The management may examine the position in order to address issues with personnel placement, advancement, training, and transfer. An excellent foundation for carrying out the aforementioned responsibilities is provided by job analysis and assessment.
An person is given a job based on his or her aptitude, proficiency, experience, technical expertise, area of interest, etc. Job assessment and analysis assist in determining the precise wage for each employee. It would prevent employee resentment and hostility.
Meaning of Job
A job is a position with some degree of difference or resemblance to other positions. A job would be something like the position of general manager. In any organisation, there is only one position like this. Salespeople, clerks, and other positions are among those that are many in every organisation.
Job Analysis
Employment analysis focuses on the elements and traits that make up each job. Job analyses outline the responsibilities and tasks associated with each position. Based on a job analysis, pay is set. It establishes the level of expertise required to carry out each task.
Task analysis reveals the circumstances in which each job is carried out as well as the level of risk associated with it. The management uses job analysis to determine the qualifications needed for each position and to choose the methods or procedures to carry them out.
The methods listed below may be used to analyse each job:
The management has provided a questionnaire for all job applicants to complete.
The job applicants must maintain a journal. The logbook should include all of the crucial performance information.
Management conducts a face-to-face interview with candidates for the position. The opportunity for job holders to discuss potential issues and challenges with work performance follows.
A different individual is chosen to monitor how job holders behave while carrying out their duties.
The management then creates a thorough report. You may think of it as a job analysis.
The management conducts job analyses at least every two to three years. The explanation is that, in the quickly evolving company environment, social or technological change may have an impact on employees’ behaviour.
Advantages of Job Analysis
A job analysis makes it easier to choose and put the proper people in each role.
Management can provide the necessary personnel the proper training.
A job analysis is used to determine a reasonable salary rate.
Job analysis aids in merit assessing and evaluating jobs.
Job analysis enables managers to make prompt judgments. The choice can have anything to do with selection, promotion, or transfer.
Job analysis may be used to put an end to labour conflicts.
The management may implement appropriate disciplinary measures. 8. Appropriate staff selection guarantees work satisfaction and employee morale.
Job analysis eliminates compensation disparities and lowers absenteeism and labour turnover.
It serves as a foundation for performance evaluations and supports the management’s control role.
Job Evaluation
The approach of job assessment is quite helpful. The compensation rate is set based on the job’s requirements, not on the presence of males. Job rating is another name for job appraisal. Job assessment is a methodical process that assesses the relative worth and relevance of each job based on its tasks, responsibilities, and other factors.
In other words, a job assessment is a financial representation of every work. Job evaluation’s primary goal is to determine a man’s compensation rate in accordance with the work he does. It entails setting higher pay rates for occupations with a high level of risk, and vice versa. For instance, a college speaker should be compensated more than a classroom instructor.
The management hires someone who satisfies the minimal qualifications of a position. The minimum and maximum criteria for each job are determined through job assessment.
Job Evaluation Procedure
The process for evaluating a job is as follows:
A thorough examination of the position, taking into account education, training, experience, and intellect.
Determining the level of responsibility and the amount of physical and mental work required.
A job summary.
Think about a job’s qualifications in terms of education, training, and experience. Experience may get 10 points and training 5 points if it is deemed to be twice as valuable as training.
Job evaluation.
Evaluation of various positions.
Decide how many points should be awarded for each job-related attribute.
Total the points earned for each task.
Arrange the tasks according to their point totals.
A financial expression of the job’s worth based on the points earned.
Advantages of Job Evaluation
The following are the key benefits of job evaluation:
Since compensation is set based on the kind of employment, management may be able to regulate labour costs.
It is simple to rank jobs.
Management may set comparable tasks at the same salary. In other words, management finds it simple to implement the equal pay for equal work premise.
There is a chance that staff morale may go up.
Management is able to implement an appropriate promotion policy.
Job assessment aids in staff recruitment, placement, and training for management.
It offers a justification for varying pay scales for various vocations.
It strengthens bonds between coworkers and between employees and their employers.
The management sets the pay for a new position without any effort.
Management is able to create appropriate incentive programmes.
Job assessment reduces the amount of staff turnover.
Disadvantages of Job Evaluation
Following is a discussion of the key drawbacks of job evaluation:
Job evaluations focus on the job itself rather than the worker.
Workers who are above average suffer from wage uniformity.
Similar to other elements, job assessment is one of the factors that go into determining a salary rate.
It is quite challenging to translate all the elements into financial terms for job appraisal.
The evaluation of each work attribute is entirely subjective.
Job assessment overlooks the state of the labour market, which is equally to blame for the rigidity of pay rates.
The employees may not comprehend the job assessment. The employees may thus be suspicious of the management’s motives.
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Principles or Guidelines for Job Evaluation
The management must take great care since the purpose of the job assessment is to determine the value of the job as determined by job studies.
The management and employees should cooperate with one another.
The terminology utilised in the job appraisal process varies. Before the job really begins, they are thoroughly communicated to the employees.
A job’s conclusion is only completed when all raters concur.
Before establishing the method for job appraisal, the size and kind of the organisation must also be taken into account.
The goals of the job assessment may be decided upon and communicated to those who would likely be impacted.
The management must make a choice about how to spend the available funds.
To prevent misunderstandings, all parties involved should be informed about the chosen job assessment method and how it operates.
To ensure the employment assessment system runs well, interested parties are urged to participate.
The salary rates for occupations must be on par with those for similar jobs in the same business and sector.
The company may employ the and include a provision for merit that increases with labour grades and length of service in the job assessment programme.
To encourage employees’ confidence in the work assessment system, temporary overpayments may be provided.
Method or System of Job Evaluation
The following is a discussion of job appraisal techniques:
1)Ranking system: Under the ranking system, occupations are rated according to their responsibility and practicability. Each job is valued relative to other occupations in terms of money. The ranking system may be effectively used in small organisations.
The management may use this strategy in areas with a high volume of comparable work being done. The primary shortcoming of this approach is the impossibility of correct appraisal.
2)Classification Method: Grading technique may be used as a classification strategy. At first, grades are described as being universal to many occupations. The management then researches the varied specifications for each task.
Following that, occupations are evaluated based on their own criteria. Class one, class two, class three, as well as competent, semi-skilled, and unskilled, are a few examples. A committee normally handles this.
3)Factor point scoring: The management is able to pinpoint the elements that each work has in common. Points are then assigned to each of these factors based on their relative relevance.
The last step is to base the salary rate on the total points earned by each task. The similar elements of any job are education, experience or talent, responsibility, and working environment.
4)Factor comparison method: This approach resembles factor point scoring in certain ways. The management may uncover certain common elements using this strategy as well. The management might choose a critical position first. The management should choose a critical position with great care.
Through the process of allocating funds factor-wise, the wage rate is set to the primary task. For instance, education costs Rs. 4, talent or experience costs Rs. 4, physical needs cost Rs. 1, responsibilities cost Rs. 2, and working conditions cost Rs. 3.50.
The entire hourly wage rate is Rs. Here, prevalent characteristics include education, talent or experience, physical needs, accountability, and working environment. The scales of the key job are used to factor-compare the other tasks.
The highest level executives of management execute the managerial task of directing. Any choice made should always be carried out appropriately. If not, making such a choice is pointless.
To ensure that instruction is properly implemented, directing must be given. Every management offers his or her employees guidance, and every employee in turn receives instruction from the appropriate manager.
Definition
“Directing is the process and methods used to provide orders and ensure that actions are carried out as originally intended, according to Haimann. “
“Direction is the interpersonal part of leading through which subordinates are brought to comprehend and successfully contribute to the realisation of company aim,” write Koontz and O’Donnel.
“Directing is the direction, the inspiration, the leadership of those men and women who comprise the true heart of the duties of management,” writes Urwick and Breach.
“Directing involves the whole method in which a boss impacts his subordinates’ conduct,” writes J.L. Massie.
Dole, “Direction involves stating what has to be done and ensuring that it is done as effectively as possible. Assignments, related processes, ensuring that errors are fixed, providing on-the-job training, and, of course, issuing orders are all included.”
In general, a manager has to be aware of his employees’ wants, requirements, and attitudes. Depending on the persons and circumstances, he should adjust his approach. However, the manager may find the following guiding concepts helpful:
Objective coherence: Each person has their own goals. Each organisation has unique goals. The management should coordinate the organisational goals with the personal goals. The individuals’ goals should be integrated with the organization’s goals via proper direction.
Maximum individual contribution: Each member’s contribution is essential to the success of the organisation. Therefore, management should choose a method of direction that allows for the most possible input from members.
Uniformity of direction or command: A worker should only be given directives from a single supervisor. If not, there might be lack of order, confusion among subordinates, and indiscipline.
Efficiency: Involvement of subordinates in decision-making is encouraged. They would feel more committed after that. This will guarantee that choices are carried out. It will boost subordinates’ productivity.
Direct supervision: Managers and their staff members should interact directly. Face-to-face interaction and a personal touch with subordinates will guarantee effective leadership.
Feedback details: Giving commands and instructions to the underlings is only the beginning of effective leadership. The evolution of the management often requires ideas made by the subordinates. As a result, the management receives trustworthy suggestions thanks to the growth of the feedback system.
Effective communication: The superior must make sure that the subordinates completely understand their goals, procedures, and obligations.
The appropriateness of the direction technique: The management has three options for direction approaches. They have free reign, are authoritative, and consultative. However, the directing approaches should be chosen based on the circumstance.
Effective control: To exert effective control over the subordinates, management should monitor the behaviour and performance of the subordinates. Effective guidance is ensured by effective control.
Comprehension: More essential than what and how commands are conveyed to subordinates is the depth of their understanding. This is excellent for leading subordinates in the right path.
Follow Through: Following through is a constant process. Giving commands or directions is not a goal in and of itself. Since direction is vital, management should keep an eye on how well the employees carry out their directions and if they encounter any obstacles.
Issuing Orders or Instructions
The management uses an order as a tool for guidance. Only a supervisor has the authority to issue an order. The boss has the authority to impose orders on his workers.
As a directed tactic, an instruction is seen as a charge by a superior instructing a subordinate to act or abstain from acting in a certain context, according to Kootnz and O’Donnel.
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Characteristics of a Good Leader
An order must be enforceable over subordinates and fair.
A properly defined order must be simple to comprehend.
A rule should be written in a way that makes achieving an organization’s goals easier.
An order must be comprehensive in every way.
An order should demand the subordinates’ approval and willingness.
Written orders are preferred to spoken ones.
When giving an order, the superior uses the proper tone.
The time frame for completing a project should be specified in an order.
An order ought to make sense.
Techniques of Direction
The management uses three different methods of guidance. Below is a quick explanation of them:
1) Consultative direction: Before giving a directive, the supervisor or superior consults with his subordinates. The consultation is conducted to determine the problem’s viability, enforceability, and nature. It doesn’t always imply that the superior is incapable of acting on their own.
In the end, the superior has the authority to make decisions and issue directives. It requires the cooperation of subordinates for execution to be effective. Under this method of command, the subordinates have better motivation accessible to them. The subordinates’ morale might be raised by the supervisor.
2)Free-rein direction: In this kind of direction, the subordinate is urged to find a solution on their own. Generally, the work is assigned by the higher. To fix the issue, the subordinates should take the initiative. These leadership strategies can only be used by subordinates who are highly educated, effective, and honest.
3)Autocratic direction: This direction is directly opposed to the method of free rein. In this situation, the supervisor is in charge and closely watches over his employees.
The supervisor gives his staff very specific instructions, and they follow them. The subordinates have no remaining means to demonstrate their initiative.
Importance of Direction
One of the important managerial duties is direction. To successfully execute administrative rules and decisions, guidance is required. Through leadership, the subordinates are appropriately motivated.
In a firm, direction offers leadership. Cooperation between subordinates is another aspect of direction. The fundamental component of management, as well as one of its ongoing tasks, is direction.
Action is started by direction.
The group’s actions are coordinated by direction.
Direction guarantees that each person contributes to the fullest.
Direction lessens the resistance to accept organisational changes.
Direction gives the organisation stability and balance.
Direction assists in achieving an organization’s goals.
Characteristics of Direction
The following is a discussion of the qualities of direction:
All levels of executives in an organisation conduct direction since it is one of the management duties.
Management starts moving by giving orders.
The organization’s direction remains constant during its lifespan.
Top-level management first sets the course for the organisation. In other words, only superiors are in charge of the subordinates.
Subordinates carry out the original plan’s instructions.
Direction establishes a connection between management’s control function and its preparation actions. Planned activities include organising, staffing, and planning.
An organization’s ability to operate effectively relies on the effectiveness of its workforce. Through the use of certain approaches, an employee’s capacity may be determined. The management determines the necessity for training based on an employee’s performance.
The management procedures and methods used in the Indian setting are quite complex. By giving the staff the right training, an issue may be resolved. Training and development are used interchangeably. But their meanings are distinct.
Edwin B. Flippo argues that “management development includes the process by which managers and executives acquire not only skills and competence in their present job, but also capacities for future managerial tasks of increasing difficulty and scope.”
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Training is the act of increasing the knowledge and skills of an employee for performing a particular job, according to Edwin B. Flippo.
Therefore mentioned description leads to the conclusion that training is the process through which an employee’s knowledge and abilities to do the current job correctly grow. However, development also entails enhancing capacities for future management roles in addition to obtaining information and skills for the current employment.
MEANING
A programme that helps an employee perform by obtaining more information and abilities is referred to as training.
DEFINITION
Training is described by Proctor and Thornton as “the deliberate act of creating mechanisms for learning to occur.”
“Training is the ongoing, systematic development among all levels of workers of those knowledge, abilities, and attitudes which contribute to their welfare and that of the organisation,” say Planty, M.C. Cord, and Efferson.
Elements of Training
The following characteristics of an efficient training programme:
An ongoing procedure.
Use of current knowledge and abilities effectively.
Extending current knowledge and abilities to meet future needs.
Assisting the worker in locating his current position and preparing him to take on more responsibility.
Importance & Need for Training
1) Lack of trained personnel: It is exceedingly challenging to locate individuals with the necessary training for all job categories and levels in an organisation. The organisation then chooses those who have had little to no training. The companies themselves will provide the untrained employees with enough training.
2)Job suitability: A worker is given a task for which he is not qualified. The necessity to provide the concerned employee with the same specialised training then emerges. A vocational school does not provide all kinds of instruction. Due to the unique nature of the job, the employee also needs additional training.
3)Obtaining information through cutting-edge techniques: Due to the fast advancement of science and technology, it is essential to provide employees with training. The explanation for this is that a worker may have received training in more than one approach. It will be practical for a while.
The development of new techniques necessitates more training. Employees will run the risk of losing their jobs if suitable training facilities are not provided to them. Adopting outdated procedures leads to rising administrative and other costs, which makes it challenging to remain competitive. Hence, proper training in the most recent techniques is crucial.
Types of Training
Those that are keen to participate in training are given the opportunity. The people that must go through the course are then given training. Employees are given training in this fashion whenever a need arises. This kind of training enables greater achievement of the intended goals.
The mental capacity of an organization’s workforce and the value of on-the-job training may both influence the design of training programmes. Following is a list of the numerous training options, organised according to the significance of on-the-job training:
A. Workplace training / On the Job training
a particular task.
Position rotation.
Unique initiatives.
Apprenticeship.
B. Training Away from the Job / Off the Job Training
Specialized lectures and classes.
Gathering.
Case study
Playing a role.
Business games.
Idea-generating
Transactional analysis.
A. On-the-Job Training
On-the-job training is learning while carrying out a specific task or job. This kind of training is better suited to all staff types. Here’s a quick explanation of each:
On a particular work: When someone is really given the position for which they were chosen, they may learn. Every organisation uses this kind of training since it gives employees the best chance to improve their job-related abilities. One approach used in this kind of training is the rectification of the procedures and their critical assessment. Any person may pick up the work fairly fast.
Position rotation: A person is assigned work at different levels and in different parts of the organisation. The major goal of this kind of training is to provide the learner a broader knowledge base. Working in multiple departments enables the trainee to have a comprehensive understanding of how the organisation operates.
Specific tasks: A current employee is assigned to specific tasks. He is required to work on unique projects all the way until completion. Then he gains knowledge of the tasks associated with unique initiatives and has the chance to interact with people of various backgrounds.
Apprenticeship: It is often referred to as study. In this case, an expert is in charge of supervising the trainee. Many businesses in India now train their workers in accordance with the Apprenticeship Act. These apprentices are used to fill in for skilled workers.
B. Off -the -Job Training
At the off-the-job training method, a trainee is taken away from his regular place of employment and spends his whole day in another location for training purposes. There is no contribution from the learner to the organisation throughout the training time.
This kind of training is often offered outside the organisation and seldom within the organisation, but not at the place of employment. The following is a basic explanation of this kind of training:
1)Specialized instruction and lectures: Specialized instruction and lectures are examples of knowledge-based training techniques. The participants get instruction in the fundamental ideas, theories, rules, and practical application of the specific topic. This kind of instruction aims to provide the learners with foundational knowledge.
2)Conference: To get over the restrictions of lectures, the conference idea was devised. The conference places a strong focus on trainer-to-trainee communication.
With the assistance of the instructor, the trainees are expected to contribute their ideas and draw on their expertise to resolve the issues. Small groups are organised for in-depth discussions on a variety of topics.
3)Case duty: Both management institutions and company executives would benefit more from this kind of training. A case is distributed to the students in blueprint form.
The blue print includes details on the business unit’s history, the external environment that affects it, internal division, and financial structure. No instance includes all of the organization’s information that the reader would want to know.
In reality, the manager seldom possesses all the information. The reason is that not all of the data can be gathered. At the same time, thorough information gathering takes a lot of time. The manager then makes judgments based on the information that is at hand and makes a logical assumption about the information that is not.
Cases are often debated by many groups. Each group member is asked by the teacher to express his analysis and criticism of the opinions of others. Additionally, group members should respond to the instructor’s and the other group’s questions. Through this procedure, the learner may hone their analytical and decision-making abilities.
4)Role playing: In a group, different people take on the roles of various managers while using the role-playing approach. They are asked to decide on a course of action or resolve a dilemma. The trainees start talking to one other on the spur of the moment. The trainees get feedback on their role playing at the conclusion of the role-playing session. This fosters the development of the trainees’ work performance efficiency, interpersonal sensitivity, and advancement of improved human connections. Under this style of training, more people get training concurrently.
5)Management games: People’s thinking is stimulated by playing management games to improve their ability to manage a business or a department. The skills necessary for investing, manufacturing, sales, collective bargaining, etc. are developed via the usage of these games.
A game is made up of circumstances. Each side strives to defeat the others, but unless there is a tie, only one team may triumph. All the teams are informed of the training time, which has been set aside for it. The teams are given a variety of circumstances to make judgments in, and they are asked to do so. A team’s choice has an impact on the outcomes of another team.
