PRINCIPLES & PRACTICES OF MANAGEMENT (UNIT-3)

S R TRIPATHI (mba)

STAFFING AND DIRECTING

DEFINITION OF STAFFING

Staffing is defined as filling and keeping filled positions in the organization structure. This is done by:

1. Identifying workforce requirement2. Inventorying the people available3. Recruiting4. Selecting5. Placing6. Promoting7. Appraising8. Compensating9. Training

MANPOWER PLANNING According to MacBeath: Manpower planning involves two stages. 1. The first stage is concerned with detailed of planning manpower

requirements of all types and levels of employees throughout the period of the plan and

2. Second stage is concerned with planning manpower supplies to provide the organization with the right type of employees from all sources to meet the planned requirements.

Advantages of Manpower Planning1. It anticipates the personnel needs of the organization in future2. It reveals the potential and shortcomings of existing personnel3. It helps in control4. Helps organizations to achieve objectives5. Helps in making best use of human resource

PROCESS OF MANPOWER PLANNING1. Current Manpower Inventoryi. Current management inventory or skills would reveal the status of

available managerial talent and undeveloped potentialii. Manpower should be evaluated on: Age Group, Skill Group, Level

Group, Potential Wise and Cost Effectiveness2. Determining Manpower Need: Done on quantitative as well as

qualitative wayi. Qualitative: Quality of managers needed is determined with the

help of job designing and job specification

Manpower Programme

Identifying Manpower Gaps

Determining Manpower

requirements

Current Manpower Inventory

PROCESS OF MANPOWER PLANNING

ii. Quantitative: Number of personnel required is identified through quantitative waydentifying Manpower Gaps: Comparison between manpower inventory and manpower forecast will reveal the gaps in terms of number and quality of personnel

3. Manpower Programme: After finding the net requirements for human resources, action plans are formulated to fill the gaps

JOB DESIGNING Job design is the allocation of specific work tasks to individuals and groups.

Allocating jobs and tasks means specifying the contents, method, and relationships of jobs to satisfy technological and organizational requirements, as well as the personal needs of jobholders

Key Elements of Job Design1. It is important to strictly and thoroughly identify tasks that need

completion. 2. Design jobs that motivate employees.3. Jobs need to be constructed so that efficiency of the worker or department

is maximized. 4. Appropriate resource allocation allows large organizations to foster and

develop innovation in their workforce.5. Reward systems include compensation, bonuses, raises, job security,

benefits, and various other methods of reward for employees. An outline or description of reward packages needs to be established while constructing jobs.

JOB DESIGNING Taylorism: Taylorism, also known as scientific management, is a foundation for systematic job design. Frederick Taylor developed this theory in an effort to develop a “science” for every job within an organization according to the following principles:

1. Create a standard method for each job.2. Successfully select and hire proper workers.3. Effectively train these workers.4. Support these workers The Socio-Technical Systems Approach: The Socio-Technical Systems Approach is

designed around the evolution from individual work to work-groups. This approach has the following guiding principles:

1. The design of the organization must fit its goals.2. Employees must be actively involved in designing the structure of the

organization.3. Control of variances in production or service must be undertaken as close to their

source as possible.4. Subsystem must be designed around relatively self-contained and recognizable

units of work.5. The design should allow for a high quality working life.6. Changes should continue to be made as necessary to meet the changing

environmental pressures.

JOB DESIGNING Core Characteristics Model: Another modern job design theory is the Core Characteristics Model, which maintains five important job elements that motivate workers and performance:

1. skill variety2. task identity3. task significance4. autonomy5. job feedback The individual elements are then proposed to lead to positive

outcomes through three psychological states: 1. experienced meaningfulness2. experienced responsibility3. knowledge of results

RECRUITMENT According to E McFarland: The term recruitment applies to the

process of attracting potential employees to the company Recruitment sources depend on1. The level of specialization and training required for employees2. Management policy3. The need for originality and initiative required by the employees4. Training programmes of the organizations5. Trade union attitude towards recruitment

