WEEK 5-6

Human Resource Management plays a vital role in an organization; this manages all the decisions
and issues related to its people. That includes but is not limited to recruitment, selection, training and
development, performance management, organization development, compensation safety, wellness,
benefits, employee motivation, communication, policy administration, and training. This is also partly
responsible for ensuring the organization’s shared mission, vision, and values that can stimulate
employees to contribute effectively and productively to them (Heathfield, 2021). That being said, no one
— people, department, or organization — should look down or belittle human resource management and
the people working under this department because, without this, an organization would not be competent
and thriving in the business industry.

DISCOVER WAYS TO IMPROVE RECRUITING

AND SELECTING EMPLOYEES

RECRUITMENT

Recruitment is the process of attracting, evaluating, and hiring competent individuals who meet
the staffing requirements and, at the same time, suit the job vacancies offered by the organization.
Through this process, the organization can employ enough manpower to facilitate the effective selection
process and join an efficient workforce.

Two Sources of Recruitment:

• Internal Recruitment
This is the process of filling vacancies in an organization from within its existing workforce than
hiring new talents. This means that the job is offered to employees already working in the company
through promotions, transfers, temporary to permanent, and employee referrals (Paycor, 2020). This
process reduces training costs, boosts employee morale, reduces job posting and screening costs, and
decreases employee turnover. However, since it is recruiting from within the existing workforce,
employees may lack a fresh perspective, and worst, it may start workplace jealousy after all humans
are emotional beings. So, to avoid these, improving the ways of internal recruiting is encouraged.
 Ways to Improve Internal Recruitment by AssessHub

1. Internal job posting

Create a job posting either by making fliers or through email to ensure that all employees who are
qualified for the post get the equal opportunity to apply for the vacant position. The internal job
posting must contain:
• A clear job description.
• The jobs department.
• Employee eligibility criteria.
• The date of application.
Through this, the employees will be enchanted by the opportunities to advance their careers.

2. Design an efficient internal recruiting policy

Before recruiting internally, ensure that you have an internal recruiting policy to guide you
throughout the recruiting process. The policies that you must develop are efficient and clearly
described so that the interested applicants know whether applying for the new post will affect their
current job and manage their expectations during the recruitment process. Apart from that, the
policies must also limit the HR personnel from holding employees to advance due to personal reasons
or grudges.

3. Improve the recruitment process using technology

One of the drawbacks of internal recruitment is favoritism and lack of transparency in the
recruitment process. However, by embracing technology — Applicant Tracking System, a
recruitment software — you will utterly eliminate these drawbacks in recruiting, improving, and
enabling the HR department to hire the most suited and qualified candidates for the vacant position.
Technology also assists you in disseminating information swiftly about job openings and what they
need to accomplish to apply for the vacant job successfully.
4. Screen interested candidates carefully

Stop playing favoritism when recruiting if you don’t want your organization to suffer when hiring
incompetent employees. An employee’s performance in one position does not guarantee that they will
perform well in a new deferment or a different job position. Also, close friends and family members
should not receive any special treatment and must scrutinize files to see their behavioral and past
employment records. You can also conduct an online assessment to know if they are a suitable match.

5. Offer feedback

Offering feedback to candidates who were not selected is crucial to their growth. Any candidate
who took part in the internal recruitment and made time and effort to apply deserves to be
acknowledged and learn the reasons behind not being selected. By offering feedback, they will be
aware of their shortcomings that will help them prepare for the better opportunities awaiting them.
Giving some tips and tricks is also encouraged to help them develop and increase their chances of
success the next time they apply for a vacant position.

• External Recruitment.

This is the process of sourcing candidates from the external labor market. Job seekers who are
fresh graduates, unemployed, and searching for new opportunities to improve their careers are the
ones being hired in external recruitment. It gives access to more options for recruitment, fresh and
innovative ideas, and hiring more experienced or skilled staff from outside the organization, which
will freshen up the business in today’s competitive environment. However, this process is more costly
and time-consuming than internal recruitment. It has the risk of wrong hiring decisions since it’s
impossible to design an almost 100% bias-free recruitment strategy (Abdou, 2021). Hence, here are
the possible ways to improve external recruitment.

Ways to Improve External Recruitment by Nikoleta Bika

1. Craft clear and attractive job ads

Effective job ads help you evaluate candidates on job-related criteria. It must contain the
following:
 • Specific details about the job roles – In listing job duties, indicate the new hires’ projects or
teams they will work with. Also, distinguish the “must-have” and “nice-to-have”
requirements, not to discourage applicants but for them to know what your organization is
looking for.
• Choose straightforward job titles – Be clear about the job position you are hiring for. Avoid
using clickbait titles that might confuse the applicants.
• Promote your company – Delineate what makes your company unique from its mission,
vision, and shared values to give candidates reasons to consider applying to your company.
Also, outline benefits and perks your company offers.
• Use clear and inclusive language – Avoid jargon and complicated sentences — speak
directly and professionally. Avoid discriminatory language, and if your company actively
supports diversity, let candidates know.

2. Boost your candidate sourcing

Even those employed people are still interested in learning about new job opportunities. Discover
passive candidates with these sourcing techniques to increase your chances of making great hires:
• Source on social media – Follow threads and people on famous social media platforms like
Twitter and Reddit. Then look for people interested and have expertise relevant to positions
you are hiring for.
• Attend events – Attend many events relevant to your organization as much as possible to
expand your sourcing.
• Use Boolean search – Boolean search helps you discover candidate resumes. Use Boolean
strings on Google to find profiles on social media.
• Get referrals – Create and lift a referral program with incentives; you can use gamification
methods here to have more referrals. Because in some ways, referrals are often an excellent
strategy to find high-quality hires.
• Invest in sourcing tools – Sourcing tools help you quickly search for qualified and skilled
candidates for your open roles.

3. Build talent pipelines

Talent pipelines are groups of candidates who can fill future roles. By having a talent pipeline,
you have ample time to know and evaluate the candidates and can reduce your time-to-hire when a
job position opens.
Here are four main steps to building talent pipelines:
• Determine what roles need a pipeline (usually, roles with high turnover or positions that are
hard-to-fill.)
• Look to past candidates, former employees, and interns to build your pipeline.
• Source passive candidates by combining various sourcing techniques (e.g., Boolean search,
events.)
• Reach out to candidates to engage them and stay in touch until you have an open role for
them.

4. Improve your recruitment efficiency

Improving your recruitment process will help you save time and money, at the same time, enable
the organization to hire competent and skilled workers.
• Build checklists for standard processes – Checklists help you organize your hiring,
especially during interviews and screening, to ensure that you have all the candidates’
information.
• Use email templates – Have a personalized email and choose templates to ask for referrals or
invite candidates to interview. Keep in mind that it’s essential to regularly update your
recruiting email templates so they will not be obsolete.
• Invest in recruiting software – Recruiting software saves the organization’s time and money
in managing the hiring stages and keeps candidate profiles searchable in the database.