Decisions may be made about raw material prices, manufacturing quantities, sales volume in numbers, and price fixing of prices. Each team receives comments from the trainer. Each team then assesses their choices and may make adjustments to get better outcomes.
6)Brainstorming: This approach is used to generate ideas. For a brainstorming session to be successful, ten to fifteen people are required. A group is made up of persons on the same level. The primary goal of brainstorming is idea generation, which explains why. The group’s members have a direct connection to an issue.
Each group member is given a detailed explanation of the issue. Additionally, they are given an explanation of the guidelines and goals of brainstorming. Each participant is invited to provide more than one solution to the issue. Here, amount of ideas rather than quality of ideas are evaluated for each member.
The member’s ability to generate ideas is not constrained in any way. With this approach, idea creation is not hindered by social or psychological barriers. Brainstorming, according to Osborn, is the process of “using the intellect to storm the issue.”
“A conference approach through which a group strives to discover a solution for a particular issue by accumulating all the ideas spontaneously provided by its members,” according to Webster’s Dictionary.
7)Transactional Analysis (TA): TA is used to create interpersonal relationships between people. The fundamental goal of transactional analysis is to comprehend personal aspects of people. Additionally, people’s ego status is determined. Under the training for transactional analysis, the individuals’ parent ego, adult ego, and/or child ego are comprehended.
Characteristics of Good Training Programme
A large company has a dedicated department for providing training. A small business may send its personnel to another location for training. Whatever it is, a substantial sum of money will be paid by the business to provide its staff access to a training facility.
It is certain that the training will benefit the business. Therefore, the training programme should include the following qualities in order to get excellent results:
Individual differences: The learning capacities and areas of interest of the workers vary greatly. Therefore, the management should take these things into account while designing the training programme.
Corresponding to work requirements: The training plan should be relevant to the position for which it is being offered.
Trading demands are determined by management: Management decides if workers need training. The management also chooses the training methodology for the concerned individual.
Training that is focused on results: The management has the option to teach its staff at different levels. Every training session should result in benefits for the business.
Incentive programmes: Some workers take their training seriously. The management should recognise these individuals. Next, appropriate financial and non-financial incentives should be offered to these people.
Management support: Senior management should show interest in and support the training. The severity of receiving training may be somewhat heightened if the top management supports it.
A member of an organisation offers their thoughts or opinions regarding other members. The opinion could relate to how you interact with people, how you work, how you behave, etc. These viewpoints serve as the foundation for employee evaluations and for Performance Appraisal. For several reasons, including promotion, transfer, training, pay fixation, etc., a superior has an opinion about his ordinates.
MEANING
The systematic assessment of a worker’s performance by a professional or his immediate supervisor is known as a performance appraisal.
An evaluation involves comparing many individuals with others in a variety of contexts. The fundamental reason for evaluating a worker is to advance the worker Other activities are also covered by performance reviews.
The management conducts frequent appraisals. Both the employer and the employee should be aware of the date, time, and location of the evaluation. Personal biases and prejudices are avoided in the assessment in order to prevent inaccurate employee evaluations.
DEFINITION
According to Edwin B. Flippo, “Performance evaluation is a systematic, repeated, and, to the greatest extent feasible, an objective rating of an employee’s excellence in subjects relevant to his existing work and to his potential for a better employment.”
For an efficient evaluation, the management has previously set a’s performance goals. A worker’s performance is evaluated against the requirements of their position.
Scott, Clotheir, and Spriegal claim that “For regular employees and apprentices, performance appraisal serves as a record of progress. It also serves as a guide for decisions regarding promotions, transfers, or demotions. It also serves as a guide for compiling lists for bonus distribution, seniority consideration, and pay rates.
Importance / Significance of performance evaluation
The management now use performance evaluation as a tool. The scope of performance evaluation is broadened to encompass numerous judgments in addition to pay fixation:
Performance evaluations assist management in deciding whether to raise an employee’s pay.
Ongoing employee evaluations serve to raise a worker’s level of competence in the workplace.
When management is ready to give appropriate facilities for successful performance, the performance evaluation highlights the facilities that are accessible to an employee.
It reduces the lack of communication between the employer and the employee.
An employee’s performance review serves as the foundation for a promotion.
Performance reviews may be used to determine a worker’s training requirements.
An employee’s performance review is also taken into consideration when deciding whether to terminate them from their position.
A person who is not a good match for a position might be moved to one where they are.
Performance evaluations decrease complaints from employees.
An employee’s work happiness raises morale. Performance evaluations help to reach this level of work satisfaction.
It enhances the bond between employers and employees.
Limitations of Performance Appraisal
The methodologies used for performance evaluation are unreliable.
If an employer knows an employee well, the performance review may not be accurate.
A supervisor’s incapacity to evaluate an employee prevents them from providing an accurate performance evaluation.
No performance assessment system can accurately assess all of an employee’s attributes.
A boss may think favourably of a worker to avoid getting his ire.
When evaluating employee performance, managers do not adhere to uniform criteria.
There are several kinds of performance reviews available. However, the management only wants to use one style of performance review. Any of the two methods are used to complete the evaluation. Traits and outcomes are the two methods.
The characteristics method means evaluating the worker based on their attitudes. The results method means evaluating the employee based on the outcomes or the tasks they have completed. Following is a basic description of the many performance evaluation types:
1) Ranking Method: This straightforward style of performance evaluation is highly traditional and basic. Under this system, each employee in the working group is rated against each other.
If there are ten employees in the working group, for instance, the most efficient worker would be rated first, and the least efficient would be placed tenth. The working group’s employees are rated from 1 to 3, and so on.
Advantages
(a) Every worker or employee may be contrasted with another individual.
(b) The ranking approach may provide the most advantages to a small organisation.
Diadvantages
(a) A large organisation cannot reap significant advantages from the ranking system.
(a) The ranking system does not assess an employee’s uniqueness.
(C) Its evaluation of personnel lacks objectivity.
2) Paired Comparison Approach: This ranking method includes this technique. A large organisation has created the paired comparison approach for use there. Each employee is evaluated in comparison to other workers, one at a time. The assessor compares two workers and marks the one he believes to be the superior employee with a check mark.
An person is compared to all other current workers in the same manner. The best employee is the one that receives the most ticks for being a better employee. The number of comparisons is determined using the formula n(n-1)/2, where N is the total number of comparisons. The number of individuals compared and the number of paired comparisons are shown in the following table.
Advantages
(A) This approach is appropriate for large organisations.
(a) Using this methodology, individual traits are assessed.
Disadvantages
(A) It is challenging to grasp this strategy.
(a) It requires significant
Number of Persons to be Compared
Number of Paired Comparison
2
1
3
3
4
6
5
10
6
15
7
21
8
28
9
36
10
45
3)Forced Distribution Technique: This method uses a forced Groupwise ranking system. For instance, a group of employees using the Forced Distribution Method to rate an employee’s total performance would be placed in the same category as superior, at and above average, below average, and above suitable bad.
The rater assigns a 15% superior rating to 15% of the workforce and a 35% at and to big organisation rating to 35% of the workforce. However, the individual attributes could not be evaluated using this methodology, which rated 35% of employees as below average and 15% as terrible.
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5)Grading: Specific employee performance or ability categories will be assigned a specified way in advance.Extremely excellent, good, ordinary, bad, and very poor are examples of these ratings. The check list approach is used to evaluate a worker’s aptitude by having them respond to a series of questions.
These inquiries pertain to an employee’s behaviour. A different department known as the personnel department conducts the assessment. However, a person who is designated as a rater is assigned the responsibility of collecting the check list responses.
The rater marks each answer an employee provided in response to a question. Each question and answer option has two columns.
6)Forced Choice Method: An employee has created a number of groupings of assertions. However, using this system requires the rater to check off any statement, whether it is positive or negative.
These two sentences both explain the traits of positive or negative remarks. From one remark to the next, different aspects of an employee’s traits are described differently.
The affirmative assertions are as follows:
(A) The worker typically completes the task on time.
(a) The employee is capable of carrying out the task and doing so when necessary.
The unfavourable remarks are likewise produced in this manner. All of these remarks form the foundation for the final grade. However, the rater is unaware of the statements that will determine the final rating.
7)Critical Incident Method: An employee’s performance is evaluated on the basis of situations that directly affected the person in question. Some occurrences happened as a result of an employee’s incapability. However, the grade is based on every occurrence that happened within that time period. Below are a few of the occasions or incidents:
(b) Refusing to participate in further training.
(c) Lost patience with coworkers or inferiors.
(d) Made a production-method modification suggestion.
(e) Made a suggestion for a method to raise the calibre of the products.
(f) A technique to prevent or reduce waste, spoilage, and scrap is suggested.
(g) Refused to follow instructions.
(h) Refused to carry out directions that were obvious.
8)Field Review Method: The performance of an employee is evaluated via an interview between the rater and the employee’s immediate superior or supervisor. The rater works for the personnel division.
The rater queries the supervisors about an employee’s performance. Based on the data gathered, the personnel department creates a thorough report. After receiving approval from the supervisor, a copy of this report is added to the concerned employee’s personnel file.
The interviewer’s skill determines if this kind of evaluation approach is successful.
Barriers to Effective Performance Appraisal
Effective performance reviews have several obstacles. They are succinctly described.
The rater makes incorrect assumptions about a worker who is subject to the performance evaluation system.
A worker could behave indifferently while being evaluated.
It is assumed that no form of employee appraisal can offer an accurate assessment of the employee. However, the rater essentially thinks that a procedure that is used in an organisation can deliver a 100% correct rating.
According to management, a direct superior’s subjective assessment is preferable to a formal evaluation and review process.
Workers believe that their superiors’ judgments are not reliable. The superior’s evaluation can be incorrect.
A few psychological reasons are to blame for poor performance reviews. The psychological aspects include the appraiser having more work to do, conflicts with subordinates arising, and the appraiser being afraid to point out the inefficiency of subordinates, among others.
There is no exact benchmark against which to measure task performance.
The quality of the ratee’s work may have an impact on the rater. The rater may evaluate the employee’s performance as a whole based on their first impression.
Another issue is the superior’s incapacity to assess the worker’s performance.
9. The obstacles to efficient performance evaluations are the predominate familial or friendship relationships between the parties.
If the rater was negligent in any way, an erroneous assessment was made.
The rater’s preferences may have an impact on how well he is rated.
Principles of Effective Performance Appraisal
A systematic performance evaluation should be accurate and trustworthy. Every time management overcomes performance assessment hurdles, the dependability and accuracy of the process are attained. The following actions might be taken by the management to address the
Two raters rate a single employee. Next, a comparison is done to get a reliable rating.
Ongoing, direct monitoring of a worker is necessary for making efficient performance evaluations.
Any subordinate in an organisation should have their immediate superior rate them.
For efficient performance reviews, a separate department might be established.
The concerned employee is informed of the rating. It benefits in several ways. The employee is able to comprehend his current situation and where he should be moving. be acknowledged. However, the negative aspects shouldn’t be overemphasised; they might only be hinted at.
The good points of an employee should points should not be underlined too much but they may be intimated to him.
The management must instil trust in the minds of the workforce.
The management should choose the requirements for each position.
Depending on the nature of the work, separate printed forms should be used for each performance review.
In a brand-new business, the function of staffing comes after the function of planning and organising since sustaining a business involves constant staffing. Therefore, the management must always fulfil this duty. Recruitment, selection, training, development, transfer, promotion, and remuneration of workers are all included in the staffing function. It is evident that the management must maintain a steady supply of sufficient executives for the enterprise’s effective operation. The chosen individuals should be physically, cognitively, and temperamentally suited for the role
Definition
The management function of staffing, according to Koontz and O’Donnell, is managing the organisational structure via correct and efficient selection, assessment, and development of individuals to fulfil the functions intended for the structure.
“The process involved in locating, assessing placing, evaluating and guiding persons at work,” is how Benjamin defines staffing.
“Staffing function is concerned with the placement growth and development of all those people of the organisation whose role is to things done via the efforts of other persons,” says Theo Hainmann.
Elements of Staffing
The management must ensure that men are qualified for positions and that occupations are not changed to accommodate men while carrying out the staffing duty. The following list of staffing’s key components:
efficient selection and recruiting.
correctly classifying employees and setting their salary.
proper positioning
training that is sufficient and suitable for growth.
fair and satisfactory promotion and transfer.
good communication between management and employees.
adequate retirement planning.
Functions of Staffing
Manpower planning: Both short- and long-term plans for manpower are possible. Under the circumstances, the company’s short-term workforce planning may be successful in achieving its goals. The estimate of staff members needed in the future should be taken into consideration during long-term personnel planning.
Development: The growth of staff workers via suitable and relevant training programs is what development is all about. Only those in need get the training.
Fixing the employment Standards: Changing the employment standards entails updating the job description and specification. These allow management to choose the staff and provide them with scientific training.
A written explanation of a certain job’s tasks and obligations is called a job description. A job specification is a list of personal characteristics that a candidate must have in order to properly complete the position.
Sources: It focuses on the selection process used to choose staff personnel. Both internal and external sources might be used. When a position is filled from inside the organisation, it is said to be from an internal source. The term “external source” refers to someone hired by the business from outside the organisation. The individual chosen might be employed or looking for job in another organisation.
Placement and selection: This involves the procedure for choosing staff employees. A person gets placed when they are given a position based on their skills, education, experience, and other factors.
Training: The business itself may provide for the training. In certain circumstances, the corporation could send the employees somewhere else to get the training. The cost is covered by the business. The current staff members may also need the training in addition to the new hires.
Other responsibilities: Other responsibilities of staffing include coordination, promotion, transfer, employee record maintenance, employee evaluation, employee motivation, etc.
The following procedures are involved in the hiring and placement of staff. Below, they are briefly discussed:
Planning: Estimating the amount of employees the organisation will need in each grade is included in the phrase “staff member planning.” It depends on the business’s size and the policies it adheres to.
Recruitment and selection: This process involves choosing competent candidates to fill open positions inside an organisation. The process for choosing the staff members may be standardised. The technique could be appropriate for various staff members.
Developmental training: It focuses on delivering training to both new and current staff members. Through training programmes, staff members’ working effectiveness may be improved.
Performance operation: This refers to the evaluation of the job done by the employees of an organisation. A benchmark might be established to measure staff members’ productivity.
Proper Staffing
A sufficient number of competent employees must be provided in order for the office to operate efficiently. This task is carried out by the general manager or chief executive. Finding the right staff members is a challenge. Therefore, in a big company, certain staffing tasks could be delegated to a different department.
Advantages of Proper Staffing
It aids in the hiring of qualified employees.
It facilitates the ability-based allocation of staff personnel.
Maximum output in an organisation is the consequence of proper staff member selection, development, and training.
The ability of employees to make more money will grow as their productivity rises.
RECRUITMENT
Finding the best individuals and persuading them to apply for a position inside an organisation is the process of recruitment. A good candidate should be recruited. If not, worker morale will be very poor and the company’s reputation will be damaged.
Any recruitment’s success is dependent on the process the business uses to find new employees. Occupations with low salaries, boring positions, or demanding jobs are tough for the organisation to fill. Each firm is required to hire employees, however the volume of hiring varies from company to company. The difference might be brought on by the company’s size, hiring practises, job description, and other factors.
Meaning
Finding employees for a company’s current and future positions is known as recruitment.
Definition
“The phrase recruiting pertains to the process of enticing prospective workers of the organisation,” says Dalton E. McFarland.
According to Edwin B. Flippo, the process of recruiting include finding potential workers and encouraging them to apply for positions inside the organisation.
Sources of Recruitment
A position may be filled from inside the company’s current workforce or from outside it, depending on the policy that is followed by the organisation; if it is filled from within, this is referred to as an internal source of the organisation.
If the same position is filled from among the applicants present in society, it must come from an outside source.
Internal sources
According to the company’s promotion policy, whenever a position becomes available, it can be filled by promoting an existing employee. In other cases, the company may delegate a member of the same cadre to the position; this is known as a transfer. This is also based on the company’s transfer policy.
Advantages
It boosts employee morale inside the organisation.
Promotions keep employees happy.
It draws qualified employees.
The cost of the training may be somewhat decreased.
Staff members are motivated to learn all they can about a promoted employee’s position.
Internal promotions make employees feel satisfied in their jobs.
A staff member who has been promoted may use his prior expertise to the new position.
It improves the staff member’s sense of work security.
The promoted employees may be securely given a new duty based on the information in the Service Register.
It guarantees the stability of the organisation and employment permanence for the employees.
It motivates employees to put in extra effort in order to advance.
Expenses related to hiring, testing, and interviews are eliminated.
Disadvantages
If the higher position is filled internally, the organisation won’t be able to tap into the staff’s new, innovative ideas and initiative.
The outsiders lack the opportunity to demonstrate their skills in the execution of the task.
A person who is underqualified could be assigned to the higher position.
If the promotion is for a limited time, the internal staff members are not guaranteed to continue working effectively after the concerned employee’s promotion has expired.
External Sources
There are many outside sources for hiring, which are briefly described below:
1.Posting an advertisement: When a company wants to let the public know that it has a vacancy, it posts an advertisement in which the job description and the qualifications of the candidates are briefly described. The company may receive applications in response to the advertisement, and then an interview will be held. In some cases, the company may choose to use the walk-in interview method, in which the applications are received from the candidates on the day of the interview.
In some instances, an employee of the company may bring candidates to the company for the purpose of being appointed, when the company does not conduct an interview for selection.
2. Recommendations: Here, recommendation means the appointment of a person on receiving a recommendation letter from a person reliable and well-known to the company.
3.Gate applicants: Educated unemployed youth may contact the company to find employment; these candidates might not have references, and the company might not have published any job advertisements. The candidate contacts the company’s hiring authority, who determines whether the candidate is qualified for any open positions at the time. If so, the candidate is appointed.
4.Employment exchange: There are two types of employment exchanges, i.e., public employment exchange and private employment exchange. The public employment exchange is run by the government, while the private employment exchange is run by a private party. Job seekers register their qualifications with the employment exchange, and the company can get a list of candidates who have the necessary qualifications to fit in a job.
5.Personnel consultant: A personnel consultant is a separate, specifically designated agency that performs the functions of the personnel department of any company, including receiving applications from candidates, verifying those applications, conducting interviews, and selecting candidates. In exchange for its services, the personnel consultant is paid by the company.
6.Educational institutions: Universities, colleges, and other institutions are created to provide particular courses. The educational institutions set up campus interviews, where business organisations come to the campuses of educational institutions to hire students for various positions. The chosen students are then asked to join the company after completing the course.
7.Waiting list: When a position opens up, the business concern may choose a candidate from the waiting list to fill it. These applicants have previously been interviewed, but they are not hired since there is no opening.