RECRUITMENT Sources of Recruitment: Can be broadly classified into internal and external

Internal Sources of Recruitment It consist of personnel's already working in the organization. Many

organizations fill job vacancies through promotions and transfer of existing staff

Merits1. It keeps employees morale high2. It creates sense of security in employees3. Economical and convenient Demerits1. Internal employees may not be fully qualified for the job2. Recruitment involves inbreeding of new ideas3. Narrows the choice4. Organizations depend on outside sources for entry level jobs

RECRUITMENT External Sources

of Recruitment1. Advertising2. Personnel

consultants3. Educational

institutions4. Employment

exchange5. Unsolicited

applicants6. Jobbers and

contractors Merits1. Wide choice2. Fresh outlook3. Varied Experience

Demerits1. Demoralization of

internal employees

2. Expensive3. Sense of

insecurity4. Danger of

maladjustment

SELECTION Definition: Selection is the process of screening out candidates

for finding out right person for right place

SELECTION PROCESS

Priliminary Interview pre-interview screening

Formal Application

Interview

Reference and credit check

Physical Examination

Employment Offer

Reject

Plac

emen

tIn

duct

ion

Time

Testing

SELECTION PROCESS Preliminary Interview: The initial screening is usually undertaken by

the receptionist. Necessary information about the nature of the job is given to the applicants and their important information such as education, job, salary, experience etc. is taken down If the candidate meets all the requirements he is moved for further rounds if not he is dropped at the preliminary stage.

Formal Application Blank: Categories of information in standard application forms are-

i. Personal Name Address Gender Date of birth Marital Status Children/ dependents

SELECTION PROCESS

ii. Education Schooling: primary/

secondary Higher Education:

Institutions Qualification Specified training

iii. Employment History

No. of jobs held Name of companies

worked for Duration and dates

of employment Positions, duties and

responsibility

iv. Other Interest Sports Hobbies

Membership of club

SELECTION PROCESS Psychological Testing: these tests are divided into four categories:

i. Aptitude Tests/ Ability Test: These are used to measure the talent/ability of a candidate to learn a job or skill. These test are of following type.

a. Mental or intelligence testb. Psychometric test

ii. Personality Tests: These tests try to find out individuals value system, his emotional reactions and maturity and his characteristic mood.

a. Objective testb. Project iveTestsc. Situation Test

iii. Proficiency Tests: This test determines the feasibility and capability of the candidate.

iv. Interest Test: These tests aim at finding out the type of work in which the candidate is interested.

SELECTION PROCESS Interview: It is an attempt at gathering information from the candidate

concerning his suitability for the job under consideration. Interview Decisions: The following important decision have to be taken

by the management regarding interviewsi. Whoii. Whereiii. When Interviewing Techniques: i. Directed/ Pattern/ Structured interviewii. Depth Interviewiii. Stress interviewiv. Board or panel interviewv. Group Interview

SELECTION PROCESS Reference Check

Physical Examination: Sales persons job requires unusual stamina, strength or tolerance of hard working conditions these qualities of a candidate is examined by physical examination

Rating of Interviewee One is given to a perfect match Two is given to an average match Three is given to below average match Four is given to totally unsatisfactory match

Employment Offer Placement and Induction Probation

TRAINING AND DEVELOPMENT

Training is an organized process for increasing the knowledge and skills of people for doing a particular job whereas development is growth of individuals in all aspects

Need for Training:1. New Environment: Induction or orientation training2. Lack of trained personnel: Job training3. Advancement of technology: Refresher training4. Faulty methods: Remedial training5. Prevention of accidents: Safety training6. Career development: Promotional training

TRAINING AND DEVELOPMENT Advantages of training1. Increased productivity2. Job satisfaction3. Reduction in accidents4. Better use of resources5. Reduced supervision6. Management by exception7. Greater flexibility8. Stability and growth

