to be done rather competently
by a person who understands all the responsibilities associated with the designation in its entirety.
Candidates with the given skill set are then chosen and further called for interview. Also, the
applications of candidates that do not match the present nature of the position but may be considered
for future requirements are filed separately and preserved. The recruitment process is immediately
followed by the selection process.

12. SELECTION
Staffing: Selection Process
Selecting a suitable candidate can be the biggest challenge for any organisation. The success of an
organization largely depends on its staff. Selection of the right candidate builds the foundation of any
organization's success and helps in reducing turnovers.

Selection Process
Selecting a suitable candidate can be the biggest challenge for any organisation. The success of an
organization largely depends on its staff. Selection of the right candidate builds the foundation of any
organization's success and helps in reducing turnovers.

1 Initial Screening
This is generally the starting point of any employee selection process. Initial Screening eliminates
unqualified applicants and helps save time. Applications received from various sources are
scrutinized and irrelevant ones are discarded.

2 Preliminary Interview
It is used to eliminate those candidates who do not meet the minimum eligibility criteria laid down
by the organization. The skills, academic and family background, competencies and interests of the
candidate are examined during preliminary interview. Preliminary interviews
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are less formalized and planned than the final interviews. The candidates are given a brief up about
the company and the job profile; and it is also examined how much the candidate knows about the
company. Preliminary interviews are also called screening interviews.

3 Filling Application Form

An candidate who passes the preliminary interview and is found to be eligible for the job is asked
to fill in a formal application form. Such a form is designed in a way that it records the personal as
well professional details of the candidates such as age, qualifications, reason for leaving previous
job, experience, etc.

4 Personal Interview
Most employers believe that the personal interview is very important. It helps them in obtaining
more information about the prospective employee. It also helps them in interacting with the
candidate and judging his communication abilities, his ease of handling pressure etc. In some
Companies, the selection process comprises only of the Interview.

13. TRAINING AND DEVELOPMENT

After the selection of people for various jobs, the next function of staffing is to arrange for their
training and development. This is because a person, however carefully selected is not molded to
specifications and rarely meets the demands of his job adequately.
Definition
According to Flippo, "Training is the act of increasing the knowledge and skills of an employee
for doing a particular job."
Purpose of Training:
The purpose of training includes
 To prepare the employee, both new and old to meet the present as well as the changing
requirements of the job and theorganization.
 To prevent obsolescence
 To impart the new entrants the basic knowledge and skills they need for an intelligent
performance of a definite job.
 To prepare employees for higher leveltasks.
 To assist employees to function more effectively in the present positions by exposing them
to the latest concepts, information and techniques and developing the skills in their
particular fields.
 To build up a second line of competent officers and prepare them to occupy more
responsible positions.
 To broaden the minds of senior managers by providing them with opportunities for an
interchange of experiences within and outside with a view to correcting the narrowness of
outlook that may arise from over –specialization.
 To develop the potentialities of people for the next level job.
 To ensure smooth and efficient working of a department.
 To ensure economical output of requiredquality.
 To promote individual and collective morale, a sense of responsibility, co-operative
attitudes and good relationships
Types of Training
Various types of training programmes are not mutually exclusive, but invariably overlap and employ
many of the same techniques. Some of the more common types of training programmes are examined
below
1. Induction or Orientation Training
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2. Refresher Training
3. Job Training
Methods of Training:
A large variety of methods of management development have come into Prominence these
days. These methods can be classified into two broad categories, namely
(a) On-the job methods
(b) Off-the job methods
I. On – the – job trainingmethods:
1. Job Rotation
2. Coaching
3. Job Instruction
4. Training Through Step – By Step
5. Committee Assignments
II. Off – the job training methods:
1. Vestibule Training
2. Role – Playing
3. Lecture Methods
4. Conference Or Discussion
5. Programmed Instruction
ON-THE- JOB TRAINING METHODS:
Another name of this training is Job Instruction training. It is the most commonly used training
method. In this method, the individual is placed on a regular job and taught the skills necessary to
perform that job. The trainee learns under the supervision and guidance of a qualified worker or
instructor. On the job training has the advantage of giving first-hand knowledge and experience under
the actual working conditions.

