Module-2

ORGANIZING AND STAFFING

Learning Objectives:
❒ To introduce the meaning of organizing.
❒ Present the characteristics of organizing.
❒ Discuss the nature and purpose of organizing.
❒ Present the principles of organization.
❒ Understand departmentation.
❒ Discuss types of organization.
❒ Understand span of control.
❒ Present delegation of authority.
❒ Introduce MBO.
❒ Discuss the meaning of staffing.
❒ Understand the meaning of recruitment and selection.
 MEANING AND DEFINITIONS
OF ORGANIZING
Sound organization contributes greatly to the continuity and the success of
organization. A poor organization structure makes good performance
impossible, no matter how good the individuals are.
The term organization connotes different things to different people. For example
to the sociologists, organization means a study of interactions of people,
classes or hierarchy of an enterprise. To the psychologists organization means
an attempt to explain, predict and influence the behaviour of individuals in an
enterprise. The word ‘organization’ is also used widely to connote a group of
people and the structure of relationships. In order to understand the meaning
and characteristics of organization, we shall study it under the following
heads:
(1) Organization as a group of persons.
(2) Organization as a structure of relationship.
(3) Organization as a function of management.
(4) Organization as a process.
 Definition
According to Louise A Allen, “Organization involves identification
and grouping of activities to be performed and dividing them
among the individuals and creating authority and responsibility
relationship among them for the accomplishment of
organizational objectives. Organizing being process, consists of
departmentalization, linking of departments, defining authority
and responsibility and prescribing authority relationships.
The organization structure is the result of this process.
Koontz and O'Donnell defines "It is grouping of activities
necessary to attain enterprise objectives and the assignment
of each grouping to a manager with authority necessary to
supervise it”.
 CHARACTERSTICKS OF AN
ORGANIZING
1. It is a group of individuals which may be large or small.
2. The group in the organization works under the executive
leadership.
3. It is a machine or mechanism of management.
4. It has some directing authority or power which controls the
concerted efforts of the group.
5. The division of labour, power and responsibilities are
deliberately planned.
6. It implies a structure of duties and responsibilities.
7. It is established for accomplishment of common objectives
8. It is a functional concept.
 Sound organization brings about the
following advantages :
1. Facilitates attainment of the objectives of the enterprise.
2. Facilitates optimum use of resources and new
technological development.
3. Facilitates growth and diversification.
4. Stimulates creativity and innovation.
5. Facilities effective communication.
6. Encourages better relations between the labour and
the management.
7. Increase employee satisfaction and decreases employee
turnover.
 NATURE OF ORGANISATION
1.Organization is always related to certain objectives.
2.An organization connotes a group of people.
3. Communication is the nervous system of
organization.
4. Organizing is a basic function of management
5. Organization is a continuous process.
6. Organization connotes a structure of relationship.
7. Organization involves a network of authority and
responsibility relationship.
STEPS IN THE PROCESS OF ORGANISING
1. Clear definition of objectives
2. Determining activities
3. Assigning duties
4. Delegating authority
5. Coordinating activities
6. Providing physical facilities and right
environment
7. Establishment of structural relationship for
overall control
 OBJECTIVES AND PURPUSE OF ORGANISING
1. Effective management of the enterprise
2. Maximum production at minimum cost
3. Sustained growth and diversification
4. Cooperation of employees
5. Discharging social responsibility
The purpose of sound organization is :
(i) to establish an activity-authority environment in which people can perform
most effectively.
(ii) to make group action efficient and effective by providing centers for decision
making and a system of communication to effectively coordinate individual
efforts towards group goals.
(iii) to create relationships which minimize friction, focus on the objective, closely
define the responsibilities of all parts and facilitate the attainment of the
objective.
(iv) to subdivide the management process by which plans are translated into
actions so as to make management most effective.