TRAINING AND DEVELOPMENT Methods of training and development On the job training1. Learning by doing2. Coaching3. Understudy4. Position rotation5. Special projects and task forces6. Committee assignments7. Multiple management

TRAINING AND DEVELOPMENT Off-the-job training1. Selected reading2. Conferences and seminars3. Special courses4. Case study5. `Programmed instruction/ Simulation6. Brain storming7. Role playing8. Management games

PERFORMANCE APPRAISAL It is the process of determining and communicating to an employee how well he

is performing the job Methods of performance appraisal1. Rating Scales: Rating scales consists of several numerical scales representing

job related performance criterions such as dependability, initiative, output, attendance, attitude etc. Each scales ranges from excellent to poor. The total numerical scores are computed and final conclusions are derived.

2. Checklist: Under this method, checklist of statements of traits of employee in the form of Yes or No based questions is prepared. Here the rater only does the reporting or checking and HR department does the actual evaluation. Eg he is punctual - yes

3. Forced Choice Method: The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false. The rater is forced to make a choice. HR department does actual assessment. Eg. He is hardworking - false

4. Critical Incidents Method: The approach is focused on certain critical behaviors of employee that makes all the difference in the performance. Supervisors as and when they occur record such incidents. Eg refused to obey orders, suggested improvements

PERFORMANCE APPRAISAL5 Field Review Method: This is an appraisal done by someone outside

employees’ own department usually from corporate or HR department.6. Performance Tests & Observations: This is based on the test of knowledge

or skills. The tests may be written or an actual presentation of skills. Tests must be reliable and validated to be useful.

7. Confidential Records: Mostly used by government departments, however its application in industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR) and may record ratings with respect to following items; attendance, self expression, team work, leadership, initiative, technical ability, reasoning ability, originality and resourcefulness etc. The system is highly secretive and confidential. Feedback to the assessee is given only in case of an adverse entry.

8. Essay Method: In this method the rater writes down the employee description in detail within a number of broad categories like, overall impression of performance, promotion ability of employee, existing capabilities and qualifications of performing jobs, strengths and weaknesses and training needs of the employee.

PERFORMANCE APPRAISAL9. Cost Accounting Method: Here performance is evaluated from the

monetary returns yields to his or her organization. Cost to keep employee, and benefit the organization derives is ascertained. Hence it is more dependent upon cost and benefit analysis.

10.Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of different methods that compare performance with that of other co-workers. The usual techniques used may be ranking methods and paired comparison method.

i. Ranking Methods: Superior ranks his worker based on merit, from best to worst. However how best and why best are not elaborated in this method. It is easy to administer and explanation.

ii. Paired Comparison Methods: In this method each employee is rated with another employee in the form of pairs. The number of comparisons may be calculated with the help of a formula as. N x (N-1) / 2

PERFORMANCE APPRAISAL Future Oriented Methods 1. Management By Objectives: It means management by objectives and the

performance is rated against the achievement of objectives stated by the management. MBO process goes as under.

Establish goals and desired outcomes for each subordinate Setting performance standards Comparison of actual goals with goals attained by the employee Establish new goals and new strategies for goals not achieved in previous year.2. Psychological Appraisals: These appraisals are more directed to assess employees

potential for future performance rather than the past one. It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other evaluations. It is more focused on employees emotional, intellectual, and motivational and other personal characteristics affecting his performance. This approach is slow and costly and may be useful for bright young members who may have considerable potential. However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation.

PERFORMANCE APPRAISAL3. Assessment Centers: This technique was first developed in USA and UK in

1943. An assessment center is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. It is more focused on observation of behaviors across a series of select exercises or work samples. Assessees are requested to participate in in-basket exercises, work groups, computer simulations, role playing and other similar activities which require same attributes for successful performance in actual job. The characteristics assessed in assessment center can be assertiveness, persuasive ability, communicating ability, planning and organizational ability, self confidence, resistance to stress, energy level, decision making, sensitivity to feelings, administrative ability, creativity and mental alertness etc.

