Pe&pom - QB - Unit - 2
Pe&pom - QB - Unit - 2
Pe&pom - QB - Unit - 2
(AUTONOMOUS)
DEPARTMENT OF INFORMATION TECHNOLOGY
UNIT II
PART A
1. Define Organizing?
Organizing is the process of identifying and activities required to attain the objectives, delegating, creating
responsibility and establishing relationships I people to work effectively.
2. Mention any four characteristics of an organization.
Common objectives b.
Specialization or Division of Labour c.
Authority of structure d. Group of persons
3. List out the steps involved in organization process.
Determination of activities
Grouping of activities
Assignment of Duties
Delegation of authority
4. Mention the various principles involved in organization.
1. Principle of unity of objective
2. Principle of division of work or specialization
3. Principle of efficiency
4. Principle of span of control
5. Define authority.
"Authority is the right to give orders and the power to exact obedience".
6. List out the sources of authority.
a. Formal authority theory
b. Acceptance Authority Theory
c. Competence theory
7. What is delegation of authority?
Power that is delegated formally. It includes a right to command a situation, give orders and
expect them to be obeyed, it is always accompanied by an equal responsibility for one’s actions
or a failure to act.
8. List out the types of organization structure.
Functional Structure, Divisional Structure and Matrix Structure.
9. What is centralization?
Decision making is in a few hands. All the important decision and actions at the lower level, all
subjects and actions at the lower level are subject to the approval of top management.
10. What is decentralization?
Decentralization is a systematic delegation of authority at all levels of management and in all of
the organization. In a decentralization concern, authority in retained by the top management for
taking major decisions and framing policies concerning the whole concern. Rest of the authority
may be delegated to the middle level and lower level of management.
11. Differentiate authority and responsibility.
Authority Responsibility
Informal organization springs on itsown. Its goals are ill defined and intangible.
Span of Control means the number of subordinates that can be managed efficiently and effectively
by a superior in an organization. It suggests how the relations are designed between a superior
and a subordinate in an organization.
span of control refers to the number of subordinates under the manager's direct control. As
an example, a manager with five direct reports has a span of control of five.
The practice of human resource management (HRM) is concerned with all aspects of how people
are employed and managed in organizations.
HRM practice has a strong conceptual basis drawn from the behavioural sciences and from
strategic management, human capital and industrial relations theories.
Human resource management (HRM) is a strategic, integrated and coherent approach to the
employment, development and well-being of the people working in organizations.
HRM comprises a set of policies designed to maximize organizational integration, employee
commitment, flexibility and quality of work. (Guest, 1987).
24. What is Recruitment?
• Recruitment is a process of identifying, screening, shortlisting and hiring potential resource
for filling up the vacant positions in an organization. It is a core function of Human Resource
Management.
• Recruitment is the process of choosing the right person for the right position and at the right
time.
Recruitment also refers to the process of attracting, selecting, and appointing potential candidates to
meet the organization’s resource requirements
25. What is Job Analysis?
• Job analysis is a process of identifying, analyzing, and determining the duties, responsibilities,
skills, abilities, and work environment of a specific job. These factors help in identifying what
a job demands and what an employee must possess in performing a job productively
360 reviews allow peers to provide both positive and constructive feedback. It provides individuals with
a broad assessment of their individual performance based on the views of the people around them. This
process allows members of teams to grow as they can identify areas for improvement in others, while
they consider their own development needs. This process is mainly handled by team members, but
managers should still oversea the reports that are generated to ensure that any concerns, praises or
claims are made note of and addressed. By doing this it shows teams the importance of peer review
because it has resulted in action being taken and therefore team members are more likely to be engaged
in the process.
The formal organization refers to the structure of jobs and positions with clearly defined
functions and relationships as prescribed by the top management
Informal organization, which does not appear on the organization chart, supplements the formal
organization in achieving organizational goals effectively and efficiently. The working of informal
groups and leaders is not as simple as it may appear to be. Therefore, it is obligatory for every
manager to study thoroughly the working pattern of informal relationships in the organization and
to use them for achieving organizational objectives.