5. Evaluate candidates effectively

An improved recruitment process revolves around screening methods that help you select the
most qualified candidates. Here are a few of these methods:
• Review work samples and assignments – Ask candidates to complete tasks or challenges
relevant to the job they are applying for or evaluate their work samples as a part of the hiring
process.
• Try tests – Require candidates to take standardized tests and other assessment methods to
reduce the number of the interviewee and save some time. But make sure that you analyze the
results before disqualifying candidates.
• Structure (or semi-structure) your interviews – Unstructured interviews can’t predict
one’s job performance accurately. So, to add structure to your interviews, prepare the same
set of questions, ask each candidate, and score them using the same scale.
 In addition to these methods, invest in training for your hiring teams. Interview training helps
teams evaluate candidates better, which improves the quality of your hires.

6. Enhance candidate experience

Every interaction with candidates shapes their impression of your company. A positive candidate
experience benefits and helps you build a healthy pipeline. Here are a few factors that affect candidate
experience:
• Shorten your application process – A too lengthy application process may result in
candidates quitting. Thus, ensure that the questions are relevant and straightforward which
can be filled out in just a few minutes. Also, avoid asking for information you can find on
resumes or online profiles.
• Update your careers page – Both active and passive candidates visit your careers page to
learn more about your company. So, make sure that you have an accessible careers page that
is informative, user-friendly, and genuine.
• Keep candidates in the loop – Keep the candidates updated throughout the recruitment
process s— especially those who did not pass the recruitment — by sending them rejection
emails so that they can look for other job opportunities. It is also good to offer interview
feedback to know what’s lacking and what they need to improve.

SELECTION
The term “selection” comes with the connotation of placing the right person in the right job.
Thus, the selection is identifying an individual from a pool of job applicants who possess the
necessary qualifications and competencies to fill positions in the organization. This HR process
employs various techniques to distinguish between qualified and unqualified applicants. This includes
screening, eliminating unsuitable candidates, conducting different tests, interviews, checking
references, and medical tests (SpriggHR, 2020). Moreover, this is known to be one of the most time-
consuming steps in an employee’s hiring experience. At the same time, the most meticulous part for
the HR personnel because they need to regard all the factors that might affect the selection process.
 Ways to Improve Selection Process by Theo Smit

1. Maintain Consistency

In selecting an individual from a pool of applicants, you need to standardize your selection
process to ensure consistent application and mitigate the risk of unfair discrimination against some
candidates.

2. Use the Selection Process to promote your Employer Brand

Promote your organization from your mission, vision, values, offer in terms of employee value
proposition (EVP), and what their future career prospects look like once they work for your company.
Because if HR has a selection process, talents, on the other hand, have a choice. In today’s market,
talented individuals are as vocal as interviewers during the process, so make sure that you highlight
why your organization is a great place to work.

3. Know What you Need

Before conducting the selection process, make sure you know what your organization needs
because if not, you might find yourself selecting an individual who is not suitable and fully
empowered to take the role. In addition, assess honestly whether your expectations are realistic and
attainable.

4. Think Outside the Box

Maximize your search canvas and ensure that you get the very best person — don’t be fixated
on selecting individuals who have ultimately had the same working experience. Instead, think beyond
keyword matching and find the transferable skills that would allow the individual to succeed in the
given role and benefit the organization.

5. Utilize Effective Assessments

Effective assessments assist in weeding out those who may have talked themselves up in the
interview but are ineffective and unable to perform as required of the job. This will also enable
organizations to consider individuals who are somehow inexperienced but are capable of delivering.
Effective assessments include but are not limited to cognitive ability test, integrity test, personality
describing test, knowledge about the job test, situational test, samples related to work, realistic job
previews, face-to-face interview, etc.
 6. Empower the People in your Process
Train and empower the HR personnel of your organization. Ensure that your HR personnel is
excited and proud in working for your organization or willing to share critical information about
career prospects with potential employees. Because sometimes, their poor service is one reason why
candidates withdraw their applications. Hence, spending some time empowering them will improve
the quality of your selection and, ultimately, your employment statistics.

7. Communication is Critical
Ensure that you communicate effectively and timeously from the start to the very end of the
process, especially for those who did not make it to the selection. Thus, it is encouraged to invest in a
communication process that promptly informs individuals about their status and their next step.

8. Minimize Delays
Before selection, it is best to plan the whole process and schedule the date and time to
minimize delays and improve the overall experience of HR and the applicants.

9. Keep Improving
Review your selection process and analyze what worked and what did not to streamline and
improve.

List the benefits of employee

development

EMPLOYEE DEVELOPMENT

Employee development — also known as professional development or staff development — is

the process of optimizing and continuously nurturing the employees’ existing skills and professional
competencies to help them progress in their individual career paths. The organization or company
officiates this process to ensure that the employees’ skills continue to evolve in accordance with industry
trends and best practices (Heinz, 2021).
 Benefits of Employee Development by Ryan Ayers

1. Fight off Stagnation

In a company, it’s essential to be innovative and learn new skills and competencies continuingly to
match the ever-changing business industry. However, people are creatures of habit and tend to be content
with what they know and do. Thus, it is essential to offer training in new skills to shake things up, causing
employees to consider new perspectives or find a new interest, which can fight off stagnation and brings
innovation.

2. Discover New Talents (and Weaknesses)

Through employee development, you will discover all the talents and weaknesses of your
employees. Sometimes, you bring on someone who is very good at the job you hired for them but has
other qualities that could be even more beneficial to the organization, which you can nurture and use as an
advantage. While identifying the weaknesses of your employees enables you to know which skills and
competencies to give more emphasis.

3. Maintain Engagement

When employees work side-by-side, the company can reach its goals faster because employees
learning and working together can gain a sense of camaraderie while advancing their careers.

4. Gain a Competitive Edge

Offering training and development ensures that everyone is on the same level and can deliver new
and fresh ideas in accordance with industry trends and best practices, giving your organization a
competitive edge.

5. Increase Productivity and Satisfaction

Suppose employees feel supported by the company through offering training that increases their
confidence and advances their skills. In that case, they will be inspired and naturally become more
productive and satisfied with their work. This can also be their driving force to gain some key leadership
traits such as self-awareness, process management, and desire to keep learning. In return, this
development will benefit both individuals and the company as a whole.
6. Attract and Retain Talent

Attracting the best candidates is not easy, but if you invest in developing your workforce, potential
employees will feel like they will gain more than just money. Existing employees will be more likely to
stay to learn and grow as professionals.

Explain the Characteristics of

Effective Supervisors

SUPERVISOR

A supervisor is the one who oversees the day-to-day performance of employees. That being said,
they have the full authority to make a judgment to recommend hiring/promoting effectively, discipline,
assign, reward, or adjust the grievances of other employees. Also, a supervisor has to perform many roles
such as planner, manager, guide and leader, mediator, inspector, and counselor to achieve productivity in
the organization (Management Study Guide, n.d.).

Characteristics of Effective Supervisors by Doreen Mueke

1. Emotional intelligence

An effective supervisor is someone who is not just a leader and resolves conflict; he is someone
who can recognize their own emotion in every situation, does not invalidate the feelings of others, is
empathetic, and has top-notch social skills because emotional intelligence is a critical skill in today’s
modern management especially in a diverse organization where work-life balance is needed.

2. Learner

Supervisors are also human, so it’s not surprising if there are things that they don’t know. But a
good and effective leader is incessantly thriving to gain knowledge and self-development so they can
share new information and inspire their subordinates to be more.