4. 360-Degree Feedback: It is a technique which is systematic collection of performance data on an individual group, derived from a number of stakeholders like immediate supervisors, team members, customers, peers and self. In fact anyone who has useful information on how an employee does a job may be one of the appraisers.

PERFORMANCE APPRAISAL Appraisal Interview1. Tell and sell interview2. Tell and listen interview3. Problem solving interview

SYSTEMS APPROACH TO STAFFINGExternal

Environment

Analysis of present

and future needs for managersManagers

Inventory

Number and kinds of

managers required

External Sources

Internal Sources

Appraisal Career

Strategy

Training and

Development

Recruitment Selection Placement Promotion Separation

Organization Plans

Leading and

Controlling

Internal Environment

Personnel Policies

Reward System

DIRECTING Directing is the managerial function of guiding, inspiring, instructing

and harnessing people towards the accomplishment of desired results Directing is the guidance the inspiration of those men and women

that contribute the real core of the responsibilities of management. Urwick and Brech

The process of Directing consists of following steps:1. Issuing orders and instructions that are clear, complete and within

the capabilities of subordinates2. Continuing guidance and supervision to ensure that the assigned

tasks are carried out effectively and efficiently3. Maintaining discipline and rewarding those who perform well4. Inspiring the subordinates to work hard for the achievement of

predetermined targets

NATURE OF DIRECTING1. Pervasive Function Directing is a managerial function performed by all managers at all

levels of the organization All manager provide guidance and inspiration to his subordinates2. Continuing Function It is an ongoing process Continues through the life of the organization Manager continue to guide and inspire his subordinates3. Linking Function Serves as a connecting link between preparatory functions Provides material for comparisons with the plans

NATURE OF DIRECTING4. Creative Function Converts plans into performance Use of creativity in directing different employees5. Human Factor Interpersonal aspect of managing Help in use of human factor for effectively and efficiently attain the

enterprise goal Without it human factor remains inactive and unutilized6. Chain of Command Starts from top and ends at bottom through the hierarchy Emphasizes that subordinate is to be directed by his own superiors

SCOPE OR SIGNIFICANCE OF DIRECTING

1. Initiates Action Sets organizations motions People should be directed for efficient use of resources Without direction, planning, organizing and staffing become ineffective Activates things as originally planned Makes it possible to achieve mission and objective of organization2. Ensures Coordination Functions of individuals are affected by other and they affect

functioning of others Direction helps in coordination among various operations of the

enterprise

SCOPE OR SIGNIFICANCE OF DIRECTING3. Improves Efficiency

Through direction managers motivate and provide leadership to employees

Without direction potential of employees may be underutilized4. Facilitates Change Organizations should adapt itself to environmental changes Changes in organization structure and members can be done by

motivating and leadership5. Assists Stability and Growth To survive in long run organization must maintain balance in its

different parts Effective leadership and communication provide stability in the

organization and help its parts to work in a harmonious way

PRINCIPLES OF DIRECTING1. Harmony of objectives Individuals join organizations to satisfy physiological and psychological

needs but expected to work for organizational objectives Management should reconcile employee and organizational goals2. Maximum individual contribution Managers should try to elicit maximum possible contribution from each

subordinate3. Unity of command Subordinate should get orders from one boss If a person is accountable to two bosses simultaneously can create

confusion, conflict, disorder and indiscipline in the organization

PRINCIPLES OF DIRECTING4. Appropriate technique Managers should use correct direction techniques to ensure efficiency

of direction It should be suitable to superior, subordinate and situation5. Direct supervision Direct contact improves the morale and commitment of employees6. Strategic use of informal organization Management should try to understand and make use of informal group

to strengthen formal or official relationships7. Managerial communication Helps in improving mutual understanding Helps superiors in understanding subordinates (upward

communication)