FORMAL ORGANIZATION
Chester I Bernard defines formal organization as -"a system of consciously coordinated
activities or forces of two or more persons. It refers to the structure of well-defined jobs, each
bearing a definite measure of authority, responsibility and accountability." The essence of formal
organization is conscious common purpose and comes into being when persons–
(i) Are able to communicate with each other
(ii) Are willing to act and
(iii) Share a purpose.
The formal organization is built around four key pillars. They are:
• Division of labor
• Scalar and functional processes
• Structure and
• Span of control
Thus, a formal organization is one resulting from planning where the pattern of structure has
already been determined by the top management.
(i) Vertical
(ii) Horizontal
(iii) Circular
In this chart major functions are shown at the top and subordinate functions in successive lower
positions. In this chart scalar levels run horizontally and functions run vertically. The supreme authority
The vertical chart is shown in the following diagram. In this diagram Board of Directors is at the top of
the organization. The chief executive controls various functional managers, who in turn have downward
In this chart highest positions are put on the left side and those with diminishing authority move towards
the right. The organizational levels are represented by vertical columns, the flow of authority from
higher to lower levels being represented by movement from left to right. In other words it presents
In horizontal chart the supreme authority Le. Board of Directors is shown on the left and chief executive
and functional managers and other levels move towards right.
(iii) Circular:
In circular chart the centre of the circle represents the position of supreme authority and the functions
radiate in all directions from the centre. The higher the positions of authority, the nearer they are to the
centre and the lesser the positions of authority, more distant they are from the centre. The positions of
relative equal importance are located at the same distance from the centre. The lines forming different
blocks of functions or positions indicate the channels of formal authority, the same as in other
arrangements. The circular chart depicts the actual condition of outward flow of formal authority from
(i) The top management should faithfully follow the line of authority while dealing with subordinates.
Any attempt to buy pass the organization chart will make it meaningless.
(ii) The chart should define lines of position. The lines of different individuals should be so defined so
that there is no overlapping and no two persons should be given the same position.
(iii) The organization chart should not be influenced by personalities. Balance of organization should be
1. An organization chart is a managerial tool. It helps in specifying authority and responsibility of every
position.
The relationships among different persons are also established for smooth working of the organization
2. As organization chart specifically defines authority and responsibility of people in the enterprise there
will be no duplication and overlapping of duties etc. Even if it happens in a particular instance it can be
rectified immediately.
3. The organization chart will help in pointing out the faults, deficiencies, dual command etc. in the
organization. The management will be able to take prompt remedial action in case of certain lacuna.
4. The organization chart acts as an information centre to the new entrants and they can easily
1. The organization charts show the relationship of different positions and not the degree of authority
and responsibility. The size of boxes or circles in the chart cannot show the level of authority, etc.
2. A chart only depicts formal organizational relationship whereas informal organization is ignored.
Practically informal organization is as useful as formal organization. Informal organization greatly helps
management in knowing the reactions of the people and is an important channel of communication.
3. A chart shows organizational position and status at different levels. It gives rise to superior-inferior
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.
• 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.
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
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.
1. 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.
Comparison Table Between Centralization and Decentralization (in Tabular Form)
Parameter of
Comparison Centralization Decentralization
Decision-making process is
Decision slower This is comparatively faster.
• The foremost step in every process is the determination of the objectives for which the
process is to be carried on.
• The objective for which the manpower planning is to be done should be defined
precisely, so as to ensure that a right number of people for the right kind of job are
selected.
The objectives can vary across the several departments in the organization such as the
personnel demand may differ in marketing, finance, production, HR department, based on
their roles or functions
Analyzing Current Manpower Inventory:
• The next step is to analyze the current manpower supply in the organization through
the stored information about the employees in terms of their experience, proficiency,
skills, etc. required to perform a particular job.
• Also, the future vacancies can be estimated, so as to plan for the manpower from both
the internal (within the current employees) and the external (hiring candidates from
outside) sources.
• Thus, it is to be ensured that reservoir of talent is maintained to meet any vacancy
arising in the near future.
Forecasting Demand and Supply of Human Resources:
• Once the inventory of talented manpower is maintained; the next step is to match the
demand for the manpower arising in the future with the supply or available resources
with the organization.
• Here, the required skills of personnel for a particular job are matched with the job
description and specification.