 PRINCIPLES OF ORGANISATION
(i) Division of work
(ii) Attention to objectives
(iii) Span of management
(iv) Unity of command
(v) Flexibility
(vi) Proper balance
(vii) Management by exception
(viii) Decentralization
(ix) Departmentation
(x) Efficiency
(xi) Scalar principle
(xii) Unity of direction
(xiii) Continuity
(xiv) Coordination
(xv) Authority and responsibility
 TYPES OF ORGANIZATIONS
Basically on the nature of performance there are three types of organizations.
1.Formal and Informal
2.Business and Non business
3.Public and Private organizations
Difference Between Formal and Informal Organizations
1. Formation
2. Basis
3. Nature
4. Set up
5. Emphasis
6. Authority
7. Existence
8. Rationality
9. Depiction
10. Status
 TYPES OF ORGANIZATIONAL CHARTS
Graphical representation of each every position and their authority and
relativity is called as organizational chart.
According to Kimball and Kimball “The problem of an organization is to select
and combine the efforts of men of proper characteristics so as to produce
the desired results”. Nature, scale and size of the business are the normal
factors which determine forms of internal organization. The following
common types of organization find a place in the structure of internal
organization.
There are 5 types of organizational charts
1.Line/Military/Scalar organization
2.Functional organization
3. Line and Staff organization
4.Committee organization
5.Matrix organization
 Line, Military or Scalar Organization
Line organization is the simple and oldest type of organization and is
also known of scalar or military organization. The line organization
represents the structure in a direct vertical relationship through
which authority flows. The quantum of authority is highest at the
top and reduces at each successive level. Under line organization,
each department is generally a complete self-contained unit. A
separate person will look after the activity of the department and
has full control over the department. The superior communicates
his decision and orders to his subordinates.
The subordinates, in turn, can communicate them to those who are
immediately under them. This type of organization is followed in
military.
 Advantages and Disadvantages
The advantages of line organization are
(1) Simplicity
(2) Quick decision and speed of action.
(3) Unity of control.
(4) Clear division of authority and responsibility.
(5) Discipline and better coordination
(6) Direct communication.
Disadvantages
(1) The organization is rigid and inflexible
(2) Being an autocratic system, managers may become dictators and not
leaders.
(3) There is scope of favor-ism and nepotism.
(4) Red-tape and bureaucracy.
(5) Lack of specialization.
 Functional Organization
In functional organization the specialists are made available in the
top positions throughout the enterprise. It confers upon the
holder of a functional position, a limited power of command
over the people of various departments concerning their
function. Functional authority remains confined to functional
guidance of different department. Under functional organization,
various activities of the enterprise are classified according to
certain functions like production, marketing, finance, personnel
etc., and are put under the charge of functional specialists.
A functional In charge directs the subordinates throughout the
organization in his particular area of business operation. That
means that subordinates receives orders and instructions not
from one superior but from several functional specialists.
 Advantages and Disadvantages
The advantages of functional organization
(1) Specialization.
(2) Reduces the burden on the top executives.
(3) Offers greater scope for expansion.
(4) A functional manager is required to have expertise in one function only. This
makes it easy for executive development.
(5) Standradization

Disadvantages
(1) Violates principles of unity of command.
(2) The operation of functional organization is too complicated.
(3) It develops specialists rather than generalists.
(4) Lack of coordination among functional executives which delays decision making.
5) Highly expensive in nature
 LINE AND STAFF ORGANIZATION
• In order to reap the advantages of both line organization and functional
organization, a new type of organization is developed i.e., line and staff
organization. In line and staff organization, the line authority remains the
same as it does in the line organization. Authority flows from top to bottom.
• In addition, the specialists are attached to line managers to advice them on
important matters. These specialists stand ready with their specialty to serve
line men as and when their services are called for to collect information and
to give help which will enable the line officials to carryout their activity
better.
• The staff officials do not have any power of command in the organization
as they are employed to provide expert advice to the line manager.
• In most of the organization, staff investigates and supplies information and
recommendations to managers who takes decision.
• Specialized staff positions are created to give counsel and assistance in each
specialized field of effort
 Advantages and Disadvantages
Advantages
(1) Specialized knowledge
(2) Reduction of burden on line managers.