8.Unsolicited applicants: An unsolicited application is one that is submitted by mail and includes the applicant’s name, address, age, educational background, work experience, and areas of interest. If a position becomes available, the applicant will be hired for the position for which the application was submitted. Typically, this type of application is taken into consideration for lower-level positions.
9.Jobbers and contractors: The company may fill a casual vacancy by using jobbers and contractors. Typically, unskilled candidates are hired in this way; they are readily available at short notice and for a low salary; and they are brought to the workplace by the jobbers and contractors; they are paid by the company for this service.
10.Field trips: This is the method used to hire candidates under this method. A company may send a group of experts to the towns and cities where the various kinds of candidates the company needs are available. In this case, a prior advertisement may be published in newspapers. The advertisement contains information regarding the date, venue, and time of the interview. The interview is conducted in various locations.
11.Leasing: This method of hiring is used by public sector organisations because they wish to handle issues, especially at higher levels. The time of service is determined by the firm before hiring the staff members and is communicated to the staff members.
Merits
The following qualities or benefits are addressed if the appointment is made from outside sources for the company:
1.Selection: A corporation has the option to choose from among a vast pool of candidates and choose the candidate who will benefit the business the most.
2.New perspective: If a new employee is hired by the firm, a fresh perspective on how to address the issue may emerge, providing the organisation with the greatest possible advantages.
3.Broad experience: The organisation may choose the best applicant and profit from the candidate’s expertise if the newly hired candidate has experience in a variety of recruitment-related industries.
Demerits
Additionally, sources have several drawbacks, which are detailed below:
Resentment from previous employment: If a candidate is hired from outside sources, current employees may have resentment against him.
Lack of Cooperation: The current staff members force the new recruit to overcome obstacles and strive to complete his task while also refusing to provide their cooperation to the individual chosen from outside sources.
Expensive: Hiring an individual from outside the organisation involves a number of formalities, such as publishing an advertisement, collecting applications, screening them, sending interview invitations, setting up interview dates, times, and locations, and assembling an interview committee, among others.
Trade includes a union: To persuade the trade union and hire someone from outside the firm, if the trade union of the company is particularly powerful.
Danger of non-adjustment: If a newly hired employee is unable to adapt to the working environment of the organisation, it results in increased costs for finding a replacement, as well as annoyance and conflict between the newly hired current staff members.
Selection
When an organisation receives more applications than necessary, the excess applications are rejected; alternatively, a screening test may be conducted through which unsuitable candidates may be rejected. The selection process begins at the conclusion of recruitment.
Meaning
An organisation will pick a sufficient number of qualified candidates via this approach.
Importance of Selection
Choosing the right staff is a difficult process at the moment since the candidates that are available are more qualified—they have better education degrees and more experience—than what is necessary.
Managers are aware of the difficulties in selection, as well as the flaws and restrictions of the different selection methods, and they are aware of the likelihood of mistake.
The labour market is now a buyer’s market due to the high degree of job prospects, while it is now a seller’s market due to the stability of the economy.
Education is now created in such a manner that training is supplied inside the study, and a person with appropriate and required experience is picked for the work. Inexperienced applicants cannot fulfil the requirements of today’s jobs.
Managers are familiar with the methods for identifying a candidate’s weaknesses.
Public policy now includes numerous new limitations on who may and should be employed, as well as what kind of choices are acceptable.
The selection process becomes challenging if the job criteria are not clearly stated.
The cost of selection is expensive, but the rate of return is quite high.
Stages of Selection Procedure
Although it’s possible to argue that selection is a bad management function rather than recruiting, this is because picking applicants is harder than removing them.
The selection process typically comprises the following stages:
Receiving and screening of applications: Prospective employees are asked to submit their applications on white paper or in a prescribed form, and they must include all pertinent information; failure to do so may result in the candidate’s disqualification. This information includes the candidate’s name, age, educational background, date of birth, experience, parents’ names and occupations, address for communication, etc.
Initial interview: This interview, also known as the preliminary interview, is used to determine whether a candidate is physically and mentally capable of performing the duties of the position. Only a brief amount of time is allotted for this interview, during which the candidate is evaluated on his or her qualifications, experience, interests, age, and nativity, among other things.
Blank Application: An organisation uses a specific format for this selection process, and the nature of the format varies for each job; this is because different qualifications and skills are required for different jobs within an organisation. Care should be taken to ensure that candidates provide concise and pointed answers for queries raised in the form, as well as all relevant information should be included.
Following are some benefits of a blank application in the hiring process:
A. Acts as an urgent test device: This exam is meant to determine a candidate’s ability for rapid comprehension and problem-solving by requiring candidates to provide accurate responses to questions that are addressed in the application.
B. Shy candidates: Some applicants may find it challenging to answer questions during face-to-face interviews with employers. They may utilise this form to submit their responses.
C. Promote trust among applicants: When applications are sent to candidates for filling out, there is trust among the candidates since they are qualified for the position in question.
D. Basis for final Interview: The application responses serve as the foundation for the questions that will be asked at the final interview.
Candidates who cannot be hired right away are added to the waiting list even if they are deemed to be qualified for the position since the information they gave on the application is utilised to create this list.
4.Test: The organisation administers the test to determine whether to accept or reject candidates. Typically, many organisations offer the applicants questions to learn more about their ability, interests, general knowledge, etc.
Tests may be divided into two categories: Proficiency Tests and Aptitude Tests. Proficiency Tests measure the skills and abilities that the candidate already has, while Aptitude Tests gauge the skills and abilities that the applicant may gain in the future to execute the job.
Types of Tests
The likes, dislikes, and habits of an individual are measured through temperament tests, which are useful in determining whether or not a certain person can acquit himself in a given community.
(b) Achievement tests, also known as performance tests or trade exams, are used to assess an individual’s level of knowledge for carrying out the tasks assigned to them. Sometimes, achievement tests are theoretical in nature, in which case the individual is asked questions and given answers; for instance, an accounting test may assess an accountant’s performance in terms of accuracy and neatness.
It is believed that a person who is interested in a certain sort of job performs better than a person who is not interested in it, hence an interest test, also known as a vocational exam, is used to determine the individual’s interest in having the task allocated to him or her.
The most frequent intelligence tests used for management purposes are group tests, individual tests, self-evaluation tests, self-performance tests, verbal comprehension, fluency, memory, inductive reasoning tests, tests of reasoning, number facility, speed of perception, and similar tests.
(d) Intelligence Test is used to measure the mental ability, capacity, and general awareness of the individual.
(e) Personality tests are used to assess traits such as bravery, initiative, emotion, confidence, reactivity, capacity to get along with others, ability to inspire, general behaviour of the person, joy, leadership, patience, and character dominance.
(f) Situational tests are used to assess candidates’ responses to certain people and situations, as well as their likelihood of succeeding in their jobs under these conditions.
(g) A judgement test is administered to assess a person’s aptitude for using his or her knowledge, intellect, and experience to address situations that are put in front of them.
(h) Efficiency Test, often known as a dexterity test, is designed to determine how fast and effectively a person uses his hands to do the job that has been allocated to him.
Advantges of Testing
(a) Tests assist employers in determining if an applicant is suitable for a position or not.
(b) In addition, examinations assist in verifying a candidate’s claims about his credentials, expertise, etc.
(c)Tests avoid the possibility of a candidate’s personal preference.
(d) This test can be used to establish performance standards for the job.
(e) It is possible to lower labour turnover.
(f) Despite not being chosen, the applicant is happy with the selection process.
(g) Tests lower the cost of placement and selection.
(h) Tests reveal hidden skills, preventing them from being overlooked.
(i) Promotional and transfer tests may be administered.
(j) Administrative costs related to training may be somewhat reduced.
(k) The likelihood of work failure is decreased.
Disadvantages of Test
(a)Tests are employed as an additional way of selection because it is impossible to pick everyone perfectly.
(b) A test is better suited for a company if there are fewer open positions but more applicants.
(c) It is preferable to have an interview rather than the exam if there are few candidates.
(d) The mix of traits needed for different vocations cannot be measured by the test.
(e) Some applicants fail to demonstrate their abilities in exams.
(f)The exam cannot reveal a candidate’s true abilities and it cannot serve as a source of motivation .
According to Felix M. Lopez, “When tests are utilised appropriately, they may assist greatly in selection, notably and most especially in selection for management positions. A test has certain benefits and limits, but it can be said that more accurate selection is feasible via the test. In particular, and most importantly when confirmed by other information, all tests provide hints about a candidate that, when utilised appropriately, may aid significantly in selection and allow the assessor to make reasonably accurate forecasts of work performance. They make assumptions about a candidate’s intellectual prowess, aptitudes, attitudes toward work, or personality dynamics, each of which must be supported or refuted by information gleaned from different facets of the candidate’s history.
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Pre-Requisites of Effective Test
If the management takes the following measures while performing testing, the test’s shortcomings may be avoided:
(a) Validity: A test must properly forecast the requirements for work success in order to be considered valid. A test’s validity is dependent on how well it predicts how well an employee will execute their job.
(b) Reliability: It is the responsibility of the management to take into consideration a test’s reliability, which is defined as receiving the same result from any candidate tested however many times.
(c) Standards: The management should establish the standards for selection; some firms provide minimal marks for selection, while others set cut-off marks; nonetheless, these standards should be predetermined.
(d) No partiality: Management should make sure that tests are legitimate, give test results appropriate weight, and keep personal prejudices to a minimum.
(e) Specialization: Test administration, scoring, and interpretation involve technical expertise and testing-specific training, which should only be handled by qualified individuals.
(f) Supplementary: A candidate cannot be accepted or rejected based solely on how well they perform on the test; rather, the test should be viewed as an additional factor in the selection process, along with the information provided in their application and, if one was conducted, how well they did in the interview.
5. Checking References: Applicants may include the name and address of parent educational institutions and the present employer. The information provided in the applications is checked from these persons. If the referee is a present employer, the applicant’s job performance, salary drawn details, reasons for leaving the job, etc. are checked. References are sometimes requested from applicants, and providing references is the norm in society.
Some management firms do not take much interest in this regard. The prospective employer can gather information about the applicant’s character, conduct, ability, etc., from the referee. The verification of references might give accurate information about the applicant. However, some applicants may give false information regarding experience, past salary drawn, and reasons for leaving the job.
Some applicants have some well-wishers who are believed to be possible references, and no negative response is obtained from those references, despite the fact that many managements do not have a positive impression of the to provide references.
6.Interview: The management chooses a candidate through an interview conducted by one or more individuals who are experts in the interview technique and have in-depth knowledge in their respective fields. The interview allows the employer to assess the candidate with regard to personality, smarts, intelligence, attitude, and other factors.
The final interview is discussed here. The final interview is conducted only for candidates who succeed in the preliminary interview. The candidate should succeed in two stages of the final interview. In the first stage, the personnel department makes a decision on the candidate.
Kinds of Interview
The management conducts a variety of different types of interviews, some of which are succinctly described below:
(a) Direct interview: In this type of interview, applicants are asked direct questions and are expected to respond to them. Face-to-face interaction is the norm during the interview, so in-depth knowledge of the applicant is not typically observed, but skills, character, areas of interest, and attitudes can be inferred to some extent.
The applicant is asked to express his opinions on any topics he chooses, and the interviewer carefully listens to what the applicant says. The applicant has complete freedom of expression, and the interviewer does not interpret the applicant’s views. The management can quickly gauge the applicant’s personality through this type of interview.
(c) Patterned interview: This type of interview uses a set of standard questions that are formulated well in advance and that are to be asked of the applicant. The answers to these questions are discovered while framing the questions and are written near the questions. These are used for a verification purpose when answers are provided by the applicant during the interview.
(d) Stress interview: The interviewer will ask the candidate irritating questions, and if the applicant reacts angrily, the interviewer will determine that the applicant is unsuitable for the position.
(e) Systematic in-depth interview: In this style of interview, the interviewer starts with any of the questions and moves through them one at a time to acquire a comprehensive understanding of the candidates’ abilities and personalities.
(f) Board or panel interview: During this kind of interview, a group of people known as interviewers ask candidates questions about their areas of interest and then assess each candidate’s performance based on the responses they received.
(g) Group interview: Also known as group discussion or house party technique, it involves interviewing multiple candidates at once while presenting a common subject to the group. One group typically has six to eight candidates, and each candidate is assigned a number; they are not allowed to use the names of other group members. Candidates are chosen or allotted based on how well they performed in the group discussion.
Principles of Interview
Effective interviewing techniques should be used, and management should adhere to the following guidelines:
The management has to specify the precise goals of an interview.
The management must next plan the steps to be taken in order to accomplish the stated goals.
The interviewers should focus on topics pertinent to the open positions.
Before beginning the interview, the interviewer and interviewee must establish a rapport.
The interviewees are urged to speak freely and without reservation about their opinions or viewpoints.
The interviewer helps the candidates relax if they are feeling anxious or tense.
The interviewer must pay close attention to the candidates’ responses.
Immediately after the conclusion of the interview, the applicant’s performance is evaluated.
Closing the interview by expressing gratitude to the candidates will leave a much better image of the interview and the interviewer.
Process of Interview
For an interview, the following process may be used:
(a)Review of background information: Review of background information is the procedure through which the interviewer gathers facts on the applicant’s biographical information and the position for which he has applied.
(b) Question preparation: The interviewer must prepare questions in the field in which the applicant is interested. The questions are presented by the interviewer in an understandable way, and the answers are obtained from the applicant one at a time. The next question is raised only after receiving a full response to the first question, and the interviewer may raise sub-questions if the situation calls for it.
(c) Making the applicant feel at rest: The interviewer may relieve the applicant’s mental and emotional strain by showing compassion for the applicant throughout the interview and by having a thorough grasp of the application.
All the required amenities and conveniences are provided by the management to put the candidate at ease during the interview, and certain mannerisms like making disruptions by asking too many follow-up questions, raising eyebrows, or otherwise acting oddly regularly are avoided by the interviewer.
The interviewer must adhere to acceptable norms in order to choose an appointment, but the norms must be correct and they must serve as a foundation for choosing a candidate for a suitable person.
(d) Drawing out the best applicant: Some sets of questions are not asked in an interview, so it is a very difficult task to draw the best applicant out of the interview performance.
(e) Interview conclusion: The candidate leaves the room after the interview is finished, and the interviewer immediately evaluates the candidate’s performance. Some interviewers take notes during the interview, which may be used to evaluate the candidate. The next candidate is then invited for an interview.
7.Final selection: Only the needed number of candidates are chosen by management, and their selection must be approved by the appropriate authorities. Candidates are chosen based on their performance in the aforementioned exam and interview.
In selection Process, the personnel department manager chooses the applicant; in large organisations, a separate division known as the personnel department approves it; and the appointment order is promptly given to the applicant. Typically, the applicants are chosen temporarily.
8.Medical examination: Also known as a physical examination, this procedure is used to determine a prospective employee’s physical fitness; many organisations do not follow the process because some jobs do not require it. After the medical examination is complete, a medical certificate is obtained from the doctor, which is then attached to the joining report of the new employee.
9.Placement: Candidates are only placed on probation after completing all necessary procedures. The probation period varies from job to job depending on the nature of the position, but it is generally no longer than two years, with the possibility of an extension to three years in exceptional cases. During this time, new hires are closely monitored before being regularised after successfully completing the probationary period.
10.Orientation: Orientation is the process of giving new employees a quick overview of the organisation, including information about their coworkers, superiors, and subordinates, as well as the location of their workplace and their roles and responsibilities.
The orientation programmer helps the new employee to acquire a knowledge of the organization’s functioning without delay and facilitates the effective performance of a job by the new employee. The orientation programmer is carried out through lectures or films, the new employees are taken around the offices and plant, and they are introduced to the existing employees. Printed literature may also be used to the orientation programmer.
PROMOTION
1. Meaning: Defined as the assignment of a person to a higher position that entails a raise in status, compensation, authority, and responsibility as well as increased job-related knowledge and skills requirements.
Higher roles and important posts are filled by the management via the promotion strategy, which persuades the workers to be loyal to the management. Every employee has the desire to be promoted and is prepared to acquire the extra qualification and experience necessary for the job.
2. Basis for Promotion: The foundation for promotion may be seniority or competence. Seniority refers to the possession of greater competency refers to the performance of a certain work successfully than the other employees.
Senior workers say they have more job experience than others, thus they seek seniority as the foundation for advancement, whereas younger employees and management personnel favour competence. Senior employees prefer seniority over competence for promotion.
If senior employees are not given the opportunity to advance, they are less likely to give their jobs their full attention, which is the opposite of what would happen if competence were the basis for promotion. If competence were the basis for promotion, the younger employees might rule the older ones, just as a son would rule his father.
Senior individuals are not prepared to learn extra knowledge and skills required for the occupations to which they are seeking advancement, hence unfit people may also be eligible for promotion if the management prescribes seniority as the basis for promotion.
Since seniority is the foundation for promotion to a position that does not need much competence and competence is the basis for promotion to a job that demands professional abilities, it is inferred that the same management may use both criteria for promotion.
Qualities of Good Promotion Policy
Any management that practises a promotion policy should adhere to the following standards.
The management’s promotion policy, if it exists, ought to be extensively publicised and carefully observed.
In order for each employee to get comprehensive knowledge and experience, they should work in every position inside the company.
Each job should have a thorough and comprehensive job description, which will inform workers of the skills and background needed for each position.
Every employee receives a promotion via extensive exposure.
Through on-the-job training, vocational training, and other means, employees are allowed to gain credentials and experience.
Line officers suggest and the top management executive approves each and every promotion.
If a promotion is not granted to an employee, that person has the right to express his or her ideas and opinions about the promotion.
An employee who agrees to be promoted is given the position.
The division of labour and management span concepts are used to create the different types of organisations. The expertise and competency of the organization’s officials determine the organization’s success. To obtain the intended outcomes, it is necessary to draw a line of authority among the individuals that work in an organisation.
Furthermore, it entails assigning roles to officers and integrating the activity of all officers to achieve the desired goals. “The difficulty of an organisation is to choose and combine the efforts of personnel with suitable traits in order to generate the desired outcomes,” say Kimball and Kimball.
Internal organisation is often determined by the kind, scope, and size of the firm. The following frequent kinds of organisations have a position in the internal organisational structure.
Organizations may be classified as Line, Military, or Scalar.
Organizational structure that is functional.
Organization of lines and personnel.
The formation of a committee
Project management.
Matrix management.
Organization that is unstructured.
The following is a basic description of the many sorts of organisations:
1. Line Organisation
Line organisation is the most basic and oldest sort of organisation used in businesses. Each department in a line organisation is usually a self-contained entity. A single individual will be in charge of the department’s operations, and he will have complete authority over it.
Certain powers will be granted to line executives, allowing them to make judgments as needed. He informs his subordinates of his choice and commands. Subordinates may then transmit them to people who are directly under them.