3. Approachable

In today’s modern management, an effective supervisor is approachable — not intimidating or

arrogant — and has a close working relationship with their subordinates to offer the full potential of their
leadership and facilitate the achievement of goals.
4. Political authority

In an organization, there are times that the high-level executives implement an unpopular policy or
assign an undesirable task, which some of the employees may not accept. As an effective supervisor, you
will need the skill to convince your subordinates to be receptive to new ideas, and this requires good
political skills.

5. Good at Delegating

An effective supervisor will not do everything on their own for credit. Instead, they delegate tasks
to people who have the right skills to handle them. It also shows that they have confidence and believe in
the skills and competencies of their subordinates, which will boost the team’s morale and ability to learn
new skills. Moreover, this allows their people to solve the problem without micromanaging them.

6. Flexibility

In an organization, problems are inevitable, and as an effective supervisor, you have to be flexible
in all situations to develop creative and unique solutions to unique problems. This will also give your
subordinates confidence to trust you to solve emerging issues exceptionally.

7. Gives Clear, Timely, and Effective Communication Regularly

Communication is the lifeline of an organization. Thus, it is essential always to keep the team in
the loop, ensure that everyone is on the same page, and things are done in good time. Because effective
supervisors have good crisis management skills, they can promptly and effectively address and clear
rumors.

8. Treats team members as partners

In management, supervisors are the boss, and that is well-established. However, an effective
supervisor is someone who appreciates and treats their subordinates as partners in making decisions,
drawing up strategies, as well as in departmental activities. By doing this shows leadership and enhances
collaboration within the organization.

9. Shows no Favouritism

It is human nature to have favorites or prefer someone over the other. However, supervisors should
not practice this because it can be the root cause of disputes and misunderstandings in the organization.
Also, this can tarnish your professionalism and question your credibility as a supervisor. So, as much as
possible, solve disputes in a neutral way because when you are making neutral and well-informed
decisions, they will trust you and your judgment.

10. A leader is Ethical and Trustworthy

An effective supervisor upholds their moral principles, can be trusted with confidential
information, and make the right decision even if it is a painful one because they value the respect of their
subordinates.

WEEK 7-8

Demonstrate the Techniques Used to Motivate

Employees

MOTIVATION

Motivation is the process of inspiring people to boost their desire and willingness to carry out
their responsibilities effectively and collaborate to achieve the organization’s common goals. In other
words, it means to induce, instigate, incite, or prompt someone to take specific action to achieve the
desired results (Sharma, n.d.). This is also regarded as a powerful tool in the hands of managers, as simple
motivation from them can serve as a driving force for employees to perform better.

Techniques Used to Motivate Employees by Ilya Puzin

1. Give Incentives

Giving badges or points after performing a specific task is a proven motivator for students, and
employees are just like students who are continuously learning. Thus, reward performance based on
meeting specific goals can undeniably boost confidence and inspire employees to perform better.

2. Let Them Know You Trust Them

Let them do their job on their own. Let them solve the problems they are facing within their
respective departments. Let them grow and explore. In that way, you show them that you trust and believe
in their capabilities which will boost their morale. Employees with high spirits can go a long way and
rarely disappoint you.
3. Set Smaller Weekly Goals

Avoid putting pressure on your employees by setting up smaller weekly goals. Rather than make a
billion this year, focus on getting 100 new customers this week—something that will get you to that
billion because employees who are not under pressure can deliver more than they could.

4. Give Your Employees Purpose

Motivate your employees by giving them their purpose because if they understand their purpose
and the purpose of the business, they can be better able to understand how they fit into the big picture.

5. Radiate Positivity

Be the manager who radiates positivity and enthusiasm among your subordinates. Feed them with
your positive energy and let them work hard but play hard too.

6. Be Transparent

Let your employees know what’s happening at the highest level so that they are fully aware of
sudden changes in the company. Also, you let them feel included and part of the company by doing that.

7. Motivate Individuals Rather Than the Team

Motivate everyone in the team to ensure that they work toward a common goal.

8. Learn What Makes Each Employee Tick

Inquire about their do and don’t like working, listen to their ideas because they are the best at what
they do, and most importantly, respect their personal schedule and non-work time.

9. Prioritize Work-Life Balance

Encourage your employees to take a breath and have a vacation once in a while because
prioritizing work-life balance yields increased productivity and overall happiness in the workplace.

10. Have an Open-Door Policy

Have an open-door policy because when employees believe that their voices are heard, they are
more confident in their positions within the company and think there is more at stake than just a
paycheck.
11. Show Them the Bigger Picture

Employees must understand the big picture and see how they will eventually contribute to a larger
goal. Give them tasks and projects to work on, and make sure they understand how everything fits
together. Talented employees will go above and beyond what you expect of them.

12. Create Recognition Rituals

Giving a certificate of award to those who have gone above and beyond what is expected is a great
recognition ritual and will surely motivate your employees.

Illustrate the Methods of Performance Appraisal

PERFORMANCE APPRAISAL

Performance appraisal is a process in which predefined factors such as work knowledge,

performance, attitude, leadership quality, team player behavior, consistency, decision-making abilities, as
well as skills, performance, and personality of employee is compared to these expected standards by the
organization (HR HelpBoard, 2017). Meaning, performance appraisal is the regular review of an
employee’s overall performance, achievements, lack thereof, and contribution to the company. Moreover,
companies use this to justify pay increases, bonuses, and termination decisions, which can be conducted
at any given time but tend to be annual, semi-annual, or quarterly (Hayes, 2021).

Methods of Performance Appraisal by Smriti Chand

1. Rank Order Method

It is the oldest and most basic formal systematic method of performance appraisal in which an
employee is compared to all others in order of worth. The employees are ranked from best to worst or
from highest to lowest.

This indicates the employee with the highest score on the characteristic being measured, as well
as the employee with the lowest score. Then come the next highest and lowest, and so on until all of the
employees to be rated have been ranked. Thus, if ten employees are to be evaluated, ten ranks will range
from 1 to 10.
2. Paired Comparison Method

Each employee is compared to other employees in this method one-on-one, usually based on a
single trait. The rater is given several slips, each with a pair of names on them; the rater places a
checkmark next to the employee he believes is the better of the two. The number of times this employee is
ranked higher than others determines their overall ranking.
3. Forced Distribution System

Tiffen developed this method to eliminate the central tendency of rating the majority of
employees at the higher end of the scale. The method assumes that employees’ performance levels follow
a normal statistical distribution, i.e., 10%, 20%, 40%, 20%, and 10%. This is useful for evaluating the job
performance and promotion potential of a large number of employees. It tends to eliminate or reduce bias.

It is also elementary to understand and evaluate employee performance in organizations. It has the
disadvantage of improving the same way so that no single grade would rise in the ratings.

4. Graphic Rating Scale

The graphic rating scale is one of the most common and straightforward techniques for evaluating
performance. It is also referred to as a linear rating scale. Each employee is appraised using the printed
appraisal form in this method.

For each trait, the form lists traits (such as quality and dependability) as well as a range of job
performance characteristics (from unsatisfactory to outstanding). The rating is done based on points on a
scale. The standard practice is to use a five-point scale.