(3) Better decisions, as staff specialists help the line managers
(4) Unity of command
(5) Flexible when compared to functional organization.
Disadvantages
(1) Allocation of duties between line and staff is not clear.
(2) There is generally conflict between line and staff executives.
(3) Since staff is not accountable, they may not be performing well.
(4) Difference between orientations of line and staff. Line executive’s deals
with in problem in a more practical manner while staff, tend to be more
theoretical.
 COMMITTEE ORGANIZATION
A committee is a body of persons appointed or elected to meet on an organized basis
for the consideration of matters brought before it. Or “A committee is a group of persons
performing a group task with the object of solving certain problems”.
1. A committee may formulate plans, review the performance of certain units or may only
have the power to make recommendation. Committees help in taking corrective decision,
coordinating the affairs of different departments and meeting communication
requirements in the organization.
2. Committees can be broadly classified into advisory committees and executive committees.
Advisory committees have only a recommender’s role and cannot enforce implementation of
their advice or recommendation. The examples of advisory committees are works
committees, finance committees etc.,
Whenever committees are vested with line authority, they are called as executive committees.
Unlike advisory committee, executive committees not only take decisions but also enforce
decisions and thus perform a double role of taking decision and ordering its executive.
The board of directors of a company is an example of an executive committee.
 Working of Committee organization
1. Number of the committee members will be
decided based on the nature of work
2. Committee should be appointed for specific time.
3. Agenda of the committee must be clear.
4. Committee should collect the information and
critically analyze it.
5. Recommendations must be clear.
6. Strict report must be submitted.
7. Dissolving the committees.
 Advantages and Disadvantages
Advantages of Committees
(1) Committees provide a forum for the pooling of knowledge and experience of many persons of
different skills, ages and backgrounds.
(2) Committees are excellent means of transmitting information and ideas both upward and
downward.
(3) Committees are impersonal in action and hence their decisions are generally unbiased and are
based on facts.
(4) When departmental heads are members of committee, people get an opportunity to understand
each others problems and hence improve coordination.
Weaknesses of Committees
(1) In case a wrong decision is taken by committee, no one is held responsible which may results in
irresponsibility among members.
(2) Committees delay action
(3) Committees are expensive form of organization.
(4) Decisions are generally arrived at on the basis of compromise and hence they are not best
decision.
(5) As committee consists of large number of persons, it is difficult to maintain secrecy.
 Matrix organization
• The matrix organizational structure is a combination of
two or more types of organizational structures. The
matrix organization is the structure uniting these other
organizational structures to give them balance. Usually,
there are two chains of command, where project team
members have two bosses or managers.
• Often, one manager handles functional activities and the
other is a more traditional project manager. These roles
are fluid and not fixed, as the balance of power between
these two kinds of managers isn’t organizationally
defined.
 Advantages and Disadvantages
Advantages
• Collaboration between different departments
• Combines project and functional management structures
• Allows interdepartmental communication
• Employees can develop new skills
• Team members and managers keep their functional roles
Disadvantages
• Managerial roles may not be clearly defined
• Team roles may not be clearly defined
• The decision-making process can be slowed down
• Work overload
• Difficulty measuring employee performance
 ORGANIZATIONAL STRUCTURES

• Horizontal organization
• Vertical Organization
• Concentratic organization
 DEPARTMENTATION
“The horizontal differentiation of tasks or activities into
discrete segments is called as departmentalization or
departmentation.”
Departmentation involves grouping of operating tasks into
jobs, combining of jobs into effective work group and
combining of groups into divisions often termed as
‘departments’. The aim is to take advantages of division of
labour and specialization up to a certain limit.
There are several ways of Departmentation, each of which is
suitable for particular corporate sizes, strategies and
purposes.
 Types of Departmentation
The important methods of grouping activities may be summarized as below:
1.Departmentation based on functions:
Each major function of the enterprise is grouped into a department. For example there may be
production, finance, marketing and personnel department in an organization. All functions
related to production are grouped together to form production department, similarly other
departments are formed on the basis of function.