Such decision-making power should be delegated from the top to the bottom. Top management executives have more decision-making power than lower-level executives. It’s worth noting that in this sort of company, an executive is separate from other executives at the same level (say departmental heads).
To put it another way, same-level executives do not issue or receive instructions from one another. They do, however, take commands from their immediate superior (general manager) and pass them on to their subordinates.
As a result, it is well understood that the general manager is accountable for all department heads. The board of directors, in turn, is answerable to the general manager. The shareholders, who are the owners, keep the board of directors accountable.
The army follows a similar trend in terms of organisation. As a result, it is known as a military organisation. The chain of authority in this sort of organisation runs vertically from top to bottom. As a result, it’s known as line organisation.
Department chiefs have complete power over their departments.
Each member is aware of who he should receive commands from and who he should give orders to.
This method is incredibly simple to use.
A senior member commands his subordinates directly.
A direct link exists between bosses and subordinates.
Each member understands who is accountable for the achievement of the organization’s goals.
Within the limits of his power, the superior makes choices.
Benefits of Line Organisation
Simplicity: Creating a line organisation is fairly simple. Its employees have no trouble comprehending concepts and relationships with others. Ideals don’t have any complications.
Division of authority and responsibility: Each individual has a clear understanding of his or her sphere of authority. As a result, he understands who he is accountable to when it comes to completing the task. After his responsibility had been set, no one could share it.
Uniformity of command: Uniformity of command states that an individual may only receive commands from one superior. It signifies that a subordinate has just one superior and receives only commands from him.
Quick action: There is an appropriate distribution of power and responsibility, as well as unity of command, in line organisation. As a result, a person may make quick judgments and carry out plans.
Discipline: Authority is delegated from the top to the bottom. Loyalty and discipline among the organization’s personnel may be maintained with relative ease.
Line organisation is cost-effective since it is a single form of organisation.
Coordination: The business activities are divided into categories based on their purpose. Each department is in charge of a certain function, allowing department leaders to coordinate with their subordinates.
At all levels of the organisation, there is a direct interaction between the superior and the subordinate. This will assist in getting to know each other better. This will guarantee direct communication between staff members and boost employee efficiency.
Flexibility: Changes in the organisation may be made quickly to meet changing business circumstances.
Disadvantages of Line Organisation
Lack of specialisation: Each individual is solely accountable for the general display of activity related to his or her department. He won’t be expected to be an expert in every facet of management. He just delivers orders to his subordinates and is not an expert in all parts of the operation.
Overloading: As the scope of operations or the size of the business unit grows, this mechanism transfers work to current executives. As a result, they are unable to adequately lead and manage the efforts of their subordinates.
Lack of initiative: Because top management has the most power, departments will lack the drive to encourage their employees.
When there is the potential for favouritism and nepotism, only one person supervises the actions of the department.
Dictatorial: In a line organisation, a subordinate is expected to follow out the superior’s instructions and commands. He will be punished if he does not comply. This necessitates an authoritarian and aristocratic style to governance. As a result, instead of becoming leaders, managers will become tyrants.
Limited communication: Communication usually travels downhill in normal time, but it seldom flows upwards. Orders, directions, and other forms of downward communication may be used. If upward communication is permitted, management may be aware of employee complaints. Top management, on the other hand, dislikes upward communication. As a consequence, communication is restricted.
Unitary administration: Each department’s operations are overseen by a single executive who is responsible for all of his department’s decisions. As a result, his talents are critical to the department’s success.
Subjective perspective: The availability of authority is greater for superiors than for subordinates. As a result, the superior makes decisions without consulting the subordinates. The superior’s judgments should be followed by the subordinate.
Instability: The success of this sort of organisation is largely dependent on the skill of a few powerful men, and its downfall is almost certainly due to the incapacity of the same individuals.
Lack of coordination: It is difficult to develop coordination among department leaders. The reason for this is because the executive of one department does not value the importance of other departments. As a consequence, there will be a lack of cooperation and team spirit.
Unsuitability for a large-scale company that demands specialisation: This sort of line organisation is not appropriate for a large-scale operation that requires specialisation.
Rather of following a scientific strategy, company operations may be separated according to the manager’s wishes.
The system has no way of rewarding the productive worker and penalising the ineffective one.
Effective people are critical to top management in a line organisation. In practise, finding effective people for small businesses is quite challenging. 15. Managerial planning, research and development, and regulating operations of the organisation take more time and effort than is available.
Suitability
Small company units will benefit from this sort of organisation.
Where the actions are regular or mechanical in character.
If the company’s actions are centred on customer service.
Where a tiny number of people are employed.
The essence of the company activity is straightforward.
A company unit with well-defined operating procedures.
II. Functional Organisation
A single person is in charge of all operations of the respective department in a line organisation. The person in charge here finds it difficult to effectively manage all of the operations. The reason for this is because the individual lacks the necessary ability and training. To get around the drawbacks of line organisation, F.W. Taylor coined the term “functional organisation” to describe a new style of organisation.
Different experts are chosen for various duties done in an organisation under functional organisation. These experts will take care of tasks that are similar to many distinct departments’ activities. Workers get guidance from a variety of professionals via functional organisation.
The professionals are in charge of the oversight. As a result, employees are responsible not just to one expert, but also to the specialist who gives them instructions. This organisation, according to Taylor, is an important part of the scientific management plan. Work should be directed by functions rather than by simple authority.
The necessity for functional organisation stems from the following factors:
I The contemporary and large-scale organization’s complexity;
(ii) a desire to fully use the specialisation; and
(iii) To relieve line managers of the burden of complicated challenges and decision-making.
Characteristics of Functional Organisation
The task is broken down into several functions.
A expert is granted authority to provide commands and instructions related to a certain role.
With regard to his designated region, the functional authority has the right and ability to issue commands along the line.
Only after consulting with the functional authorities in his specialised field does he make a decision.
Executives and supervisors are in charge of carrying out functional authority responsibilities.
F.W. Taylor, the pioneer of scientific management, advocated for a top-down organisation of operations. According to Taylor, a foreman should not be responsible for all of his work’s actions. Instead, he should enlist the help of a team of experts to solve the issues. The diagram below will also assist you in comprehending the functional organisation.
He is a technological specialist, according to the route clerk. He determines the path that each job must take to reach the completion stage.
On the basis of the route set by the route clerk, he is supposed to produce instructions to employees on instruction cards. On a separate card, these instructions are provided.
Time and cost clerk: This clerk establishes the normal time for each job as well as the cost incurred. He instructs the employees to keep track of the time they spend on the job and the real costs they incur in comparison to the normal time and cost.
The gang master expects this worker to inspect the numerous equipment and supplies that have been set aside for employees to complete the task.
Pace Boss: Given the speed of the equipment, he instructs the worker to do the job in the allotted time. Furthermore, the speed boss monitors whether or not each task is accomplished on time.
Inspector: The Inspector inspects each piece of work for quality and certifies it as standard. In reality, the correctness of the job is tested against the specification.
Repair boss: His task begins only after the employees have completed the real work. He is responsible for the maintenance of machinery and other equipment. It signifies that the maintenance of machinery is the duty of the repair supervisor.
Disciplinarian: He is in charge of enforcing the organization’s rules and regulations. He is the organization’s peacemaker. He also double-checks that each task is completed in a methodical and flawless way.
The planning section employs route clerks, directions clerks, and time and cost clerks. The manufacturing part of the organisation houses the gang leader, speed boss, inspector, and repair boss. The disciplinarian is not a member of any section’s staff, but he is in charge of the employees’ behaviour.
Benefits / Advantages of Functional Organisation
The benefit of specialisation is that each task is carried out by an expert in the functional organisation. It contributes to the organization’s efficiency. Each task is meticulously distributed among the personnel.
Application of expert knowledge: The planning and execution functions are separated, and each function is delegated to a line organisation specialist. As a result, the professionals may apply their technical knowledge to practical work.
Workload reduction: Each individual is responsible for just one sort of job. It cuts down on the amount of work they have to do that isn’t required. As a result, the job is of high quality, and the work is under effective management.
Efficiency: Because each person is accountable for their own job, they may focus on the tasks that have been assigned to them. They could ensure that the job was completed to a high standard. 5. Adequate supervision: Each employee is in charge of a certain task. As a result, he will be able to dedicate sufficient time to overseeing the staff.
Line executives are relieved since the instructions are supplied via functional organisation. straight from the professional to the real workforce As a result, the line executive has no issues with the usual tasks.
Collaboration: A single individual could not have complete control over the organization’s employees. As a result, among the organization’s executives, there is the chance of advancement.
Mass production: With the aid of specialisation and standardisation, large-scale manufacturing may be realised.
Economy: In a functional organisation, each expert is accountable for completing a task. Wastage in the manufacturing process may be eliminated, and costs can be significantly lowered.
Flexibility: Any change in the organisation may be implemented with ease.
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Disadvantages of Functional Organisation
Under the functional organisation, a single worker works under the supervision of eight experts. It is quite difficult for a worker to be accountable to everyone. As a consequence, the employees and the expert are at odds.
When a single worker is required to serve many masters, maintaining discipline among the employees is very difficult.
Overspecialization: The organisation may benefit from specialisation, but there may be overlapping authority and split responsibilities as a result.
Ineffective coordination: The scope of a specialist’s authority is not clearly defined. It causes issues when attempting to elicit cooperation from professionals.
Speed of action: When a worker’s control is shared among experts, the employees’ speed of action may be restricted.
Centralization: Eight professionals supervise and direct the work of the workforce. As a result, the personnel are unable to complete the task on their own. This results in the concentration of power.
Lack of accountability: If there is a problem with the work, the management is unable to assign blame. The reason for this is because none of the eight experts are prepared to take on the job. They may assign blame for the work’s poor performance to anybody among them.
Increasing overhead costs: A specialist’s compensation may be more than that of a foreman or supervisor.
Poor management: Because several experts are in charge of the same group of employees, there is no way to assure good worker management.
Suitability
It’s ideal for businesses that do a lot of manufacturing.
III. Line & Staff Organisation
In both the line and functional organisation, there are certain benefits and downsides. A new style of organisation, called line and staff organisation, is being created in order to gain the benefits of both line and functional organisation. The problems of line and functional organisation may be mitigated to some degree using line and staff organisation.
Line officers have the power to make choices and put them into action in order to fulfil the organization’s goals. While framing policies and strategies and making judgments, line officers may be aided by staff officers.
Line officers are unable to gain technical expertise in today’s rapidly evolving industrial environment. For example, in order to make the best judgments about manufacturing, technical expertise is required.
With the assistance of staff officers, this sort of gap may be filled. Staff officers might be professionals in a certain subject. Before making final judgments, the line officers might seek professional opinion from the staff officers. “Staff refers to those parts of the organisation that give guidance and assistance to the line,” says Allen.
The line officers transmit power from the top to the bottom of the organisation, while the staff officers assigned to the different departments advise the departments. The staff officers have no power over anybody else in the organisation. Furthermore, staff officers do not have the authority to force line officers to accept their advise.
Each department is led by a line officer who, with the assistance of staff officers, has complete power over the planning, implementation, and supervision of personnel under his command. There is no link between employees and any department’s staff officials. The line officers are the sole ones who give orders to the employees. As a result, this organisation adheres to the principles of command unity and specialisation.
Types of Staff
Personal staff: A person who efficiently aids another person in the execution of a task is referred to as personal staff. Line officers could not transfer their responsibilities in such a situation. This individual is appointed at the highest level of an organisation. Line officers’ subordinates are not supervised by personal staff officers.
Specialist staff: At all levels of the organisation, specialised staff officers provide support to line officers. With certain limitations, the expert staff officers provide advise. The management has set these conditions.
General Staff Assistants: General staff assistants are a group of people that serve as consultants to high management on a variety of topics. The major function of the general staff is to provide recommendations on the organization’s overarching strategies and policies. They are not, however, experts in any field.
Functions of Staff
The staff officers support the line officers in business activity planning.
The board of directors formulates the company’s policy based on proposals from the staff officers.
The managers may seek advice from the staff officers on personnel selection, ‘training,’ placement, and compensation fixation.
The staff officers provide advice on how to improve the product, how to reduce manufacturing costs, how to increase the company’s revenues, and so on.
The line officers must follow the processes prescribed by the staff officers while implementing policies and programmes.
A department’s staff officers assist the manager in preparing the department’s budget.
Staff officers may be relied upon to resolve administrative issues that line officers face in general.
Line officers in many organisations provide complete cooperation to staff officers and vice versa. This guarantees the organization’s seamless operation. Conflicts between staff officers and line police may emerge under specific situations. The smooth operation of the company is harmed when one officer blames other police for a lapse.
Arguments of Line Officers against Staff Officers
Staff officers only have theoretical academic knowledge and no practical experience.
Staff officers often claim power over line officers outside their field of responsibility.
The staff officers’ advice is often impracticable.
Staff officers promote unproductive ideas since they are not accountable for the outcomes.
Line officers’ paperwork is unduly increased by staff officers.
Staff officers provide advise without taking into account the nature of the firm as a whole.
Staff officers’ thoughts are based only on the goals of the departments to which they are assigned, rather than the overall goals of the company.
Rather than giving advise, staff officers are more interested in becoming line officers of the organisation.
Staff officers blame line officers for the project’s failure, but they are eager to take credit for its success.
Arguments of Staff Officers against Line Officers
The advise supplied by the staff officers is entirely ignored by the line officers.
New ideas are met with scepticism by the line officers.
Line officers do not always heed the advise of staff officers.
Some line officers just dismiss the advise without giving it a second thought.
Some line officers are hesitant to seek help from the staff offices.
The line officers try to persuade management not to give staff officials power to execute new initiatives.
Line officers do not fully use the services of staff officers.
Solution to the Conflict between Line Officers and Staff Officers
The following approaches may help to resolve the issue between line police and staff officers.
Both line police and staff officers should be aware of the nature of their working relationship.
To promote cooperation between line officers and staff officers, a separate staff member should be established.
Staff officers should be encouraged to consult with line officers.
Only competent individuals should be chosen and assigned to positions as staff officers.
If the line officers do not accept the staff officers’ suggestions, the line officers must persuade them.
Both line cops and staff officers might be held accountable for the outcomes.
While it is the responsibility of staff officers to urge line officers to engage in the planned scheme of change, certain line officers may reject it.
Only experienced executives should be promoted to line executive positions.
For the outcomes produced, the staff officers may give entire credit to the line officers.
Remove the uncertainty among line and staff officers about whether new ideas or suggestions will be appropriately implemented.
The line officers may appreciate the staff officers if favourable outcomes are accomplished.
The line officers may be granted a specific privilege to reject or accept the advise of the staff officers.
Benefits Of Line & Staff Organisation
It allows people to operate more efficiently and effectively.
When staff officers focus on the planning role and line officers focus on the implementation function, specialisation is achieved.
It allows the organisation to make good use of the staff officer’s knowledge and guidance.
With the support of competent counsel from staff officers, line officers may make smart judgments.
Without causing any disruption, a new technology or technique may be implemented into the organisation.
If line officers are freed of the responsibility of making decisions, their workload will be lessened to some degree.
Skilled personnel might be assigned to a new set of responsibilities.
It encourages line officers to work more efficiently.
In the line and staff organisation, the idea of unity of command is observed. As a result, the line officers can maintain worker discipline and exert control over them.
Young people are given an excellent chance to get training.
Disadvantages of Line & staff Organisation
If the line officers’ and staff officers’ powers of responsibility are not clearly defined, there may be misunderstanding across the organisation.
When line officers refuse to follow the recommendations of staff officers, it is very difficult to maintain control.
The line officers have the option of rejecting the recommendation without providing any explanation.
Line officers’ power may be underestimated by staff officers. They are superior to the line officers for this reason.
The staff officers are not engaged in the program’s actual execution. As a result, they are not obligated to provide counsel with care and caution.
It necessitates the employment of specialised staff officers in numerous fields. It raises the organization’s administrative costs.
If favourable outcomes are not produced, the staff officers are not liable.
Staff officers do not have the ability to force line officers to accept and follow their recommendations.
Between line cops and staff officers, there is a communication gap. It has a negative impact on their ability to work together.
Line officers and staff officers will have divergent viewpoints, defeating the purpose of specialisation.
Line officers may misunderstand the advice offered by staff officers, resulting in ineffective consequences. Staff officers are often unable to provide clear recommendations to line officers.
Line officers criticise staff officers for poor performance and want to be rewarded for excellent achievements.
Line officers often seek assistance from staff officers not just on major subjects, but also on mundane issues. It weakens the efficacy of line officers’ control.
IV. COMMITTEE ORGANISATION
When two or more people are needed to accomplish the same administrative activity collectively in today’s corporate environment, certain administrative activities cannot be completed by a single person alone. It takes the form of an organization’s committee.
A committee is a group of people to whom certain administrative responsibilities have been delegated and who are expected to provide advice or suggestions. “A committee,” according to Hicks, “is a group of persons who meet on a regular basis to debate or make a decision on a certain issue.”
The top management determines the committee’s tasks, responsibilities, and authority, and the committee is answerable to the management.
The committee, according to Terry, is a “body of individuals chosen or appointed to meet on a regular basis for the purpose of discussing and acting with topics brought before it.”
“Body of individuals assigned or chosen to evaluate, investigate, take action on, and typically report about some topic or business, as by a court, legislative body, or a number of persons,” according to Webster’s New International Dictionary.
“A committee,” according to Haimahh, is “a group of individuals nominated or elected to convene for the purpose of evaluating items allocated to it.”
Types of Committee
1.Advisory committee (or problem-solving committee): This body investigates the issues that have been brought to its attention.
When a committee is asked to address an issue, it should come up with the best answer. The reason for this is because the committee members have a broad range of expertise, give diverse perspectives, and propose solutions to problems.
Before fixing an issue, members of the committee examine it from many perspectives. The committee comes up with a solution after weighing the benefits and drawbacks of the various options.
2.Fact Finding Committee: A fact-finding committee is one that is constituted only for the purpose of gathering information on a certain topic. The management receives a full report with suggestions. In every organisation, this is the most typical committee to organise.
3.Action Committee or Exceutive Committee: This body, sometimes known as the action committee or executive committee, is made up of line officers. This committee has the authority to make decisions and to carry them out. The committee will be in place indefinitely. The finest example of an Action Committee is a company’s Board of Directors.
Functions of a Committee
Collect the relevant information from various sources and organise it in a logical manner.
The information gathered is analysed attentively.
Prepare a thorough report that includes the recommendations for implementation.
Create a performance standard that will be used to evaluate real performance in the future.
If the committee is asked to make a decision, do so.
Organizing the organization’s policies.
Personnel to carry out company activities might be chosen by the committee.
Regularly directing and controlling the officers in order to fulfil the above-mentioned objectives.