The rater assigns a score to each appraisee based on the score that best describes their performance
for each trait. The assigned values for the characteristics are then totaled.
5. Preference Checklist Method

The primary goal of using the check-list method is to reduce the rater’s evaluation burden. The
HR department prepares a series of statements, i.e., questions with ‘yes’ or ‘no’ answers in this method.
The check-list is then presented to the rater, who must mark the appropriate responses to the appraisee.
Each question is assigned a weight based on its importance.

When the check-list is finished, it is sent to the HR department, which uses it to calculate the final
scores for all appraises based on all questions. When preparing questions, an attempt is made to determine
the rater’s degree of consistency by asking the same question twice but differently.

However, one disadvantage of the check-list method is that it is difficult to assemble, analyze, and
weigh several statements about employee characteristics and contributions. This method may also be
inefficient from a cost standpoint, especially if the organization has multiple job categories because a
checklist of questions must be prepared for each job category. It will take a significant amount of money,
time, and effort.
6. Management by Objectives or Results Oriented Method

Management by objectives (MBO) is an appraisal method in which managers and employees

collaborate to identify, plan, organize, and communicate goals to focus on during a specific appraisal
period. Following the establishment of clear objectives, managers and subordinates meet regularly to
discuss progress toward control and debate the feasibility of achieving those objectives.

This performance appraisal method effectively matches overarching organizational goals with
employee objectives while validating objectives using the SMART method to determine whether the set
objective is specific, measurable, achievable, realistic, and time-sensitive.

Employees are evaluated based on their performance at the end of the review period (quarterly,
semi-annually, or annually). Success is rewarded with a promotion and a raise, whereas failure is dealt
with through transfer or additional training. This process typically places a greater emphasis on tangible
goals, while intangible factors such as interpersonal skills, commitment, and so on are frequently
overlooked.
WEEK 10-11

Describe Job Analysis

JOB ANALYSIS

Job analysis is a process of gathering, compiling, and analyzing information relevant to the job
requirements, such as job activities, their attributes, and other essential tasks required for performing a
specific job. This also explores the three main vital components of Job: Job Description, Job
Specification, and Job Evaluation. That being said, in job analysis, it is the job, not the person doing the
job, that is assessed.

The data collected from job analysis is used to develop job descriptions and specifications,
compensation decisions, and selection assessments. Moreover, this assists the human resource
management and organization in identifying the roadmap of job progression for an employee and their
interest in the opportunities available for career advancement and increased pay and benefits (HR
HelpBoard, 2017).
 Contrast Job Evaluation and Job Analysis

JOB EVALUATION

On the other hand, job evaluation is an objective and logical process that determines the relative
usefulness of each and every job of the organization. The primary goal of job evaluation is to determine
an appropriate salary base, eliminate disparities in the wage system, and implement a consistent and
justified wage differential in the organization (Surbhi, 2019).

Difference Between Job Analysis and Job Evaluation

1. A job analysis is a thorough examination of all aspects of a specific job. Job evaluation is an attempt to
determine the relative utility of any particular job within an organization.

2. Job Analysis is comprehensive, while Job Evaluation is a comparative one.

3. Job analysis is carried out to create a job description and specifications. Job Evaluation, on the other
hand, seeks to implement an equitable and justified wage system in an organization.

4. Job Analysis is the first step to Job Evaluation.

5. Job Analysis is an input for job evaluation, while Job Evaluation is an output of job analysis.

6. Job analysis uses questionnaires, checklists, interviews, surveys, etc., to collect information.
Conversely, Job Evaluation uses non-analytical and analytical systems to evaluate jobs.

7. Job analysis aids in recruitment and selection, training and development, performance appraisal, and
compensation, among other things. On the other hand, Job Evaluation aids in job ranking by comparing
them in terms of importance.

Identify the Goals of Salary Administration

Programs

SALARY ADMINISTRATION PROGRAM

Salary administration programs are patterned to provide all employees with competitive and
equitable base pay using salary structures and formal policies and procedures. Having this program in an
organization ensures parity while maintaining external competitiveness.
 On the other hand, a good salary administration program enables a company to meet the four
primary compensation objectives: focus, attract, retain, and motivate. Furthermore, the program should
adapt to the ever-changing conditions and fluctuations in the company and marketplace. However, it can
still fail for many reasons, including the lack of top management commitment; clarity and ease of
administration; thorough planning; tie-in with compensation strategy; consistent balance between internal
equity and external competitiveness, Training and communication, and follow-up review (Schmidt,
2013). If any of this happens, resulting in failure, companies should consider reevaluating their salary
administration program and all other compensation plans to ensure that they meet the needs of companies.

Goals of Salary Administration Program by Sayani

1 To attract qualified and highly competent candidates – Highly skilled candidates prefer to join an
organization that offers competitive pay.

2. To retain the present employees – If the salary level does not compare favorably with other similar
organizations, employees leave the current organization and join others. So, in order to retain employees
and prevent such quits, every organization must keep their wages and salaries competitive.

3. To ensure internal and external equity – Internal equity refers to paying comparable wages for
comparable jobs within the organization. In contrast, external equity refers to the payment of comparable
salaries when compared to comparable jobs in other competitive organizations.

4. To ensure favorable behavior and increase labor loyalty – Employees’ positive behavior is reinforced
by an attractive wage structure. It also increases their loyalty, morale, job performance, and readiness to
accept greater responsibilities, among other things.

5. To control costs – It enables management to keep labor administration costs in line with its financial
capacity. It makes payroll administration and control easier.

6. To improve the organization’s public image – A good wage and salary system strives to project the
image of a progressive employer while also adhering to wage and salary legal requirements.

7. To establish job sequences and lines of promotion – A good wage and salary administration establishes
job sequences and lines of promotion wherever applicable.

8. To improve union-management relations – Wages and salaries based on a systematic job analysis and
current wage levels are more acceptable to labor unions. As a result, good wage and salary administration
simplifies collective bargaining and pay negotiations, reduces labor grievances, and thus improves union-
management relations.

9. To meet the needs of employees with emphasis on security and esteem needs.

10. To establish the job sequences and lines of promotion wherever applicable.

11. To motivate workers to achieve desired levels of performance.

Discuss the Advantages and Disadvantages of Work

Measurement

WORK MEASUREMENT

Work Measurement, also known as “Time Study,” is a process that employs a set of techniques to
determine the work content of a specific task or activity by calculating the time required to complete a
unit of work at a predetermined performance level. This is essential for increasing organizational
productivity and allowing management to compare alternative methods and conduct initial staffing. That
being said, work measurement serves as the foundation for proper planning to enable realistic work
schedules, arrive at a sensible and fair incentive scheme, eliminate unnecessary jobs, minimize human
effort, and assist in labor organization by daily comparing actual time to target time (Shivam, n.d.).

Advantages and Disadvantages of Work Measurement by Sindhuja & Accountlearning.com

ADVANTAGES

• Determines the amount of time required to complete a task; thus, it compares alternative methods and
determines the quickest method.
• It gives you more control over your work processes and methods.
• It aids in determining the appropriate number of employees assigned to a work unit.
• It contributes to the prevention of work backlogs.
• It helps in the simplification of work processes.
• It aids in the reduction of labor costs.
• It boosts productivity.
• It enhances supervision, planning, scheduling, performance evaluation, and decision making.
• Determines the equipment requirements.
• It provides data for efficient production planning and maintenance procedures.
• It assists in calculating precise delivery dates.
• Determines a realistic labor budget and serves as the foundation for a standard costing system.
• It serves as a foundation for fair and sound incentive schemes resulting in effective labor control.