Advantages
(1) It is simple and suitable for small organization which manufactures limited
number of products.
(2) It promotes specialization.
(3) It leads to improve planning and control.
(4) Manpower and other resources of the company are effectively used.
Drawbacks
(1) It fosters sub-goal loyalty. Department goal becomes important than
organizational goal resulting into interdepartmental conflicts.
(2) Difficult to set up specific accountability and profit centers within functional
departments with the result that performance cannot be accurately measured.
Application: Corporate Industries, Large scale industries, MNCs etc.,
 Departmentation by product
The grouping of activity on the basis of product or product lines is followed in multi-
lines large scale organizations. All activities related to a particular product line
may be grouped together under the direction of a semiautonomous division
manager.
Advantages
(1) It focuses individual attention on each product line.
(2) It leads to specialization of physical facilities on the basis of product which
results in economy.
(3) It is easier to evaluate and compare the performance of various product division.
(4) It keeps problems of production isolated from others.
Disadvantages:
1. Ignorance of some of the products.
2. Unnecessary competition between managers
Example: LG, Samsung, Videocon etc.,
 Departmentation by customers
This is used in the enterprises engaged in providing
specialized services to different classes of customers.
Management groups the activities on the basis of
customers to cater to the requirements of clearly
defined customer groups. For example, an automobile
service company may organize its departments as
heavy vehicles servicing division, car servicing division
and scooter servicing division. Similarly an educational
institute may have departments for regular courses,
evening and corresponding courses etc.
DEPARTMENTATION BY TERRITORY

Under this classification, the market area is

broken up into sales territories and a
responsible executive is put in-charge of each
territory. The territory may be known as
district, division or region. The field salesmen
under respective regions report to their
corresponding sales supervisors, if any, who
are reporting to their respective regional
managers.
 Departmentation by Time
Departmentation by time is a enterprise which runs the business for 24X7 without
interrupting production or service activities.
Normally 24 hours will be divided into three shifts and the work will be carried
through the employees based on shifts.
Advantages:
1.Continueous work without interruption
2.Maximum utilization of capital investment and resources
3.Provides part time employment opportunities for the people
4.Strict monitoring and reporting
Disadvantages:
1. Lack of Co-ordination between employees
2. Night shifts may cause lots of inconvenience
3. May lead to confusions
4.Lack of supervision
CENTRALIZATION AND DECENTRALIZATION
CENTRALIZATION
Centralization refers to systematic reservation of authority at central
points within the organization. Centralization means retention or
concentration of managerial authority in few key managerial
positions at the nerve centre of an organization i.e., at the top level.
Everything that goes to reduce the subordinate’s role in decision
making is centralization.
Features:
Uniformity
Integrity
Leadership
Handling process
 Merits and Demerits of Centralization
Merits
Systematic
Standards of procedures
Constant Evaluation
Economical in nature
Effective coordination
Demerits
Individuality
Over burden in superiors
Slow downs the operation
Distance from customers
Lack of specialization
 DECENTRALIZATION
Decentralization means dispersal of decision-making power to lower levels of the organization. In
decentralized setup, ultimate authority to command and ultimate responsibility for the results is
localized as far down in the organization. According to Allen Decentralization refers to the
systematic effort to delegate to the lower levels all authority except that which can only be
exercised at central points
PRINCIPLES OF DELEGATION
The following principles may be considered as essential for effective
delegation of authority :
There must be Proper Planning
Select appropriate subordinate of delegation
Maintain purity of authority and responsibility
Ensure unity of command
Maintain adequate communication
Reward effective delegation
Establish a climate of confidence
Proper Selection and Training of Personnel
Proper Control Techniques be Developed
 VARIOUS STEPS IN THE PROCESS OF DELEGATION
• Authorizing the powers to subordinates by authorities
• Determination of results expected
• Assignment of tasks
• Accomplishment of tasks by delegated authorities
• Responsibility of tasks by delegated authorities
Measurement of Decentralization
1. Number of decisions
2. Importance of decisions
3. Effect of decisions
4. Checking of decisions.
Types of delegation
5. General
6. Specific
7. Written
8. Oral
Recovery of delegation---Delegation can be withdrawn any time . Its not permanent.