• Demand forecasting – estimate future needs for people and competences by
reference to corporate and functional plans and forecasts of future activity levels.
• HR Demand Forecasting. Human resource (HR) demand forecasting is the process
of estimating the future quantity and quality of people required.
• The basis of the forecast must be the annual budget and long-term corporate plan,
translated into activity levels for each function and department.
• Here, the hiring team checks the profiles of previous applicants from the
organizational recruitment database.
• These applicants are those who have applied for jobs in the past.
• These resources can be easily approached and the response will be positive in most of
the cases. It is also an inexpensive way of filling up the vacant positions.
Internal Recruitment
The advantages
• · Helps in building a good public relation
• · Helps to build morale
• · Encourages good individuals who are ambitious
• Candidates who are chooses internally know the organization
• It motivates the employees to work hard, and increases the work relationship within
the organization.
• It helps in developing employee loyalty towards the organization
The drawbacks of hiring candidates through internal sources are as follows −
• It prevents new hiring of potential resources. Sometimes, new resources bring
innovative ideas and new thinking onto the table.
• It has limited scope because all the vacant positions cannot be filled.
• There could be issues in between the employees, who are promoted and who are not.
• If an internal resource is promoted or transferred, then that position will remain
vacant.
• Employees, who are not promoted, may end up being unhappy and demotivated.
External Sources of Recruitment
• External sources of recruitment refer to hiring employees outside the organization
externally.
• In other words, the applicants seeking job opportunities in this case are those who are
external to the organization.
Direct Recruitment
• Direct recruitment refers to the external source of recruitment where the recruitment
of qualified candidates are done by placing a notice of vacancy on the notice board in
the organization.
• This method of sourcing is also called as factory gate recruitment, as the blue-collar
and technical workers are hired through this process.
Employment Exchanges
• As per the law, for certain job vacancies, it is mandatory that the organization
provides details to the employment exchange.
• Employment exchange is a government entity, where the details of the job seekers are
stored and given to the employers for filling the vacant positions.
• This external recruitment is helpful in hiring for unskilled, semi-skilled, and skilled
workers.
Employment Agencies
• Employment agencies are a good external source of recruitment. Employment
agencies are run by various sectors like private, public, or government.
• It provides unskilled, semi-skilled and skilled resources as per the requirements
of the organization.
• These agencies hold a database of qualified candidates and organizations can use their
services at a cost
Advertisements
• Advertisements are the most popular and very much preferred source of external
source of recruitment.
• The job vacancy is announced through various print and electronic media with a
specific job description and specifications of the requirements.
• Using advertisements is the best way to source candidates in a short span and it offers
an efficient way of screening the candidates’ specific requirements.
Campus Recruitment
Professional Associations
• Professional associations can help an organization in hiring professional, technical,
and managerial personnel, however they specialize in sourcing mid-level and top-
level resources.
• There are many professional associations that act as a bridge between the
organizations and the job-seekers.
External Recruitment
The Advantages
• · The organization has the freedom to select candidates from a large pool. People
with requisite qualifications can be selected.
• · It paves the way for innovation
• · It helps in motivating internal employees to work hard and compete with external
candidates. This creates competitive atmosphere.
· Talented people join senior managerial positions and help in the growth of the organization
The Disadvantages
• · Hiring cost can go substantially high.
• · It takes time to advertise, to screen, to test and to select suitable employees.
• · External selection may also end up hiring someone who does not ‘fit’ and who may
not be able to adjust in the new set-up.
Screening / Shortlisting
• Screening starts after completion of the process of sourcing the candidates. Screening
is the process of filtering the applications of the candidates for further selection
process.
• Screening is an integral part of recruitment process that helps in removing
unqualified or irrelevant candidates, which were received through sourcing. The
screening process of recruitment consists of three steps −
Reviewing of Resumes and Cover Letters
• Reviewing is the first step of screening candidates. In this process, the resumes of the
candidates are reviewed and checked for the candidates’ education, work
experience, and overall background matching the requirement of the job
• While reviewing the resumes, an HR executive must keep the following points in
mind, to ensure better screening of the potential candidates −
• Reason for change of job
• Longevity with each organization
• Long gaps in employment
• Job-hopping
• Lack of career progression
• Identifying the top candidates is the final step of screening the resumes/candidates. In
this process, the cream/top layer of resumes are shortlisted, which makes it easy for
the hiring manager to take a decision. This process has the following three outcomes
−
• Shortlisting 5 to 10 resumes for review by the hiring managers
• Providing insights and recommendations to the hiring manager
• Helps the hiring managers to take a decision in hiring the right candidate
• Here, the hiring team checks the profiles of previous applicants from the
organizational recruitment database.