1. JobRotation:
 This type of training involves the movement of the trainee from one job to another.
 The trainee receives job knowledge and gains experience from his supervisor or
trainer in each of the different job assignments.
 Though this method of training is common in general management positions, trainees
can also be rotated from job to job in workshop jobs. This method gives an opportunity
to the trainee to understand the problems of employees on other jobs and respect them.
2. Coaching :
 The trainee is placed under a particular supervisor who functions as a coach in training the
individual.
 The supervisor provides feedback to the trainee on his performance and offers him some
suggestions for improvement.
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 Often the trainee shares some of the duties and responsibilities of the coach and relieves
him from his work burden.
 A limitation of this method is the trainee may not have freedom or opportunity to express
his own ideas.
3. Job instruction:
This method is also known as training through step – by – step method.
 In this method the training is render through step – by – step.
 Under this method, the trainer explains to the trainee the way of doing the jobs with this
the Job knowledge and skills allows him to do the job.
 The trainer appraises the performance of the trainee, by provides feedback
information about his work.
4. Committee assignments:
 In this method, a group of trainees are given and asked to solve an actual
organizational problem.
 The trainees must solve the problemjointly andthis method may develop teamwork
among the trainees.
OFF – THE - JOB TRAINING METHODS
Under this method of training, the trainee is separated from the job situation and his attention is focused
upon learning the material related to his future job performance.
Since the trainee is not distracted by job requirement, he can place his entire concentration on learning the
job rather than spending his time in performing it.

1. Vestibule training:
 The responsibility to operate a vestibule school generally rests with the personnel
department.
 In this method, actual work conditions are stimulated in a classroom. Materials, files and
equipment, which are used in actual job performance, has used in this training.
 This method has the advantage of training large number of persons without hampering on–
going operations.
 It also saves costly machines from being damaged by mishandling of the untrained workers.
 Here, the trainee avoids the confusion and pressure of the work situation and thus is able to
concentrate on learning.
2. Role playing :
 It is defined as a method of human interaction that involves realistic behavior in
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imaginary situations.
 This method of training involves action. Doing and practice.
 The participants play the role of certain characters such as the production manager,
mechanical engineer, superintendents, maintenance engineers, quality control inspectors,
foreman, workers and the like.
3. Lecture method
 It is a traditional and direct method of instruction.
 Instructor organizes the material and gives it to a group of trainees in the form of a talk.
 To be effective, the lecture must motivate and create interest among the trainees.
4. Conferences / discussion:
 It is a method of training provided to the clerical, professional and supervisory personnel.
 This method involves a group of people who pose ideas, examine and share facts,
ideas, data, test assumptions and drawconclusions.
 All of which contribute to the improvement of job performance.
 Discussion has the distinct advantage over the lecture method, in that the discussion
involves two – way communication and hence feedback is provided.
 The participant feels free to speak in small groups.
 The success of this method depends on the leadership qualities of the person who
leads the group.
5. Programmed instruction:
 In recent years, this method has become popular.
 The subject matter to be learned and presented by a series of carefully planned
sequential units.
 These units are arranged from simple to more complex levels of instruction.
The trainee goes through these units by answering questions or filling the blanks. This method is
expensive and time consuming.

14. PERFORMANCE MANAGEMENT

Performance Appraisal
Performance appraisal is the process of obtaining, analyzing and recording information
about the relative worth of an employee. The focus of the performance appraisal is measuring
and improving the actual performance of the employee and also the future potential of the
employee. Its aim is to measure what an employee does.
Objectives of Performance appraisal are,
 To review the performance of the employees over a given period of time.
 To judge the gap between the actual and the desired performance.
 To help the management in exercising organizational control.
 Helps to strengthen the relationship and communication between superior–
subordinates and management – employees.
 To diagnose the strengths and weaknesses of the individuals so as to identify the training and
development needs of the future.
 To provide feedback to the employees regarding their past performance.
15. CAREER PLANNING AND MANAGEMENT
Career development not only improves job performance but also brings about thegrowth of the
personality. Individuals not only mature regarding their potential capacities but also become
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better individuals.
Purpose of development
 Management development attempts to improve managerial performance by imparting
Knowledge
 Changing attitudes
 Increasing skills
The major objective of development is managerial effectiveness through a planned and a deliberate
process of learning. This provides for a planned growth of managers to meet the future organizational
needs.
Development Process:
The development process consists of the following steps
1. Setting Development Objectives:
It develops a framework from which executive need can be determined.
2. Ascertaining Development Needs:
It aims at organizational planning & forecast the present and future growth.

3. Determining Development Needs:

This consists of
 Appraisal of present management talent
 Management Manpower Inventory
The above two processes will determine the skill deficiencies that are relative to the
future needs of the organization.
4. Conducting Development Programs:
It is carried out on the basis of needs of different individuals, differences in their attitudes and
behavior, also their physical, intellectual and emotional qualities. Thus a comprehensive and well-
conceived program is prepared depending on the organizational needs and the time & cost
involved.
5. Program Evaluation:
It is an attempt to assess the value of training in order to achieve organizational objectives.