 Difficulties in delegation
On the part of Boss
1. I can do it better myself. Feeling
2. Lack of ability to direct.
3. Lack of confidence and trust in subordinates
4. Absence of control that warns of coming trouble.
5. Conservative and canvas temperament
On the part of subordinates
6. Over dependence of boss for decisions
7. Fear of criticism
8. Lack of information and resources to do particular job
9. Lack of self confidence
10. Inadequate positive incentives
 Merits and demerits of delegation
Merits
(1) It eases the burden of top level managers.
(2) Decentralization permits quicker and better decision making.
(3) With decentralization capable managers can be developed
(4) Promotes participation in decision making and improves morale and motivation.
(5) Decentralization facilitates diversification of products.
(6) Risk will be divided
Demerits:
(1) It increases administrative expenses.
(2) It may create problems in bringing coordination among various units.
(3) It may bring about inconsistencies in the company, because uniform procedures
may not be followed for the same type of work in various divisions.
(4)Lack of liability
 Elements of delegation
1. Receptiveness
2. Willingness to let go
3. Willingness to let others make mistakes
4. Willingness to trust subordinates
5. Willingness to establish and use broad control.
DELEGATION VS DECENTRALIZATION
Delegation and Decentralization are not same; the differences between them are
given below:
(1) Delegation is a process while decentralization is the end result of a
deliberate policy of making delegation widespread in the organization.
(2) Delegation takes place between a superior and a subordinate while
decentralization is company wide delegation as between top management
and the departments or division of the organization.
(3) In delegation, delegator exercises supervision and control over the delegate,
while in decentralization, top management exercises broad minimum
control.
 AUTHORITY, POWER AND RESPONSIBILITY
In all organized efforts, managers actually do not perform the jobs; they simply get
the things done by others. It means that the managers should have some right
by which they get the things done. This ‘right’ is technically known as what we
call ‘Authority’, which every manager must have to perform his function
effectively. Without authority a manager cannot function. Authority is a legal or
rightful power, a right to command or to act.
According to Henry Fayol “Authority is the right to order or command and is
delegated from the superior to the subordinate to discharge his responsibilities.
The authority may be exercised through persuasions or sanctions. If the
subordinates does not obey, the superior has right to take disciplinary action.
Different types of authorities
Proprietorship-Owner
Partnership firm-Partners
Public limited company- Board of Directors
Private limited company- Board of Directors
Trust-Trustees
 Meaning of the term Power
Power is a method of operating in order to influence the behaviour of
others. It is the power politics within the organization that gives
rise to power centres in the organization. The power-centres
neednot necessarily be located at the position of higher authority.
Nobody wants to lose power because power can be used in
desirable or undesirable ways.
Power may be defined as "the ability to exert influence. If a person
has
power it means that he is able to change the attitude of other
individuals". In any organization for sound organizational stability,
power and right to do things must be equated, when power and
authority for a given person or position are roughly equated, we
may call the situations as "Legitimate Power".
Differences between authority and responsibility

Authority---
(1) It is the institutionalized right of a superior to command and compel his
subordinates to perform a certain act.
(2) It rests in the position
(3) It is delegated to an individual by his superior.
(4) It is well defined
(5) It is what exists in the eye of law.
Power----
(6) It is ability of a person to influence others.
(7) It rests in the individual.
(8) It is earned by individual
(9) It is undefined and infinite.
(10)It is what exists in fact. It is a de facto concept.
 Factors that supports for effectiveness of
authority
• Favourable Atmosphere
• Justified Behaviour
• Mutual Co-operation and Faith
• Interest in the work
• Respect to Superiors
 Responsibility
Responsibility represents the work or duties assigned to a
person by virtue of his position in the organization. It refers
to the mental and physical activities which must be
performed to carry out the task or duty.