• These applicants are those who have applied for jobs in the past.
• These resources can be easily approached and the response will be positive in most of
the cases. It is also an inexpensive way of filling up the vacant positions.
Internal Recruitment
The advantages
• · Helps in building a good public relation
• · Helps to build morale
• · Encourages good individuals who are ambitious
• Candidates who are chooses internally know the organization
• It motivates the employees to work hard, and increases the work relationship within
the organization.
• It helps in developing employee loyalty towards the organization
The drawbacks of hiring candidates through internal sources are as follows −
• It prevents new hiring of potential resources. Sometimes, new resources bring
innovative ideas and new thinking onto the table.
• It has limited scope because all the vacant positions cannot be filled.
• There could be issues in between the employees, who are promoted and who are not.
• If an internal resource is promoted or transferred, then that position will remain
vacant.
• Employees, who are not promoted, may end up being unhappy and demotivated.
External Sources of Recruitment
• External sources of recruitment refer to hiring employees outside the organization
externally.
• In other words, the applicants seeking job opportunities in this case are those who are
external to the organization.
Direct Recruitment
• Direct recruitment refers to the external source of recruitment where the recruitment
of qualified candidates are done by placing a notice of vacancy on the notice board in
the organization.
• This method of sourcing is also called as factory gate recruitment, as the blue-collar
and technical workers are hired through this process.
Employment Exchanges
• As per the law, for certain job vacancies, it is mandatory that the organization
provides details to the employment exchange.
• Employment exchange is a government entity, where the details of the job seekers are
stored and given to the employers for filling the vacant positions.
• This external recruitment is helpful in hiring for unskilled, semi-skilled, and skilled
workers.
Employment Agencies
• Employment agencies are a good external source of recruitment. Employment
agencies are run by various sectors like private, public, or government.
• It provides unskilled, semi-skilled and skilled resources as per the requirements
of the organization.
• These agencies hold a database of qualified candidates and organizations can use their
services at a cost
Advertisements
• Advertisements are the most popular and very much preferred source of external
source of recruitment.
• The job vacancy is announced through various print and electronic media with a
specific job description and specifications of the requirements.
• Using advertisements is the best way to source candidates in a short span and it offers
an efficient way of screening the candidates’ specific requirements.
Campus Recruitment
Professional Associations
• Professional associations can help an organization in hiring professional, technical,
and managerial personnel, however they specialize in sourcing mid-level and top-
level resources.
• There are many professional associations that act as a bridge between the
organizations and the job-seekers.
External Recruitment
The Advantages
• · The organization has the freedom to select candidates from a large pool. People
with requisite qualifications can be selected.
• · It paves the way for innovation
• · It helps in motivating internal employees to work hard and compete with external
candidates. This creates competitive atmosphere.
· Talented people join senior managerial positions and help in the growth of the organization
The Disadvantages
• · Hiring cost can go substantially high.
• · It takes time to advertise, to screen, to test and to select suitable employees.
• · External selection may also end up hiring someone who does not ‘fit’ and who may
not be able to adjust in the new set-up.
Selection Process
Preliminary Interview
• The purpose of preliminary interviews is basically to eliminate unqualified
applications based on information supplied in application forms. The basic
objective is to reject misfits.
• On the other hands preliminary interviews is often called a courtesy interview and is a
good public relations exercise.
Selection Tests
• Jobseekers who pass the preliminary interviews are called for tests. There are various
types of tests conducted depending upon the jobs and the company.
• These tests can be Aptitude Tests, Personality Tests, and Ability Tests and are
conducted to judge how well an individual can perform tasks related to the job.
• Besides this there are some other tests also like Interest Tests (activity preferences),
Graphology Test (Handwriting), Medical Tests, Psychometric Tests etc.