Advantages of Committee Organisation
The committee has the ability to make important decisions. When making judgments, committee members might draw on their expertise and knowledge.
The committee avoids making hasty conclusions. In most cases, hasty judgments do not help the organisation to the greatest extent possible. From a long-term perspective, hasty judgments are unworthy.
Members of the committee are urged to take part in the decision-making process. Each committee member may learn about and comprehend the sentiments of individuals in various sectors of the organisation. The committee makes its conclusion in light of these considerations.
The judgments made by the committee will undoubtedly be the finest. “Two heads are better than one,” says an adage.
An officer is encouraged to accept and execute the conclusion without delay after participating in the decision-making process.
Because the committee comprises of members from multiple departments, coordination across departments becomes quite simple. According to Koontz and O’Donnell, “Committee is a good technique for co-ordinating company planning and the implementation of business policies.”
The members of the committee have the ability to carry out the decisions. If an individual makes a decision, the committee may not be able to carry it out. The reason for this is because the committee does not have the power to carry out an individual’s choice.
If a young person is motivated to engage in a committee’s decision-making process, he may get excellent instruction. It’s one way he can make the most of the chance he’s been given.
The committee is usually made up of experts from diverse professions. The committee may then come up with new ideas in the areas of production, sales, customer service, and so on.
Every time a decision is made in an organisation, it should be shared with all personnel. The members of the committee may promptly inform the workers of the committee’s decision. It saves a lot of time when it comes to communicating.
The committee’s conclusion reflects the sentiments, views, and opinions of the majority of the committee members. Only after obtaining the consent of all those involved in the decision-making process is a decision made.
Sometimes, a conclusion is reached after consulting with all of the participants involved in the decision-making process. As a result, the committee makes decisions in a democratic manner.
Even if a person disagrees with the committee’s decision, he may accept it. He will behave in this manner, despite the fact that he will not be forced to accept the choice. It entails the involved individuals’ voluntary acceptance.
Members of the committee are encouraged to freely express their opinions, ideas, and feelings. It will reduce conflicts of interest among the organization’s workers. Wages, salaries, bonuses, social programmes, and other topics may be discussed.
The line executives are involved in the decision-making committee. It prevents line executives from feeling as though they haven’t been consulted when choices are made.
If the committee needs to address an issue, it may do so by following the concept of division of labour. Each committee member may look at the issue from several perspectives at the same time and come up with a viable solution.
When a person has complete authority and responsibility, he is able to make decisions and put them into action. To put it another way, power and responsibility are concentrated. In the committee structure, there is no concentration of power or responsibility. All members of the committee have power and duty in this organisation.
Typically, the committee is made up of members that are interested in the organisation.
Disadvantages of Committee Organisation
The committee is made up of men from diverse areas. Each team member presents his or her own thoughts, opinions, and solutions. As a consequence, making a choice takes longer.
It raises the organization’s administrative costs. Whenever the committee meets to solve an issue or make a decision, expenses are spent.
If there is a lack of mutual cooperation and members do not have faith in the capacity of the other members of the committee, they will fail to function properly and the committee will be disbanded without making any decisions.
Under committee organisation, the secret of the committee’s decision cannot be preserved. The reason for this is because a committee has a significant number of members.
If the choice does not yield positive benefits for the organisation, no one can be held responsible. Each accuses the other of poor decision-making and unfavourable outcomes.
When a decision does not represent the members of the committee’s viewpoints, it may be made on the basis of compromise.
It has been noted that sometimes irrelevant topics are addressed. Within a brief amount of time, a committee should make a conclusion.
Each committee member is asked to share his or her own thoughts. It might lead to a heated debate among the committee members. It does not help the organisation in any way.
Because of their ignorance or the committee members’ dominance, committee members do not exercise their initiative. As a result, the committee’s conclusion does not retain its representative character.
Members of committees that meet regularly may not be able to pay their entire attention to their responsibilities.
As in a democracy, a committee is created to enjoy the rewards. However, in the vast majority of situations, the committee serves as a stooge of the management.
Individually, the committee members are unable to develop their abilities or capabilities. Furthermore, it impairs the committee members’ competence in a variety of other areas.
Recommendations for Efficient Functioning of a Committee
For the effective operation of a committee-type organisation, the following suggestions are made:
Clear objectives: A committee may work well provided the organization’s goals are communicated clearly. The scope of a committee’s job should be clearly defined.
Committee size: The number of members on a committee should not be too huge or tiny. In a committee, only required members should be included. Executive committee members should not serve on more than three committees. A committee should include between 6 and 8 members.
Selection of meetings: Meetings should be chosen carefully since the success of a committee is determined on its members. As a result, while appointing a committee member, management should use extreme caution. When choosing a committee member, consideration should be given to the person’s competence, expertise, and experience.
Committee role: A committee’s power and responsibilities should be clearly defined. If this is the case, the members of a committee will operate in accordance with the rules established by the committee.
The chairman’s role: When choosing a chairman for a committee, extreme caution should be used. The chairman of a committee is sometimes chosen by the members of the committee or recommended by management. The chairman should function as a guy to whom every committee member has easy access, and he should encourage and cooperate with all committee members.
Preparation for a meeting: The committee meeting should be held on a regular basis so that timely decisions and actions may be taken to address management issues. Correct judgments should be made to keep the work flow going. It’s a good idea to gather all of the required facts before making a choice.
Follow-up: All members of a committee should be informed of the meeting minutes. The follow-up process is also carried out to ensure that the choices are properly implemented.
Evaluation: The committee’s performance should be assessed on a regular basis. Certain members of the committee may be added or removed if the necessity arises. The committee’s advantages should outweigh the expenditures paid in order for the committee to operate well.
Subject matter selection: Certain types of topics may only be dealt with by a single person. This sort of topic cannot be brought up in front of the committee for consideration. The committee can only deal with difficult issues.
V. Project Management
Following WWII, the concept of project management was created. The goal of this organisation is to eliminate the flaws that exist in effective organisations. One of the flaws of functional organisation is the time it takes to make choices and the lack of coordination.
Project management is created with the goal of completing a programme or project. After a programme or project is completed, the project organisation is no longer required. In addition to its particular programmes or projects, the project organisation is made up of a core of functional departments. In other words, project management is made up of key functional department heads.
A project organisation is best suited to the completion of a few significant projects. “A project organisation may also be the start of an organisation,” Middleton says. cycle. The initiative might turn into a long-term or ongoing endeavour that leads to the creation of a programme or branch organisation. The latter may then be detached from the parent company and created as a full-fledged product division with its own functional structure.”
Feature of Project Organisation
The effectiveness of a project’s organisation is determined by how well its operations are coordinated.
Each project’s operations are grouped together, resulting in the establishment of a new line of authority.
Each group’s responsibility for their individual initiatives is established, resulting in meaningful control.
Drawbacks of Project Organisation
Professionals are assigned to the project, but there is no guarantee that they will work on it continuously in a project organisation.
There is a lack of adequate communication and criteria for comparing performance in project management, which diminishes motivation and restricts personnel in an organisation.
Under the pressure of upper management, a decision is made in the project organisation, which has grave ramifications.
The top management does not provide complete cooperation for the project organization’s proper functioning, and the top management may be an impediment.
VI. MATRIX ORGANIZATION
Each department in a matrix organisation is given a specific mission, and each department may utilise the organization’s available resources as well as the coordination of other departments.
According to Stanley Davis and Paul Lawrence, a matrix organisation is “any organisation that utilises a multiple command structure, as well as related support systems and an associated organisational culture and behaviour pattern,” and may be used to handle a large number of minor projects.
Conditions for Effective Matrix Organisation
The matrix organisation does not follow the scalar chain of command concept, which requires a project manager to provide his report to several superiors.
There should be an agreement among the management on the power to use the available resources, which includes physical, financial, and human resources.
When managers disagree on how to use existing resources, there should be a shared desire among power holders to confront the disagreements and work to resolve them.
Advantages of Matrix Organisation
Attainment of goals: The matrix organisation combines the advantages of functional, line, and staff organisation to assure the achievement of goals via technical specialisation.
Best resource utilisation: The available resources are employed by the managers for the defined project, while the resources are also used by the managers with full comprehension.
Appropriate structure: Matrix organisation is an appropriate structure for an organisation to adapt to external changes, such as meeting consumer wants according to expectations without impacting the marketing of an existing product in order to survive the competition.
Flexibility: The matrix organisation is a very adaptable organisation, with rules and procedures based on the organization’s experience.
Motivation: If a department is taking too long to complete a project, proper motivation is given to that department.
Personal development: The matrix organisation provides a wonderful opportunity for effective people to be trained and developed.
Demerits of Matrix Organisation
The following are some of the drawbacks or drawbacks of matrix organisation:
Complex relationship: The matrix organisation does not follow the scalar chain of command principle, in which a single person reports to multiple superiors, resulting in fewer opportunities for rapport with their respective superiors.
Influence struggle: A subordinate is ruled by a number of superiors, implying that several authority holders wield power over the subordinate, delaying the project’s completion.
Excessive focus on group decision-making: The department uses available resources to make group choices, and there is no spirit of accommodation and understanding in the matrix organisation, therefore there is a delay in reaching a group decision, which delays the project’s completion.
Arising conflect resolution: The resolution or decision is made in a matrix organisation with too much self-analysis by decision makers, which may cause the decision makers’ or managers’ work to be late in the project’s completion.
Heterogeneous: A matrix organisation is created by deputing skilled professionals from various departments on a temporary basis. It is difficult to coordinate the work of skilled staff members when there is a lack of unity of command in an organisation.
VII. FREE FORM ORGANISATION
In many ways, the Free Form Organization resembles the project and matrix organisations, and it is also known as organic or adhoc (ratio) organisation. It is formed whenever a need arises to form an organisation for the purpose of achieving a specific goal, and it will be dissolved once the goal is achieved.
The establishment of the Free Form Organization is determined by the organization’s external environment; if the external environment has a significant impact on the business, the Free Form Organization will be formed.
In a Free Form Organization, decisions are made without regard to policies or guidelines that have been established in advance. Normally, decisions are made in any organisation by adhering to the organization’s policies, rules, and regulations, which have been established in advance and are followed when making decisions.
When the structure of a Free Form Organization changes, no tasks are assigned to it specifically; nevertheless, tasks are assigned to superiors and subordinates based on their level of experience and competence. As a result, authority is available to the person.
Because the Free Form Organization lacks a formal structure, communication may flow in any direction, including upwards, downwards, and horizontally.
The word “organisation” is derived from the word ‘organism’ which means an organised body with connected interdependent parts sharing common life. When a group of persons working together to achieve a common goal, the problems such as who decides what issues, who does what work and what action should be taken on the basis of certain conditions common life. When a group may arise.
Organisation is a mechanism or structure which helps the activities to be performed effectively. The organisation is established for the purpose of achieving the business structure which helps the activities to be performed be the business objectives, there is a need of objectives. The business objectives may differ from one business to another. Whatever may be the businesss objectives, there is a need of an organisation.
Meaning
Organisation is the detailed arrangement of work and working conditions in order to perform the assigned activities in an effective manner. Organsisation can be compared to a human body.
The human body consists of hands, feet, eyes, ears, nose, fingers, mouth, etc. These parts are performing their work independently and at the same time, one part cannot be a substitute to another. The same compared to a human body.
The human body , can be identified in the organisation also. The organisation consists of different departments. Each department performs its work independently and cannot be a substitute principles to another.
Definition
Haney ” Organisation is a harmonious adjustment of specialised parts for the accomplishment of some common purpose or purposes.”
Mc Farland “An identified group of people contributing their efforts towards the attainment of goals is called an organisation.”
Allen, ”The process of identifying and grouping the work is to be performed, defining, and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.”
Mooney and Reily, “Organisation is the form of every human association for the attainment of a common purpose.”
Chester Bernard, “A system of co-operative activities of two or more persons is called organisation.”
R.C. Davis, “Any group of people, large or small, which has been implemented adequately and is co-operating willingly under the direction of competent executive leadership in an effective, economical accomplishment of certain common objective.”
G.R. Terry, “Organising is the establishing of effective beha-vioural relationships among persons so that they may work together effectively and gain personal satisfaction in doing selected tasks under given environmental conditions for the purpose of achieving some goal or objective.”
Koontz O’Donnel, “Organising involves the establishment of an international structure of roles through determination and enumeration of the activities required to achieve the goals of an enterprise and each part of it; the grouping of these activities, the assignment of such groups of activities to the manager, the delegation of authority to carry them out and provision for co-ordination of authority and informational relationship, horizontally and vertically, in the organisation structure.”
Louis Al Allen, “Organisation is that process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.”
Oliver Sheldon, “Organisation is the process of so combining the work which the individual or groups have to perform with the facilities necessary for its creation that the duties so performed provide the best channels for the efficient, systematic, positive and coordinated application of the available efforts.”
Spriegel, “In its broadest sense, organisation refers to the relationship between the various factors present in a given endeavour. Factory organisation concerns itself primarily with the internal relationships within the factory such as responsibilities of personnel arrangement and grouping of machines and material control. From the stand-point of the enterprise as a whole, organisation is the structural relationship between the various factors in an enterprise.”
Wheeler, “Internal organisation is the structural framework of duties and responsibilities required to personnel in performing various functions within the company. It is essentially a blue print for action resulting in a mechanism for carrying out the function to achieve the goals set up by the company management.”
From the above definitions, it is understood that the functions of organisation includes determination of activities, grouping of activities, allotment of duties to specified persons, delegation of authority, defining relationships and the co-ordination of various activities.
1. Determination of activities: It includes the deciding and division of various activities required to achieve the objectives of the organisation. The entire work is divided into various parts and again each part is sub-divided into various sub-parts. For example, the purchase work may be divided into requisition of items, placing of an order, storage and so on.
2. Grouping of activities: The next function of organisation is that the identical activities are grouped under one individual or a department. The activities of sales such as canvassing, advertisements and debt collection activities are grouped under one department i.e., sales department.
3. Allotment of duties to specified persons: In order to ensure effective performance, the grouped activities are allotted to specified persons. In other words, the purchasing activities are assigned to the Purchase Manager; the production activities are assigned to Production Manager; the sales activities are assigned to Sales Manager and the like. Besides, adequate staff members are appointed under the specified persons. The specified persons are specialised in their respective fields. If there is any need, appropriate training would be provided to such persons.
4. Delegation of authority: Assignment of duties or allotment of duties to specified persons is followed by delegation of authority. It will be very difficult for a person to perform the duties effectively, if there is no authority to do it.
While delegating a authority, responsibilities are also fixed. Thus, the Production Manager may be delegated with the authoriy to produce the goods and fixed with the responsibility of producing quality goods.
5. Defining relationship: When a group of persons is working together for a common goal, it becomes necessary to define the relationship among them in clear terms. If it is he is answerable.
In another sense, each boss should know what authority he has and over each person will know who is his boss, from whom he has to receive orders and to whom which person.
6 Co-ordination of various activities: The delegated authority and responsibility should be co-ordinated by the Chief Managerial Staff. The reason is that there must be a separate and responsible person to see whether all the activities are going on to accomplish the objectives of the organisation or not.
Principles of Organisation
The work can be completed in time whenever a technique or principle is adopted. So, the success or failure of an organisation depends upon the principles to be followed in the organisation. Some experts like Taylor, Fayol and Urwick have given the principles of organisation. They are briefly discussed below:
1. Principle of definition: It is necessary to define and fix the duties, responsibilities and authority of each worker. In addition to that the organisational relationship of each worker with others should be clearly defined in the organisational set up.
2. Principle of objective: The activities at all levels of should be geared to achieve the main objectives of the organisation. The activities of the different departments or sections may be different in nature and in approach, but these should be concentrated only for achieving the main objectives.
3. Principle of specialisation or division of work: Division means that or sections. waste the entire activities of the organi-sation are suitably grouped into departments.
The departments or sections may be further divided into several such units so as to ensure maximum efficiency. This will help to fix up the right man to the right job and reduce of time and resources.
The work is assigned to each person according to his educational qualification, experience, skill and interests. He should be mentally and physically fit for performing the work assigned to him. The required training may be provided to the needy persons. It will result in attaining specialisation in a particular work or area.
4. Principle of co-ordination: The objectives of the organisation may be achieved quickly whenever co-ordination exists among the workers. At the same time each work can be done effectively by having co-ordination. The final objective of all organisations is to get smooth and effective co-ordination.
5. Principle of authority: When many persons are working together in one place there will be a difference of power and authority. Of these persons, some will rule and others will be ruled. Normally, maximum powers are vested with the top executives of the organisation.
These senior members should delegate their authorities to their subordinates on the basis of their ability. In certain cases, the subordinates are motivated through the delegation of authority and they perform the work efficiently with responsibility.
6. Principle of responsibility: Each person is responsible for the work completed by him. Authority is delegated from the top level to the bottom level of the organisation. Bu the responsibility can be delegated to some extent.
While delegating the authority, there is no need of delegation of responsibility. So, the responsibility of the junior staff members should be clearly defined.
7. Principle of explanation: While allocating duties to the persons, the extent of liabilities of the person would be clearly explained to the concerned person. It will enable the person to accept the authority and discharge his duties.
8. Principle of efficiency: Each work can be completed efficiently wherever the climate or the organisational structure facilitates the completion of work. The work should be completed with minimum members, in less time, with minimum resources and within the right time.
9. Principle of uniformity: The organisation should make the work distribution in such a manner that there should be an equal status and equal authority and powers among the same line officers. It will avoid the problems of dual subordination or conflicts in the organisational set up. Besides, it increases co-ordination among the officers.
10. Principle of correspondence: Authority and responsibility should be in parity with each other. If it is not so, the work cannot be effectively discharged by any officers, whatever his ability may be.
At the same time, if authority alone is delegated without responsibility, the authority may be misused. In another sense, if responsibility is delegated without the authority, it is a dangerous one.
11. Principle of unity of command: This is also sometimes called the principle of responsibility. The organisational set up should be arranged in such a way that a subordinate should receive the instruction or direction from one authority or boss. If there is no unity of command in any organisational set up, the subordinate may neglect his duties.
It will result in the non completion of any work. In the absence of unity of command, there is no guidance available to the subordinates and there is no controlling power for the top executives of the organisation. Further, some subordinates will have to do more work and some others will not do any work at all.
12. Principle of balance: There are several units functioning separately under one organisational set up. The work of one unit might have been commenced after the completion of the work by another unit. So, it is essential that the sequence of work should be arranged scientifically.
13. Principle of equilibirum balance: The expansion of business activities require some changes in the organisation. In certain periods, some sections or departments are overloaded and some departments are under loaded.
During this period, due weightage should be given on the basis of the new work load. The overloaded sections or departments can be further divided into sub sections or sub-departments. It would entail in the effective control over all the organisational activities.