Responsibility or duty implies the task assigned to a person to
be completed in accordance with the standards laid down.
Accountability : Accountability is a logical derivative of
authority. When a subordinate is given an assignment and
is granted the necessary authority to complete it, the final
phase in basic organization relationship is holding the
subordinate responsible for results.
 SPAN OF CONTROL
The span of control indicates the number of
subordinates who can be successfully directed
by a supervisor. It is often referred to as span
of management, span of supervision, span of
authority.
Types of Span of Control
Broad span of control
Narrow span of control
 Factors Affecting the Span of Management
(1) Ability of the manager
(2) Ability of the employees
(3) Type of work
(4) Geographic location
(5) Well-defined authority and responsibility
(6) Level of management
(7) Economic considerations
(8) Subordinate training
(9) Clarity in Plans
(10) Communication technique
(11)Rate of change
(12)Amount of Personal Contact needed
(13) Use of objective standards
 MANAGEMENT BY OBJECTIVES [MBO]
Management by objectives is also known as management by results.
Aim-To increase the effectiveness of the managers by placing responsibilities.
Meaning—MBO is a process in which the GM and his subordinates of an organization jointly
identify the common objectives, define individual’s responsibility and use these measures as
guidelines in achieving the company goals.
Features of MBO
(1) An attempt is made by the management to integrate the goals of an organization and
individuals.
(2) MBO emphasize not only on goals but also on effective performance.
(3) It pays constant attention to refining, modifying and improving the goals and changing the
approaches to achieve the goals on the basis of experience.
(4) It increases organizational capability of achieving goals at all levels.
(5) A high degree of motivation and satisfaction is available to employees through
MBO.
(6) Recognizes the participation of employees in goal setting process.
(7) Aims at replacing the exercise of authority with consultation.
(8) Encourages a climate of trust, goodwill and a will to perform.
 Nature and Types
Clearly defined objectives
Work in same direction
Communicated to all
Easily attainable
Flexible to adjust with situation
Types :-
Short term
Long term
Specific
General
 Steps in Management by Objectives

Setting of organizational objectives

Setting departmental objectives
Fixing key result areas
Setting subordinate objectives or targets
Appraisal of activities
Reappraisal of objectives
 Merits and demerits
Merits
Provides for effective planning
Development of policies, procedures and budget
Effective direction and clear responsibility
Effective coordination
Prevents wastage of efforts and expenses
Motivates employees and Encourages commitment
Better understanding between superiors and subordinates.
Improves employees morality and discipline
Ensures better control
Demerits
May lead to rigidity
Difficulty in setting goals
May affect the organizational objectives
 Management by Exception[MBE]
Meaning
MBE means only unusual or exceptional items of major deviations in daily
activities should be brought to the notice of the manager.
Management by exception (MBE) is a management strategy in which managers
will only step in when there are significant deviations from planned
outcomes. These can be either operational or financial outcomes.
Manage by exception. Only require reporting when there is a deviation from the
plan.
Management by exception consists of four steps:
• Setting the objectives and defining what the norm should be
• Assessing performance to see whether performance is on track
• Analyzing work or records to determine where performance deviates from
objectives
• Investigating and solving the exceptions to the norm
 Advantages and disadvantages
Advantages
1. Time saved for superiors
2. Managers will concentrate for development of departments
3. Subordinates feel free to take the responsibility of work.
4. Creativity for the LLM to correct the minor problems
5. Brings confidence in the minds of the workers
Disadvantages
6. Misappropriation of the powers by subordinates
7. Lack of promptness
8. Minor problems may grow in to larger
 Six phases of MBE
1. Assignment of values, based on past and
present performance to decide the exception.
2. Projection of meaningful measurements to
business objectivities to extend future.
3. Observation.
4. Comparison with actual and exceptional
performance.
5. Reporting the balance to management.
6.Effective decision making ability.