DISADVANTAGES

• Time study is ineffective for non-repetitive, non-standardized, or indirect labor jobs.

• It is less suitable for jobs where the workplace is controlled by operators than for jobs where the
workplace is controlled by automatic machines.
• When an output standard is not met, it undermines effective performance by lowering operator
morale as a result of the offered but unfulfilled incentive.
• When combined with incentive wages, output standards may contribute to a lack of emphasis on
production quality.
• Because of the loss of output standards, production costs may rise.
• Unions frequently oppose time study because its accuracy is overly reliant on the skill and
judgment of the time-study man. The time study engineer must be well-trained and have both a
background and experience with time studies. Of course, the time study engineer may use the
work sampling technique to reduce the area of human judgment.
• Mechanical, physiological, psychological, and sociological sources of variation can all have a
negative impact on worker output and quality performance. This may jeopardize the successful
implementation of time study-based output standards.
WEEK 12-13

List the tools for systems and procedures

SYSTEMS
A system is a collection of interconnected subsystems that work together to achieve a specific
goal. Procedures are related methods required to complete various work processes, whereas methods are
specific clerical or mechanical operations or activities (Syaril, n.d.).

The goals for developing and implementing systems differ from one organization to another. The
following, on the other hand, identify the primary goals of employing the systems concept:

1. To maximize the effective use of organizational resources.

2. To keep operating costs under control.

3. Increase operational efficiency.

4. Contribute to the achievement of the organization's goals.

5. Assist in the execution of the organization's various functions.

Elements of System by Syaril

• Input
The flow of work through a system starts with the input of some kind of resource.

• Processing
The transformation of input into desired output occurs during the processing element, which is
made up of methods and procedures.

• Output
The interaction of the input and processing elements results in output.

• Feedback
Feedback allows the system to determine whether or not the results meet expectations.
 • Controlling
Has internal as well as external dimensions. The organizational policies and procedures to which
the system must adhere are referred to as the internal dimensions. External dimensions, on the
other hand, include rules and regulations affecting the system at the local, state, and federal
levels, as well as ethical and moral considerations.

Tools for Systems and Procedures by Syaril

Workload chart

A workload chart is also known as a work distribution chart. Workload charts are used to identify
the following:

• Major activities carried out by a given work unit.

• The amount of time a work unit spends on each activity as a whole.
• The activities performed by each employee, as well as the amount of time spent performing the
activities.

Documents Used in Workload Chart Method:

✓ Daily Log – Employees use a daily log to keep track of their daily activities.
✓ Summary Log – Identifies the tasks completed by employees over a longer time period.
✓ Activity List – Displays a consolidated list of departmental activities in descending order.

Flow process chart

A flow process chart is a document used in systems analysis that is useful for identifying each
step in a specific work process, using the following categories:

• Operation
• Transportation
• Inspection
 • Delay
• Storage

Each operation step is

labeled as either a get ready, do,
or put Away step.

Special attention should

be paid to the do steps because if
they can be eliminated, the get
ready and put away steps can
most likely be eliminated as well.

Office Layout Chart

✓ It is frequently used in conjunction

with a flow process diagram.
✓ It is ideal for visualizing workflow.
✓ It is a tool for detecting backtracking,
crisscrossing, and inefficient
workflow patterns.
✓ It is finished by tracing the flow of
work through the premises.

Horizontal Flow Process Chart

✓ It is useful for depicting work processes involving multicopy forms.

✓ The chart depicts the movement of each form copy through a given work area.
✓ It helps outline different procedures within each subsystem.
 Indicate the components of computer
systems
Computer

A computer is a programmable electronic machine that performs high-speed mathematical or

logical operations, as well as assembles, correlates, and processes information. It is also capable of storing
and retrieving data.

Different Types of Computers (GFCGlobal, 2021)

Laptop Computer
Desktop Computer

Tablet Computer Server

Specialized Computers (GFCGlobal, 2021)

Smartphones Game consoles

Wearables
TVs
Computer System

A computer system is a programmable digital machine that receives, processes, manages, and
displays information in a format that can be used for meaningful work. It is composed of three main
components: computer hardware, computer software, and liveware (Learn Computer Science, 2021).

Components of Computer System (Peda.net, n.d.)

a) Computer Hardware – Hardware refers to the physical, tangible computer equipment and
devices that support major functions such as input, processing, output, secondary storage, and
communication. There are two types of computer hardware: input devices and output devices.

• Input Devices – Any device that inputs data into the computer and allows you to interact
with and control it. Examples of these are the keyboard, mouse, scanners, and webcams.

Keyboard
The keyboard is the
primary input device of a
computer. It has three
types of keys:
alphanumeric, special, and
function keys.
 Mouse
A mouse is a small device
that allows you to point at
and select items on your
computer screen.

Scanners
They are used to capture a
source document and
convert it into an electronic
form.

Webcams
Allow users to take
pictures.

• Output Devices – Any peripheral (computer-connected accessory) that receives data

from a computer, usually for display, projection, or physical reproduction (Computer
Hope, 2019). Examples of these are monitors, printers, and speakers.

Monitor
Creates visual information
 Printer
It is used to print
information on the paper—
hard printed copy.

Speaker
Creates sound.

b) Computer software – Software is a collection of programs that allow us to solve computer

problems by providing lists of instructions to perform a task or operation. The software can also
be referred to as "programs" or "applications." There are two types of software: system software
and application software.

• System Software: Refers to programs that are designed to manage the computer. This
includes the operating system, file management utilities, and disk operating system
(DOS). Hence, if system software is not installed on computers, the users must type the
instructions for everything the computer should do (Curley, 2021).

• Application Software: Application software is also referred to as "Productivity

programs" or "End-user programs" because it allows the user to complete tasks in the
manner that they desire. Among the tasks are creating documents, spreadsheets,
databases, and publications, as well as online research, emailing, designing graphics,
running businesses, and even playing games (Curley, 2021). In other words, application
software is created for the convenience of users.
 Examples of Application
Software
Microsoft Word

Excel

Google Chrome

YouTube

Drive

c) Liveware – People who use computers on a daily basis and are involved in the operation of the
computer system are referred to as liveware. Their responsibilities include structural support,
environmental control, computer operation, and so on. Humanware is another term for liveware
(Geeksforgeeks.org, 2020)

Describe the management of

telecommunications systems

TELECOMMUNICATION SYSTEM

The telecommunications system is a collection of nodes and links that enable long-distance
communication via electrical signals or electromagnetic waves (Cena & Zandbergen, 2021). Its function
is to deliver information to system users via various voice communications, televisions, electronic mail,
and electronic message exchanges. The telephone network, which can be used for phone calls and text
messaging; the radio broadcasting system; computer networks, and the internet, which can be used for
sending email, viewing web pages, and downloading files, are all examples of telecommunications
systems (Cena & Zandbergen, 2021). Furthermore, telecommunication systems are frequently
bidirectional, with a single device serving as both a transmitter and a receiver, or transceiver.