14. Principle of continuity: It is essential that there should be a re-operation of objectives, re-adjustment of plants and provision of opportunities for the development of future management. This process is taken over by every organisation periodically.
15. Principle of span of control: This is also called span of management or span of supervision or levels of organisation. This principle is based on the principle of relationship. Span of control refers to the maximum number of members effectively supervised by a single individual.
The number of members may be increased or decreased according to the nature of work done by the subordinate or the ability of the supervisor. In the administration,area, under one executive, nearly four or five subordinates may work.
In the lower level the factory level, under one supervision, the twenty or twenty five number of workers work. The span of control enables the smooth functioning of the organisation.
16. Principle of leadership facilitation: The organisational set up may be arranged in such a way that the persons with leadership qualities are appointed in key positions. The leadership qualities are honesty, devotion, enthusiasm and inspiration.
17. Principle of exception: The junior officers are disturbed by the seniors only when the work is not done according to the plans laid down. It automatically reduces the work of middle level officers and top level officers.
So, the top level officers may use the time gained by reduction in workload for framing the policies and chalking out the plans of organisation.
18. Principle of flexibility: The organisational set up should be flexible to adjust to the changing environment of business. The organisation should avoid the complicated procedures and permit an expansion or contraction of business activities.
19. The scalar principle: This is also called chain of command or line of authority. Normally, the line of authority flows from the top level to bottom level. It also establishes the line of communication. Each and every person should know who is his superior and to whom he is answerable.
20. Principle of simplicity and homogeneity: The organisation structure should be simple. It is necessary to understand a person who is working in the same organisation. If the organisation structure becomes a complex one, junior officers do not undestand the level and the extent of responsibility for a particular activity.
The simplicity of the organisational structure enables the staff members to maintain equality and homogeneity. If equality and homogeneity are maintained in one organisation, it is possible to determine whether the staff members discharge their duties to realise the objective of the organisation.
21. Principle of Unity of Direction: This is also called the principle of co-ordination. The major plan is divided into sub-plans in a good organisational set up. Each sub-plan is taken up by a particular group or department. All the groups or departments are requested to co-operate to attain the main objectives or in implementing major plan of the organisation.
22. Principle of joint decisions: In the business organisation, there are number of decisions taken by the officers to run the business. If a complicated problem arises more than one member examines the problems and takes the decisions.
Whenever the decision is taken jointly, the decision gives the benefit for a long period and the decision is based on various aspects of the organisational set up.
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Nature or Characteristics of Organisation
Organisation is the pioneering step of the management. The functions of management are sitting over the strong organisational set up. A palace may be constructed only when a very strong foundation is laid.
The same principle is followed here. Organisation is the foundation of management. Without organisation, the functions of management such as planning, organising, staffing, directing, co-ordinating and controlling cannot succeed.
Organisation supplies the human and material resources and helps to achieve the objectives of business. The organisation provides the means or techniques with strong efforts for more production and effective completion of the work. Organisation increases the certainity and promptness in the completion of work by assigning fixed duties to every person.
Whenever the duties are fixed, it automatically develops team spirit towards the realisation of common goals. Initially, the total work of the enterprise can be divided into various parts and then linked with all the parts as and when the need arises to achieve main objectives.
The connection of various parts of the organisation is given by the authority relationship of organisational structure. The relationship may operate upward, downward, and sidewise of the organisation.
1. Division of labour: The total work can be divided into many parts for effective performance of the work. Each part of work may be completed by one person or a group of persons. But, all the parts of the work are done with the aim to achieve the main objective of the organisation. The work is assigned to a person who is specialised in that particular work.
If there is a proper division of labour, no person will be allowed to do anything according to his own way unless and otherwise he is not well equipped. The division of labour results in the creation of specialised persons because a person does the same work again and again.
No waste of time, energy and resources are some of the advantages of division of labour. In addition to this, the division of labour results in the increase of quality output and quantity of product without any additional capital.
2. Co-ordination: Different persons are assigned different works in one organisation. But, all the works are performed to achieve the objectives. It implies that there is a need of co-ordination among the workers in an organisation. Each and every department or section of the organisation should have relationship with each other, to get mutual co-operation.
3. Objectives: The objectives of the organisation should be defined clearly. The objectives cannot be achieved without the existence of a good organisational structure. In turn, the organisation cannot exist without objectives for a long period.
4. Authority-responsibility structure: An organisation means an arrangement of position of executives by adopting a rank system. In other words, a subordinate has one boss and a superior has control over the subordinate specifically. The position of each of the executives is defined with regard to the extent of authority and responsibility vested in him to discharge the duties.
5. Communication: Every organisation has its own communication system and the methods. The success of management depends upon the effective system of communication. The reason is that each and every person working in an organisation should know the techniques of communication and the importance of communication. The channels of communication may be divided into formal, informal, downward and upward or horizontal.
Importance / Advantages of Organisation
Organisation creates the relationship between top level executives and lower level staff members. The top level executives perform the functions, like planning, organising, staffing, directing, controlling the lower level people. The actual work is completed at lower level of the organisation. In this way, the organisation maintains the relationship with each other in an enterprise.
1. Facilatate administration: Administration aims at earning the highest profit by utilising the available resources properly. There is a planning, policy making, direction and co-ordination in the administration level to achieve the objectives.
Besides, the administration classifies the activities of the business department-wise and appoints the officers, assistants, supervisors, executives to facilitate the achievement of objectives.
There should be an effective administration to achieve the allocation of duties and responsibilities, absence of co-ordination, communication gap, Duplication of work, wrong planning, inefficient personal, lack of motivation, improper improper instructions are the ingredients of ineffective administration. This ineffective administration can be removed by having a sound organisation.
Allen observes that “A properly designed and balanced organisation facilitates both management and operation of the enterprise. Inadequate organisation may not only discourage but also actually preclude effective administration”.
2. Increases the efficiency of management: Under good organisation, there is a chance of exhausting the worker’s ability in full and utilisation of resources Confusion, delay and duplication of work are avoided in good organisation. It automatically motivates the employees who are working in an organisation and increases the efficiency of management.
3. Facilitates growth and diversification: The structure of the company depends upon the structure of the organisation. The structure of the company can be changed whenever the growth and expansion activities are carried out. The growth of business means an increase in the scale of operation and diversification means starting of production of a new type of products.
Changes in the organisation may result in the appointment of additional staff members, de-centralisation of authority and responsibility, raising of additional capital, identification of the consumer’s satisfaction and preferences, expansion of sales promotion activities and the like.
4. Ensures optimum utilisation of material resources and human efforts: Division of work and specialisation are the tools used to achieve the objective of optimum utilisation of material, resources and human efforts. Right man, right time and the right job can also be applied to them. Good organisation increases the efforts of the employees and the working facilities.
5. Adoption of new technology: The effectiveness of an enterprise is measured by the reaction of staff members to the adopting of a new technology. In the scientific world, there is a lot of innovations and inventions identified in the area of production, distribution and personnel management.
If the new technology is adopted by the enterprise, the maximum benefits can be obtained in any field or activity. A flexible organisational structure is needed to adopt a new technology.
6. Places proportionate importance to the various activities of the enterprise: Organisation classifies the entire business activities into departments. Each department is receiving attention according to its importance it has in the achievement of business objectives.
Money and efforts are spent in proportion to the contribution made by each and every department. It does not mean that less important department activities are neglected. It means that due importance is given to each department according to its contribution towards the achievement of the objectives.
7. Encourages creativity and initiative: A sound organisational structure will give an opportunity for the staff to show their hidden talents which will help the enterprise to achieve the business goals and earn higher profits.
Clear distribution of authority and responsibility, incentives offered for specialised work and freedom given to personal work, increases the spirit of constructive and creative approach in management.
8. Facilitates co-ordination: The activities of different departments are grouped together to achieve the business objectives. Each department performs its own function in a closely related manner and not as competitors.
9. Facilitates training and development of managerial personnel: A sound organisational provides training to new staff members before placement and give refresher training to the existing staff members to improve their efficiency.
The training may be given within the company or outside the company according to the training facilitates available. Now-a-days training institutes give training to the needy persons with the help of the different experts from various fields. These training institutes are collecting data directly from the field used in the training.
10. Prevents the growth of secret, influence and corruption: Sound organisation develops the morale, honesty, devotion to duty and loyalty of business organisations. Normally, these help remove corruption, secret and influence. Only an unsound organisation develops secret, influence and corruption.
CLASSIFICATION OF ORGANISATION
The organisation can be classified on the basis of authority and responsibility assigned to the personnel and the relationship with each other. In this way, an organisation can be either formal or informal.
Formal Organisation
The formal organisation represents the classification of activities within the enterprise, indicates who reports to whom and explains the vertical journal of communication which connects the chief executive to the ordinary workers. In other words, an organisational structure clearly defines the duties, responsibilities, authority and relationships as prescribed by the top management.
In an organisation, each and every person is assigned the duties and given the required amount of authority and responsibility to carry out this job. It creates the co-ordination of activities of every person to achieve the common objectives. It indirectly induces the worker to work most efficiently. The inter-relationship of staff members can be shown in the organisation chart and manuals under formal organisation.
Characteristics of Formal Organisation
The important characteristics of a formal organisation are given below:
1. It is properly planned.
2. It is based on delegated authority.
3. It is deliberately impersonal.
4. The responsibility and accountability at all levels of organisation should be clearly defined.
5. Organisational charts are usually drawn.
6. Unity of command is normally maintained.
7. It provides for division of labour.
Advantages of Formal Organisation
1. The definite boundaries of each worker is clearly fixed. It automatically reduces conflict among the workers. The entire building is kept under control.
2. Overlapping of responsibility is easily avoided. The gaps between the responsibilities of the employees are filled up.
3. Buck passing is very difficult under the formal organisation. Normally exact standards of performance are established under formal organisation. It results in the motivating of employees.
4. A sense of security arises from classification of the task.
5. There is no chance for favouritism in evaluation and placement of the employee. 6. It makes the organisation less dependent on one man.
Keith Davis observes that formal organisation is and should be our paramount organisation type as a general rule. It is the pinnacle of man’s achievement in a disorganised society. It is man’s orderly, conscious and intelligent creation for human benefit.
Arguments against Formal Organsiation
1. In certain cases, the formal organisation may reduce the spirit of initiative.
2. Sometimes authority is used for the sake of convenience of the employee without considering the need for using the authority.
3. It does not consider the sentiments and values of the employees in the social organisation.
4. The formal organisation may reduce the speed of informal communication.
5. It creates the problems of coordination.
Informal Organisation
Informal organisation is an organisational structure which establishes the relationship on the basis of the likes and dislikes of officers without considering the rules, regulations and procedures.
These types of relationships are not recognised by officers but only felt. The friendship, mutual understanding and confidence are some of the reasons for existing informal organisation. For example, a salesman receives orders or instructions directly from the sales manager instead of his supervisors.
The informal organisation relationship exists under the formal organisation also. The informal organisation relationship or informal relations give a greater job satisfaction and result in maximum production.
According to C.J. Bernard, “Informal organisation brings cohesiveness to formal organisation. It brings to the members of a formal organisation a feeling of belonging, status of self respect and gregarious satisfaction. Informal organisations are important means of maintaining the personality of the individual against certain effects of formal organisation which tend to disintegrate personality.”
Characteristics of Informal Organisation
1. Informal organisation arises without any external cause i.e., voluntarily.
2. It is a social structure formed to meet personal needs.
3. Informal organisation has no place in the organisation chart.
4. It acts as an agency of social control.
5. Informal organisation can be found on all levels of organisation within the managerial hierarchy.
6. The rules and traditions of informal organisation are not written but are commonly followed.
7. Informal organisation develops from habits, conduct, customs and behaviour of social groups.
8. Informal organisation is one of the parts of total organisation.
9. There is no structure and definiteness to the informal organisation.
Advantages of Formal Organisation
1. It fills up the gaps and deficiency of the formal organisation.
2. Informal organisation gives satisfaction to the workers and maintains the stability of the work.
3. It is a useful channel of communication.
4. The presence of informal organisation encourages the executives to plan the work correctly and act accordingly.
5. The informal organisation also fills up the gaps among the abilities of the managers.
Disadvantages of Informal Organisation
1. It has the nature of upsetting the morality of the workers.
2. It acts according to mob psychology.
3. Informal organisation indirectly reduces the efforts of management to promote greater productivity.
4. It spreads rumour among the workers regarding the functioning of the organisation unnecessarily.
DIFFERENCE BETWEEN FORMAL AND INFORMAL ORGANISATION
Formal Organisation
Informal Organisation
1
It arises due to delegation of authoriy.
It arises due to social interaction of people.
2
It gives importance to terms of authority and functions.
It gives importance to people and their relationships.
3
It is created deliberately.
It is spontaneous and natural.
4
The formal authority is attached to a position.
The informal authority is attached to a person.
5
Rules, duties and responsi-bilities of workers are given in writing.
No such written rules and duties followed in informal organisation.
6
Formal organisation comes from outsiders who are superior in the line of organisation.
Informal organisation comes from those persons who are objects of its control.
7
Formal authority flows from upwards to downwards.
Informal authority flows upwards to downwards from or horizontally.
8
Formal organisation may grow to maximum size.
Informal organisation tends to remain smaller.
9
It is created for technological purposes.
It arises from man’s quest for social satisfaction.
10
Formal organisation is per-manent and stable.
There is no such permanent nature and stability.
THEORIES OF ORGANISATION
Organisation theory means the study of the structure, functioning and performance of organisation and the behaviour of individual and groups within it.
The various theories of organisation are given below:
1. Classical theory.
2. Neo-classical theory.
3. Modern theory.
4. Motivation theory.
5. Decision theory.
1. CLASSICAL THEORY
The classical theory mainly deals with each and every part of a formal organisationThe classical theory was found by the father of scientific management, Frederick W.TaylorNext, a systematic approach to the organisation was made by Monney and Reicey.
The classical theory is based on the following four principles:
A. Division of Labour
B. Scalar and functional processes
C. Structure, and
D. Span of control
A. Division of labour: This theory fully depends upon the principle of division of labour. Under the division of labour, the production of a commodity is divided into the maximum number of different divisions. The work of each division is looked after by different persons.
Each person is specialised in a particular work. In other words, the work is assigned to a person according to his specialisation and the interest he has in the work. The division of labour results in the maximum production or output with minimum expenses incurred and minimum capital employed.
B. Scalar and functional processes: The Scalar process deals with the growth of organisation vertically. The functional process deals with the growth of organisation horizontally. The scalar principles refer to the existence of relationship between superior and subordinate.
In this way, the superior gives instructions or orders to the subordinates (various levels of management) and gets back the information from the subordinate regarding the operations carried down at different levels or stages. This information is used for the purpose of taking decision or remedial action to achieve the main objectives of the business.
The Scalar chain means the success of domination by the superior on the subordinate from the top to the bottom of organisation. The line of authority is based on the principle of unity of command which means that each subordinate does work under one superior only.
C. Structure: The organisational structure may be defined as the prescribed patterns of work related behaviour of workers which result in the accomplishment of organisational objectives. The organisational structure is used as a tool for creating a relationship among the various functions which make up the organisation.
Specialisation and co-ordination are the main issues in the design of an organisational structure. The term specialisation includes the division of labour and the usage of special machines, tools and equipments.
Specialisation is obtained when a person is requested to do a single work and it results in the increase in productivity. The facilities or advantages of suitable training, easy allocation of work, job scheduling and effective control are also obtained from specialisation.
Co-ordination means an orderly performance in operations to achieve organisational objectives. Normally, the business units are organised on a functional basis. The functions performed by different persons of different nature. It is also necessary to co-ordinate the various functions to achieve the main objectives and at the same time a function does not I conflict with any other function. are
D. Span of control: Span of control means an effective supervision of maximum number of persons by a supervisor. According to Brech, “Span refers to the number of persons, themselves carrying managerial and supervisory responsibilities, for whom the senior manager retains his over-embracing responsibility of direction and planning, co-ordination, motivation and control.”
From the above discussion, we can know that the classical theory emphasised unity of command and principle of co-ordination. Most of the managers’ time is wasted in the coordination and control of the subordinates. In many organisations, a single supervisor supervises the work of 15-20 workers and does not follow the principle of span of control.
Some of the experts hold that a manager can supervise 4-8 members at higher levels and between 8-20 members at the lower levels of the organisation. But according to Lyndall Urwick, a maximum of 4 members at higher levels and between 8-12 members at lower levels can be supervised by the superior to constitute an ideal span of control.
Characteristics of Classical Theory
1. It is based on division of labour.
2. It is based on objectives and tasks of organisation.
3. It is concerned with formal organisation.
4. It believes in human behaviour of the employees
5. It is based on co-ordination of efforts.
6. Division of labour has to be balanced by unity of command.
7. It fixes a responsibility and accountability for work completion. 8. It is centralised.
Criticisms of Classical Theory
1. This theory is based on authoritarian approach.
2. It does not care about the human element in an organisation.
3. It does not give two way communication.
4. It underestimates the influence of outside factors on individual behaviour.
5. This theory neglected the importance of informal groups.
6. The individual is getting importance at the expense of the group.
7. It also ignores the influence of outside factors on individual behaviour.
8. The generalisations of the classical theories have not been tested by strict scientific methods.
9. The motivational assumptions underlying the theories are incomplete and consequently inaccurate.
2. NEO-CLASSICAL THEORY
This theory is developed to fill up the gaps and deficiencies in the classical theory. It is concerned with human relations movement. In this way, the study of organisation is based on human behaviour such as how people behave and why they do so in a particular situation. The neo-classical scholars used classical theory as the basis for their study and modified some of the principles for the study. The neo-classicals have only given new insights rather than new techniques.
The scholars also pointed out the practical difficulties of the working of scalar and functional processes. The main contribution of this theory highlights the importance of the committee management and better communication. Besides, this theory emphasised that the workers should be encouraged and motivated to evince active participation in the production process. The feelings and sentiments of the workers should be taken into account and respected before any change is introduced in the organisation.
The classical theory was production-oriented while neo-classical theory was people-oriented.
Contributions of Neo-Classical Theory
1. Person should be the basis of an organisation.
2. Organisation should be viewed as a total unity.
3. Individual goals and organisation goals should be integrated.
4. Communication should be moved from bottom to top and from top to bottom.
5. People should be allowed to participate in fixing work standards and decisionmaking.
6. The employee should be given more power, responsibility, authority and control.
7. Members usually belong to formal and informal groups and interact with others within each group or sub-group.
8. The management should recognise the existence of informal organisation.
9. The members of sub-groups are attached with common objectives.
Criticism of Neo-Classical Theory
A survey conducted by American Management Association (AMA) indicates that most the companies reported found little or nothing useful in behavioural theory. According Ernest Dale, “neither classical theory nor neo-classical theory provides clear guidelines the actual structuring of jobs and provision for co-ordination.”