 STAFFING
MEANING
Today the staffing function has assumed greater importance because of rapid
advancement of technology, increasing the size of the organization and complex
behaviour of human beings. The enterprise has to give due importance to human
resource planning.
The organization structure spells out various positions of the organization. Filling
and keeping these positions with right people is the staffing phase of the management
function. Staffing involves the determination of manpower requirements of the
enterprise and providing it with adequate competent people at all levels. The staffing
function performs the following sub functions:
(1) Manpower planning.
(2) Recruitment
(3) Selection of the best qualified from those who seeks job,
(4) Training and Development.
(5) Performance appraisal and compensation.
 Nature and Importance of staffing
• Increasing size of organization
• Advancement of technology
• Long-range needs of manpower
• Recognition of human relations due to appraisal
• Talent and competent workers for the development of
organizations
• Right person for right job
• Avoids sudden disruption in production due to HRP
• Man power at various levels and time.
• Optimum utilization of human resources
• Ensuring Job satisfaction
 Elements and functions of staffing
• Proper placement of people
• Rational recruitment and selection
• Proper positioning and fixation of salaries
• Training for the employees
• Good promotional and retirement schemes
• Fixing employment standards
• Searching for sources for recruitment and
selection
• Routine functions
 Recruitment
Recruitment is the process of identifying the sources for prospective
candidates and to stimulate them to apply for the jobs.
It is a linking activity that brings together those offering jobs and those
seeking jobs. Recruitment refers to the attempt of getting interested
applicants and providing a pool of prospective employees so that the
management can select the right person for the right job from this pool.
Process of recruitment:-
1. Searching the sources
2. Developing the techniques to attract the candidates such as benefits, good
will, salaries and facilities
3. Stimulating them to apply for the job
Factors affecting recruitment:-
4. Size of organization
5. Employment conditions
6. Salary and working conditions
7. Rate of growth
 Recruitment policy and principles
Policy
Organizational objectives
Identifying recruitment needs
Sources of recruitment
Criteria for selection
Cost factor
Principles
Best employees
Retaining suitable candidates
Long term working career
Growth and development of employees
 Sources
The various sources of recruitment are divided into two categories:
(1) Internal Sources.
(2) External Sources.
Internal sources involve transfer and promotion. Transfer involves the shifting of an
employee from one job to another.
External Sources:-
1. Applicants introduced by friends, relatives and employees of the organization
2. Consulting agencies
3. Campus recruitment
4. Casual callers
5. Advertisement
6. Field trip and college recruitment
7. Employment exchange
8. Labour Contractors
 SELECTION
The basic purpose of the selection process is choosing right type of candidates
to man various positions in the organization. In order to achieve this
purpose, a well, organized selection procedure involves many steps and at
each step more and more information is obtained about the candidates.
Elements of selection
 Selecting the suitable candidate and informing that person about nature of
the job and conditions
 Cross questioning and sound judgment
Characteristics of selection:-
 Reliability
 Objectivity
 Consistency
 Standards
 Techniques of selection
(1) Receipt of applications: Whenever there is vacancy, it
is advertised or enquires are made from suitable
sources and applications in standard form are received
from the candidates. The applications give preliminary
idea of the candidates like age, qualifications,
experience etc., Standard forms make the application
processing very easy.
(2) Screening of applications: Applications received from
the candidates are screened by the screening
committee and a list of candidates to be interviewed is
prepared.
 Employment tests
Employment tests: Employment tests help in
matching the characteristics of individuals with
the vacant jobs so as to employ the right kind of
people.
Types of tests:-
1. Intelligent tests
2. Vocational Aptitude tests
3. Analytical test
4. Synthetic test
 Types of Interviews
Preliminary or Initial interview
• Proficiency test
• Dexterity test
Based on conduct----
• One to one
• Sequential
• Panel
Based on nature----
Structural
Unstructured
Action
Group
Panel
Stress
 Group discussions and others
1.Types of Group discussions
• Formal
• Informal
2.Checking the references and medical
examination
3. Final selection
4.Placement
5.Induction
6.Orientation