Basic Elements and Components of Telecommunication System by Cena & Zandbergen

Basic Element of Telecommunication System

• A transmitter that converts information into a signal

• A transmission medium that carries the signal.
 • A receiver that receives a signal and converts it into usable data.

Components of a Telecommunication System

1. Input and output devices, also identified as 'terminals.'

These serve as the starting and ending points for all communication. A telephone is an
example of a terminal. In computer networks, these devices are commonly referred to as 'nodes'
consisting of a computer and peripheral devices.

2. Telecommunication channels, which transmit and receive data

This includes various types of cables and wireless radio frequencies.

3. Telecommunication processors, which deal with various control and support functions.
For example, data needs to be converted from analog to digital and back in many
systems.

4. Control software, which is responsible for controlling the functionality and activities of the
network.

5. Messages represent the actual data that is being transmitted.

In the case of a telephone network, the messages would include both audio and data.

6. Protocols define how different types of telecommunication systems handle messages.

GSM and 3G are protocols for mobile phone communications, while TCP/IP is a protocol
for Internet communications. While early telecommunications systems were not computerized,
almost all systems used today are computerized somehow.
WEEK 14-15

Identify the activities involved in records

management

RECORDS MANAGEMENT

Records Management (RM), also known as Records and Information Management (RIM), is a
system that manages all the organization’s records, from creating the record to its disposal. An
organizational record is any document that contains information about a business transaction, activity, or
event related to the organization (Lawson, 2021). Examples of these documents are legal, financial,
historical, and daily operations records. Moreover, it can also be in photographs, audio files, or videos.

Activities Involved in Records Management (Lawson, 2021)

Record Creation

Record creation is the starting point for any records management system. It can be in the form of
creating a spreadsheet, database, or document and sending or receiving emails/documents from outside
the organization. All the considered organizational records are contracts, budgets, bank statements, policy
manuals, and meeting minutes. However, it’s still up to the organization to decide the criteria for record
creation.

Internal and External Record Distribution

Following the creation of the record, the organization must decide whether it will be emailed or
printed, and physically distributed. If the records are internally distributed, the organization can use "read
receipts" to ensure that the employees receive the email. If the records are to be distributed externally, the
organization must consider various distribution methods, such as email, delivery via mail, or delivery
service.

Record Usage

Once the records have been distributed, it is time to categorize them and decide how they should
be used. Will it be used to make decisions, determine directions, or in any other way that will benefit or
put the organization at a disadvantage.
Record Maintenance

After using the records, the organization must know how to maintain them. Any record, whether
printed or digital, must be handled with utmost confidentiality. Thus, records must be stored in an easily
accessible yet secured and/or locked file cabinet. If it’s a digital document, it should be stored in an
accessible and well-protected virtual space, such as an intranet, internal website, or file directory.
Moreover, in record maintenance, it’s critical to appoint someone who would maintain the record and
determine when the record is no longer needed.

Record Archival and Disposal

Active records and inactive records are the two types of records. Active records are files that are
frequently accessed and used. Inactive records, on the other hand, are files or documents that no longer
serve a purpose in the organization. In that case, records management will determine how to manage
inactive records, whether to archive them or destroy them. If records management decides to destroy
them, paper files should be shredded, and digital files permanently deleted to ensure that no one has
access to confidential information. However, how inactive records are archived and destroyed remains
subject to an organization's policies and procedures.

Outline the steps in designing forms control

FORMS CONTROL

Forms control is one of the essential tasks of office managers. It is the process of exerting
managerial control over the costs of producing and processing forms (Acharya, n.d.). It necessitates
careful attention to proper form design and uses in order to save time and money, reduce paperwork, and,
most importantly, avoid employee confusion. According to Acharya (n.d.), the following are the broad
objectives of form control:

a) It is intended to keep a record of all forms used in the business.

b) Preventing the indiscriminate use of new forms.
c) Forms must be created at a low cost.
d) To ensure proper form distribution in a cost-effective manner.
e) To reduce the size of forms in use and increase their frequency of use.
f) Elimination of obsolete forms.
 Steps in Designing Forms Control by Zane K. Quible

Catalog Forms

This is the beginning of designing forms control process, in which individuals from the forms
control program will determine the nature, type, and purpose of forms used in the organization. They
must consider the following factors in doing so:

• The primary purpose of each form.

• Forms used by each department or work unit.
• Frequency of use of each form.
• The number of copies of a multiple-copy form set.
• Routing of each copy of a multiple-copy form set.
• Final disposition of each copy of a multiple-copy form set.
• The primary method of entering data on each of the forms.
• Relationship among various forms.

Classify Forms

Following the specification of the forms' nature, type, and purpose, the forms must be classified
in terms of function and number. Function forms are classified according to their intended use. Number
forms, on the other hand, are collected in accordance with the assigned identification number.

Analyze Forms

This step is done to lower the cost of creating and processing forms. The following questions
must be answered in the analyzing forms.

• What is the primary purpose of the form?

• Does the form contain the necessary information to fulfill its purpose?
• Do the form's design specifications meet the needs of its data entry, transmission, filing, and
retrieval needs?
• Does the form contain any extraneous information?
Eliminate Forms

After analyzing the forms, it is time to purge those that are no longer used or required in the
organization. In some cases, new forms perform the function of old forms.

Consolidate Forms

In form analysis, it may be revealed that certain forms contain similar information. If this occurs,
two or more forms may be consolidated into a single new form to reduce costs and avoid confusion.

Develop Design Guidelines

Design guidelines should be created before creating new forms because they will serve as a
foundation for creating new forms and ensuring form uniformity and compatibility.

Example of Guidelines:

• When the same information appears on several forms, it should appear in the exact location on
each form.
• Information that is to be transferred from one form to another should appear in the same sequence
on both forms.
• The design of the form should be guided by such characteristics as simplicity, practicality, and
ease of use.

Develop Forms

Before a new form is developed, its need must be justified.

Print Forms

The company needs printing equipment to print the forms both in-house and externally.

Maintain Perpetual Supply Inventory

This helps ensure that the form supplies are never depleted. When supply falls below a certain
threshold, it is replenished.
 Identify the factors in organizing a reprographic
centre

REPROGRAPHY

Reprography is the mechanical or electronic reproduction and duplication of any type of graphic
material, such as documents, drawings, images, and designs, on a tangible medium. The most common
reprographic processes are xerography, photography, and digital scanning. Reprographic services include
the creation of large-scale graphic documents such as blueprints, posters, advertisements, and maps, as
well as bulk mailing and flyers (Petersen, 2022).

REPROGRAPHIC CENTRE

A Reprographic center is a facility where visual materials are produced and duplicated by people
operating machines.

Factors in Organizing a Reprographic Centre by Quible, Keene, and Roper

Determine its needs

It’s essential to identify the needs of the center to achieve its objectives to reproduce and
duplicate visual materials. The needs include equipment, skilled personnel, policies and procedures,
standard, etc.

The following can help determine the needs of the Reprographic Center

• The number of duplicates required for various documents.

• Copying or printing processes that require specialized production requirements.
• The overall standard of the original documents.
• The desired level of quality for copying or printing processes.
• The amount of time required to obtain copies.
• Nature of specialized production jobs

Determine nature of control

• The majority have centralized control.

 • Most organizations have a central hub and possibly several satellite hubs scattered throughout the
organization.