3. MODERN THEORY
The other name of Modern Theory is Modern Organisation Theory. According to one authority, it was organised in the early 1950s. This theory composed of the ideas of different approaches to management development. The approach is fully based on empirical research data and has an integrating nature. The approach reflects the formal and informal structures of the organisation and due weightage is given to the status and roles of peronnel in an organisation.
Like the general system theory, modern organisation theory studies:
1. The parts (individual) in aggregates and the movement of individuals and out of the system.
2. The interaction of individual with the environment found in the system.
3. The interaction among individual in the system.
Essentials of Modern Theory
1. It views the organisations as a whole.
2. It is based on systems analysis.
3. The findings of this theory are based on empirical research.
4. It is integrating in nature.
5. It gives importance to inter-disciplinary approach to organisational analysis.
6. It concentrates on both quantitatives and behavioural sciences.
7. It is not a unified body of knowledge.
Criticism of Modern Theory
1. This theory puts old wine into a new pot.
2. It does not represent a unified body of knowledge. There is nothing new in this theory bacause it is based on past empirical studies.
3. This theory forms only the questions and not the answers.
4. It is based on behavioural, social and mathematical theories. These are management theories in themselves.
4. MOTIVATION THEORY
It is concerned with the study or work motivation of employees of the organisation. The works are performed effectively if proper motivation is given to the employees.
The motivation may be in monetary and non-monetary terms. The inner talents of any person can be identified after giving adequate motivation to employees. Maslow’s hierarchy of needs theory and Honberg’s two factor theory are some of the examples of motivation theory.
5. DECISION THEORY
The other name of decision theory is decision making theory. This theory was given by Herbert. A. Simon. He was awarded Nobel Prize in the year of 1978 for this theory. He regarded organisation as a structure of decision makers. The decisions were taken at all levels of the organisation and important decisions (policy decisions) are taken at the higher levels of organisation.
Simon suggested that the organisational structure be designed through an examination of the points at which decisions must be made and the persons from whom information is required if decisions should be satisfactory.
Span of control, Span of supervision, Span of authority and Span of responsibility other names for Span of management. It indicates the number of people directly managed effectively by a single person. It is accepted that the large number of subordinates cannot of members is too large, it will be difficult to manage the persons and perform the work be supervised and their efforts co-ordinated effectively by a single executive. If the number of members is too large, it will be difficult to manage the persons and perform the work effectively. A sound organisation depends upon the effective performance of work by the executive. So, the executive should neither be overloaded nor be idle.
MEANING
Span of management means the number of people managed efficiently by a single officer in an organisation.
It implies that a single executive should not be expected to give guidance to more people. Only limited number of persons are allocated to the executive for dividing the work or duties among the workers. In order to avoid overburden to the officers, it is essential to determine the span of control of the executive officers. In an average firm, an executive can efficiently control upto five or six sub-ordinates. The limit of the number of members for span of control may be increased or decreased according to the levels of management. Normally the members exercising span of control are decreased at the top level management and increased at the bottom level management.
Many management experts suggested a different number of executives for effective control. According to L. Urwick, the ideal number of subordinates is four in case of higher level management and eight to twelve in case of bottom level management.
1. Character of the supervision work: The span of control may be increased whenever the work is performed and standardised. The reason is that, the supervisor has the opportunity to lay down permanent policies followed in an organisation. It results in the control of more number of subordinates. If the nature of work is a complicated one, the span of control has to be restricted.
2. Leadership qualities: The personnal abilities and capacity of a supervisor can influence the span of management. If the supervisor has more skill to control the subordinates, the span of management may be increased and vice-versa.
3. Qualities of the subordinate: If the subordinates have enough talent to perform the work assigned to them, the manager or the supervisor can control more number of subordinates.
4. Time available to supervisor: Most of the executives or supervisors will spend a lot of time for the operating work and administrative duties like planning and organising activities. They may supervise the subordinates in the remaining available time.
So, they can control lesser number of sub-ordinates than the person who spends full time for their supervision.
5. Nature of work: Some of the works are repetitive in nature and does not require any extra-ordinary talent to perform. In such cases, the supervisor or the executive can control a large number of subordinates.
6. Level of supervision: Whenever the subordinates perform the work manually, the span of control may be increased. It means that the degree of span of control can be increased at bottom level management and decreased at the top level management.
7. Delegation of authority: If the authority delegates the powers of decision making, planning and execution to the sub-ordinates, the span of control may be increased. Whenever an executive performs the planning and executive work in addition to supervision work, the particular executive can supervise relatively more number of sub-ordinates.
8. Fixation of responsibility: In case the responsibility of the sub-ordinate is clearly defined, he need not contact the superior for getting guidance and instruction. Then the superior can supervise large number of sub-ordinates.
9.Using of standards: Standards are used in an organisation to detect the errors or faults in the performance of work. So, there is no need for an executive to spend in watching the performance of the sub-ordinates. Then the executive can control more more time number of sub-ordinates.
10. Methods of communication: Method of communication is also one of the factors which determine the span of control. The method of communication may be divided into two i.e., Oral and Written. Oral communication requires more time and energy and these can be avoided in the written communication.
GRAICUNA’S THEORY OF SPAN OF MANAGEMENT
A management expert named V.A. Graicunas contributed much to the Span of Management Theory. His theory identified the relationship prevailing between the superior and the subordinates. The relationships are classified into three categories. They are given below:
1. Direct single relationships.
2. Direct group relationships.
3. Cross relationships.
The explanations of the above mentioned three relationships are given below:
1. Direct single relationship: Direct Single Relationship is one in which a supervisor has direct relationship with his subordinates individually. If A super-vises B and C who are subordinates, there are two direct single relationships.
2. Direct group relationships: In Direct Group Relationship, a supervisor has direct relationship with his subordinates jointly.
3. Cross relationship: In Cross Relationship, a subordinate has relationship with another subordinate mutually.
The number of direct and cross relationships increased geometrically as the number of sub-ordinates under the supervisor increased.
Formula
V.A. Graicunas prescribed the following formula to ascertain the number of superiors’and subordinates’ relationship.
Number of relationships = n(2n/2+n-1)
Where, “n” refers to the number of subordinates.
For example, the number of subordinates, say 5, the number of superiors’ and subordinates’ relationships are identified as under:
n = 5
Formula = n 2n/2+(n-1)
=5 x (2 x 2 x 2 x 2 x 2)/2 + (5-1)
= 5 x 32/2 + 4
= 5 x 16/4
= 5 x 20
= 100
The number of relationships increases in geometrical progression as shown in the following table.
Number of Sub-ordinates
Number of Relationships
1
1
2
6
3
18
4
44
5
100
6
222
7
490
8
1080
9
2376
10
5210
The effective supervision depends upon the efficiency of the supervisor and the number of sub-ordinates to be supervised. It is cleared from the above table that the number of relationships is increased correspondingly with the increasing number of sub-ordinates. The effectiveness of the supervision decreases if the number of relationships or sub-ordinates is increased. So, the management should fix the number of sub-ordinates to each supervisor according to the nature of work. If the management does so, it can get good results i.e., effective supervision.
Organizational charts and manuals are created to describe the structure of an organisation. These are used as management control tools. They provide comprehensive information on a company. The chart and guides help an executive figure out where he fits within the organization’s hierarchy. It demonstrates an executive’s power and accountability. He is aware of his superior, for whom he is accountable, as well as his subordinates, whom he must manage.
Meaning of Organization Chart
Organizational charts and manuals are visual representations of an organization’s connections and actions.
Definition of Organization Chart
“An organisation chart is a diagrammatic portrayal of the or structure of an organisation,” says J. Batty. The framework identifies”
“An organisation chart is a diagrammatical form that depicts the main components of an organisation, such as the primary functions and their respective relationships, the channels of supervision, and the relative authority of each employee who is in charge of each separate function,” says Terry.”
“An organisation chart depicts administrative position and relationships in a firm or a department unit,” writes Henry H. Albens.”
“An organisation chart is a sort of document reflecting the formal organisational connection that executives seek,” says Mc Farland.”
According to Louis A. Allen, “The organisation chart is a visual representation of organisational data. Snap-shut organisation charts simply display the official organisation and reflect it for a specific time period.”
The basic organisational structure and authority flow.
Responsibilities and authority of different executives
The interaction between the cops on the front lines and the officers on the staff.
The names of the organization’s components.
The numerous office personnel’s positions.
The number of people employed by a company.
Organizational structure, both current and prospective.
Promotional methods
The demands of management advancement.
Information about your salary.
When developing the organisation chart, extreme caution should be used. All important details should be included in the organisation chart, but extraneous details should be avoided. A good organisation chart should include accuracy, clarity, and simplicity as some of its core traits.
Types of Organization Charts
Vertical Chart: The command lines run vertically from the top level to the lowest level. This vertical graph is a vertical chart. Many businesses use this style of organisational chart.
Horizontal chart: The differences between vertical and horizontal charts are minor. A horizontal chart refers to a chart in which the command lines run horizontally. The supervisor is on the left side of the chart, while the subordinate is on the right side. In no organisation, this style of chart is often used.
Concentric chart: This chart is also known as a circular chart. The top executive’s position is shown in the chart’s centre. The chief executive’s subordinates are shown in all directions outward from the centre. It deduces the status of several levels of subordinates and clearly illustrates each individual’s duty. It is the most accurate picture of the relationships that exist among workers in a company hierarchy.
Organization charts are separated into two types; master and supplemental charts: Master and Supplementary charts, for example. The Master chart is a diagram that depicts the complete organisation. It provides a clear image of the organisation and its primary parts or divisions. Supplementary chart or Unit chart is a chart that depicts a specific portion or division of an organisation. It depicts the specifics of the connection, power, and responsibilities within the given region.
Chart Revision
The term “chart revision” refers to keeping the chart current with the organization’s structure. Whenever changes occur in the organisation, the chart should be updated; otherwise, the chart will become outdated. It is important to remember that the chart must accurately depict the organisational structure. Management might delegate responsibility for keeping the charts up to date to an individual. He is in charge of updating and maintaining the organisational charts.
Principles of Organizational Chart
Top executives observing lines of authority: When interacting with subordinates, top management should observe lines of authority. The lines of power should never be crossed by senior executives. The executives will not be required to hold their employees accountable for their job if they are bypassed. As a result, executives should follow the lines of power while issuing instructions or obtaining information.
Subordinates observing lines of authority: When interacting with superiors, subordinates should be aware of the lines of authority. Whatever information the subordinates want, they should get it by following the lines of power. If there is a failure in this area, the subordinates’ loyalty will be questioned, and there will be a lack of coordination among the subordinates.
Defining lines of authority: Each individual’s role within an organisation should be clearly specified. The personnel should be guaranteed that no overlapping will occur, and that no two people will be assigned to the same post if their authority and duties vary.
A person should not be forced to work for two masters for the same job.
Avoid a single site of job concentration: All work, or the majority of labour, should not be focused on a single location. Work should be separated based on each worker’s roles and responsibilities, as well as their administrative relationships with others.
Organization charts should take precedence over personalities: A person should not be awarded a job only because he is the son or cousin of one of the organization’s top executives. Individuals should be given greater importance.
Basic and adaptable: The organisational chart should be simple and adaptable to the needs of the average person. The size and nature of the organisation may evolve throughout time. As a result, frequent changes to the organisational hierarchy may be required. The current organisational chart should then allow for these changes.
Benefits / Advantages of Organsiational Charts
They provide a clear image of the organisation in a straightforward manner.
They provide a quick overview of the degrees of power and relationships that exist among personnel.
When creating an organisational chart, dual reporting connections and overlapping jobs become apparent.
Work instruction is simplified.
Newly recruited employees are aware of their function in the company and act appropriately.
A flow chart is a good place to start when considering organisational changes.
Organization charts are used to analyse an organization’s strengths and flaws.
Organization charts serve as reliable information sources.
A person who creates an organisation chart has a full understanding of the organisation and can provide the finest image of it.
The organisation chart’s lines of power and responsibility are clear and official.
The organisation chart will help you understand the promotion lines.
The management’s major role is planning. Planning is aided by organisation charts.
Organization charts facilitate internal and external communication.
The organisation charts detail the proper ways for monitoring and balancing the organisation.
The extent to which each employee contributed to the organization’s success may be determined. This identification is based on the organisation charts.
While drawing the organisation chart, look for hurdles to the management’s effective operation.
Outsiders to the organisation can quickly grasp the functions of each department in an organisation chart.
Organizational conflicts may be resolved with the aid of management.
Limitations / Diadvantages of Organisational Charts
The majority of organisational charts resemble snapshots captured in a flash.
The organisation charts exacerbate the rigidity of the relationships that exist among the company’s personnel. date.
Keeping and ensuring the organization’s integrity is quite challenging. The company’s workers are adamant about not putting up with the organisational changes.
The organisational charts fail to depict the informal relationships that exist among the organization’s employees.
If the charts aren’t properly constructed, they might lead to erroneous conclusions.
In an organisation chart, there is no distinction between line officers and staff officers.
The organisational charts create a psychological complex in the minds of workers, such as superiors, inferiors, and so on.
Following the too simplistic organisational structure might lead to the formation of a misleading image.
The organisational chart shows a connection that does not exist among the workers.
Varied people have different interpretations of the terms and lines used in organisational charts.
Organizational Manuals
A document created in an organization to provide information about a specific organization is known as an organization handbook. This guidebook includes a short history of the organisation. It’s frequently printed as a little pamphlet. Anyone with a basic understanding of the organization’s details or information may readily get access to it. This sort of organization manual is often created with the goal of developing a strategic plan for the company and offering direction on how to manage the company’s growth.
Meaning of Organisational Manual
An organisation handbook is a short book that provides information on the organization’s structure, roles and responsibilities of each position, job descriptions, salary, and existing relationships among members, as well as organisational processes and techniques.
Contents of Organizational Manual
The organization’s full name and address.
The organization’s phone number.
The location of the branch office
If applicable, the showroom’s address.
The names and addresses of the senior executives.
If there are any showrooms, their addresses should be included.
A short description of the organization’s structure.
The organization’s most important divisions or departments.
Executives’ duties and responsibilities
Information on the command’s unity.
Policies and procedures governing leave, promotion, and transfer, among other things.
Accounting, costing, and other accounting procedures
A timeline of the management’s major choices.
Forms for collecting specimens at the office.
Organizational charts of a company.
Benefits / Advantages of Organisational Manual
In various ways, a well-prepared organizational handbook serves the organization the most. The following are some of the benefits:
The organization’s personnel can receive a clear image of the organization.
Employees obey the blueprint rules and regulations, reducing the amount of regulating work.
The management’s choices are presented in a detailed way. It makes the organization’s operations run more smoothly.
The standard processes and procedures to be followed in an organisation are included in the organisation’s manual. The organization’s objectives are then readily met.
The organization’s employees are chosen, positioned, promoted, and developed only on the basis of the information contained in the organization’s handbook.
An organization handbook assists new employees in quickly learning their jobs, responsibilities, and interpersonal interactions.
An organization’s senior leaders may make rapid choices by consulting the guidebook.
There are no spoken instructions in the organization handbook. With the aid of the organization handbook, the drawbacks of oral instructions are avoided.
The use of an organizational handbook helps to prevent organizational disputes.
The organization manual may be used to modify the structure of the organization in the future. If the necessity arises, these adjustments may be made.
It improves the organization’s goodwill and compassion for outsiders.
Limitations / Disadvantages of Organisational Manual
There are certain drawbacks to using an organization handbook. Here’s a quick rundown of what they’re all about:
The organization guidebook will quickly become obsolete. It’s because of the business’s constant adjustments, as well as employee behavior and other factors.
Human interactions are established and stated in the organization handbook, but they cannot be followed in practice in a company.
Organizational manuals are not reviewed on a regular basis. As a result, the essential modifications aren’t reflected in the organization’s handbook.
Creating an organisational handbook raises the organization’s administrative costs.
Keeping the organisation handbook up to date takes a lot of effort.
The processes outlined in the organization’s handbook should be followed by all personnel. It lowers the organization’s individual initiative.
The ability to make judgments that direct the actions of others is known as authority. Delegation of authority helps to the establishment of an organisation. No single person can fulfil all of an organization’s responsibilities.
It is necessary to transfer power and follow the rules of division of labour in order to complete the task on time. Delegation allows a person to expand his sphere of influence beyond his own time, energy, and expertise.
DEFINITION OF AUTHORITY
Henri Fayol, “Authority is the right to give orders and the power to exact obedience.”
Kootnz and O’Donnell, “Authority is the power to command others to act or not to act in a manner deemed by the possessor of the authority to further enterprises or departmental purposes. “
Terry, “Authority is the power to exact others to take actions considered appropriate for the achievement of a predetermined objective.”
According to Barnard, “Authority is the character of a communication (order) in a formal determining organisation by virtue of which it is accepted by a contributor to or member of the organisation as governing the action he contributes; that is, as governing or determining what he does or is not to do so far as the organisation is concerned.”
Daris defines authority as the “right of decision and command.”
Louis Allen, “The sum of the powers and rights entrusted to make possible the performance of the work delegated.”
Simon, “The power to make decisions which guide the actions of another. It one superior, the other subordinate. The superior relationship between the individuals frames and transmits decisions with the expectation that they will be accepted by the subordinates. The subordinate expects such decisions and his conduct is determined by them.
Dr. Paterson defines it as, “the right to command and expect and enforce obedience.”
Strong says, “Authority is the right to command.”
Massie defines, “The formal right to exercise control.”
Tannenbaum defines, “The concept authority describes an interpersonal relationship in which one individual, the subordinate, accepts a decision made by another individual, the superior, permitting that decision directly to affect his behaviour.”
CHARACTERISTICS OF AUTHORITY
1. Basis of getting things done: In an organisation, authority confers the ability to do things and influence the behaviour of other employees. It causes specific tasks to be performed automatically in order to achieve the set objectives.
2. Legitimacy: Superiors have a legal right (within the organisation) to exercise authority. This form of right comes as a result of an organization’s tradition, custom, or acknowledged authenticity standards.
A manager’s ability to influence his subordinates’ behaviour is granted to him through an organisational structure.
3. Decision-making: An authority must be able to make decisions. The manager has the authority to order his subordinates to act or not act. The manager makes this sort of judgement on the operation of an office.
4. Implementation: Implementation has an impact on the personality traits of the manager who has authority. When it comes to implementing decisions, subordinates or groups of subordinates should follow the manager’s directions. A manager’s personality may differ from that of another manager.
SOURCES OF AUTHORITY
There are broadly three theories regarding the sources from which authority originates. They are:
1. The formal authority theory.
2. The acceptance of authority theory.
3. The competence theory.
Brief explanations of the above three theories are given below:
1. The Formal Authority Theory: According to this view, authority flows through an organization’s structure from top to bottom. To put it another way, authority goes from the General Manager to his departmental manager, who then passes it on to his superintendent and so on. This is seen in the diagram below.