PRINCIPLES OF DIRECTING8. Comprehension Management should ensure that subordinates correctly understand

what they have to do, how and when Helps in avoiding unnecessary queries and explanation9. Effective leadership Helps in avoiding dissatisfying activities Help in guiding and counseling subordinates in their personal

problems Win confidence and trust of subordinates10. Principle of follow through Managers should continuously see whether subordinates are working

properly, what problems they are facing, modify if necessary tasks

TECHNIQUES OF DIRECTING Orders and Instructions: Is a process by means of which activities

are started, altered, guided and terminated Essentials of a good order1. Clear2. Complete3. Compatible with objectives4. Time 5. Reasonable6. Acceptance should be taken7. It should be in writing8. Chain of command should be followed9. Follow up

TECHNIQUES OF DIRECTING Delegation: Implies the superior entrusts his subordinate with

certain rights and powers in order to get the work done. Supervision: overseeing the people at work

MOTIVATION AND LEADERSHIP FOR DIRECTION Motivation is the process that accounts for an individuals

intensity, direction and persistence of efforts towards attaining a goal

Leadership: Leadership is an activity of influencing people to strive willingly for group objectives

LEADERSHIPVARIABLE MANAGER LEADER

1. Relationship

Management implies superior-subordinate relationship. It is possible only in formal and organized group

Leadership can occur anywhere within or without organizational context, formal and informal groups

2. Source of influence

A manager is appointed and he obtain authority from his position

Leadership is not always appointed, he derives his power from his followers

3. Sanctions A manager has command over the allocation and distribution of rewards

A leader has command over social satisfaction and related task rewards

4. Basis of following

People follow a manager because of their job description in a system of reward and punishment

People follow leader on voluntary basis

5. Accountability

A manager is accountable for his own behavior as well as for the job behavior of his subordinates

Leader is not accountable for behavior in same way. More concerned of group satisfaction

6. Functions Performs all function planning, organizing, staffing, directing and controlling

Part of directing guides and inspires people

LEADERSHIP STYLES1. Autocratic or

Authoritarian Leadership

Exercises complete control over the subordinates

Centralizes power Dominates and

drives his group through coercion and command

Gives orders

Advantages Permits quick

decision making Yield positive results

in hurry Appropriate when

employees are uneducated, unskilled and submissive

Disadvantages Leads to frustration

and low morale and conflict

Subordinates avoid responsibility and initiative

Subordinates don’t work with full potential and don’t put forward their creative ideas

LEADERSHIP STYLES2. Democratic and

Participative Takes decision in

consultation and participation of subordinates

Decentralizes authority The leader follows the

majority opinion Provides freedom of

thinking and expression

Advantages

Improves job satisfaction and morale

Cultivates decision making ability in subordinates

Multiplies his ability through contribution of followers

Develops positive attitude and reduces resistance to change

Labor absenteeism and turnover is reduced

Disadvantages Time consuming and

results in delays May not yield positive

result when subordinates do not interact with leader

Subordinates may develop habit of consultation

Can be interpreted as leaders incompetency

Requires communication and persuasive skills

LEADERSHIP STYLES3. Free Rain or

Laissez-Faire Leadership

Involve complete delegation of authority

Avoids power and relinquishes leadership position

Acts as a contact to bring information and resources needed by subordinates

Advantages Positive effect on job

satisfaction and morale of subordinates

Scope of development of employees widens

Full potential utilization of subordinates

Disadvantages Subordinates don’t

get guidance and support of leader

Ignores leaders contribution

Subordinates may move in different directions

SUPERVISION Supervision: Overseeing the subordinates at work to ensure that

they are working according to the plans and policies. Responsibilities of a supervisor:1. Planning and Scheduling work2. Communicate managerial policies and decisions3. Assign work4. Select, train and inspire5. Issue orders and instructions6. Prescribe work methods and procedures7. Organizing resources8. Enforce rules and regulations9. Performance Appraisal

SUPERVISION Qualities of a good supervisor1. Knowledge of work2. Knowledge of the organization3. Communication skills4. Human relations skills5. Physical vigor6. Decisiveness7. Integrity