The Benefits of Centralized Reprographics Control

1) It is possible to gain more control over the reprographics function.

2) The Center is likely to run more efficiently.
3) Equipment selection and utilization are likely to be more efficient.
4) It is expected that the process of purchasing and replenishing supplies will be more efficient.

Determine personnel needs

Selecting personnel or employees also affects the organization of the reprographic center. Since
the activities in the reprographic center are all machine-based, the personnel must be skilled and have the
competencies required to operate the equipment in order for the workplace to run smoothly and
productively. If not, they must go through extensive training. Some training sources include the
equipment vendor, vocational-technical schools, etc.

Determine proper layout

There is no such perfect or ideal layout in the reprographic center. The placement of equipment is
determined by workflow and ergonomic considerations.

• Work-Flow: The manner in which the work involved in each process is distributed
among the various pieces of equipment. The following goals should be met when relating
the flow chart to a layout:
✓ To reduce the length of the flow lines as much as possible.
✓ Maintaining a horizontal flow line.
✓ To avoid flow line cross-over.
✓ To integrate the workflows of separate processes so that those related to a
common component run in parallel while others do not.
✓ To prioritize the projected scale of operations where the flow line of the various
processes cannot all be optimally lengthened.
 • Ergonomic Considerations – In order to maximize the equipment, its positioning leans on
the comfort and convenience of the operators. This factor is aided to some extent by the
use of workflow, which reduces lateral movement. Other factors to consider include:
✓ High-quality adjustable swivel stools and chairs with supportive backrests for
camera work and other seated operations.
✓ Switches, taps, and other controls should be placed within easy reach of normal
working positions.
✓ Positioning microfilm readers, rewind benches, and other equipment so that
direct light does not fall on screens, causing excessive eye strain.
✓ Placing non-self-standing equipment on benches or tables that are convenient for
the mode of operation.

Prepare policies and procedures

Policies and procedures are also crucial in organizing a reprographic center because they keep the
center organized and uniform and serve as the primary guide in performing work effectively.

Areas involved include:

• Submitting routine work.

• Handling of confidential work.
• Processing of high-priority work.
• Determining the appropriate processing method

Maintain the equipment

This is one of the most critical aspects that need to be considered when organizing a
reprographics center, especially it's machine-based activities. Machines require oil, grease, cleaning, and
care. Thus, the maintenance schedule for each piece of equipment should be planned before purchasing
the machine. Furthermore, operators and spare parts must be considered as well. Operators must be well-
trained in all aspects of maintenance so that when the machines develop flaws, they can perform all
necessary repairs. This is linked to the supply and availability of spare parts because operators may be
unable to repair faulty machines without spare parts. Thus, it is necessary to ensure supply or, at the very
least, that they have their own stocks.
Set work standards

Setting work standards is also necessary to ensure that the quality of the materials/products is
met. This also determines the center's efficiency. Standards can be obtained from various sources,
including equipment manufacturers, and are also established by supervisors.

Implement cost control measures

Organizing a reprographic center is costly, from the services, planning for management purposes,
or cost recovery. It also necessitates taking into account four significant costs associated with the center:
equipment, materials, lodging, and staff.

Here are some ideas for keeping the reprographic center's costs under control:

• Use the most cost-effective printing and copying processes that the jobs will allow.
• Only the number of copies required should be requested or produced.
• Maintain the equipment so that very few, if any, pages are ruined during the printing or copying
processes.
• When possible, print on both sides of the paper.
• Use the services of the reprographics center for a particular job unless an outside source is more
economical.
• Take advantage of quantity purchasing of supplies.

Install appropriate equipment

The reprographic center is a facility that produces large-scale documents: blueprints, posters,
advertising, and maps, as well as bulk mailing and flyers. Thus, it requires a wide range of appropriate
equipment to operate.

Categories of Copying Equipment

• Equipment that uses sensitized paper.

• Equipment that uses plain paper.
 Copying Processes That Use Sensitized Paper

• Diffusion transfer: A photographic process in which a print or transparency is developed

while in contact with the negative, with the image-forming material migrating from the
negative through a thin layer of liquid (Archives Terminology, 2005).

• Gelatin transfer

• Stabilization: Certain rapid-processing papers include developing agents in their

emulsions and are processed on rollers. This process takes about 10 to 15 seconds;
however, the prints do not last as long as conventional prints because unexposed silver
salts are not removed from the emulsion but are only converted into light-stable
compounds. Such prints can be made more permanent by fixing and washing them
afterward (Britannica, n.d.).

• Diazo: A photographic technique that creates images by exposing diazonium salts to

ultraviolet light and then developing the image with ammonia fumes (Hintz, n.d.).

• Thermograph: Thermography, also known as Thermographic Printing, Raised Ink

Printing, and Offset Thermography, is a low-cost method of producing a raised effect
similar to engraving and embossing. Thermography is widely regarded as a desirable and
preferred printing method that adds prestige to any printed piece (Teo, 2014).

Copying Processes That Use Plain Paper

• Xerographic process: Image-forming method that employs a photoconductive substance

whose electrical resistance decreases when exposed to light. It serves as the foundation
for the majority of document-copying machines in use today. When a sheet of paper is
passed near the drum, a positive electric charge under the sheet attracts negatively
charged ink particles, transferring the image to the copy paper (The Editors of
Encyclopaedia Britannica, 2009).
• Fiber optics – Fiber optics, also spelled fibre optics, is the science of transmitting data,
voice, and images by the passage of light through thin, transparent fibers (The Editors of
Encyclopaedia Britannica, 2021).
WEEK 16-17

Discuss the steps in the process of

control

CONTROL

After planning, organizing, staffing, and directing, the final managerial task is to determine
whether the strategies and plans are being executed effectively and measure overall progress toward the
organizational goals. This is a continuous and dynamic process that will continue as long as the business
or organization operates, but this depends on the situation. As we all know, the future is unpredictable,
and we have no idea what will happen. Thus, controlling is also future-oriented; it compares the actual to
the standard to determine what needs improvement and whether there’s a need to design corrective action
for the future. Lastly, controlling is plan-based; without planning, there will be no controlling because a
plan determines the organization's course of action (Aishwarya, n.d.). Control ensures that action is taken
according to the organization's chosen course of action.

On the other hand, managers exercise control by monitoring and measuring the performance of
employees to compare with the standard set by the organization and to identify and analyze whether
corrective action is required to improve overall performance.

CONTROL PROCESS

It pertains to a technique that can be used to ensure the organizational standards are being met. It
carefully gathers information about a system, process, person, or group of people to make the best
decision (AcqNotes, 2021). The procedure typically has between four to five steps.

Steps in the Process of Control by AcqNotes

Step 1: Establish Clear Standards

Standards are the criteria for judging an employee's overall performance, which must also be met
during the course of a business function. This also determines whether management needs to plan a
corrective action to achieve the organization's goals. There are two types of standards:

• Measurable or Tangible – Pertains to those standards that can be measured and

expressed. They can take the form of cost, output, expenditure, time, profit, etc.
• Non-measurable or Intangible – Standards that cannot be measured monetarily, i.e., the
performance of a manager, deviation of workers, attitudes towards concerns.