Traditional Authority Theory and Top Down Authority Theory are additional names for Formal Authority Theory. In a public limited corporation, the power is in the hands of the shareholders, who delegate their authority to top management, who then delegate a portion of that authority to middle management.
2. The Acceptance of Authority Theory: This hypothesis was proposed by Chester Bannard. According to this notion, when the subordinates acknowledge the superior’s authority, it flows from the superior to the subordinates.
The superior does not have the authority to compel the subordinates to accept it. If subordinates refuse to obey their superior’s orders, the superior cannot be considered to have control over them.
According to Bannard, “An individual will accept the exercise of authority if the advantages accruing to him from accepting plus the disadvantages accruing to him from not accepting exceed the advantages accruing to him from not accepting plus the disadvantages accruing to him for accepting and conversely, he will not accept the exercise of authority if the latter factors exceed the former”.
A superior’s authority is only effective when the subordinate is willing to accept it, and it is ineffectual when the subordinate is unwilling to accept it. The subordinate will not examine each and every command issued by the superior before deciding whether or not to accept it.
In reality, the subordinate readily accepts some superior directives. Zone of acceptance refers to when a subordinate accepts a superior’s direction without reservation.
Zone of acceptance will be determined by a number of factors:
1. The subordinate is under the impression that he will be rewarded for his efforts and abilities.
2. Sincere subordinate services to the organisation will be rewarded.
3.In a certain scenario, a subordinate believes he must accept authority.
4. If a subordinate refuses to accept authority, he or she will be fired from the company.
5. It is also tolerated since a guy may have specialised expertise.
6. It is acceptable since a subordinate understands his position inside the organisation.
7. Accepting authority is the only option offered.
8. It is the subordinate’s responsibility or the organization’s policy to impose authority.
9. People trust the individual who is issuing commands.
3. Competence Theory: This form of authority is given to people because of the position they hold. The personal strength of this sort of person is built on the individual’s leadership characteristics. Only one individual in an organisation rises to a higher position over time due to his leadership skills.
DELEGATION
It is difficult for one individual to do all of the work in an organisation and accomplish the organization’s goals. Similarly, a single individual may not be endowed with all decision-making authority, which is a developing worry. As a result, the superior delegated power and assigned duties or obligations to his subordinates.
MEANING
Delegation is the process of assigning work to others and granting them sufficient power to do it.
DEFINITION
Louis A. Allen, “Delegation is the dynamic of management, it is the process a manager follows is dividing the work assigned to him so that he perform that part which only he, because of his unique organisational placement, can perform effectively and so that he can get other to help them with what remains”.
Mc Farland, “Delegation is the primary formal mechanism by which the net work of authority relationship is established”.
E.F.L. Brech, “Delegation means, in brief, the passing to others to share in the four elements of the management process that is to say, in the command of the activities of other people and in the responsibility for the decision that will determine the planning, coordination and control of the activities of such other people”.
Terry, “Conferring authority from the executive or organisational unit to another in order to accomplish particular assignments”.
Hodge and Johnson,”A process whereby a superior divides his total work assignment between himself and subordinate managers or operative personal in order to achieve other operative and management specialisation.”
Dougcas C. Basil, “Delegation consists of granting authority or the right to decisionmaking in certain defined areas and charging the subordinate with responsibility for carrying through an assigned task”.
IMPORTANCE OF DELEGATION
One of the most significant ways for educating subordinates and instilling morale is delegation. The manager may focus on the crucial tasks of planning, organising, and controlling thanks to delegation of authority.
Delegation is a global activity; everywhere humans operate in groups, they practise one form or another of delegation. Members of the legislatures in our democratic India delegate their authority to the people.
Members of legislatures delegate their power to any of the elected leaders, who in turn delegate portion of their power to the cabinet ministers he chooses.
A person can complete a variety of simple and sophisticated tasks. Delegation allows a person to not only fulfil his or her responsibilities, but to do it efficiently and successfully. There is no other option for a company unit with several branches in various locations besides delegation.
Delegation of power is widely considered as one of the most reliable and effective techniques for achieving improved results. A smart boss may use delegation of power to motivate employees and eliminate inefficient information systems.
ELEMENTS OF DELEGATION
1. Assignment of duties or responsibilities: This task is only done when a superior does not have time to complete all of the work. The job of duty is automatically assigned by the superior to his immediate subordinate.
2. Delegation of authority: If the job is delegated to a subordinate, authority will be required to complete it. Following the delegation of authority, the subordinate might be given powers to do duties in a timely and orderly manner.
3. Accountability: Accountability refers to a subordinate’s responsibility to his immediate superior. If a subordinate makes a mistake or makes a mistake, the subordinate should assume responsibility for it.
If the task is not completed according to the superior’s directions, the assignment may be given to the subordinate in some instances. The superior (the one who delegated responsibility) is accountable to management, while the subordinate is not (to whom authority is delegated)
PRINCIPLES OF DELEGATION
1. Delegation to go by results expected: The scope of delegation of power is on par with the type of responsibility. It is important to emphasise that the organization’s objectives must be met on time. Before delegating authority, the superior should be explicit about what he expects from the subordinate.
2. Non-delegation of responsibility: Although a superior can assign power, he or she cannot delegate culpability. Assigning responsibilities is not the same as delegating responsibility.
The boss should keep in touch with his or her employees to see if responsibilities are being completed and authority is being exercised effectively. The superior retains ultimate accountability for the execution of responsibilities.
3. Authority and responsibility should commensurate with each other: If adequate delegation of power is in place, a subordinate may do his job successfully and efficiently; otherwise, the prescribed work will not be completed. Without accountability, the subordinate will become reckless.
Similarly, giving a subordinate responsibilities without authority will make them ineffective. As a result, there must be an appropriate balance of power and accountability person.
4. Unity of command: The unity of command concept states that a subordinate should receive instruction from only one superior. In other words, a subordinate should have just one superior assign him duties and responsibilities, and he should report solely to that superior.
When a subordinate receives commands, instructions, and directions from many superiors, the organisation becomes unsure and confused. In this case, the subordinate will have a hard time deciding which instructions, commands, or directives to follow first.
5. Definition of limitations of authority: A person is well aware that only an authority may effectively assign authority. There should be written guides that guide people in the proper path when it comes to understanding authority. This will eliminate any doubt about authority delegation and allow the concerned individual to perform effectively.
TYPES OF DELEGATION
A brief explanation of the different types of delegation is given below:
1. General.
2. Specific.
3. Written.
4. Unwritten.
5. Formal.
6. Informal.
7. Downward.
8. Accrued.
9. Sideward.
1. General delegation: Granting authority to a subordinate to execute numerous administrative responsibilities and exert control over his subordinates is known as general delegation. At the same time, senior management regulates and supervises the same individuals.
2. Specific delegation: The commands, instructions, or directions are assigned to a specific individual under specified delegation. For example, the Employee Manager may be given power for personnel selection, training, and placement, among other things.
3. Written delegation: Written directions, instructions, and other forms of delegation are used in this sort of delegation. This form of delegation necessitates the right use of language.
4. Unwritten delegation: The term “unwritten delegation” refers to authority derived by custom, conversion, or use. There is no evidence for future reference in this case.
5. Formal delegation: The enterprise’s organisational structure displays the tasks and authority. The production manager, for example, is given the obligation and power to maintain and expand output.
6. Informal delegation: In some instances, a person must exercise power without seeking permission from upper management. The reason for this is that he can efficiently complete his given tasks on time.
7. Downward delegation: When a supervisor may assign tasks and power to his immediate subordinate, this is known as downward delegation. The majority of businesses use this kind of delegating.
8. Accrued delegation: A subordinate might delegate his power to his immediate superiors under this form of delegation. It happens infrequently in businesses.
9. Sideward delegation: A person delegated responsibility to another individual in the organisation who has the same rank as him.
ADVANTAGES OF DELEGATION
Delegation of authority improves the organisation in a variety of ways. Some of the most important advantages of delegation of authority include:
1. Basis of effective functioning: Delegation is the foundation for an organization’s efficient operation. It establishes relationships with people and fulfils the organization’s varied goals. It establishes relationships with people and fulfils the organization’s varied goals.
2. Saving of time: Delegating power allows a superior to devote more time to vital tasks like as planning, organising, staffing, directing, co-ordinating, regulating, and making decisions.
3. Reduction of work: Delegation relieves the superior of mundane responsibilities. Routine tasks are usually delegated to subordinates. It allows the superior to do more responsible tasks on their own.
4. Opportunity for development: Delegating authority provides a fantastic chance for the subordinate to develop. It assists in finding the ideal individual for development among the numerous subordinates.
5. Benefit of specialised service: Delegation allows a superior to profit from the specialised expertise of those at lower levels. For example, the production manager is in charge of production, the sales manager of sales, the lawyer of legal affairs, and so on.
6. Delegation of authority enables effective managerial supervision
7. Efficient running of branches: If the firm has a branch, the affairs and activities of that branch are managed by a separate individual. This branch is supposed to be under his control. If he is given enough power and responsibility, he could endeavour to guarantee that the branch runs smoothly and efficiently.
8. Interest and initiative: Whenever authority is delegated, the subordinate may be eager to complete the task. In certain circumstances, the subordinate takes the initiative to complete the task.
9. Satisfaction to subordinates: Individuals’ needs for self-actualization will be met via delegation of authority.
10. Expansion and diversification of business activity: By delegating responsibility, subordinates are properly taught in making decisions in numerous areas of the business. Top management might leverage this sort of subordinate talent to expand and diversify the company’s activities.
PROBLEMS OF DELEGATION
Every boss is required to transfer some of his responsibilities and obligations to his employees. A single individual cannot complete all of the tasks. As a result, delegation is a critical organisational attribute. Only when there is a good balance between superior and subordinate impulses can adequate delegation of power be created.
I. HESITATION ON THE PART OF SUPERIOR
1. Perfectionism: Many supervisors believe he is superior than others. To some extent, this is correct. The reason for this is because the superior may have had prior experience and established a level of ability in doing so.
A boss who follows such a technique is not a dedicated employee of the company. By delegating power, he should allow the subordinate to grow his skills.
2. Autocratic attitude: Some superiors would rather keep their authority. These individuals do not believe in delegation of responsibility and meddle with their subordinates’ limited authority.
3. Directions: Many supervisors are incapable of leading their followers. The superior’s orders may be misinterpreted by subordinates. The superiors are then unable to obtain the required efficiency from the subordinate.
4. Confidence: Superiors often lack trust in their subordinates. Because life in society cannot be lived without relying on others, each superior is required to transfer his powers to his subordinates.
The superior will not acquire experience via delegation of authority if the delegation is not made. On the basis of the success of the transfer of authority, confidence is progressively established.
5. Control: His subordinates are under the command of the superior. He wants to maintain control over his subordinates and the significance of his position.
As a result, he is hesitant to delegate his power. Furthermore, the superior fears that if he delegated his power, he will be subjugated.
6. Avoidance of risk: The transfer of authority to a subordinate may pose a risk. Whatever the danger, the superior will have to bear responsibility for it. However, only a few executives are willing to take the risk.
7. Competition: By utilising delegation of authority, subordinates learn far more than their superiors. As a result, more talented individuals emerge than the superior. The superior is not pleased, and he will avoid competition in the future.
8. Inability of the subordinate: The subordinate is incapable of accepting new assignments. Knowing this, the superior is hesitant to delegate authority.
9. Inability of the superior: If the superior is inefficient, the work methods and processes he devises are likely to be flawed. As a result, the superior wishes to retain complete control.
II. HESITATION ON THE PART OF SUBORDINATES
Even when the superiors are enthusiastic about delegation, the subordinates are not always eager to accept it. The following are the reasons why subordinates refuse to accept authority:
1. Love of spoon-feeding: If a subordinate is given the opportunity to make a decision, he may not want to do so.
2. Easier to ask: It is generally easier for subordinates to ask their superiors for an answer than to research it themselves. Some bosses will only accept one answer to an issue and leave it up to their employees to figure out the rest. In this case, a subordinate does well and approaches his superior for assistance.
3. Fear of criticism: A subordinate may be afraid that his superior would condemn him even if he makes a little judgement error. This stifles the subordinate’s initiative and severely undermines his self-esteem.
4. Lack of information (or) resource: Due to a lack of information or resources to do the task properly, a subordinate may be hesitant to take additional work.
5. Lack of self-confidence: One of the causes for not accepting authority is a subordinate’s lack of self-confidence.
6. Other work:Subordinates may believe that they will be unable to do any new work in addition to their current responsibilities. Subordinates believe that accepting power will compel them to accept greater labour in the future.
7. Inadequate incentives: If there is no personal advantage in accepting power, a subordinate may not come forward.
8. Fear of failure: Some subordinates are afraid of failing, thus they refuse to take on further duties.
EFFECTIVE DELEGATION
The superior’s goal is to practise and encourage delegation in order to achieve the organization’s goals more efficiently. As a result, the type and substance of each task must be objectively analysed to determine which jobs may be delegated to subordinates.
Subordinates are typically entrusted with modest and regular tasks. The superior is unwilling to conduct even mundane tasks, however there are some tasks that cannot be delegated, such as budget preparation, policy formation, and rule and regulation creation.
STEPS INVOLVED IN SUCCESSFUL DELEGATION
1. Establishment of definite goals: The goal of delegation is to make achieving organisational goals more efficient. However, delegates are useless unless the goals are well established. If subordinates are unclear about what is expected of them, they may be hesitant to accept leadership.
2. Developing personal discipline for supervision: Superiors should have trust in their subordinates’ abilities and be willing to overlook their faults. Then, for effective performance, every subordinate will be willing to accept authority.
3. Establishment of definite responsibility: Each subordinate’s power and responsibilities should be stated clearly. This will prevent delegation duplication.
4. Motivation: Subordinates are willing to assume responsibility if they are properly motivated. Increased salaries and other incentives may be used to motivate employees.
5. Determining what to delegate: This will involve a review of people’s capabilities and work requirements. Only delegated authority that is appropriate will be examined.
6. Training: Delegated work should be handled by subordinates who have been appropriately trained. Subordinates should get both technical and non-technical training. Non-technical training covers the development of subordinates’ morale, confidence, and leadership abilities.
7. Report: The subordinate is expected to produce a report after any delegation of authority. Only in this way will the superior be liberated from authority roles and able to focus on more vital tasks.
8. Control: Even after delegation of authority, the superior is held accountable to the top management. As a result, a proper control system must be established to keep a close eye on subordinates’ performance. If a variation from the specified processes is discovered, the superior should move quickly to fix it.
PRE-REQUISITES FOR EFFECTIVE DELEGATION OF AUTHORITY
After learning the following conditions for effective delegation, a supervisor can assign his authority:
1. The supervisor must be aware of their own power and responsibility.
2. Supervisors must decide how much authority they wish to grant to their subordinates.
3. The supervisor should have a full understanding of the subordinates’ strengths and limitations.
4. The supervisor must guarantee that the delegated job has been understood and carried out correctly.
5. Only regular functions should be delegated to subordinates by the supervisor.
6. The supervisor must recognise the relevance, necessity, and value of delegating.
7. Work that may be completed independently should be delegated by the supervisor.
8. The supervisor must discourage the subordinate from making decisions on their own.
9. The supervisor must provide his subordinates decision-making authority.
10. Within the organisation, there should be an adequate communication network.
11. A precise description of the standard of responsibility should be established.
12. Delegation must be done in conformity with the project’s overall strategy for completion.
13. The delegation of authority should be limited to the structure of the organisation.
COMMON FAULTS IN DELEGATION
1. Close supervision: Even after devolution of authority, the supervisor must oversee his subordinates. If there is no tight monitoring and subordinates are not made to operate independently, the benefits of delegation of power will not be available to the organisation.
2. Lack of direction: The supervisor fails to provide his employees proper instructions. It puts subordinates in a situation where they have no idea what is expected of them.
3. Lack of accountability: Supervisors are unable to monitor the efficient utilisation of assigned labour. This is a significant disadvantage for the superior. As a result, the subordinates develop a sense of irresponsibility.
DECENTRALISATION
Decentralisation refers to the fact that each sector of the department has its own staff to carry out tasks. These services will not be provided by a general office. Decentralisation is assigning different workers to each department to handle duties that cannot be centralised.
ADVANTAGES OF DECENTRALISATION
1. Savings of time: The departmental officers are responsible for all paperwork related to the business’s fundamental operations. Decentralization allows department employees to finish their task ahead of schedule.
2. Greater efficiency and ouput: A department’s employees are knowledgeable about the technology used in that department. As a result, they may be able to improve their efficiency. Increased efficiency leads to increased output while lowering costs.
3. Maintenance of secrecy: If the business’s secret is compromised, the organisation may suffer a loss. Following that, under decentralisation, if a distinct department is charged with maintaining secrecy, the loss may be prevented and secrecy can be maintained.
4. Departmental loyalty: Staff who have been with a department for a long time acquire a sense of loyalty to the department. It leads to an increase in productivity and an improvement in the individual’s performance.
DISADVANTAGES OF DECENTRALISATION
1. No proper division of work: The organization’s workload cannot be evenly distributed among its departments.
2. Duplication of work: When the same sort of work is conducted in many departments (duplication of work), distinct machinery and equipment are employed to complete the activity.
3. No standardisation: There is no way to implement a consistent method across all departments to conduct the same sort of job. Furthermore, it creates challenges in each department’s selection and training.
4. Heavy expenditure: This department will require a huge number of employees and managers. It leads to a rise in operating costs.
RESPONSIBILITY
The superior-subordinate connection is always the source of responsibility. Obligation is at the heart of obligations. When a person is entrusted with a task, he should be held accountable for the results.
MEANING
The requirement to perform anything is defined as responsibility. In other terms, accountability is the obligation to carry out the organization’s activities, functions, or assignments.
DEFINITION
Theo Haimann, “Responsibility is the obligation of a subordinate to perform the duty as required by his superior”.
Davis, “Responsibility is an obligation of the individual to perform the assigned duties to the best of his ability under the direction of his executive leader”. Strong, “Responsibility is an obligation to perform certain functions and achieve certain results”.
Mc Farland, “Responsibility is the duties and activities assigned to a position or to an executive”.
ELEMENTS OF RESPONSIBILITY
It is the result of a superior-subordinate relationship
It is the product of a legal arrangement.
The obligation cannot be delegated to another person.
Acceptance of authority creates it.
There is a sense of responsibility.
The responsibility might be broad or narrow.
Being responsible is a never-ending task.
For an organisation to function effectively, power and responsibility must be delegated. Without authority, responsibility is a hollow vessel. Authority without accountability is extremely hazardous. An individual need both authority and accountability.