Employment Interview
• The next step in selection is employment interview. Here interview is a formal and in-
depth conversation between applicant‘s acceptability.
• It is considered to be an excellent selection device. Interviews can be One-to-One,
Panel Interview, or Sequential Interviews.
• Besides there can be Structured and Unstructured interviews, Behavioral Interviews,
Stress Interviews.
Reference & Background Checks
• Reference checks and background checks are conducted to verify the information
provided by the candidates.
• Reference checks can be through formal letters, telephone conversations. However it
is merely a formality and selections decisions are seldom affected by it.
• Reference checking is a process of verifying the applicant’s qualifications and
experiences with the references provided by him.
• These reference checks help the interviewer understand the conduct, the attitude,
and the behavior of the candidate as an individual and also as a professional.
Selection Decision
• After obtaining all the information, the most critical step is the selection decision is
to be made.
• The final decision has to be made out of applicants who have passed preliminary
interviews, tests, final interviews and reference checks.
The views of line managers are considered generally because it is the line manager who is
responsible for the performance of the new employee
• After the selection decision is made, the candidate is required to undergo a physical
fitness test. A job offer is often contingent upon the candidate passing the physical
examination.
• Medical examination is a process, in which the physical and the mental fitness of
the applicants are checked to ensure that the candidates are capable of
performing a job or not.
• This examination helps the organization in choosing the right candidates who are
physically and mentally fit.
Final Selection
• The final selection is the final process which proves that the applicant has qualified in
all the rounds of the selection process and will be issued an appointment letter.
Job Offer
• The next step in selection process is job offer to those applicants who have crossed all
the previous hurdles. It is made by way of letter of appointment.
Methods of Training
• This is the most common method of training in which a trainee is placed on a specific
job and taught the skills and knowledge necessary to perform it
• . On-the-job refer to the methods that are applied to the workplace while the
employees are actually training
Job rotation:
• This training method involves movement of trainee from one job to another gain
knowledge and experience from different job assignments. This method helps the
trainee understand the problems of other employees.
2. Coaching:
• Under this method, the trainee is placed under a particular supervisor who functions
as a coach in training and provides feedback to the trainee.
• Sometimes the trainee may not get an opportunity to express his ideas.
3. Job instructions:
• Also known as step-by-step training in which the trainer explains the way of doing
the jobs to the trainee and in case of mistakes, corrects the trainee.
4. Committee assignments:
• A group of trainees are asked to solve a given organizational problem by
discussing the problem. This helps to improve team work.
5. Internship training:
• Under this method, instructions through theoretical and practical aspects are
provided to the trainees. Usually, students from the engineering and commerce
colleges receive this type of training for a small stipend.
6. Vestibule training:
• It is the training on actual work to be done by an employee but conducted away
from the work place.
Under this method, actual work conditions are created in a class room or a workshop. The
machines, materials and tools under this method is same as those used in actual
performance in the factory
Apprenticeship training:
• Apprentice is a worker who spends a prescribed period of time under a supervisor
• Under this method, the trainee is placed under a qualified supervisor or instructor for
a long period of time depending upon the job and skill required. Wages paid to the
trainee are much less than those paid to qualified workers.
Off-the-job Methods:
• On the job training methods have their own limitations, and in order to have the
overall development of employee’s off-the-job training can also be imparted.
• The methods of training which are adopted for the development of employees away
from the field of the job are known as off-the-job methods.
The following are some of the off-the-job techniques:
Management education:
• At present universities and management institutes gives great emphasis on
management education.
• For e.g., Mumbai University has started bachelors and postgraduate degree in
Management. Many management Institutes provide not only degrees but also hands
on experience having collaboration with business concerns.
Conferences:
• A meeting of several people to discuss any subject is called conference. Each par-
ticipant contributes by analyzing and discussing various issues related to the topic.
Everyone can express their own view point.
• This is also an old method, but still a favorite training method.
• In order to escape the limitations of straight lecturing many organizations have
adopted guided, discussion type of conferences in their training programmes.
• In this method, the participant’s pools, their ideas and experience in attempting to
arrive at improved methods of dealing with the problems, which are common subject
of discussion
11. Explain Performance Management and its Techniques