Step 2: Monitor and Record Performance

This is the stage at which employees' performance will be evaluated. Measuring performance levels,
on the other hand, can be both simple and difficult. It is much easier to measure tangible standards
because they can be expressed in units, cost, and money terms, among other things. Unlike measuring
intangible standards, which can only be measured by: workers' attitudes, morale at work, changes in
attitudes toward the physical environment, and communication with superiors.

Step 3: Comparison Results Against Standards

This is the point at which actual performance is compared to organizational standards. The
deviation is defined as the difference between the actual and planned performance. To determine the
deviation, the manager must first determine the extent of the deviation and the cause of the deviation.

In the case of extent deviation, the manager must determine whether the deviation is positive or
negative, as well as whether the actual performance meets the standards. Once the deviation is identified,
the manager must consider the factors that contributed to the deviation.'

The causes can be:

• Erroneous planning,
• Co-ordination loosens,
• Implementation of plans is defective, and
• Supervision and communication are ineffective, etc.
Step 4: Communicate Results

Once the results have been determined, all stakeholders must be notified and kept up to date so that
they are aware of their employees' overall performance. Also, for them to plan corrective action if
necessary.

Step 5: If needed, Take Corrective Action

When the extent and cause of deviations are identified, the managers have to discover those fall
shorts and take corrective measures not to worsen the situation. There are two alternatives here:

• Taking corrective measures for deviations that have occurred.

• The managers can revise the targets or the standards – If there is still no progress after
implementing corrective measures. Follow-up is a crucial step because only through taking
corrective actions can a manager exercise control.

Recognize the purpose, advantages,

and limitations of budgeting

BUDGET

A budget is a comprehensive, formal, coordinated, detailed, quantitative plan that forecasts

potential revenue and expenses over a specified time period (MBA Knowledge Base, 2021). It can be
created for a single person, a group of people, a company, the government, or anything else that makes
and spends money.

BUDGETING

Budgeting is the process of developing a comprehensive plan for how to spend money. The
comprehensive plan covers the entire process, from budget preparation to budget implementation and
performance evaluation. Creating this spending plan provides us with valuable tools for budgeting and
controlling our finances, as well as determining whether we have enough money (MBA Knowledge Base,
2021).
 Purpose, Advantages, and Limitations of Budgeting

PURPOSE (Isaac, n.d.)

• A forecast of income and expenditure (and thereby profitability)

In creating a business plan, business owners and managers need to forecast whether their
business will make a profit or not. Thus, budgeting will serve as a model to know how the
company might run in an attempt to forecast income, expenditure, and thereby profitability.

• A tool for decision making

Another goal of budgeting is to provide a financial framework for business owners and
managers to make accurate and effective decisions.

• A means to monitor business performance

And lastly, to enable the actual business performance to be measured and compared to
the forecasted business performance. In other words, it allows the business owners and managers
to assess whether the business is living up to their expectations.

ADVANTAGES

According to Applied Education (2020)

• Provides a time frame for controlling finances.

✓ Highlights cashflow shortages/financing needs, etc.

• Serves as the foundation for corrective action if budgeted figures do not match actuals.

✓ Variance analysis/financial ratios/investigation to make budget changes

• Provides a set of performance evaluation standards.

✓ People carry out plans, and budgets provide benchmarks for management to use in evaluating the
performance of those in charge of carrying out those plans.
✓ Staff members' roles are defined and understood.
✓ Transparency fosters positive relationships and boosts morale in the workplace.
✓ Creates a system for providing performance feedback.
According to Agarwal (n.d.)

1. Compels and motivates management to conduct an early and thorough examination of its problems. It
instills in managers a sense of caution and care, as well as the need for careful research before making
decisions.

2. As a "plan for spending," it provides a valuable means of controlling a business's income and
expenditure.

3. Provides a tool for evaluating, testing, and establishing managerial policies and goals as guidelines for
the entire organization.

4. Aids in the allocation of capital and other resources to the most profitable channels.

5. Allows management to delegate responsibility while maintaining control of the business. It quickly
identifies organizational weaknesses, inefficiencies, and deviations, which can be addressed immediately
to achieve the desired goal.

6. Fosters a "cost-conscious" attitude, encourages the efficient use of resources, and fosters a profit-
oriented environment throughout the organization. It emphasizes the amount of money that should be
spent to achieve a goal.

7. It serves as a standard, foundation, or yardstick for measuring the performance of departments and
individuals within organizations. Individual managers can assess their own decisions and
accomplishments and take appropriate steps to improve their performance.

8. Encourages productive competition, provides an incentive to perform efficiently, and provides each
individual in the organization with a sense of purpose. All of these positive factors contribute to increased
output and employee productivity.

9. Provides a systematic and disciplined approach to problem-solving in the organization.

10. Budgeting, if implemented in nearly every enterprise, benefits the overall national economy by
ensuring job stability, efficient resource use, and effective waste prevention.
According to Accounting Tools (2021)

• Planning Orientation
The process of developing a budget forces management to think beyond the short-term,
day-to-day operations of the business.

• Profitability Review
A properly structured budget identifies which aspects of the business generate money and
which ones consume it, forcing management to consider whether some aspects of the business
should be eliminated while others expand.

• Cash Allocation
Only a limited amount of cash is available to invest in fixed assets and working capital.
The budgeting process forces management to choose which valuable assets to invest in. In some
cases, management may decide to sell certain assets to generate enough cash to acquire other
assets.

• Bottleneck Analysis
The budgeting process can be used to focus on what can be done to either increase the
capacity of the bottleneck or shift work around it.

According to Rajak (2021)

• Coordinates cross-departmental activities.

• Budgets are used to put strategic plans into action.
• Budgets are an excellent way to keep track of organizational activities.
• Budgets improve employee communication.
• Budgets improve resource allocation by clarifying and justifying all requests.
• Budgets serve as a tool for corrective action by allowing for reallocations.
LIMITATIONS

According to Applied Education (2020)

• Not every situation can be predicted or forecasted accurately; no one knows what the future
holds. Thus, it will be critical to the budget's use.
• The budgeting process incurs both monetary and resource costs.
• Budget preparation is not a guarantee of success.
• The budget must be promptly delivered to the appropriate people so appropriate action can be
taken.

According to Agarwal (n.d.)

1. Budgeting's success and utility are dependent on the cooperation and participation of all members of
management. Budgeting typically fails when management fails to carry out the plan effectively.

2. A budget is merely a tool that neither replaces nor eliminates management. Management only uses
Budgets to carry out managerial functions, not as a replacement for management.

3. The budgeting process takes time.

4. Relying heavily on budgeting may result in lower-level management and employees attempting to
game the system by providing inaccurate estimates of future costs and revenues, and by failing to
capitalize on changes in the environment because doing so would result in a deviation from the plan, they
would be considered to be operating contrary to the budget. Employees will tend to overestimate costs
and underestimate revenues in an unbalanced budget program, resulting in budget slack.

According to Rajak (2021)

• The primary issue arises when budgets are applied mechanically and rigidly.
• Budgets can demotivate employees due to a lack of participation. If budgets are imposed arbitrarily
from the top, employees will not understand the rationale for budgeted expenditures and will not be
committed to them.
• Budgets can create perceptions of unfairness, as well as competition for resources and politics.
• A rigid budget structure discourages initiative and innovation at the lowest levels, making it
impossible to fund new ideas.
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